FUNDAMENTAL RESEARCH We integrate fundamental analysis to establish risk/return profiles along with disciplined valuation techniques.

TRADING + LIQUIDITY As ideas are formulated, screens are run, algorithms modeled to determine how, when and how much each individual investment will become as part of the overall portfolio. Determining the investment horizon and the velocity at which capital will be deployed, ideal risk/return profiles are established. There is complete coordination with our trading desk to take advantage of trading dislocations and supply/demand imbalances.

SECTOR Regardless of overall market conditions and within the sectors we invest in, LRG Capital Group understands that dynamic information comes out daily which changes a company’s long or short-term fundamentals. On a static basis, the value of a business is determined by its core fundamentals. Keeping this information in front of us constantly helps maintain a controlled portfolio regardless of our sector concentrations.

LEVERAGES + CREDIT RISK The portfolio manger may choose to hedge positions. Leverage and/or swaps are only used on fully hedged positions to maximize returns and minimize risk. Proprietary credit screens are run at the portfolio company level factoring in portfolio company leverage ratios, potential asset degradation and depreciation and viability of current assets.

OPERATIONAL RISK LRG Capital Group has spent enormous time and money developing internally a customizable, expandable platform for trade capture and reporting. It is imperative for the success of our investors to have zero tolerance for avoidable operational issues.

PORTFOLIO RISK Our internal system for portfolio composition continually runs analysis on a number of “what if” scenarios. If any of these “what if” scenarios approaches an outlying acceptability range, triggers are immediately sent to the investment team for immediate discussion. This also tests hypothetical ideas/transactions and allows to back test where appropriate.