Arcstone Capital, LLC. Arcstone focuses principally on common stocks believed to be undervalued. We view common stocks as units of ownership of a business and along with each commitment, a partnership with management. The balance sheet, earnings history, and prospects of each investment are extensively studied to appraise underlying business or investment value. Arcstone will tend to hold a focused or concentrated portfolio of 15-25 securities. These investments are backed by intrinsic value that has been overlooked, misunderstood, unappreciated, or ignored by the market. Arcstone invests large amounts of capital with those businesses we understand well, instead of putting very small amounts in many businesses that we understand less well. We believe concentrated investments in diverse economic segments sufficiently decreases risk because it increases the intensity of our analysis and the level of confidence we must have before buying an ownership interest. However, Arcstone will allocate capital wherever makes the most economic sense and may from time to time determine the most sensible allocation of capital is in a diversified group of grossly undervalued securities. Ultimately, investment decisions are determined by, and capital allocated to, securities which offer the greatest risk adjusted absolute returns.