Portfolio Manager's Review - The Superinvestor Issue

PORTFOLIO MANAGER’S REVIEW

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A Monthly Publication of BeyondProxy LLC August 27, 2010 Subscribe at www.manualofideas.com

When asked how he became so successful, Buffett answered: “we read hundreds and hundreds of annual reports every year.”

Edited by the

Manual of Ideas Research Team

“If our efforts can further the goals of our members by giving them a discernible edge over other market participants, we have succeeded.”

Top Five Ideas In This Report

African Barrick Gold (UK: ABG) ……………………… p. 66 Chesapeake Energy (NYSE: CHK) ………………….. p. 78 Ensco (NYSE: ESV) ………………….. p. 82 NCR (NYSE: NCR) ………………… p. 102 Vodafone (UK: VOD, Nasdaq: VOD) ….. p. 118

Also Inside

Editor’s Commentary …………….. p. 5 Interview: Ken Shubin Stein ……. p. 9 Portfolios with Signal Value™ … p. 14 New/Increased Holdings ………. p. 66 Unchanged/Offsetting Holdings p. 126 100 Superinvestor Stocks …….. p. 146 Favorite Value Screens ……….. p. 162

Top 10 Online Resources ……… p. 172

About Portfolio Manager’s Review

Our goal is to bring you investment ideas that are compelling on the basis of value versus price. In our quest for value, we analyze the top holdings of top fund managers. We also use a proprietary methodology to identify stocks that are not widely followed by institutional investors. Our research team has extensive experience in industry and security analysis, equity valuation, and investment management. We bring a “buy side” mindset to the idea generation process, cutting across industries and market capitalization ranges in our search for compelling equity investment opportunities.

THE SUPERINVESTOR REPORT

► Snapshot of 100 companies owned by superinvestors

► Latest holdings of 50+ top investors, including MOI’s proprietary Signal Value™ idea ranking

► 20 companies profiled by MOI research team ► Proprietary selection of Top 5 candidates for investment

► Plus: Favorite stock screens for value investors ► Plus: Exclusive interview with Ken Shubin Stein

Superinvestor companies mentioned in this issue include African Barrick Gold, American Capital, American International Group,

Aon Corp., Apollo Group, Apple, Arris Group, Automatic Data Processing, Bally Technologies, Bank of America, Bank of NY Mellon, Baxter, BP,

Broadridge Financial, Canadian Natural Resources, CF Industries, Chesapeake Energy, Citigroup, Coca-Cola, Coca-Cola Enterprises, Cooper Tire & Rubber, Corning, Covidien, DaVita, Dell, DIRECTV,

Discovery Communications, Dollar Tree, eBay, Ensco, Enstar Group, Estee Lauder, Fiserv, Franklin Resources, GameStop, General Electric,

Goldman Sachs, Google, H&R Block, Hess, Innophos, Intel, Ituran Location, Jo-Ann Stores, Johnson & Johnson, JPMorgan Chase,

Key Energy Services, Kraft Foods, Leap Wireless, Liberty Media Interactive, Life Technologies, Lincare, Live Nation, Lowe's, Macquarie Infrastructure,

Macy's, MasterCard, MBIA, McClatchy, McDonald's, Merck, Microsoft, Nalco Holding, NCR Corp., News Corp., Novartis, Ocwen Financial, Oracle,

Pfizer, Philip Morris, Pinnacle Airlines, Potash, Pride International, Redwood Trust, Republic Airways, Reynolds American, Sears Holdings, Service Corp. International, Smurfit-Stone, Sprint Nextel, SuperMedia, Symantec, Target, Tennessee Commerce Banc, Teva Pharmaceuticals, Time Warner, Transocean, TravelCenters, Tree.com, Tyco International, U.S. Bancorp, Union Pacific, Viacom, ViaSat, Visa, Vodafone, Wal-Mart,

Walt Disney, Washington Post, Wells Fargo, Xerium Technologies, Xerox, Yum! Brands, and more.

(profiled companies are underlined)

© 2008-2010 by BeyondProxy LLC. All rights reserved. SUBSCRIBE TODAY! www.manualofideas.com August 27, 2010 – Page 3 of 175

Table of Contents

EDITOR’S COMMENTARY .............................................................................5

EXCLUSIVE INTERVIEW WITH KEN SHUBIN STEIN ..................................9

50+ PORTFOLIOS WITH SIGNAL VALUE™ .............................................. 14 AKRE CAPITAL (CHUCK AKRE) ................................................................................................ 15 APPALOOSA (DAVID TEPPER) ................................................................................................. 16 BARES CAPITAL (BRIAN BARES).............................................................................................. 17 BAUPOST (SETH KLARMAN) .................................................................................................... 18 BERKSHIRE HATHAWAY (WARREN BUFFETT) ........................................................................... 19 BLUE RIDGE (JOHN GRIFFIN) .................................................................................................. 20 BP CAPITAL (BOONE PICKENS)............................................................................................... 21 BRAVE WARRIOR (GLENN GREENBERG) .................................................................................. 22 BREEDEN CAPITAL (RICHARD BREEDEN) ................................................................................. 23 CENTAUR CAPITAL (ZEKE ASHTON) ........................................................................................ 24 CHILDREN’S INVESTMENT (CHRIS HOHN) ................................................................................. 25 CHOU ASSOCIATES (FRANCIS CHOU) ...................................................................................... 26 CLARIUM (PETER THIEL) ........................................................................................................ 27 EAGLE (BOYKIN CURRY) ........................................................................................................ 28 EDINBURGH PARTNERS (SANDY NAIRN) .................................................................................. 29 ESL INVESTMENTS (EDDIE LAMPERT) ..................................................................................... 30 FAIRFAX (PREM WATSA) ........................................................................................................ 31 FAIRHOLME (BRUCE BERKOWITZ) ........................................................................................... 32 FIRST PACIFIC (BOB RODRIGUEZ AND STEVEN ROMICK) ........................................................... 33 GATES CAPITAL (JEFF GATES) ............................................................................................... 34 GLENVIEW (LARRY ROBBINS) ................................................................................................. 35 GREENLIGHT (DAVID EINHORN) .............................................................................................. 36 GRUSS (HOWARD GUBERMAN) ............................................................................................... 37 H PARTNERS (REHAN JAFFER) ............................................................................................... 38 HARBINGER (PHIL FALCONE) .................................................................................................. 39 HAWKSHAW (KIAN GHAZI) ...................................................................................................... 40 ICAHN CAPITAL (CARL ICAHN) ................................................................................................. 41 KLEINHEINZ CAPITAL (JOHN KLEINHEINZ) ................................................................................ 42 LANE FIVE (LISA RAPUANO) .................................................................................................... 43 LEUCADIA (IAN CUMMING AND JOE STEINBERG) ....................................................................... 44 LONE PINE (STEVE MANDEL) .................................................................................................. 45 MARKEL GAYNER (TOM GAYNER) ........................................................................................... 46 MAVERICK (LEE AINSLE) ........................................................................................................ 47 MHR (MARK RACHESKY) ....................................................................................................... 48 MSD CAPITAL (GLENN FUHRMAN AND JOHN PHELAN) .............................................................. 49 PABRAI FUNDS (MOHNISH PABRAI) ......................................................................................... 50 PAULSON & CO. (JOHN PAULSON) .......................................................................................... 51 PENNANT (ALAN FOURNIER) ................................................................................................... 52 PERSHING SQUARE (BILL ACKMAN) ........................................................................................ 53 SAGEVIEW (ED GILHULY AND SCOTT STUART) ......................................................................... 54 SCOUT (JAMES CRICHTON) .................................................................................................... 55 SECOND CURVE (TOM BROWN) .............................................................................................. 56 SHUMWAY CAPITAL (CHRIS SHUMWAY) ................................................................................... 57 SOUTHEASTERN (MASON HAWKINS) ....................................................................................... 58 THIRD POINT (DAN LOEB)....................................................................................................... 59 TIGER GLOBAL (CHASE COLEMAN) ......................................................................................... 60 VIKING GLOBAL (ANDREAS HALVORSEN) ................................................................................. 61 WEITZ FUNDS (WALLY WEITZ) ................................................................................................ 62 WEST COAST (LANCE HELFERT AND PAUL ORFALEA) ............................................................... 63 WINTERGREEN (DAVID WINTERS) ........................................................................................... 64 WL ROSS & CO. (WILBUR ROSS) ........................................................................................... 65

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NEW OR INCREASED SUPERINVESTOR HOLDINGS ............................. 66 AFRICAN BARRICK GOLD (UK: ABG) – GREENLIGHT ......................................................... 66 AON CORP. (AON) – BREEDEN , FPA , SOUTHEASTERN , WEITZ ............................... 70 BALLY TECHNOLOGIES (BYI) – BREEDEN ............................................................................. 74 CHESAPEAKE ENERGY (CHK) – BP CAPITAL , ICAHN , SOUTHEASTERN ............................ 78 ENSCO (ESV) – BLUE RIDGE , EAGLE , GREENLIGHT , ICAHN ............................ 82 ESTEE LAUDER (EL) – LONE PINE , VIKING .................................................................... 86 GAMESTOP (GME) – CENTAUR .......................................................................................... 90 MBIA (MBI) – FAIRFAX , FAIRHOLME .......................................................................... 94 NALCO HOLDING (NLC) – BERKSHIRE , MSD ................................................................... 98 NCR CORP. (NCR) – GREENLIGHT ................................................................................ 102 SERVICE CORP. INTERNATIONAL (SCI) – SOUTHEASTERN ................................................... 106 TEVA PHARMA (TEVA) – BLUE RIDGE , EAGLE , MARKEL , MAVERICK ..................... 110 TREE.COM (TREE) – SECOND CURVE , WEITZ ................................................................ 114 VODAFONE (VOD) – CENTAUR , EAGLE , FPA , KLEINHEINZ , SOUTHEASTERN .... 118 XERIUM TECHNOLOGIES (XRM) – THIRD POINT ............................................................... 122

UNCHANGED OR OFFSETTING SUPERINVESTOR HOLDINGS .......... 126 AAPLE (AAPL) – BLUE RIDGE , GREENLIGHT , KLEINHEINZ , LONE PINE .................... 126 GOOGLE (GOOG) – BRAVE WARRIOR , GLENVIEW , MAVERICK , VIKING ................ 130 LIBERTY INTERACTIVE (LINTA) – EAGLE , SOUTHEASTERN , THIRD POINT , WEITZ ...... 134 SUPERMEDIA (SPMD) – APPALOOSA , FAIRFAX , PAULSON ........................................ 138 TRAVELCENTERS OF AMERICA (TA) – BARES , LEUCADIA ............................................... 142

SNAPSHOT OF 100 SUPERINVESTOR HOLDINGS ............................... 146 IN ALPHABETICAL ORDER ..................................................................................................... 146 BY MARKET VALUE .............................................................................................................. 148 BY SECTOR ......................................................................................................................... 150 STOCK PRICE PERFORMANCE .............................................................................................. 152 FREE CASH FLOW ............................................................................................................... 154 P/E MULTIPLES ................................................................................................................... 156 PERCENTILE RANK WITHIN INDUSTRY .................................................................................... 158 LATEST EARNINGS SURPRISES ............................................................................................. 160

FAVORITE STOCK SCREENS FOR VALUE INVESTORS ...................... 162 “MAGIC FORMULA,” BASED ON TRAILING OPERATING INCOME ................................................. 163 “MAGIC FORMULA,” BASED ON THIS YEAR’S EPS ESTIMATES ................................................. 164 “MAGIC FORMULA,” BASED ON NEXT YEAR’S EPS ESTIMATES ................................................ 165 CONTRARIAN: BIGGEST YTD LOSERS (DELEVERAGED & PROFITABLE) ..................................... 166 VALUE WITH CATALYST: CHEAP REPURCHASERS OF STOCK ................................................... 167 PROFITABLE DIVIDEND PAYORS WITH DECENT BALANCE SHEETS............................................ 168 DEEP VALUE: LOTS OF REVENUE, LOW ENTERPRISE VALUE ................................................... 169 DEEP VALUE: NEGLECTED GROSS PROFITEERS .................................................................... 170 ACTIVIST TARGETS: POTENTIAL SALES, LIQUIDATIONS OR RECAPS ......................................... 171

THIS MONTH’S TOP 10 WEB LINKS ....................................................... 172



Editor’s Commentary What a summer it’s been! With Mr. Market wholly lacking in generosity of

spirit, we hope you’ve at least found some time to relax and enjoy the company of family and friends.

