Dear Investor- I recently left Lee Munder Capital Group (LMCG). As a founder, I have much pride regarding what we built and as you are aware, City National Bank purchased a majority interest in LMCG in 2009. I am not yet certain where I want to next hang my calculator, but I am certain what I want to do: continue investing using my particular investment philosophy and methodology. In 2007 I launched the Concentrated Growth Strategy which is the pure version of that philosophy and methodology. In short, I invest in well-positioned growth companies, in my areas of competency, when risk/reward is attractive. I know, this sounds like motherhood and apple-pie but I'm very disciplined about it and it works. I've run 5 investment strategies over the past 16 years, and 4 of the 5 rank in the top decile vs. peers. These strategies, all within small/mid-cap growth, range from a 5-star mutual fund, a long/short equity strategy, two style box long-only strategies, and the Concentrated Growth Strategy (long-only 30-40 names). I am having conversations with a wide variety of folks and am determined to find or create the best platform for the strategy. I'll be sure to let you know when this is settled. In the meantime, with this Q3 letter I am continuing to communicate both investment results as well as my thoughts on the portfolio, the market, and (occasionally) the economy.

Performance of Concentrated Growth Strategy 2011 Annualized

Q3 YTD 3 Year ITD Concentrated Growth Strategy -19.1% -7.7% 10.2% 3.9% Russell 2000 Growth -22.2% -15.6% 2.1% -1.7% Russell 2500 Growth -21.4% -13.3% 4.6% -1.2% *Inception August 1, 2007 Past performance is not indicative of future results. Q3 2011 Commentary The third quarter saw widespread carnage across virtually all asset classes, factors, sectors, and geographies. Although the Concentrated Growth Strategy outperformed its benchmarks and peers, a 19% Q3 decline is nonetheless breathtaking. Year-to-date the portfolio is down almost 8%, again better than the 13%-16% declines posted by the benchmarks, but nothing to write home to Mom about. In the quarter and for the year-to-date the portfolio's stock selection overall has been good almost across the board. This is a good thing, as the portfolio faced headwinds both during Q3 and year-to-date from defensive stocks performing well and higher growth being hurt. The one notable exception to overall positive stock selection in Q3 was Primo Water (OTC - PRMW) which fell hard due a shortfall in Q2 results and subsequent guidance reduction. I decided not only to hold

the shares but to buy more following the drop, which has thus far proven a good move as the stock is up approximately 30% since the purchase. To state the obvious, the stock market's Q3 decline was the result of significant macroeconomic fear and uncertainty. These uncertainties persist and I am under no illusions of possessing a forward-looking crystal ball. However, at the portfolio level--despite the fact that the global macro clouds mean reduced company earnings visibility--at current prices I believe the portfolio's expected return over the next 12-24 months is quite good. Because I focus on a relatively small number of well-positioned companies, even in uncertain times I have relatively good clarity on both the underlying businesses and their stock valuations. Thus I tend to use periods of volatility to adjust positions and typically post very healthy absolute and relative returns coming out of such periods of fear and uncertainty. This phase too shall pass. The Concentrated Growth portfolio is for that portion of an institution's or individual's assets appropriate for investing in some of the best positioned growth companies whose stocks I find attractive now. I appreciate your taking the time to read this and as always welcome calls or e-mails with thoughts or comments. Most Sincerely, Andrew L. Beja, CFA drewbeja@gmail.com 617 680 8662

Desert Island Concentrated Growth Strategy Companies I'd take to the Desert Island

In Sectors in which I have a competitive edge Own Stocks based on strict expected return and risk/reward disciplines

Identify and get to know companies I'd take if stranded on a desert island for many years. These companies operate in businesses in which I have sector expertise, have open-ended opportunities, sound business models based on sustainable competitive advantages, strong financials, and superior management teams. This company analysis is combined with a rigorous valuation discipline centered on a stock's expected return and risk/reward. The net result is a portfolio of attractively priced stocks of some of the most exciting and innovative companies in the economy that has a performance record that is among the best of its peer group since inception.