International Value ADR Sell Discipline

Our sell decision is just as disciplined as our buy decision. Triggers for a sale can include:

Value Screening Process: Stock that appears fully valued within its sector.

Deteriorating Fundamentals: When a company experiences excessive margin compression, weakened coverage, incurring debt to cover weak operating cash flow.

Absence of a Near-term Catalyst: Catalysts have been realized or eliminated.

Size Limitation Reached: When a stock reaches 5% of the portfolio, we review it for partial sale or elimination.

Sector Limitation Reached: If the performance of a stock causes the sector to become excessively over weighted versus its target weighting, we review it for partial sale or elimination.

Regional Development: Concerns regarding political instability or deteriorating economic fundamentals.