Strategy Update Q1 2008

April 2008

2008 started where 2007 left off, with more credit-related turmoil and market declines. Our most adaptable strategy, Dynamic Value, handled the volatility best, outperforming its benchmark by a few percentage points. Conservative Growth also stayed ahead of its benchmark while the other strategies tracked the market fairly closely. The two strategies performed much better than the market because they had virtually no exposure to the sectors that were most strongly affected by the credit problems.

Our strategies are designed to adapt as the situation changes. If the worst of the credit crisis is over, we will see them deploy capital into the sectors that are leading the recovery. If the sell off should continue, they will continue to take a defensive approach and mainly try to avoid the worst sectors.

Performance

Please follow the links under 'strategies' on the left to view monthly returns and a comparison to an appropriate benchmark. Click here for important disclosures on how the returns were calculated.

Conservative Value

The Conservative Value combines the stock selection principles of Dynamic Value with the ranking technology of Conservative Growth. Portfolio picks must have reasonable valuation, positive price movement, and improving outlook.

Quarter-End Holdings