We are pleased to be back with another Superinvestor Issue, surveying the top ideas of some of the most successful investors in the business. Starting with this report, we are more than doubling our coverage of superinvestor buys and sells. Inside, you’ll find us analyzing the portfolios of 50+ investment managers. New additions include John Griffin’s Blue Ridge, Boone Pickens’s BP Capital, Boykin Curry’s Eagle Capital, Bob Rodriguez’s First Pacific Advisors, Larry Robbins’s Glenview, Phil Falcone’s Harbinger, and Lee Ainsle’s Maverick, to name a few. For each of the 50+ investment firms, we show not only their latest top holdings by quoted value but also based on our proprietary Signal Rank™ methodology. The latter aims to answer the question, What are this investor’s best ideas right now?

Of all the superinvestor holdings we came across while researching this report, the following five companies struck as particularly interesting, timely opportunities:

African Barrick Gold (UK: ABG; $9 per ADS; MV $4 billion) is a carve-out of the Tanzanian assets of Barrick Gold (ABX), which sold a quarter of ABG in an IPO this past March. The new public company appears to have been overlooked by investors and represents one of the cheapest ways to invest in a gold miner with a large base of exploration assets. ABG’s enterprise value implies a purchase price of roughly $200 per ounce of proved and probable gold reserves. The company’s cash cost is roughly $500-550 per ounce, leaving a handsome “profit spread” for those investing in ABG at recent prices. Another positive feature of ABG is the company’s net cash position of more than $300 million, which should enable management to increase production without raising additional equity capital. Finally, management incentives are better aligned with those of shareholders now that ABG is a stand-alone public company. A reason investors may have overlooked the company is ABG’s high proportion of probable relative to proved reserves. This makes the shares appear less attractively priced when viewed solely from the standpoint of proved gold resources. However, ABG resource base is well-defined and offers opportunities for multi-year production growth. David Einhorn’s Greenlight Capital purchased a stake in ABG during the second quarter.

Chesapeake Energy (CHK; $20 per share; MV $13 billion) has for some time been synonymous with the vast untapped opportunity in U.S. onshore natural gas shale plays. As gas prices have remained depressed relative to oil prices longer than most expected, it appears many investors have slowly but surely given up on the company. While the near-term outlook for natural gas remains unfavorable, the underlying value of Chesapeake’s assets and the lagging stock price have once again attracted considerable superinvestor interest. Famed oil and gas investor Boone Pickens more than doubled his fund’s stake in Chesapeake during the second quarter. Carl Icahn’s firm boosted its position from two million to nearly 13 million shares, while Mason Hawkins’s Southeastern Asset Management slightly added to its stake, which amounts to a considerable 12% of Chesapeake. Only David Winters’s mutual fund went against the grain, selling out of a relatively small position. Our analysis of Chesapeake suggests that the value of proved reserves alone may be sufficient to justify the recent stock price, based on NYMEX strip pricing. When one considers



Vodafone (VOD; $23; MV $124 billion), the mobile communications services provider with a global presence, continues to sell roughly 30% below our fair value estimate, implying roughly 50% share price upside for a stable company with a 6% dividend yield. The dividend payout is supported by the company’s free cash flow generation even excluding any contribution from Vodafone’s 45% ownership of Verizon Wireless. This stake in the number one U.S. mobile operator may be Vodafone’s single most valuable asset, and we believe the market’s continued ignorance of its value provides an interesting investment opportunity (the financials of Verizon Wireless are not consolidated on Vodafone’s financial statements, as Verizon exercises control over the jointly owned company). An upward re-rating of Vodafone shares could come following a resumption of cash distributions from Verizon Wireless beyond the recent level of tax pass-throughs. Regardless of how Verizon Wireless and other unconsolidated assets are monetized, Vodafone’s sum-of-the-parts valuation implies that the consolidated business trades at 4-5x trailing EBITDA. This appears too low given Vodafone’s strong European market share, growth prospects in emerging markets, and margin improvement potential. Vodafone attracted significant superinvestor interest during the second quarter, with Francis Chou, Mason Hawkins and John Kleinheinz initiating new positions in the company, and Zeke Ashton, Boykin Curry and Bob Rodriguez increasing existing positions. David Einhorn appears to have maintained Greenlight’s stake in Vodafone.

For those of you looking for a superinvestor-owned gem in the micro-cap space, we point to Tree.com (TREE; $7 per share; MV $80 million), a technology-driven provider of online services to U.S. real estate industry participants. The company owns the popular LendingTree and RealEstate.com websites, yet trades roughly in line with net liquid assets. Founder and CEO Doug Lebda owns 14% of Tree.com, having purchased a substantial chunk of shares last year. Lebda appears both capable and focused on growing shareholder value, a combination that could produce long-term rewards for investors.

Finally, we are pleased to bring you an exclusive interview with Ken Shubin Stein, founder of Spencer Capital. Ken is a highly regarded deep value investor who an adjunct professor at Columbia Business School. In the interview, Ken provides valuable insight into various aspects of his investment philosophy and shares his latest view on Sears Holdings (SHLD).

Sincerely,

John Mihaljevic, CFA and The Manual of Ideas research team



The Manual of Ideas research team is gratified to have won high praise for our investment idea generation process and analytical work.

“An invaluable tool for the serious investor.”

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Exclusive Interview with Ken Shubin Stein

This month we bring you our interview with Dr. Kenneth Shubin Stein, CFA, founder of Spencer Capital Management. Shubin Stein is an adjunct professor at Columbia Business School and a frequent speaker on value investing topics.

In 2000, Shubin Stein founded Kenshu, the predecessor to the Spencer Capital Opportunity Fund, which was formed in 2003. Prior to founding Compo, Shubin Stein was a medical technology analyst for The Abernathy Group. Shubin Stein is a graduate of the Albert Einstein College of Medicine where he completed a five-year medical and research program with a focus on molecular genetics. He graduated with a B.A. degree from Columbia College in 1991. Shubin Stein serves on the board of HelpUSA and is the leader of HelpNYC.

The Manual of Ideas: You are a somewhat rare breed of value-invested generalist with advanced degree in the scientific field, namely medicine. How did you become interested in Buffet-style investing and at what point did you choose investment management, although over an alternative career in the medical field?

Ken Shubin Stein: I became interested in Buffett-style investing at a pretty early age because I was fortunate enough to learn about Berkshire Hathaway while I was still in junior high school. After learning about Buffett’s success, I started studying Berkshire and trying to reverse engineer the company and how it had become so successful and had such a long track record of good investing decisions. As I continued my education and went through high school, college, and medical school, and part of residency, I always stayed very involved with investing. Since the end of junior high school, I’ve been managing my parents’ retirement accounts and other money for people in my family, so I’ve had a dual education and sort of career path of investing and medicine and science.

Although I love both and have a passion for the medical field as well as for investing, I ultimately had to choose and obviously picked investing. Right around the time I was 30 or 31, I made the final switch. There was some overlap in my 20s because, like I said, I had a passion for both. The benefit that having medical training has given me is medical school and science are great places to learn about critical thinking, how to frame research questions and to look for flaws in research methodologies. All this is very helpful and plays into learning how to research a situation, understand what questions may not be being asked that are important, and learn how to frame the situation correctly and seek out data that can be helpful in coming to a conclusion.

MOI: How do you describe your own brand of value investing?

Shubin Stein: At Spencer we focus on concentrated value investing and, specifically, we look at special situations. For us, special situations run the gamut from companies that are in distress, in bankruptcy, are in turnaround situations, companies that are doing spin offs or debt recapitalization or large

“…medical school and science are great places to

learn about critical thinking, how to frame research

questions and to look for flaws in research methodologies.”



So the question is, while recognizing that more experience is generally better than less, what aspects of innocence should aspiring investment managers seek to preserve? I think it’s helpful for all of us who are professional managers to periodically think about our true goals in the business, and what we are doing in order to achieve those goals. Are we constantly learning? Are we improving or are we being pushed by experience and fear into behavior that will put us in the middle of the pack versus are we continually trying to push the needle and be excellent and continue to learn, even if that has some near-term costs?

I’m reminded of the many value investors in the late 1990s during the tech bubble. When that was occurring, a lot of us felt this tremendous pressure because we were investing in solid, profitable companies at extremely good prices, but the market was valuing tech companies with no earnings at far higher prices. Lots of managers were faced with a choice: start buying things that broke the discipline of value investing because that was what investors clamored for — or lose your investors. Some managers changed their style, bought tech companies during the bubble and ended up maintaining their investors and losing capital. Some did the reverse —we didn’t buy tech companies, and we ended up losing some our clients, and I think that’s a choice that many of us are faced with during our careers.

MOI: What books have you read in recent years that have stood out as valuable additions to your investment library?

Shubin Stein: There are a couple of extremely good books I’ve read recently, and I’ll list the authors because some of them have multiple books.

Whitney Tilson and Glen Tongue’s book about the stock market crash and how to profit from it was excellent, both because it gave superb ideas and it highlighted that even after something starts to unfold, there’s the opportunity to do work, develop a variant perception, and profit from it.

Mohnish Pabrai books are excellent investment books for both amateurs and professionals.

James Montier’s books are superb for anybody interested in behavioral finance, which, in my opinion, should be all of us in this business.

The Big Short by Michael Lewis and Fooling Some of the People All of the Time by David Einhorn are must reads for everybody, both because they highlight a lot about what is important in investing and they give us an insight into how the capital markets and the government in the United States work.

MOI: Ken, thank you very much.

“…while recognizing that more experience is generally better than less, what aspects of innocence should aspiring investment managers seek to preserve? Are we improving or are we being pushed by experience and fear into

behavior that will put us in the middle of the pack…?”


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50+ Portfolios With Signal Value™ Revealing the Top Ideas of Top Investors “Signal value” as opposed to “noise.” We present the

holdings of some of the world’s top investors. We look for

investors who have amassed impressive track records over

long periods of time. We choose these investors carefully

to avoid the noise inherent in most 13F-HR filings.

MOI Signal Rank answers the question, “What are

this investor’s top ten ideas right now?” Rather than

simply presenting each investor’s largest holdings as of the

recently filed quarter end, the MOI’s proprietary

methodology ranks the companies in each investor’s

portfolio based on the investor’s current level of conviction

in each holding, as judged by the MOI.

Our proprietary methodology takes into account a

number of variables, including the size of a position in an

investor’s portfolio, the size of a position relative to the

market value of the corresponding company, the most recent

quarterly change in the number of shares owned, and the

change in the stock price of a position since the most recent

quarterly filing date.

For example, an investor might have the most

conviction in a position that is only the tenth-largest

position in such investor’s portfolio. This might be the

case if an investor invests in a small company, resulting in

a holding that is simply too small to rank highly based on

size alone. On the other hand, such a holding might

represent 19.9% of the shares outstanding of the subject

company, suggesting a high level of conviction. Our

estimate of the conviction level would rise further if the

subject company has a 20% poison-pill threshold, thereby

suggesting that the investor has bought as much of the

subject company as is practically feasible.

