Greenspring Fund

A Value-Oriented Fund

We are staunch value investors. Research efforts are focused on the “inefficient sector,” those areas of the market that are not widely followed or analyzed by the investment community. We invest in companies’ securities that we feel are out of favor yet possess the underlying fundamentals necessary for future appreciation. We research the dynamics of the business and the motivation of its management in addition to scrutinizing its balance sheet.

We utilize a value-oriented approach to equities and also place an emphasis on special situation fixed income securities. Our analysts look for stocks that are selling at a discount to their industry peers and/or the overall market, are temporarily out of favor or not widely followed by the investment community, are less dependent on favorable movement in the overall markets to build shareholder value, and/or show potential for appreciation because of company-specific reasons or events. Our methodology may also lead our focus toward the management of the company, quality of the company’s balance sheet, past and expected future profitability, potential for free cash flow generation, market position of the company in its industry and overall prospects for the industry.

We also invest in fixed income securities, the performance of which can, at times, differ from that of equities, thus helping to temper the volatility of the portfolio. The fixed income securities held in the Fund are often high- yielding corporate and convertible bonds. There are many possible paths to success with these investments. Typically, the interest rates on such securities are attractive and the holding period is relatively short. Many of our holdings possess a “put” feature that requires the company to purchase the security back at a pre-determined price on a set date. This provides us with the flexibility to hold the securities for a shorter period of time while potentially reaping an attractive yield from the investment. The expected return on these investments can be calculated in advance, and there is little correlation to movements in the overall markets.