COMPANY PROFILE

Investment Process

K2's absolute return investment process is unique, blending comprehensive top-down macroeconomic analysis and bottom-up stock analysis.

At weekly meetings the macroeconomic framework for funds is discussed. The stock selection process is based on key variables of Earnings, Valuations and Management. K2’s team identifies strong/weak earnings trends, isolates stocks which are under/overvalued relative to the sector and makes regular company visits to better understand corporate strategies.

Positions added to the portfolio are grouped into the following categories:

• Trade position: short term catalyst fitting current macroeconomic view of the market
• Core portfolio position: fundamental stock analysis of key variables
• High alpha position
• Short position: momentum and event driven

There are no formal limits on geography, sector or style, giving the investment team flexibility to seek absolute return. K2's investment team is given a degree of autonomy for stock-picking, with each investment manager having their own investment style and methodology. Once a stock is included in the portfolio strict risk management and stop-loss guidelines apply.

The portfolio is monitored live by the investment team through an internally developed system allowing for accurate risk management.