Top investors included in this section:

• Bill Ackman, Pershing Square • Lee Ainsle, Maverick • Chuck Akre, Akre Capital • Zeke Ashton, Centaur Capital • Brian Bares, Bares Capital • Bruce Berkowitz, Fairholme • Richard Breeden, Breeden Capital • Tom Brown, Second Curve • Warren Buffett, Berkshire Hathaway • Francis Chou, Chou Associates • Chase Coleman, Tiger Global • James Crichton, Scout • Ian Cumming and Joe Steinberg, Leucadia • Boykin Curry, Eagle • David Einhorn, Greenlight • Phil Falcone, Harbinger • Alan Fournier, Pennant • Glenn Fuhrman and John Phelan, MSD Capital • Jeffrey Gates, Gates Capital • Tom Gayner, Markel Gayner • Kian Ghazi, Hawkshaw • Ed Gilhuly and Scott Stuart, Sageview • Glenn Greenberg, Brave Warrior • John Griffin, Blue Ridge • Howard Guberman, Gruss • Andreas Halvorsen, Viking Global • Mason Hawkins, Southeastern • Lance Helfert and Paul Orfalea, West Coast • Chris Hohn, Children’s Investment Fund • Carl Icahn, Icahn • Rehan Jaffer, H Partners • Seth Klarman, Baupost • John Kleinheinz, Kleinheinz Capital • Eddie Lampert, ESL Investments • Dan Loeb, Third Point • Steve Mandel, Lone Pine • Sandy Nairn, Edinburgh Partners • Mohnish Pabrai, Pabrai Funds • John Paulson, Paulson & Co. • Boone Pickens, BP Capital • Mark Rachesky, MHR • Lisa Rapuano, Lane Five • Larry Robbins, Glenview • Bob Rodriguez and Steven Romick, First Pacific • Wilbur Ross, WL Ross • Chris Shumway, Shumway Capital • David Tepper, Appaloosa • Peter Thiel, Clarium • Prem Watsa, Fairfax • Wally Weitz, Weitz Funds • David Winters, Wintergreen



Akre Capital (Chuck Akre) Chuck Akre has been in the investment business since 1968. While sometimes viewed as a small cap growth manager, Akre follows a value strategy that focuses on returns on equity, management quality and cash flow-oriented valuation analysis. MOI Signal Rank™ – Top Current Ideas of Akre Capital

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Dollar Tree / DLTR 5,665 44.62 7% 611 >100% <1% 8% 15x 13x 4.5x 2 Markel / MKL 3,188 326.27 -4% 115 7% 1% 11% 22x 19x 1.4x 3 Enstar Group / ESGR 973 70.35 6% 396 20% 3% 8% 7x 6x 1.2x 4 Lamar Advertising / LAMR 2,610 28.28 15% 1,138 29% 1% 9% n/m n/m n/m 5 Ross Stores / ROST 6,082 49.81 -7% 429 95% <1% 6% 12x 11x 4.8x 6 Berkshire Hathaway / BRK.A 192,655 116,700 -3% 0 69% <1% 4% 19x 18x 2.1x 7 TradeStation / TRAD 234 5.77 -15% 300 >100% <1% <1% 20x 17x 1.4x 8 First Fin. Holdings / FFCH 166 10.06 -12% 20 new <1% <1% n/m 35x .6x 9 Greenlight Re / GLRE 833 22.84 -9% 27 new <1% <1% n/a n/a 1.2x 10 Fox Chase Bancorp / FXCB 136 9.35 -2% 100 new <1% <1% 43x 24x .7x

Top Holdings of Akre Capital – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 American Tower / AMT 19,026 47.43 7% 1,070 -1% <1% 14% 55x 43x n/m 2 Markel / MKL 3,188 326.27 -4% 115 7% 1% 11% 22x 19x 1.4x 3 Lamar Advertising / LAMR 2,610 28.28 15% 1,138 29% 1% 9% n/m n/m n/m 4 Enstar Group / ESGR 973 70.35 6% 396 20% 3% 8% 7x 6x 1.2x 5 Dollar Tree / DLTR 5,665 44.62 7% 611 >100% <1% 8% 15x 13x 4.5x 6 O'Reilly Automotive / ORLY 6,636 47.82 1% 473 -1% <1% 6% 17x 15x 3.1x 7 Ross Stores / ROST 6,082 49.81 -7% 429 95% <1% 6% 12x 11x 4.8x 8 Hartford Financial / HIG 8,944 20.13 -9% 808 -1% <1% 5% 9x 5x .5x 9 Berkshire Hathaway / BRK.A 192,655 116,700 -3% 0 69% <1% 4% 19x 18x 2.1x 10 FactSet Research / FDS 3,483 75.19 12% 164 -27% <1% 4% 24x 22x >9.9x

New Positions Sold Out Positions Becton Dickinson / BDX Ensco / ESV First Fin. Holdings / FFCH

Fox Chase Bancorp / FXCB Greenlight Re / GLRE W.R. Berkley / WRB

CarMax / KMX Entertainment Prop. / EPR

Portfolio Metrics * Sector Weightings *

Portfolio size $351 million

Top 10 as % of portfolio 75%

Median market value $3.8 billion

Average market value $20 billion

Median P/E (this FY) 17x

Median P/E (next FY) 15x

Median P / tangible book 1.7x

* Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities.

Services53%

Financial41%

Technology4%

Other2%



Bares Capital (Brian Bares) Brian Bares started his investment firm, Bares Capital Management, in 2000, focusing initially on micro-cap public companies. The firm launched a small-cap institutional strategy in 2001 and now manages assets in two value-oriented strategies. Bares Capital Management is quite unique in the institutional asset management world, as it has adhered to a disciplined business strategy, limiting the growth of assets under management to benefit investment performance. Both of Bares’s institutional strategies have beaten their respective benchmark indices by wide margins since inception. MOI Signal Rank™ – Top Current Ideas of Bares Capital Management

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Interactive Intell. / ININ 248 14.15 -14% 2,491 0% 14% 14% 15x 13x 3.2x 2 International Assets / IAAC 295 16.74 5% 2,269 15% 13% 15% 19x 19x 1.3x 3 Hallmark Financial / HALL 171 8.51 -14% 2,033 0% 10% 7% 15x 9x 1.1x 4 Stratasys / SSYS 446 21.67 -12% 857 0% 4% 7% 39x 28x 3.4x 5 Winmark / WINA 154 30.72 -8% 845 0% 17% 10% 19x 17x 9.2x 6 Tandy Leather / TLF 44 4.27 3% 1,643 0% 16% 3% n/a n/a 1.7x 7 Utah Medical / UTMD 92 25.33 2% 330 0% 9% 3% n/a n/a 2.9x 8 HEICO Corp. / HEI 1,202 36.51 2% 103 >100% <1% 1% 25x 21x >9.9x 9 Stamps.com / STMP 158 11.09 8% 1,026 0% 7% 4% 15x 14x 2.4x 10 BIDZ.com / BIDZ 30 1.54 -1% 1,483 0% 8% <1% n/m 15x .9x

Top Holdings of Bares Capital Management – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 International Assets / IAAC 295 16.74 5% 2,269 15% 13% 15% 19x 19x 1.3x 2 Interactive Intell. / ININ 248 14.15 -14% 2,491 0% 14% 14% 15x 13x 3.2x 3 Winmark / WINA 154 30.72 -8% 845 0% 17% 10% 19x 17x 9.2x 4 Stratasys / SSYS 446 21.67 -12% 857 0% 4% 7% 39x 28x 3.4x 5 Hallmark Financial / HALL 171 8.51 -14% 2,033 0% 10% 7% 15x 9x 1.1x 6 Stamps.com / STMP 158 11.09 8% 1,026 0% 7% 4% 15x 14x 2.4x 7 American Dental / ADPI 173 10.96 -9% 905 -10% 6% 4% 10x 10x n/m 8 Rentrak / RENT 246 22.57 -7% 437 -11% 4% 4% 29x 17x 6.4x 9 Utah Medical / UTMD 92 25.33 2% 330 0% 9% 3% n/a n/a 2.9x 10 Tandy Leather / TLF 44 4.27 3% 1,643 0% 16% 3% n/a n/a 1.7x

New Positions Sold Out Positions Colfax / CFX None Portfolio Metrics * Sector Weightings *









Financial37%

Technology25%

Services20%

Other18%



Berkshire Hathaway (Warren Buffett) Warren Buffett has built an unparalleled investment track record over several decades, becoming widely regarded as the best investor of all time. Buffett has embraced a long term-oriented investment approach with an emphasis on investing in companies with durable competitive advantage, high returns on capital employed, and shareholder-friendly management. MOI Signal Rank™ – Top Current Ideas of Berkshire Hathaway

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Wells Fargo / WFC 128,742 24.60 -4% 325,791 2% 6% 17% 12x 9x 2.2x 2 Washington Post / WPO 3,187 347.68 -15% 1,728 0% 19% 1% 13x 11x 3.2x 3 Comdisco / CDCO 35 8.79 -2% 1,538 0% 38% <1% n/a n/a .8x 4 Wesco Financial / WSC 2,321 326.00 1% 5,703 0% 80% 4% 30x 27x 1.0x 5 USG / USG 1,228 12.34 2% 17,072 0% 17% <1% n/m n/m 1.9x 6 American Express / AXP 49,043 40.76 3% 151,611 0% 13% 13% 12x 11x 3.4x 7 Moody's / MCO 5,087 21.71 9% 30,784 0% 13% 1% 12x 11x n/m 8 Coca-Cola / KO 127,713 55.30 10% 200,000 0% 9% 23% 16x 15x 9.5x 9 Johnson & Johnson / JNJ 161,796 58.74 -1% 41,320 73% 2% 5% 12x 12x 7.4x 10 U.S. Bancorp / USB 41,679 21.74 -3% 69,039 0% 4% 3% 13x 10x 2.9x

Top Holdings of Berkshire Hathaway – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Coca-Cola / KO 127,713 55.30 10% 200,000 0% 9% 23% 16x 15x 9.5x 2 Wells Fargo / WFC 128,742 24.60 -4% 325,791 2% 6% 17% 12x 9x 2.2x 3 American Express / AXP 49,043 40.76 3% 151,611 0% 13% 13% 12x 11x 3.4x 4 Procter & Gamble / PG 170,252 59.98 0% 78,071 -1% 3% 10% 15x 14x n/m 5 Kraft Foods / KFT 50,752 29.10 4% 105,215 -1% 6% 6% 14x 13x n/m 6 Johnson & Johnson / JNJ 161,796 58.74 -1% 41,320 73% 2% 5% 12x 12x 7.4x 7 Wal-Mart / WMT 186,299 50.22 4% 39,037 0% 1% 4% 13x 11x 3.8x 8 Wesco Financial / WSC 2,321 326.00 1% 5,703 0% 80% 4% 30x 27x 1.0x 9 ConocoPhillips / COP 82,285 53.89 10% 29,110 -15% 2% 3% 9x 8x 1.4x 10 U.S. Bancorp / USB 41,679 21.74 -3% 69,039 0% 4% 3% 13x 10x 2.9x

New Positions Sold Out Positions Fiserv / FISV None Portfolio Metrics * Sector Weightings *, **

Portfolio size $48 billion


Median market value $29 billion





* Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities. ** A large portion of Berkshire’s asset value may be attributed to holdings that are not publicly traded and are therefore not shown in the chart or tables.

Consumer Non-Cyclical

40%

Financial38%

Services10%

Other12%



BP Capital (Boone Pickens) Pickens, born in 1928, was a prominent corporate raider during the 1980s. He founded energy fund BP Capital in 1997. MOI Signal Rank™ – Top Current Ideas of BP Capital

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Hess / HES 16,828 51.24 2% 284 >100% <1% 5% 11x 9x 1.3x 2 Suncor Energy / SU 48,631 31.13 6% 553 48% <1% 6% 19x 13x 1.6x 3 Anadarko Petroleum / APC 24,103 48.70 35% 314 >100% <1% 5% 25x 20x 1.6x 4 Devon Energy / DVN 27,031 62.14 2% 190 new <1% 4% 10x 10x 2.5x 5 Transatlantic / TRH 3,021 47.39 -1% 2,000 0% 3% 33% 9x 7x .7x 6 Chesapeake Energy / CHK 13,335 20.38 -3% 590 >100% <1% 4% 7x 7x 1.1x 7 SandRidge Energy / SD 1,738 4.29 -26% 1,889 5% <1% 3% 11x 13x n/m 8 Southwestern Energy / SWN 11,667 33.71 -13% 190 new <1% 2% 18x 15x 4.4x 9 EnCana / ECA 20,393 27.70 -9% 190 new <1% 2% 21x 20x 1.3x 10 Quicksilver Resource / KWK 1,995 11.71 6% 600 new <1% 2% 16x 19x 2.6x

Top Holdings of BP Capital – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Transatlantic / TRH 3,021 47.39 -1% 2,000 0% 3% 33% 9x 7x .7x 2 Suncor Energy / SU 48,631 31.13 6% 553 48% <1% 6% 19x 13x 1.6x 3 Anadarko Petroleum / APC 24,103 48.70 35% 314 >100% <1% 5% 25x 20x 1.6x 4 Hess / HES 16,828 51.24 2% 284 >100% <1% 5% 11x 9x 1.3x 5 McMoRan Exploration / MMR 1,082 11.63 5% 1,120 -6% 1% 4% n/m n/m 5.7x 6 Weatherford / WFT 11,216 15.19 16% 854 -6% <1% 4% 27x 13x 2.4x 7 Chesapeake Energy / CHK 13,335 20.38 -3% 590 >100% <1% 4% 7x 7x 1.1x 8 Devon Energy / DVN 27,031 62.14 2% 190 new <1% 4% 10x 10x 2.5x 9 Smith International / SII 9,754 39.24 4% 295 -5% <1% 4% 35x 22x 5.8x 10 SandRidge Energy / SD 1,738 4.29 -26% 1,889 5% <1% 3% 11x 13x n/m

New Positions Sold Out Positions Apache / APA Chevron / CVX Devon Energy / DVN EnCana / ECA Fluor / FLR Massey Energy / MEE

Murphy Oil / MUR Oceaneering / OII Plains Exploration / PXP Quicksilver Resource / KWK Southwestern Energy / SWN

Transocean / RIG

Portfolio Metrics * Sector Weightings *, **








* Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities. ** A large portion of assets managed by Boone Pickens may be invested outside of BP Capital and are therefore not shown in the chart or tables.

