Point Defiance Microcap

Fund, LP

Fund Investment Objectives

The Fund is concentrated, investing long and short in US domiciled or traded stocks with capitalizations below $500 million. The investment process has three stages. Robust idea generation, leveraging a proprietary multifactor model, identifies long candidates likely to be discovered and short candidates likely to be abandoned by institutional money managers. Thorough fundamental research systematically evaluates a company's business model, management, industry, and accounting. Quality control identifies potential mistakes, edge in the stock, and the future events that indicate the thesis for the stock is no longer valid. Point Defiance's risk controls limit portfolio net exposures to multiple characteristics and returns-based risk factors.