Vilas Fund,

LP

Fund Investment Objectives

Invest in companies that we believe are undervalued and hold them until the market recognizes the value we see. We look for companies who have strong balance sheets, shareholder-oriented management teams and competitive product or service offerings, yet are selling at a significant discount to what we think is a fair value. At the same time, if we find shares of companies that we believe are extremely overpriced relative to their long-term prospects, we may decide to sell those shares short as a way to increase return and dampen portfolio volatility.