The Fund aims to produce returns in excess of 15%. It invests primarily in stocks with a market capitalization of less than $4bn. The portfolio draws heavily on the 40 years combined experience of the Fund managers, John Hobson and David Grimbley, and consists of a diversified combination of equity investment strategies: directional longs and shorts on both a structural and cyclical basis, relative value within sectors and across borders and special situations. While stock picking is primarily bottom-up, top-down considerations will determine investment themes when appropriate. Gross exposures will typically be in the range of 150-200% of NAV. Net positions are expected to range between short 25% and long 50%. Typically the portfolio will contain between 60 and 90 stocks and position sizes will be between 2% and 5% of NAV, dependent on the liquidity, market capitalization, and perceived riskiness of the stock. Risk management is carried out at three levels. Firstly, we concentrate on understanding our actual market exposure, with an emphasis on positions fully adjusted for correlation and beta. Next, we monitor sector and country risk. Finally, the managers work on the premise that no stock should ever lose more than 2% of NAV. Thus conservative estimates of the worst outcome per stock determine a maximum position size irrespective of the expected return. Additionally we will review any stock that has shown a 10% negative move from its purchase or sale price with the presumption that the position will be reduced.