Energy66%

Financial33%

Capital Goods2%



Breeden Capital (Richard Breeden) Richard C. Breeden, born in 1949, is a former Chairman of the U.S. Securities and Exchange Commission. Breeden founded Breeden Capital Management in 2006. The fund applies a concentrated, activist investment approach. MOI Signal Rank™ – Top Current Ideas of Breeden Capital

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Aon Corp. / AON 9,955 36.91 -1% 2,561 72% <1% 9% 11x 11x n/m 2 H&R Block / HRB 4,355 13.47 -14% 13,292 0% 4% 16% 9x 7x >9.9x 3 EMCOR Group / EME 1,542 23.24 0% 1,707 new 3% 4% 13x 11x 3.5x 4 Hillenbrand / HI 1,251 20.09 -6% 5,069 0% 8% 9% 11x 10x n/m 5 Steris / STE 1,753 29.42 -5% 5,067 0% 9% 14% 13x 12x 4.5x 6 Zale / ZLC 58 1.79 13% 9,071 0% 28% 1% n/m n/m .3x 7 SAIC / SAI 5,909 15.55 -7% 852 new <1% 1% 11x 10x >9.9x 8 Bally Technologies / BYI 1,797 33.04 2% 2,726 11% 5% 8% 15x 13x 5.2x 9 ValueClick / VCLK 864 10.56 -1% 280 new <1% <1% 17x 15x 3.8x 10 Dun & Bradstreet / DNB 3,402 67.97 1% 1,335 3% 3% 8% 12x 11x n/m

Top Holdings of Breeden Capital – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 H&R Block / HRB 4,355 13.47 -14% 13,292 0% 4% 16% 9x 7x >9.9x 2 Steris / STE 1,753 29.42 -5% 5,067 0% 9% 14% 13x 12x 4.5x 3 Helmerich & Payne / HP 3,844 36.33 -1% 3,617 -2% 3% 12% 15x 13x 1.4x 4 Hillenbrand / HI 1,251 20.09 -6% 5,069 0% 8% 9% 11x 10x n/m 5 Aon Corp. / AON 9,955 36.91 -1% 2,561 72% <1% 9% 11x 11x n/m 6 Dun & Bradstreet / DNB 3,402 67.97 1% 1,335 3% 3% 8% 12x 11x n/m 7 Bally Technologies / BYI 1,797 33.04 2% 2,726 11% 5% 8% 15x 13x 5.2x 8 Burger King / BKC 2,232 16.45 -2% 4,356 0% 3% 6% 12x 11x >9.9x 9 Raytheon / RTN 16,367 43.75 -10% 1,447 -6% <1% 6% 10x 8x n/m 10 EMCOR Group / EME 1,542 23.24 0% 1,707 new 3% 4% 13x 11x 3.5x

New Positions Sold Out Positions EMCOR Group / EME Fidelity National / FNF NASDAQ OMX / NDAQ

SAIC / SAI ValueClick / VCLK

Hill-Rom Holdings / HRC Pharma Product / PPDI


Portfolio size $1.1 billion



Average market value $3.9 billion





Services35%

Financial19%

Health Care14%

Other32%



Children’s Investment (Chris Hohn) Chris Hohn is the founder of London-based The Children’s Investment Fund Management. TCI runs a concentrated portfolio that has historically been heavily weighted in industrials. Hohn has acquired a reputation as an aggressive shareholder activist, most notably forcing the resignation of the CEO of Deutsche Boerse after he refused to abandon a proposed takeover of the London Stock Exchange. Hohn also agitated for a sale of ABN Amro, ultimately pushing it into the hands of RBS. MOI Signal Rank™ – Top Current Ideas of Children’s Investment Fund

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Walt Disney / DIS 63,212 33.05 5% 17,777 new <1% 14% 16x 14x >9.9x 2 Viacom / VIA.B 19,266 31.68 1% 18,561 >100% 3% 14% 11x 10x n/m 3 Union Pacific / UNP 36,949 74.26 7% 11,410 4% 2% 20% 14x 12x 2.1x 4 WellPoint / WLP 19,943 49.89 2% 5,358 15% 1% 6% 8x 8x 8.3x 5 Co. Bebidas Americas / ABV 68,114 110.02 9% 459 0% <1% 1% 17x 16x >9.9x 6 Compass Minerals / CMP 2,354 71.87 2% 32 0% <1% <1% 14x 12x 9.6x 7 Lockheed Martin / LMT 26,535 73.20 -2% 3,579 -25% <1% 6% 10x 9x n/m 8 Oracle / ORCL 115,704 23.02 7% 13,790 -18% <1% 8% 12x 11x >9.9x 9 Moody's / MCO 5,087 21.71 9% 47 -15% <1% <1% 12x 11x n/m 10 Molson Coors / TAP 8,538 45.92 8% 6,677 -21% 4% 7% 13x 12x 6.5x

Top Holdings of Children’s Investment Fund – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Union Pacific / UNP 36,949 74.26 7% 11,410 4% 2% 20% 14x 12x 2.1x 2 Visa / V 58,890 70.10 -1% 8,523 -45% 1% 14% 18x 15x >9.9x 3 Viacom / VIA.B 19,266 31.68 1% 18,561 >100% 3% 14% 11x 10x n/m 4 Walt Disney / DIS 63,212 33.05 5% 17,777 new <1% 14% 16x 14x >9.9x 5 Coca-Cola / KO 127,713 55.30 10% 6,093 -28% <1% 8% 16x 15x 9.5x 6 Oracle / ORCL 115,704 23.02 7% 13,790 -18% <1% 8% 12x 11x >9.9x 7 Molson Coors / TAP 8,538 45.92 8% 6,677 -21% 4% 7% 13x 12x 6.5x 8 WellPoint / WLP 19,943 49.89 2% 5,358 15% 1% 6% 8x 8x 8.3x 9 Lockheed Martin / LMT 26,535 73.20 -2% 3,579 -25% <1% 6% 10x 9x n/m 10 Co. Bebidas Americas / ABV 68,114 110.02 9% 459 0% <1% 1% 17x 16x >9.9x

New Positions Sold Out Positions Walt Disney / DIS MasterCard / MA

Time Warner / TWX










Services28%

Financial21%

Transportation20%

Other31%



Clarium (Peter Thiel) Peter Thiel, born in Germany in 1967, founded global macro hedge fund Clarium after selling PayPal, a company he co-founded, to eBay in 2002. Thiel is also managing partner of venture capital firm The Founders Fund. He is also an early investor in Facebook, having paid $500,000 for 10.2% of the company in 2004. In his youth, Thiel was a Chess Master and one of the highest-ranked young chess players in the U.S. He is a libertarian. MOI Signal Rank™ – Top Current Ideas of Clarium Capital

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Hewlett-Packard / HPQ 93,030 39.85 -8% 43 6% <1% 20% 9x 8x >9.9x 2 Rosetta Stone / RST 368 17.86 -22% 50 0% <1% 10% 25x 15x 3.0x 3 Interactive Brokers / IBKR 690 16.34 -2% 90 13% <1% 17% 25x 14x 1.1x 4 Progressive Corp. / PGR 12,985 19.45 4% 81 0% <1% 18% 13x 12x 2.1x 5 McDonald's / MCD 77,782 73.08 11% 24 0% <1% 20% 16x 15x 7.3x 6 Intel / INTC 105,291 18.91 -3% 30 0% <1% 7% 9x 9x 2.6x

Top Holdings of Clarium Capital – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 McDonald's / MCD 77,782 73.08 11% 24 0% <1% 20% 16x 15x 7.3x 2 Hewlett-Packard / HPQ 93,030 39.85 -8% 43 6% <1% 20% 9x 8x >9.9x 3 Progressive Corp. / PGR 12,985 19.45 4% 81 0% <1% 18% 13x 12x 2.1x 4 Interactive Brokers / IBKR 690 16.34 -2% 90 13% <1% 17% 25x 14x 1.1x 5 Rosetta Stone / RST 368 17.86 -22% 50 0% <1% 10% 25x 15x 3.0x 6 Contango Oil & Gas / MCF 677 42.91 -4% 15 -40% <1% 7% 14x 9x 1.8x 7 Intel / INTC 105,291 18.91 -3% 30 0% <1% 7% 9x 9x 2.6x

New Positions Sold Out Positions None Axis Capital / AXS

Exxon Mobil / XOM Iconix Brand Group / ICON Trico Marine / TRMA









* Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities. ** A large portion of assets managed by Peter Thiel may be invested in non-equity and non-U.S. securities, which are not shown in the chart or tables.

Technology37%

Financial35%

Services20%

Other7%



Edinburgh Partners (Sandy Nairn) Sandy Nairn follows a value-oriented investment style. He developed his approach during a ten-year “apprenticeship” under famed investor Sir John Templeton. MOI Signal Rank™ – Top Current Ideas of Edinburgh Partners

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Applied Materials / AMAT 14,894 11.09 -8% 16,158 28% 1% 7% 12x 9x 2.6x 2 Petroleo Brasileiro / PBR 151,002 34.42 0% 7,040 3% <1% 10% n/a n/a 1.9x 3 Time Warner Cable / TWC 19,118 53.79 3% 5,469 0% 2% 12% 16x 13x n/m 4 ConocoPhillips / COP 82,285 53.89 10% 3,377 1% <1% 7% 9x 8x 1.4x 5 Bank of America / BAC 129,136 12.87 -10% 13,199 1% <1% 7% 14x 8x 1.2x 6 D.R. Horton / DHI 3,269 10.27 4% 16,862 2% 5% 7% 14x 19x 1.3x 7 General Electric / GE 160,689 15.03 4% 11,693 1% <1% 7% 14x 12x 4.0x 8 SK Telecom / SKM 10,592 16.17 10% 11,042 2% 2% 7% 9x 8x 3.4x 9 Franklin Resources / BEN 22,266 98.92 15% 1,784 0% <1% 7% 16x 14x 4.1x 10 Symantec / SYMC 10,893 13.80 -1% 11,157 1% 1% 6% 11x 9x n/m

Top Holdings of Edinburgh Partners – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Time Warner Cable / TWC 19,118 53.79 3% 5,469 0% 2% 12% 16x 13x n/m 2 Petroleo Brasileiro / PBR 151,002 34.42 0% 7,040 3% <1% 10% n/a n/a 1.9x 3 Cisco Systems / CSCO 126,959 22.23 4% 10,125 -25% <1% 9% 13x 11x 5.2x 4 ConocoPhillips / COP 82,285 53.89 10% 3,377 1% <1% 7% 9x 8x 1.4x 5 Applied Materials / AMAT 14,894 11.09 -8% 16,158 28% 1% 7% 12x 9x 2.6x 6 SK Telecom / SKM 10,592 16.17 10% 11,042 2% 2% 7% 9x 8x 3.4x 7 Franklin Resources / BEN 22,266 98.92 15% 1,784 0% <1% 7% 16x 14x 4.1x 8 General Electric / GE 160,689 15.03 4% 11,693 1% <1% 7% 14x 12x 4.0x 9 D.R. Horton / DHI 3,269 10.27 4% 16,862 2% 5% 7% 14x 19x 1.3x 10 Bank of America / BAC 129,136 12.87 -10% 13,199 1% <1% 7% 14x 8x 1.2x

New Positions Sold Out Positions None Home Depot / HD Portfolio Metrics * Sector Weightings *









Technology29%

Services19%Energy

17%

Other34%



Fairfax (Prem Watsa) Prem Watsa is the founder, chairman and CEO of Fairfax (FFH), a Canadian property/casualty insurance and reinsurance firm. While managing Fairfax’s investment portfolio over the past couple of decades, Watsa has built a reputation as an astute value investor. Some have called him “Warren Buffett of Canada.” In recent years, Watsa’s firm successfully defended itself against short sellers who allegedly conspired to drive down the price of Fairfax stock and hurt the company’s business. MOI Signal Rank™ – Top Current Ideas of Fairfax

