River Road’s Long-Short Equity Strategy utilizes a fundamentally driven research process to identify attractive stocks to be purchased or sold short.  The Strategy takes long positions in well-managed, financially strong companies that are trading at a meaningful discount to our assessed Absolute Value. Long exposure is maintained between +50% and +100%.  The Strategy does not utilize leverage. The Strategy takes short positions in companies that face business or financial challenges and are trading at a meaningful premium to our assessed Absolute Value.  We avoid taking short positions in stocks that exhibit strong positive price and earnings momentum.  Under normal market conditions, short exposure is maintained between -10% and -90%.  The net market exposure ranges from +10% to +90%, with generally +50% to +70% net market exposure in normal market conditions.  The Strategy employs a variety of risk management tools including stop loss prices, a structured sell discipline, and a drawdown plan.

Long-Short Equity Q4 2011 Brief