While each Pathstone client differs in their specific investment objectives, asset allocation, and portfolio construction, we generally adhere to the following core investment principles in our portfolios:

• Maintain a long-term investment horizon
• Be unconstrained but highly selective in where to invest
• Target underlying managers who are flexible and opportunistic with potentially durable returns
• Incorporate diversification across drivers of value within fixed income, public equities, alternative assets (i.e., hedge funds and hybrid credit funds), private equity and venture capital funds, and/or real estate
• Concentrate portfolios in high-conviction investments
• Focus on risk-adjusted returns. For most portfolios, we generally define risk as the possibility of permanent capital impairment, not volatility. Additionally, we seek to be sensitive to the volatility of portfolios in relation to distributions (to avoid unplanned realization of losses)