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Overstock.com / OSTK 321 13.90 -23% 3,389 0% 15% 2% 22x 15x >9.9x 2 Intel / INTC 105,291 18.91 -3% 11,500 new <1% 8% 9x 9x 2.6x 3 Kraft Foods / KFT 50,752 29.10 4% 10,150 2% <1% 11% 14x 13x n/m 4 Wells Fargo / WFC 128,742 24.60 -4% 14,074 0% <1% 13% 12x 9x 2.2x 5 U.S. Bancorp / USB 41,679 21.74 -3% 11,307 0% <1% 9% 13x 10x 2.9x 6 Johnson & Johnson / JNJ 161,796 58.74 -1% 6,884 0% <1% 16% 12x 12x 7.4x 7 International Coal / ICO 1,009 4.95 29% 45,156 0% 22% 9% 20x 8x 1.4x

Top Holdings of Fairfax – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Johnson & Johnson / JNJ 161,796 58.74 -1% 6,884 0% <1% 16% 12x 12x 7.4x 2 Wells Fargo / WFC 128,742 24.60 -4% 14,074 0% <1% 13% 12x 9x 2.2x 3 Kraft Foods / KFT 50,752 29.10 4% 10,150 2% <1% 11% 14x 13x n/m 4 Dell / DELL 23,636 12.07 0% 22,817 -1% 1% 11% 10x 8x >9.9x 5 U.S. Bancorp / USB 41,679 21.74 -3% 11,307 0% <1% 9% 13x 10x 2.9x 6 International Coal / ICO 1,009 4.95 29% 45,156 0% 22% 9% 20x 8x 1.4x 7 Intel / INTC 105,291 18.91 -3% 11,500 new <1% 8% 9x 9x 2.6x 8 Level 3 Comms / LVLT 1,781 1.07 -2% 139,276 0% 8% 6% n/m n/m n/m 9 Frontier Comms / FTR 7,658 7.72 9% 18,620 0% 2% 6% 15x 17x n/m

New Positions Sold Out Positions 1st Century Banc / FCTY Citigroup / C Consolidated Edison / ED Dominion Resources / D Duke Energy / DUK Everest Re / RE Intel / INTC MBIA / MBI Patterson-UTI Energy / PTEN

PG&E / PCG PPL Corp. / PPL Public Service / PEG Sempra Energy / SRE SLM Corp. / SLM Southern Company / SO Sybase / SY Xcel Energy / XEL

General Electric / GE Leucadia National / LUK









* Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities. ** A large portion of Fairfax’s asset value may be attributed to holdings that are not publicly traded and are therefore not shown in the chart or tables.

Financial24%

Technology19%

Health Care16%

Other41%



First Pacific (Bob Rodriguez and Steven Romick) Bob Rodriguez is one of the most successful small cap mutual fund managers of the past couple of decades. He joined First Pacific Advisors in 1983 and now serves as the firm’s CEO. He also manages the FPA Capital Fund. Steve Romick joined FPA in 1996 and serves as portfolio managers of the FPA Crescent Fund. MOI Signal Rank™ – Top Current Ideas of First Pacific Advisors

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Covidien / COV 19,104 38.09 -5% 3,209 33% <1% 3% 12x 11x >9.9x 2 Ensco / ESV 5,936 41.51 6% 7,980 6% 6% 8% 11x 10x 1.1x 3 Arrow Electronics / ARW 2,918 24.77 11% 5,111 2% 4% 3% 6x 6x 1.5x 4 Rowan Companies / RDC 2,890 25.21 15% 7,353 4% 6% 5% 10x 11x .9x 5 Occidental Petroleum / OXY 60,967 75.06 -3% 1,281 56% <1% 2% 14x 11x 2.0x 6 Aon Corp. / AON 9,955 36.91 -1% 2,880 44% 1% 3% 11x 11x n/m 7 SM Energy / SM 2,236 35.48 -12% 1,034 new 2% <1% 33x 28x 1.9x 8 Baker Hughes / BHI 16,817 39.01 -6% 1,976 new <1% 2% 21x 13x 2.7x 9 Lincare / LNCR 2,331 23.76 -27% 1,564 50% 2% <1% 13x 11x n/m 10 Seahawk Drilling / HAWK 87 7.33 -65% 194 -2% 2% <1% n/m n/m .2x

Top Holdings of First Pacific Advisors – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Ensco / ESV 5,936 41.51 6% 7,980 6% 6% 8% 11x 10x 1.1x 2 Rowan Companies / RDC 2,890 25.21 15% 7,353 4% 6% 5% 10x 11x .9x 3 Avnet / AVT 3,670 24.17 0% 5,701 -3% 4% 3% 7x 6x 1.5x 4 Arrow Electronics / ARW 2,918 24.77 11% 5,111 2% 4% 3% 6x 6x 1.5x 5 Covidien / COV 19,104 38.09 -5% 3,209 33% <1% 3% 12x 11x >9.9x 6 Signet Jewelers / SIG 2,391 27.95 2% 4,280 -7% 5% 3% n/a n/a 1.3x 7 Rosetta Resources / ROSE 1,028 19.48 -2% 5,880 -14% 11% 3% 30x 15x 2.0x 8 Aon Corp. / AON 9,955 36.91 -1% 2,880 44% 1% 3% 11x 11x n/m 9 Trinity Industries / TRN 1,385 17.37 -2% 5,903 -1% 7% 3% 24x 14x .9x 10 Occidental Petroleum / OXY 60,967 75.06 -3% 1,281 56% <1% 2% 14x 11x 2.0x

New Positions Sold Out Positions Anheuser-Busch / BUD Baker Hughes / BHI Devon Energy / DVN Johnson & Johnson / JNJ

SM Energy / SM Tidewater / TDW Transocean / RIG Travelers / TRV

None










Energy35%

Services19%

Technology13%

Other33%



Glenview (Larry Robbins) Larry Robbins founded Glenview after working for buyout specialist Leon Cooperman’s Omega Advisors. Robbins’ hedge fund utilizes various value-oriented investment strategies in order to generate absolute returns. MOI Signal Rank™ – Top Current Ideas of Glenview Capital

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Xerox / XRX 12,406 8.97 12% 23,972 new 2% 4% 10x 8x n/m 2 DaVita / DVA 6,548 63.82 2% 3,338 64% 3% 4% 15x 14x n/m 3 Expedia / EXPE 6,725 23.64 26% 9,084 >100% 3% 4% 14x 12x n/m 4 Life Technologies / LIFE 8,127 44.33 -6% 7,305 17% 4% 7% 13x 12x n/m 5 Medco Health / MHS 19,627 45.26 -18% 4,143 >100% <1% 4% 13x 11x n/m 6 PHH / PHH 1,085 19.56 3% 2,899 >100% 5% 1% n/m 7x 9.6x 7 Express Scripts / ESRX 24,604 45.36 -4% 4,291 62% <1% 4% 18x 14x n/m 8 Lincare / LNCR 2,331 23.76 -27% 2,314 >100% 2% 1% 13x 11x n/m 9 Live Nation / LYV 1,527 8.80 -16% 2,788 >100% 2% <1% n/m 73x n/m 10 Synovus Financial / SNV 1,798 2.29 -10% 3,000 new <1% <1% n/m n/m .7x

Top Holdings of Glenview Capital – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Life Technologies / LIFE 8,127 44.33 -6% 7,305 17% 4% 7% 13x 12x n/m 2 McKesson / MCK 16,124 61.67 -8% 3,737 -30% 1% 5% 13x 12x 6.2x 3 Xerox / XRX 12,406 8.97 12% 23,972 new 2% 4% 10x 8x n/m 4 Expedia / EXPE 6,725 23.64 26% 9,084 >100% 3% 4% 14x 12x n/m 5 DaVita / DVA 6,548 63.82 2% 3,338 64% 3% 4% 15x 14x n/m 6 Express Scripts / ESRX 24,604 45.36 -4% 4,291 62% <1% 4% 18x 14x n/m 7 Fidelity National / FNF 3,368 14.76 14% 12,885 42% 6% 4% 13x 14x 2.5x 8 Medco Health / MHS 19,627 45.26 -18% 4,143 >100% <1% 4% 13x 11x n/m 9 Oracle / ORCL 115,704 23.02 7% 8,122 32% <1% 4% 12x 11x >9.9x 10 Thermo Fisher / TMO 18,008 44.20 -10% 4,062 -4% <1% 4% 13x 11x >9.9x

New Positions Sold Out Positions Air Products & Chem / APD Broadridge Financial / BR Discover Financial / DFS Gilead Sciences / GILD Goodrich Corp. / GR Google / GOOG Lab Corp. of America / LH McAfee / MFE

Quest Diagnostics / DGX RadioShack / RSH Synovus Financial / SNV Talecris Bio / TLCR Waters / WAT Wyndham / WYN Xerox / XRX

Amdocs / DOX American Water Works / AWK DIRECTV / DTV eBay / EBAY

Kroger / KR Merck / MRK Morgan Stanley / MS R.R. Donnelley / RRD










Services28%

Technology28%

Health Care19%

Other26%



Gruss (Howard Guberman) Howard Guberman co-founded Palm Beach, Florida-based Gruss Investments with Audrey, Joshua and Martin Gruss. The firm follows a highly concentrated, value-oriented investment approach. MOI Signal Rank™ – Top Current Ideas of Gruss Asset Management

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Gerdau Ameristeel / GNA 4,750 10.95 0% 2,000 new <1% 4% 25x 13x 9.6x 2 Novartis / NVS 116,091 50.75 5% 2,250 new <1% 23% 10x 10x 3.4x 3 Caseys General Store / CASY 1,919 37.68 8% 550 new 1% 4% 15x 13x 2.5x 4 SPDR Gold Trust / GLD 50,567 119.97 -1% 1,020 6% <1% 24% n/a n/a 1.3x 5 Psychiatric Solution / PSYS 1,901 33.21 1% 300 new <1% 2% 14x 13x n/m 6 Talecris Bio / TLCR 2,728 22.20 5% 400 new <1% 2% 15x 13x 5.4x 7 Dollar Thrifty Auto / DTG 1,381 48.15 13% 169 new <1% 2% 15x 17x 3.1x 8 Wells Fargo / WFC 128,742 24.60 -4% 200 new <1% <1% 12x 9x 2.2x 9 Abraxis Bioscience / ABII 3,012 74.43 0% 48 new <1% <1% n/a n/a 6.6x 10 Novell / NOVL 2,033 5.81 2% 500 new <1% <1% 21x 20x 3.5x

Top Holdings of Gruss Asset Management – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Alcon / ACL 48,322 160.95 9% 1,000 -16% <1% 32% 21x 19x >9.9x 2 SPDR Gold Trust / GLD 50,567 119.97 -1% 1,020 6% <1% 24% n/a n/a 1.3x 3 Novartis / NVS 116,091 50.75 5% 2,250 new <1% 23% 10x 10x 3.4x 4 Gerdau Ameristeel / GNA 4,750 10.95 0% 2,000 new <1% 4% 25x 13x 9.6x 5 Caseys General Store / CASY 1,919 37.68 8% 550 new 1% 4% 15x 13x 2.5x 6 Psychiatric Solution / PSYS 1,901 33.21 1% 300 new <1% 2% 14x 13x n/m 7 Retail Opportunity / ROIC 399 9.54 -1% 961 0% 2% 2% 95x 14x 1.0x 8 Talecris Bio / TLCR 2,728 22.20 5% 400 new <1% 2% 15x 13x 5.4x 9 Coca-Cola Enterprise / CCE 14,585 29.02 12% 300 -41% <1% 2% 16x 16x n/m 10 Dollar Thrifty Auto / DTG 1,381 48.15 13% 169 new <1% 2% 15x 17x 3.1x

New Positions Sold Out Positions Abraxis Bioscience / ABII Caseys General / CASY Dollar Thrifty Auto / DTG Gerdau Ameristeel / GNA Novartis / NVS

Novell / NOVL Psychiatric Solution / PSYS Talecris Bio / TLCR Wells Fargo / WFC

Baker Hughes / BHI Sauer-Danfoss / SHS Synovus Financial / SNV Telefonos de Mexico / TMX



Top 10 as % o portfolio 96%







Health Care59%

Financial25%

Services8%

Other8%



Harbinger (Phil Falcone) Phil Falcone founded Harbinger Capital Partners in 2001 in order to capitalize on distressed investment opportunities. The firm has since expanded into special situation investments and other value-oriented investment strategies. MOI Signal Rank™ – Top Current Ideas of Harbinger Capital

