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OVERVIEW We believe the best investment opportunities for realizing outsized returns change over time and are contrary to the most recent, firmly established trends. We think investors must choose to either follow the trend in order to generate market-like returns, while enduring high transaction costs, or invest contrary to trend in search of superior returns. Renaissance has a contrarian investment philosophy and believes the best opportunities now exist in micro- to small-cap public companies that are orphaned from Wall Street with no institutional sponsorship. Aberrational pricing in the public markets often correlates with a disheartened and perhaps uninformed shareholder base, which helps reduce the acquisition costs of public securities or entire companies. We will invest in special situations including mis-priced equity and debt securities in the public markets and take an activist role in enhancing returns. We may, to a lesser degree, sponsor management buyouts of undervalued public companies with high intrinsic value. Renaissance generally looks for temporarily distressed / mis-priced businesses generating positive free cash flow in stable or growing industry sectors where it can apply its operational, strategic and cost savings expertise in concert with company managements. Renaissance and its affiliates will explore joint ventures with other parties that have funding or management interests in pursuing similar investments. Through our broadening business relationships, we are actively sourcing opportunities and deploying our own capital.
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