The firm’s investment philosophy is value oriented and often contrarian. We apply this view to individual securities, industries, and geographic markets. We select securities based upon our analysis of a company and upon our judgment as to the absolute value of a security and its relative value compared to alternative investments. We take into account investor psychology towards sectors and stocks in our effort to expose undervalued and overvalued industries and individual securities. LSC seeks to provide value by focusing on a combination of sector allocation and stock picking based on a foundation of economic expectations.

LSC’s universe of prospective investments is, by design, broad. Our benchmarks for performance measurement are both the S&P 500, due to its acceptance as a general U.S. stock market barometer, and the Russell 3000 Value Index, due to its broad inclusion of securities. Our investments may include individual securities from both indices, but we will screen other universes for undervalued securities. In addition, we expect to invest in international securities depending on perceived opportunities for investment outside of the U.S.

Our goal is to seek capital appreciation greater than the general market over the ensuing 24 to 36 months. We believe that in the short term, however, stocks react to a series of unpredictable and random events. Catalysts for improved prospects of a company, or a change in investor perception, are difficult to time. Thus, we are patient investors, recognizing it may take years for our investment thesis to come to fruition.