Knightsbridge Asset Management, LLC phone: (949) 644-4444 | e-mail: knightsbridge@knightsb.com

Philosophy

We believe the best long term returns come from owning quality companies, while also opportunistically taking advantage of mispriced situations. We seek to invest in businesses, not trade stocks. Throughout our track record, we have extensively researched areas of market inefficiency, finding unusual occurrences in the marketplace where pricing may be undeserved and temporarily undervalued.

We conduct ongoing fundamental valuation work in order to identify stocks exhibiting desired discounted valuation relative to peers and historic norms. Stocks purchased also typically operate in out-of-favor industries in terms of performance, valuation and sentiment. Acceptable financial leverage and strong cash flow and revenue per share alongside earnings improvement potential are additional common attributes of purchases. Stocks are typically sold when no longer undervalued or no longer out of favor.

We deploy capital for the long-term (beyond Wall Street’s typical 18 month horizon), seeking an adequate absolute return in a tax efficient manner. Owning quality businesses for the long-term (i.e. 3-5+ years) makes for good after-tax results. We invest where a reasonable starting valuation allows business cash flows, not perceptions, to ultimately drive investment results.

Key attributes associated with the firm’s Opportunistic Value Equity strategy:

- Opportunistic investment across the full range of market capitalization
- Portfolios concentrated among 15 to 25 stocks
- Portfolio construction without regard to any benchmark
- Sector weightings are residual of stock selection
- "Owning" cash as a defensive tool
- Emphasis on after-tax returns where relevant