At Penbrook Management, we take a unique approach to investing that emphasizes a quality/value strategy firmly rooted in fundamental analysis. We take a multi-industry view, investing in companies with long term growth potential, but whose stock price is down due to what we believe are short term issues, misperceptions, or the market’s rotation elsewhere.

Our investment process is designed to identify and invest in companies that have the potential to deliver strong returns for our clients. This process includes:

• Identifying areas of the market that will benefit from secular trends and the investment capital that will follow.

• Closely examining the quality of earnings and the probability of realizing EPS estimates, rather than relying on PE ratios alone.

• Conducting fundamental research on each company, including a strong focus on balance sheets.

• Developing a differentiated view on revenue and margin growth.

• Identifying near term catalysts that we believe will help the stock price more closely align with its intrinsic value.

• Prioritizing visits with management to gain a deeper understanding of the company and its operations.

We believe that our focus on quality/value, growth at a reasonable price (GARP), strong balance sheets and earnings prospects, secular tailwinds, and strong management teams, sets us apart from other investment firms. This approach has helped us to identify and invest in companies that have the potential to deliver strong returns for our clients over the long-term.