Capital, LP

Fund Investment Objectives

The Fund is an activist investor focused exclusively on the banking industry with a goal of actively participating in the long-term consolidation of the industry and benefiting from the inherent profitability of banks/thrifts (many banks/thrifts consistently earn 15-20% ROEs). Bank/thrift stocks pay above average dividends and also sell for discounted PE multiples compared to the overall market, despite superior fundamentals. The Fund strives for 20%+ annual returns (net) by targeting a select group of banks/thrifts that sell at a discount to their inherent value and then pushing for change by activist means (proxy contests, etc.). Fund is generally 60-80% net long. The Fund is consistently less volatile than the overall market and returns have been consistent. The Fund is value oriented and generally generates long-term capital gains due to average holding periods of 12-36 months.