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Spectrum Brands / SPB 1,381 26.99 6% 34,169 new 67% 45% n/m 9x n/m 2 Cameron / CAM 8,923 36.84 13% 7,000 new 3% 13% 16x 13x 3.6x 3 Harbinger Group / HRG 102 5.29 -16% 9,950 >100% 52% 3% n/m n/m .7x 4 TerreStar / TSTR 32 0.23 -54% 31,636 0% 23% <1% n/a n/a n/m 5 Corn Products / CPO 2,560 34.02 12% 3,930 13% 5% 7% 13x 12x 1.7x 6 Walter Energy / WLT 3,929 74.24 22% 750 new 1% 3% 8x 7x >9.9x 7 Calpine / CPN 5,540 12.46 -2% 6,700 0% 2% 4% 96x 36x 1.3x

Top Holdings of Harbinger Capital – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Spectrum Brands / SPB 1,381 26.99 6% 34,169 new 67% 45% n/m 9x n/m 2 Cameron / CAM 8,923 36.84 13% 7,000 new 3% 13% 16x 13x 3.6x 3 Sprint Nextel / S 12,505 4.19 -1% 35,000 -30% 1% 7% n/m n/m n/m 4 Corn Products / CPO 2,560 34.02 12% 3,930 13% 5% 7% 13x 12x 1.7x 5 Citigroup / C 108,651 3.75 0% 35,000 -50% <1% 6% 10x 8x .9x 6 New York Times / NYT 1,126 7.72 -11% 13,120 -22% 9% 5% 11x 11x n/m 7 Calpine / CPN 5,540 12.46 -2% 6,700 0% 2% 4% 96x 36x 1.3x 8 EXCO Resources / XCO 2,952 13.88 -5% 5,837 -17% 3% 4% 18x 13x 2.2x 9 Walter Energy / WLT 3,929 74.24 22% 750 new 1% 3% 8x 7x >9.9x 10 Harbinger Group / HRG 102 5.29 -16% 9,950 >100% 52% 3% n/m n/m .7x

New Positions Sold Out Positions Cameron / CAM Crosstex Energy / XTXI Lloyds Banking / LYG Spectrum Brands / SPB Walter Energy / WLT

Ashland / ASH Bunge / BG Clearwire / CLWR Cliffs Natural / CLF Complete Production / CPX CONSOL Energy / CNX Constellation Energy / CEG Freeport-McMoRan / FCX Harry Winston / HWD iStar Financial / SFI Media General / MEG

Mercer International / MERC Mirant / MIR NRG Energy / NRG Owens Corning / OC Pioneer Drilling / PDC Seagate Technology / STX SPDR Gold Trust / GLD Strategic Hotels / BEE Trina Solar / TSL US Airways / LCC









* Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities. ** A material portion of assets managed by Phil Falcone may be invested in private, non-equity or non-U.S. securities, which are not shown here.

Technology47%

Energy23%

Services13%

Other17%



Icahn Capital (Carl Icahn) Carl Icahn is an activist investor with a long track record of success agitating for change at underperforming companies. Carl publishes an activist investing blog entitled The Icahn Report at www.icahnreport.com.

Below we exclusively show holdings disclosed by Icahn Capital LP. Certain other entities controlled by Carl are excluded. MOI Signal Rank™ – Top Current Ideas of Icahn Capital

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Chesapeake Energy / CHK 13,335 20.38 -3% 12,739 >100% 2% 6% 7x 7x 1.1x 2 Lions Gate / LGF 873 6.41 -8% 32,003 82% 23% 5% n/m n/m n/m 3 Take-Two / TTWO 715 8.44 -6% 9,431 1% 11% 2% n/m 7x 3.0x 4 Hain Celestial / HAIN 852 20.81 3% 2,900 new 7% 1% 20x 17x 6.8x 5 Motorola / MOT 17,458 7.48 15% 177,666 14% 8% 32% 18x 14x 2.6x 6 Mentor Graphics / MENT 1,041 9.74 10% 6,215 new 6% 1% 15x 11x 6.5x 7 Amylin Pharma / AMLN 2,852 19.85 6% 12,971 0% 9% 6% n/m n/m 7.3x 8 Biogen Idec / BIIB 13,397 55.38 17% 12,860 0% 5% 17% 11x 11x 5.9x 9 Anadarko Petroleum / APC 24,103 48.70 35% 2,000 new <1% 2% 25x 20x 1.6x 10 Genzyme / GENZ 17,046 66.89 32% 10,480 0% 4% 17% 35x 19x 5.5x

Top Holdings of Icahn Capital – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Motorola / MOT 17,458 7.48 15% 177,666 14% 8% 32% 18x 14x 2.6x 2 Biogen Idec / BIIB 13,397 55.38 17% 12,860 0% 5% 17% 11x 11x 5.9x 3 Genzyme / GENZ 17,046 66.89 32% 10,480 0% 4% 17% 35x 19x 5.5x 4 Chesapeake Energy / CHK 13,335 20.38 -3% 12,739 >100% 2% 6% 7x 7x 1.1x 5 Amylin Pharma / AMLN 2,852 19.85 6% 12,971 0% 9% 6% n/m n/m 7.3x 6 Lions Gate / LGF 873 6.41 -8% 32,003 82% 23% 5% n/m n/m n/m 7 Anadarko Petroleum / APC 24,103 48.70 35% 2,000 new <1% 2% 25x 20x 1.6x 8 Take-Two / TTWO 715 8.44 -6% 9,431 1% 11% 2% n/m 7x 3.0x 9 Mentor Graphics / MENT 1,041 9.74 10% 6,215 new 6% 1% 15x 11x 6.5x 10 Hain Celestial / HAIN 852 20.81 3% 2,900 new 7% 1% 20x 17x 6.8x

New Positions Sold Out Positions Anadarko Petroleum / APC Ensco / ESV Hain Celestial / HAIN Lawson Software / LWSN

Mentor Graphics / MENT MICROS Systems / MCRS NRG Energy / NRG Smith & Wesson / SWHC

CIT Group / CIT









* Based on equity holdings disclosed in 13F-HR filings with the SEC. Excludes portfolio cash, leverage, certain non-U.S. holdings, and non-equity securities. ** A large portion of assets controlled by Carl Icahn may be attributed to entities other than Icahn Capital LP and are therefore not shown in the chart or tables.

Health Care45%

Technology38%

Energy9%

Other8%


http://www.icahnreport.com/�


Lane Five (Lisa Rapuano) Yale-educated Lisa Rapuano spent ten years at Legg Mason Capital Management and two years as co-CIO at Matador Capital Management prior to founding Lane Five in 2006. MOI Signal Rank™ – Top Current Ideas of Lane Five Capital

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Smurfit-Stone / SSCC 1,830 18.30 -23% 1,050 new 1% 15% 17x 9x .9x 2 MasterCard / MA 27,005 206.37 3% 47 34% <1% 7% 15x 13x 7.8x 3 Bank of America / BAC 129,136 12.87 -10% 834 4% <1% 8% 14x 8x 1.2x 4 Equinix / EQIX 4,104 90.02 11% 80 18% <1% 5% 89x 36x 4.9x 5 SBA Comms / SBAC 4,211 36.73 8% 154 71% <1% 4% n/m n/m n/m 6 Centerstate Banks / CSFL 238 7.92 -22% 72 new <1% <1% >99x 38x 1.2x 7 Learning Tree / LTRE 126 9.27 -15% 744 3% 5% 5% 26x 18x 2.0x 8 Corinthian Colleges / COCO 396 4.49 -54% 459 9% <1% 2% 3x 2x 5.8x 9 Iberiabank / IBKC 1,354 50.38 -2% 69 new <1% 3% 25x 17x 1.3x 10 Williams Controls / WMCO 66 9.00 0% 682 3% 9% 5% >99x 13x 3.2x

Top Holdings of Lane Five Capital – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Smurfit-Stone / SSCC 1,830 18.30 -23% 1,050 new 1% 15% 17x 9x .9x 2 Bank of America / BAC 129,136 12.87 -10% 834 4% <1% 8% 14x 8x 1.2x 3 MasterCard / MA 27,005 206.37 3% 47 34% <1% 7% 15x 13x 7.8x 4 Ares Capital / ARCC 2,795 14.55 16% 499 -38% <1% 6% 12x 10x 1.0x 5 Equinix / EQIX 4,104 90.02 11% 80 18% <1% 5% 89x 36x 4.9x 6 Learning Tree / LTRE 126 9.27 -15% 744 3% 5% 5% 26x 18x 2.0x 7 Republic Services / RSG 11,685 30.51 3% 223 3% <1% 5% 18x 15x n/m 8 Raymond James / RJF 3,095 24.91 1% 269 3% <1% 5% 14x 12x 1.4x 9 Williams Controls / WMCO 66 9.00 0% 682 3% 9% 5% >99x 13x 3.2x 10 SBA Comms / SBAC 4,211 36.73 8% 154 71% <1% 4% n/m n/m n/m

New Positions Sold Out Positions Centerstate Banks / CSFL DIRECTV / DTV Iberiabank / IBKC

Smurfit-Stone / SSCC Visa / V

American Tower / AMT Crown Castle / CCI drugstore.com / DSCM

Interval Leisure / IILG Legg Mason / LM Potash / POT




Median mar et value $2.9 billion






Services47%

Financial40%

Health Care8%

Other5%



Lone Pine (Steve Mandel) Mandel founded long/short firm Lone Pine in 1997. He previously worked for Tiger Management, Goldman Sachs and Mars. MOI Signal Rank™ – Top Current Ideas of Lone Pine

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Crown Castle / CCI 11,786 40.60 9% 10,957 new 4% 4% n/m >99x n/m 2 Lincare / LNCR 2,331 23.76 -27% 6,245 new 6% 1% 13x 11x n/m 3 Yum! Brands / YUM 19,764 42.32 8% 15,053 23% 3% 6% 17x 15x >9.9x 4 Cognizant Tech / CTSH 17,936 59.61 19% 11,868 9% 4% 7% 26x 23x 6.6x 5 VistaPrint / VPRT 1,245 28.39 -40% 797 new 2% <1% 13x 11x 3.4x 6 Estee Lauder / EL 11,296 57.39 3% 6,106 75% 3% 3% 19x 16x >9.9x 7 priceline.com / PCLN 14,630 302.36 71% 1,188 new 2% 3% 25x 20x >9.9x 8 DeVry / DV 2,698 37.98 -28% 1,286 new 2% <1% 8x 7x 5.7x 9 Live Nation / LYV 1,527 8.80 -16% 11,706 22% 7% <1% n/m 73x n/m 10 SPDR Gold Trust / GLD 50,567 119.97 -1% 3,370 45% <1% 4% n/a n/a 1.3x

Top Holdings of Lone Pine – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Cognizant Tech / CTSH 17,936 59.61 19% 11,868 9% 4% 7% 26x 23x 6.6x 2 Yum! Brands / YUM 19,764 42.32 8% 15,053 23% 3% 6% 17x 15x >9.9x 3 JPMorgan Chase / JPM 147,266 37.14 1% 16,436 -8% <1% 6% 10x 8x 1.5x 4 Apple / AAPL 228,062 249.64 -1% 2,251 -4% <1% 5% 17x 14x 5.4x 5 Crown Castle / CCI 11,786 40.60 9% 10,957 new 4% 4% n/m >99x n/m 6 QUALCOMM / QCOM 62,458 38.91 18% 11,265 -24% <1% 4% 16x 15x 4.1x 7 Accenture / ACN 27,121 38.42 -1% 10,668 -15% 2% 4% 15x 13x >9.9x 8 SPDR Gold Trust / GLD 50,567 119.97 -1% 3,370 45% <1% 4% n/a n/a 1.3x 9 priceline.com / PCLN 14,630 302.36 71% 1,188 new 2% 3% 25x 20x >9.9x 10 Estee Lauder / EL 11,296 57.39 3% 6,106 75% 3% 3% 19x 16x >9.9x

New Positions Sold Out Positions 7 Days Group / SVN Autodesk / ADSK Career Education / CECO China Lodging / HTHT Crown Castle / CCI DeVry / DV Dollar General / DG Equinix / EQIX Family Dollar Stores / FDO Google / GOOG

Lincare / LNCR Owens Corning / OC priceline.com / PCLN QuinStreet / QNST Regal Entertainment / RGC Suntech Power / STP TD Ameritrade / AMTD VanceInfo / VIT VistaPrint / VPRT

