Spitfire Fund

LP

Fund Investment Objectives

Spitfire is a value-oriented investor in smaller capitalization companies. We seek out easily understood but neglected equity investments which offer the potential for substantial upside over a one to three year investment period with minimal probability of capital loss. Most of our target investments have no analyst coverage and trade at low absolute multiples of EBITDA, earnings and free cash flow. Our companies typically generate positive free cash flow, possess substantial financial flexibility and demonstrate improving financial metrics. Given the combination of low absolute valuations, debt capacity and improving operating metrics, our companies are often attractive acquisition candidates for strategic and financial buyers. While portfolio construction is generally bottoms up, we monitor the Fund's gross, net, individual company and industry exposures on a daily basis. The inception date for the fund is July 1, 2007 and it was opened up to outsiders January 2009. Performance since inception available upon request.