Philosophy

Steinberg Asset Management's overall investment objective is to create a portfolio of businesses with extraordinary risk/reward profiles designed to limit risk to invested capital and leading to the opportunity for outsized returns. To this end, SAM philosophically believes:

• A focused portfolio of businesses with exceptional reward/risk profiles produces investment success
  
  
• Research conducted from a private investor's point-of-view leads to superior decisions
  
  
• Investments should be made in businesses that you know and understand
  
  
• Companies possessing a "free call" and generating premium cash on cash returns make attractive investments
  
  
• Management determines business success

SAM invests with conviction in its best ideas, taking a long-term investment horizon of 3 to 5 years. The firm emphasizes the importance of capital preservation in its investment analysis and strives to invest in companies that will provide a compelling return on that capital.

When used by SAM in describing its investment philosophy “free call” refers to a future event or transaction that may or may not occur, the value of which is not reflected in a company’s share price.  For example, it could be the potential appreciation of intellectual property or increased demand for a product.  This event or transaction when realized serves as a long-term catalyst for the share price and will, in SAM’s estimation, add value to the company that will be reflected in a higher share price as the market recognizes this.  SAM is not implying that an investor receives securities or options in securities for no cost by use of the term “free call”.