Investment Philosophy The cornerstone of Black Capital Management, LLC`s investment philosophy is that investment results are strongly influenced by each client`s specific objectives and guidelines. Investment objectives can vary depending on an investor`s age, financial circumstances and the willingness to accept risk. Rather than concentrate on quarterly results, the firm`s goal is to generate above-average portfolio performance over time while preserving client`s principal. A disciplined, low-risk, value oriented approach is implemented by the firm. BCM monitors price movements and earnings developments of each security in order to identify those that may be undergoing change. While BCM believes in preserving capital by reducing equity investment exposure during extended periods of market declines, the firm does not believe that portfolios can benefit over extended periods of time from market timing, i.e., swings completely in and out of the equity markets. Therefore, BCM maintains a capital appreciation oriented investment philosophy that is successfully implemented on a consistent, long-term basis. A common failure of investors who do not do well is that they follow no particular approach. Instead, they randomly buy stocks with a story and end up with portfolios that do not meet their long term goals. Expectations must be realistic. A manager cannot provide performance superior to that of the market and most other managers every quarter or indeed every year, nor can the investor expect to realize target returns if the market is undergoing one of its periodic downturns. But longer term, a capable manager should help provide a growth in assets for the investor that corresponds with the risk taken.