Pathfinder

Three Core Principles:

1. High-Quality Company Selection

• Financial strength: return on invested capital, free cash flowFree cash flow (FCF) is the cash a company has left over after paying for its operating expenses and long-term asset investments. generation, balance sheet quality
• Competitive positioning: durability of a company's advantages within its industry
• Management discipline: a demonstrated record of effective capital allocation
• Valuation assessed relative to discounted cash flow, historical multiples, peers, and the overall market

2. Large-Cap Focus, With Flexibility

• Primarily companies with market capitalizations above $8 billion
• May invest in smaller-capitalization companies when a compelling opportunity exists and sufficient liquidity is present
• Non-diversified: the Fund may hold a smaller number of positions than a diversified fund, so any single holding can have a greater impact on performance

3. Concentrated Conviction (15-30 Holdings)

• Meaningful position sizes in highest-conviction ideas
• Deep understanding of each business
• True differentiation from benchmark indices
• Patience to hold cash when opportunities are limited

Investment Process:

Starting with 15,000+ US securities, we narrow to ~200 quality companies, conduct deep research on ~75, and build a final portfolio of 15-30 companies that meet our rigorous criteria for quality, compounding potential, and compelling value.

Sell Discipline: We sell when: price targets are reached, business quality deteriorates, returns on capital decline without recovery path, or better opportunities emerge.

Key Differentiators

What Sets PFOE Apart:

• Concentrated Conviction: 15-30 holdings maximize impact from highest-conviction ideas
• Benchmark-Agnostic: No index constraints - we invest where we find the best opportunities
• Forward-Looking Analysis: Focus on future potential, not historical results
• Client Alignment: Founder invests alongside clients with complete transparency

Performance

PFOE's concentrated, opportunistic approach is designed to compound capital over full market cycles through focused portfolios of quality businesses.

Target Outcomes:

• Superior risk-adjusted returns through concentration in best ideas
• Long-term capital appreciation with patient holding periods
• Downside protection through quality focus and disciplined selling

Important: Past performance, including backtested results, does not guarantee future results. Backtested performance is hypothetical and has inherent limitations.