What WestEnd Capital Does Not Do

• Does not invest automatically in positions that are institutional favorites:
  • Typically they are over owned favorites of the past that do not perform well in the future. i.e. Merck
  • Precludes the manager from investing in the growth names of the future.
• Invest in catalyst-driven ideas with limited upside, large downside e.g., risk arbitrage, earnings announcements.

• Invest in “value traps” without the potential for a catalyst.

• Mimic the S&P for investment purposes.

• In 2004 energy was less than 7% of the S&P component. It is now roughly 10%. WCM initiated its energy exposure in 2003 at over 12%.

• Invest for a less than a 2-3 year time horizon. There are times when stocks correct. The smaller the time horizon, the lower the probability one has to outperform the market.

• We do not invest all your money in one day like many other firms might.

• Invest in things we do not understand