Small Cap Value Sell Discipline

One or more of the following conditions would trigger the sale of a stock:

Value Screening Process: Companies that appear fully valued within their sector or have negative earnings estimate revisions.

Absence of a Near-Term Catalyst: Catalysts include high degrees of insider ownership, stock repurchases, corporate restructuring, change in business mix and acquisition candidates.

Size Limitation: When a stock reaches 3% of the portfolio.

Sector Limitation: When the performance of a stock causes the sector to become over-weighted versus its target weighting.

Deteriorating Fundamentals: When a company experiences excessive margin compression, weakened coverage, incurring debt to cover weak operating cash flow.