Apollo Group / APOL Bank of America / BAC Baxter International / BAX Coca-Cola / KO CVS Caremark / CVS Dr Pepper Snapple / DPS Mindray Medical / MR Monsanto / MON PNC Financial / PNC Staples / SPLS

Walter Energy / WLT Wells Fargo / WFC










Services34%

Technology33%

Financial16%

Other16%



Maverick (Lee Ainsle) Lee Ainsle worked for Julian Robertson’s Tiger Management prior to founding long/short hedge fund Maverick. MOI Signal Rank™ – Top Current Ideas of Maverick Capital

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Corning / GLW 25,142 16.10 0% 20,339 13% 1% 4% 7x 8x 1.5x 2 Marvell Technology / MRVL 10,504 16.16 3% 20,578 16% 3% 4% 10x 10x 4.2x 3 Children's Place / PLCE 1,244 44.84 2% 2,075 New 7% 1% 14x 13x 2.0x 4 Pfizer / PFE 128,413 15.92 12% 23,218 12% <1% 5% 7x 7x n/m 5 Skyworks Solutions / SWKS 3,158 17.68 5% 12,956 New 7% 3% 15x 12x 4.4x 6 QUALCOMM / QCOM 62,458 38.91 18% 10,136 19% <1% 5% 16x 15x 4.1x 7 Bluefly / BFLY 51 2.08 4% 3,704 0% 15% <1% n/a n/a 1.6x 8 Citrix Systems / CTXS 11,069 59.21 40% 5,212 new 3% 4% 31x 27x 9.1x 9 Stanley Black Decker / SWK 9,120 55.05 9% 4,724 >100% 3% 3% 15x 12x n/m

Top Holdings of Maverick Capital – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 QUALCOMM / QCOM 62,458 38.91 18% 10,136 19% <1% 5% 16x 15x 4.1x 2 Pfizer / PFE 128,413 15.92 12% 23,218 12% <1% 5% 7x 7x n/m 3 Marvell Technology / MRVL 10,504 16.16 3% 20,578 16% 3% 4% 10x 10x 4.2x 4 Corning / GLW 25,142 16.10 0% 20,339 13% 1% 4% 7x 8x 1.5x 5 Apple / AAPL 228,062 249.64 -1% 1,310 -15% <1% 4% 17x 14x 5.4x 6 Citrix Systems / CTXS 11,069 59.21 40% 5,212 new 3% 4% 31x 27x 9.1x 7 Apollo Group / APOL 6,007 40.72 -4% 7,484 32% 5% 4% 8x 7x 7.9x 8 Expedia / EXPE 6,725 23.64 26% 11,171 7% 4% 3% 14x 12x n/m 9 Macy's / M 8,854 20.97 17% 12,494 2% 3% 3% 11x 10x >9.9x 10 Stanley Black Decker / SWK 9,120 55.05 9% 4,724 >100% 3% 3% 15x 12x n/m

New Positions Sold Out Positions Adobe Systems / ADBE Bank of NY Mellon / BK Children's Place / PLCE Citigroup / C Citrix Systems / CTXS Comcast / CMCSA DeVry / DV Education Management / EDMC Invesco / IVZ Kohl's / KSS Medidata Solutions / MDSO

Skyworks Solutions / SWKS Teva Pharma / TEVA Toyota / TM UnitedHealth / UNH Whiting Petroleum / WLL

Abercrombie & Fitch / ANF AthenaHealth / ATHN Bank of America / BAC Berkshire Hathaway / BRK.A Carnival Corp. / CCL Cypress Bioscience / CYPB Dell / DELL Discovery Comms / DISCA DISH Network / DISH FedEx / FDX Health Net / HNT

Hewlett-Packard / HPQ Mead Johnson / MJN Men's Wearhouse / MW NewStar Financial / NEWS Northwest Bancorp / NWBI Office Depot / ODP Oracle / ORCL PNC Financial / PNC Raytheon / RTN Visa / V










Technology36%

Services30%

Financial14%

Other20%



MSD Capital (Glenn Fuhrman and John Phelan) Glenn Fuhrman and John Phelan are co-managing partners and co-founders of MSD, having teamed up with Michael Dell to manage his personal capital in the late 1990s. Fuhrman previously spent ten years at Goldman Sachs, where he was head of the Special Investments Group. Phelan previously spent five years at Eddie Lampert’s ESL Investments. MOI Signal Rank™ – Top Current Ideas of MSD Capital

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 School Specialty / SCHS 261 13.86 -23% 2,785 0% 15% 7% 17x 10x n/m 2 Macquarie Infrastr. / MIC 605 13.23 3% 2,565 new 6% 6% 5x 5x n/m 3 Wright Express / WXS 1,258 32.87 11% 1,737 6% 5% 10% 13x 12x 8.6x 4 EchoStar / SATS 1,633 19.18 1% 3,671 0% 4% 12% 29x 48x .6x 5 Tyler Tech / TYL 615 17.73 14% 4,050 0% 12% 12% 24x 21x >9.9x 6 DineEquity / DIN 574 32.03 15% 2,512 0% 14% 14% 9x 8x n/m 7 Asbury Automotive / ABG 418 12.76 21% 3,686 0% 11% 8% 9x 7x 1.7x 8 Nalco Holding / NLC 3,182 23.01 12% 2,065 0% 1% 8% 15x 13x n/m 9 Sunstone Hotel / SHO 865 8.78 -12% 4,159 -4% 4% 6% n/m n/m 1.3x

Top Holdings of MSD Capital – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 DineEquity / DIN 574 32.03 15% 2,512 0% 14% 14% 9x 8x n/m 2 Tyler Tech / TYL 615 17.73 14% 4,050 0% 12% 12% 24x 21x >9.9x 3 EchoStar / SATS 1,633 19.18 1% 3,671 0% 4% 12% 29x 48x .6x 4 Wright Express / WXS 1,258 32.87 11% 1,737 6% 5% 10% 13x 12x 8.6x 5 Energy XXI / EXXI 883 17.44 11% 3,226 0% 6% 10% 65x 29x 2.1x 6 Nalco Holding / NLC 3,182 23.01 12% 2,065 0% 1% 8% 15x 13x n/m 7 Asbury Automotive / ABG 418 12.76 21% 3,686 0% 11% 8% 9x 7x 1.7x 8 School Specialty / SCHS 261 13.86 -23% 2,785 0% 15% 7% 17x 10x n/m 9 Transatlantic Petro / TAT 928 3.04 -4% 12,500 -24% 4% 7% n/m 11x 4.1x 10 Sunstone Hotel / SHO 865 8.78 -12% 4,159 -4% 4% 6% n/m n/m 1.3x

New Positions Sold Out Positions Macquarie Infrastr. / MIC Dollar Thrifty Auto / DTG Portfolio Metrics * Sector Weightings *



Median market value $874 million






Services50%

Technology19%

Energy16%

Other14%



Paulson & Co. (John Paulson) John Paulson founded his firm with $2 million in 1994. He gained notoriety by profiting hugely from the credit crisis of ‘08. MOI Signal Rank™ – Top Current Ideas of Paulson & Co.

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 American Capital / ACAS 1,707 5.01 4% 43,725 new 13% <1% 9x 8x .5x 2 McClatchy / MNI 243 2.87 -21% 5,000 new 6% <1% 5x 4x n/m 3 Bank of America / BAC 129,136 12.87 -10% 207,794 17% 2% 11% 14x 8x 1.2x 4 Strategic Hotels / BEE 586 3.87 -12% 8,000 new 5% <1% n/m n/m 1.8x 5 Popular / BPOP 2,618 2.56 -4% 66,667 new 7% <1% n/m 13x .9x 6 Sybase / SY 5,644 64.98 1% 7,000 new 8% 2% n/a n/a >9.9x 7 inVentiv Health / VTIV 884 26.06 2% 3,300 new 10% <1% n/a n/a n/m 8 Exxon Mobil / XOM 299,856 58.89 3% 9,169 new <1% 2% 10x 9x 2.1x 9 Cheniere Energy Inc. / LNG 151 2.62 -7% 7,461 0% 13% <1% n/m n/m n/m 10 Mirant / MIR 1,437 9.87 -7% 18,203 0% 13% <1% 6x 37x .3x

Top Holdings of Paulson & Co. – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 SPDR Gold Trust / GLD 50,567 119.97 -1% 31,500 0% 7% 16% n/a n/a 1.3x 2 Bank of America / BAC 129,136 12.87 -10% 207,794 17% 2% 11% 14x 8x 1.2x 3 AngloGold Ashanti / AU 16,039 43.85 2% 43,750 0% 12% 8% 29x 17x 6.0x 4 Citigroup / C 108,651 3.75 0% 506,700 0% 2% 8% 10x 8x .9x 5 JPMorgan Chase / JPM 147,266 37.14 1% 25,728 0% <1% 4% 10x 8x 1.5x 6 Hartford Financial / HIG 8,944 20.13 -9% 44,000 >100% 10% 4% 9x 5x .5x 7 Capital One / COF 17,257 37.78 -6% 20,993 0% 5% 3% 8x 9x 1.6x 8 Comcast / CMCSA 49,985 17.81 3% 44,000 0% 2% 3% 14x 12x n/m 9 SunTrust Banks / STI 11,998 24.00 3% 30,381 0% 6% 3% n/m 29x 1.2x 10 Exxon Mobil / XOM 299,856 58.89 3% 9,169 new <1% 2% 10x 9x 2.1x

New Positions Sold Out Positions Airgas / ARG Alcon / ACL American Capital / ACAS Caseys General / CASY Exxon Mobil / XOM General Growth / GGP Goldman Sachs / GS inVentiv Health / VTIV

Mariner Energy / ME McClatchy / MNI PMI Group / PMI Popular / BPOP Strategic Hotels / BEE Sybase / SY Talecris Bio / TLCR

First Midwest Banc / FMBI










Financial58%

Basic Materials13%

Services12%

Other16%



Pershing Square (Bill Ackman) Bill Ackman, managing member of Pershing Square Capital, is a value-oriented activist investor. He runs a concentrated portfolio with the largest ten equity investments accounting for the vast majority of his long book. Before the credit crunch developed into a full-blown economic crisis, Ackman made a strong case for why MBIA (MBI) and AMBAC (ABK) were overvalued and fundamentally more distressed than the market had judged at the time. On the long side, Ackman has approached large companies, including McDonald’s (MCD) and Target (TGT), with proposals for unlocking value. MOI Signal Rank™ – Top Current Ideas of Pershing Square

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Automatic Data / ADP 19,818 39.40 -2% 8,270 new 2% 9% 16x 15x 3.6x 2 Citigroup / C 108,651 3.75 0% 146,500 new <1% 15% 10x 8x .9x 3 Kraft Foods / KFT 50,752 29.10 4% 33,651 3% 2% 27% 14x 13x n/m 4 Borders Group / BGP 73 1.21 -9% 10,598 0% 18% <1% n/a n/a .8x 5 General Growth / GGP 4,431 13.96 5% 23,954 0% 8% 9% n/a n/a 7.4x 6 Greenlight Re / GLRE 833 22.84 -9% 250 0% <1% <1% n/a n/a 1.2x 7 Landry's Restaurants / LNY 395 24.31 -1% 1,554 0% 10% 1% n/m 69x 1.5x 8 Corrections Corp. / CXW 2,328 21.07 10% 10,937 0% 10% 6% 16x 16x 1.6x 9 Target / TGT 37,684 52.15 6% 20,680 0% 3% 30% 13x 12x 2.5x

Top Holdings of Pershing Square – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Target / TGT 37,684 52.15 6% 20,680 0% 3% 30% 13x 12x 2.5x 2 Kraft Foods / KFT 50,752 29.10 4% 33,651 3% 2% 27% 14x 13x n/m 3 Citigroup / C 108,651 3.75 0% 146,500 new <1% 15% 10x 8x .9x 4 General Growth / GGP 4,431 13.96 5% 23,954 0% 8% 9% n/a n/a 7.4x 5 Automatic Data / ADP 19,818 39.40 -2% 8,270 new 2% 9% 16x 15x 3.6x 6 Corrections Corp. / CXW 2,328 21.07 10% 10,937 0% 10% 6% 16x 16x 1.6x 7 Yum! Brands / YUM 19,764 42.32 8% 1,907 -87% <1% 2% 17x 15x >9.9x 8 Landry's Restaurants / LNY 395 24.31 -1% 1,554 0% 10% 1% n/m 69x 1.5x 9 Borders Group / BGP 73 1.21 -9% 10,598 0% 18% <1% n/a n/a .8x 10 Greenlight Re / GLRE 833 22.84 -9% 250 0% <1% <1% n/a n/a 1.2x

