Our portfolio management team is organized on a sector basis to capitalize on each portfolio manager’s industry expertise, developed during their corporate and investment careers. Geographic coverage is assigned but considered secondary. The portfolio management team meets formally twice a week to discuss a wide range of investment matters; current holdings are reviewed, progress on new research ideas is reported and industry and geographic trends are discussed. Additions and deletions from the portfolio's "Core" candidate list are made during these meetings. Portfolio changes are made in a collaborative process balancing the marginal return potential with the marginal risk. However, Mr. Scharpf is the lead portfolio manager and is responsible for the final portfolio construction. On a quarterly basis, 3P reviews are conducted by Cheswold Lane’s President and COO.

We do not speculate in foreign currencies; and it would be atypical for us to hedge our foreign currency exposure. Cross-currency hedging strategies are evaluated, but considered only for risk management purposes. Trading is executed by our portfolio managers using both algorithmic and spot market strategies. Securities are transacted on an agency basis, while foreign exchange is executed on a principal basis. We closely monitor our trading costs and execution.