Camden Small Cap FAQ

1. Who manages the strategy?

   The strategy is co-managed by David Warnock and Shane Kim. David and Shane are supported by Dan Rambert. David Warnock was an analyst and portfolio manager at T. Rowe Price for 12 years. He was the co-manager of T. Rowe's New Horizons Fund.

2. What is the composition and capacity of the approach?

   Our approach is a concentrated portfolio of 30-40 longs, with 5-20 shorts. Over Camden's history, the portfolio has spent a majority of its time with a 70-90% net long bias. The portfolio is diversified across sectors and industries.

   Under our strategy, we believe we can effectively manage up to $200 million of assets. We will then evaluate liquidity effects of the portfolio and reserve the right to expand the portfolio in the future.

3. Can the strategy use leverage?

   Yes, the strategy can use leverage up to 30%, or 130% gross exposure. However, the strategy has rarely exceeded 115% gross exposure, and then only briefly. We believe that good performance is the result of selecting the right firms, not from financial leverage.

4. Do you invest in a tax-efficient manner?

   Yes, the vast majority of our investors are taxable, so we are very mindful of tax consequences. In fact, over 80% of gains in the portfolio since inception have been taxed as long-term.

5. Do you have audited financials for your entire 11-year track record?

   Yes, they are available upon request.

6. What is your policy on illiquid investments?

   Our portfolio strategy has not held any illiquid investments and all securities have been marked to market as reported in the monthly statements from our Prime Broker. The fund may invest up to 20% of its assets in illiquid securities or negotiated instruments. The portfolio anticipates creating a transparent pricing policy upon funding of any such investment.

7. What transparency do you have on the strategy?

   We will share the full holdings of the portfolio on a periodic basis upon request.

8. What size is Camden's investment?

   Greater than $5 million.

9. What are the management fees?

   There is a 1.5% management fee paid quarterly in arrears. There is also a 20% incentive fee paid annually above the high water mark.