The decision to sell a company's stock is based on certain events or conditions that no longer make the investment attractive. Reasons for selling include:

• Stock price reaches or approximates its sell target; valuation is full
• Change in a company's strategic direction (e.g., acquisition, spin-off, new business activity, etc.)
• Erosion of fundamentals (e.g., deteriorating financial position, declining margins, weakening revenues)
• A more compelling alternative investment
• Tax considerations

When the current market value of a portfolio company declines 30 percent or more, we thoroughly review the original investment premise and contact company management. If a company's fundamentals continue to satisfy our security selection criteria and we reaffirm management's ability to execute its plan, we will maintain or increase the position. Companies that fail this secondary review will be sold.