New Positions Sold Out Positions Automatic Data / ADP Citigroup / C

None










Services58%


27%

Financial15%



Scout (James Crichton) James Crichton co-founded Scout with Adam Weiss in 1999. The firm runs a concentrated portfolio of undervalued equities. MOI Signal Rank™ – Top Current Ideas of Scout Capital

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 SPDR Gold Trust / GLD 50,567 119.97 -1% 830 new <1% 6% n/a n/a 1.3x 2 Visa / V 58,890 70.10 -1% 1,060 new <1% 5% 18x 15x >9.9x 3 McDonald's / MCD 77,782 73.08 11% 2,629 19% <1% 12% 16x 15x 7.3x 4 MasterCard / MA 27,005 206.37 3% 455 new <1% 6% 15x 13x 7.8x 5 Coca-Cola Enterprise / CCE 14,585 29.02 12% 12,350 10% 2% 23% 16x 16x n/m 6 Tyco International / TYC 19,261 38.70 10% 4,000 0% <1% 10% 15x 12x >9.9x 7 Sensata Tech / ST 2,961 17.31 n/m 3,420 21% 2% 4% 10x 9x n/m 8 Apollo Group / APOL 6,007 40.72 -4% 480 new <1% 1% 8x 7x 7.9x 9 Research In Motion / RIMM 26,918 48.72 -1% 370 new <1% 1% 9x 8x 4.1x 10 Citigroup / C 108,651 3.75 0% 7,500 new <1% 2% 10x 8x .9x

Top Holdings of Scout Capital – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Coca-Cola Enterprise / CCE 14,585 29.02 12% 12,350 10% 2% 23% 16x 16x n/m 2 McDonald's / MCD 77,782 73.08 11% 2,629 19% <1% 12% 16x 15x 7.3x 3 Tyco International / TYC 19,261 38.70 10% 4,000 0% <1% 10% 15x 12x >9.9x 4 Verisk Analytics / VRSK 5,095 28.47 -5% 4,611 -23% 3% 8% 21x 19x n/m 5 SPDR Gold Trust / GLD 50,567 119.97 -1% 830 new <1% 6% n/a n/a 1.3x 6 MasterCard / MA 27,005 206.37 3% 455 new <1% 6% 15x 13x 7.8x 7 eBay / EBAY 30,665 23.37 19% 3,300 -52% <1% 5% 14x 13x 4.0x 8 Visa / V 58,890 70.10 -1% 1,060 new <1% 5% 18x 15x >9.9x 9 Sensata Tech / ST 2,961 17.31 n/m 3,420 21% 2% 4% 10x 9x n/m 10 Lamar Advertising / LAMR 2,610 28.28 15% 2,000 -13% 2% 4% n/m n/m n/m

New Positions Sold Out Positions American Express / AXP Apollo Group / APOL Citigroup / C Goldman Sachs / GS MasterCard / MA

Research In Motion / RIMM SPDR Gold Trust / GLD TransDigm / TDG Visa / V

Amazon.com / AMZN Bank of America / BAC C.H. Robinson / CHRW CarMax / KMX Comcast / CMCSA

Home Depot / HD Netflix / NFLX Popular / BPOP Wells Fargo / WFC










Services33%

Financial25%


23%

Other19%



Shumway Capital (Chris Shumway) Chris Shumway is another “Tiger Cub,” having previously worked for Julian Robertson’s Tiger Management. Shumway follows a value-oriented investment approach, albeit with large portfolio turnover and only modest concentration. MOI Signal Rank™ – Top Current Ideas of Shumway Capital

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Baxter International / BAX 26,045 44.57 10% 4,036 new <1% 6% 11x 11x 7.6x 2 Baidu.com / BIDU 28,596 82.17 21% 3,604 >100% 1% 10% 59x 38x >9.9x 3 Illumina / ILMN 5,593 45.00 3% 2,695 >100% 2% 4% 46x 34x 8.0x 4 Union Pacific / UNP 36,949 74.26 7% 1,897 68% <1% 5% 14x 12x 2.1x 5 Live Nation / LYV 1,527 8.80 -16% 4,933 new 3% 1% n/m 73x n/m

Top Holdings of Shumway Capital – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Baidu.com / BIDU 28,596 82.17 21% 3,604 >100% 1% 10% 59x 38x >9.9x 2 Pfizer / PFE 128,413 15.92 12% 13,762 -35% <1% 7% 7x 7x n/m 3 Baxter International / BAX 26,045 44.57 10% 4,036 new <1% 6% 11x 11x 7.6x 4 Equinix / EQIX 4,104 90.02 11% 1,948 -47% 4% 6% 89x 36x 4.9x 5 Apple / AAPL 228,062 249.64 -1% 678 -79% <1% 6% 17x 14x 5.4x 6 Teva Pharma / TEVA 47,012 50.28 -3% 3,216 -51% <1% 5% 11x 10x >9.9x 7 Las Vegas Sands / LVS 19,578 29.63 34% 5,362 0% <1% 5% 42x 28x 3.5x 8 Union Pacific / UNP 36,949 74.26 7% 1,897 68% <1% 5% 14x 12x 2.1x

New Positions Sold Out Positions American Eagle / AEO Ameriprise Financial / AMP Baxter International / BAX Cephalon / CEPH D.R. Horton / DHI El Paso Corp. / EP Freeport-McMoRan / FCX Hansen Natural / HANS KB Home / KBH Lennar / LEN Live Nation / LYV MercadoLibre / MELI Netflix / NFLX Pulte Homes / PHM RadioShack / RSH Sirius XM Radio / SIRI

Amazon.com / AMZN Annaly Capital / NLY Bank of America / BAC C.R. Bard / BCR Cablevision / CVC CME Group / CME Comcast / CMCSA Community Health / CYH Credit Suisse / CS Ctrip.com / CTRP Discovery Comms / DISCA Gap / GPS Goldman Sachs / GS Hartford Financial / HIG Illinois Tool Works / ITW Ingersoll-Rand / IR Johnson & Johnson / JNJ

JPMorgan Chase / JPM Juniper Networks / JNPR Lab Corp. of America / LH Liberty Global / LBTYA Lowe's / LOW Omnicom / OMC PepsiCo / PEP Quest Diagnostics / DGX salesforce.com / CRM Sigma-Aldrich / SIAL St. Jude Medical / STJ Staples / SPLS Urban Outfitters / URBN Visa / V Walt Disney / DIS Waters / WAT Yum! Brands / YUM










Health Care27%

Technology23%

Services22%

Other28%



Third Point (Dan Loeb) Loeb is the founder of long/short activist fund Third Point, which has amassed a respectable long-term investment record. MOI Signal Rank™ – Top Current Ideas of Third Point

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Alcon / ACL 48,322 160.95 9% 700 new <1% 12% 21x 19x >9.9x 2 Xerium Technologies / XRM 164 10.97 -22% 1,295 new 9% 1% n/a n/a n/m 3 BioFuel Energy / BIOF 42 1.29 -3% 5,579 0% 17% <1% n/a n/a .6x 4 CIT Group / CIT 7,618 38.04 12% 2,447 4% 1% 10% 16x 15x .9x 5 Health Net / HNT 2,348 24.10 -1% 3,000 0% 3% 7% 9x 9x 2.3x 6 TransDigm / TDG 2,830 57.35 12% 1,800 0% 4% 11% 18x 16x n/m 7 DepoMed / DEPO 196 3.73 33% 6,790 0% 13% 3% n/m 13x >9.9x 8 Macy's / M 8,854 20.97 17% 2,600 >100% <1% 6% 11x 10x >9.9x 9 ViewPoint Financial / VPFG 325 9.31 -6% 775 new 2% <1% 26x 25x 1.5x 10 Liberty Interactive / LINTA 6,280 10.50 0% 5,000 4% <1% 5% 12x 15x n/m

Top Holdings of Third Point – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Alcon / ACL 48,322 160.95 9% 700 new <1% 12% 21x 19x >9.9x 2 TransDigm / TDG 2,830 57.35 12% 1,800 0% 4% 11% 18x 16x n/m 3 CIT Group / CIT 7,618 38.04 12% 2,447 4% 1% 10% 16x 15x .9x 4 PHH / PHH 1,085 19.56 3% 4,170 -7% 8% 8% n/m 7x 9.6x 5 Health Net / HNT 2,348 24.10 -1% 3,000 0% 3% 7% 9x 9x 2.3x 6 Airgas / ARG 5,543 66.25 7% 1,080 17% 1% 7% 20x 18x >9.9x 7 Coca-Cola Enterprise / CCE 14,585 29.02 12% 2,002 0% <1% 6% 16x 16x n/m 8 Macy's / M 8,854 20.97 17% 2,600 >100% <1% 6% 11x 10x >9.9x 9 Mead Johnson / MJN 10,925 53.41 7% 1,000 0% <1% 5% 22x 20x n/m 10 Liberty Interactive / LINTA 6,280 10.50 0% 5,000 4% <1% 5% 12x 15x n/m

New Positions Sold Out Positions Alcon / ACL Plains Exploration / PXP ViewPoint Financial / VPFG Xerium Technologies / XRM

Alkermes / ALKS Brocade Comms / BRCD Dana Holding / DAN DIRECTV / DTV Kraft Foods / KFT Lear / LEA Pall Corp. / PLL Phillips-Van Heusen / PVH

Phoenix Companies / PNX Popular / BPOP Strategic Hotels / BEE Toyota / TM VIVUS / VVUS Walgreen / WAG Washington Post / WPO WellPoint / WLP










Financial26%

Services19%

Health Care17%

Other39%



Viking Global (Andreas Halvorsen) Andreas Halvorsen is a graduate of the Norwegian Naval Academy, a former platoon commander of the Norwegian SEALs, and a former director of equities at Tiger Management. Halvorsen founded Viking Global Investors in 1999. MOI Signal Rank™ – Top Current Ideas of Viking Global

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 American Tower / AMT 19,026 47.43 7% 11,798 new 3% 6% 55x 43x n/m 2 Oracle / ORCL 115,704 23.02 7% 21,237 >100% <1% 5% 12x 11x >9.9x 3 News Corp. / NWSA 33,368 12.73 6% 32,736 65% 1% 5% 12x 10x >9.9x 4 Invesco / IVZ 8,717 18.50 10% 36,556 15% 8% 8% n/a n/a >9.9x 5 Adobe Systems / ADBE 14,664 27.92 6% 11,409 new 2% 4% 15x 13x >9.9x 6 Tyco International / TYC 19,261 38.70 10% 10,754 3% 2% 5% 15x 12x >9.9x 7 Mednax / MD 2,296 48.20 -13% 2,652 >100% 6% 1% 12x 11x n/m 8 PNC Financial / PNC 27,704 52.73 -7% 4,623 >100% <1% 3% 10x 9x 1.7x 9 Corinthian Colleges / COCO 396 4.49 -54% 3,159 new 4% <1% 3x 2x 5.8x 10 Comcast / CMCSA 49,985 17.81 3% 23,142 >100% <1% 5% 14x 12x n/m

Top Holdings of Viking Global – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Invesco / IVZ 8,717 18.50 10% 36,556 15% 8% 8% n/a n/a >9.9x 2 American Tower / AMT 19,026 47.43 7% 11,798 new 3% 6% 55x 43x n/m 3 Oracle / ORCL 115,704 23.02 7% 21,237 >100% <1% 5% 12x 11x >9.9x 4 News Corp. / NWSA 33,368 12.73 6% 32,736 65% 1% 5% 12x 10x >9.9x 5 Tyco International / TYC 19,261 38.70 10% 10,754 3% 2% 5% 15x 12x >9.9x 6 Comcast / CMCSA 49,985 17.81 3% 23,142 >100% <1% 5% 14x 12x n/m 7 Goodrich Corp. / GR 9,052 72.25 9% 4,935 39% 4% 4% 16x 14x >9.9x 8 Sherwin-Williams / SHW 7,435 68.34 -1% 5,117 69% 5% 4% 15x 13x >9.9x

New Positions Sold Out Positions Adobe Systems / ADBE American Express / AXP American Tower / AMT BRE Properties / BRE C.H. Robinson / CHRW Charles Schwab / SCHW Corinthian Colleges / COCO EMC / EMC Equity Residential / EQR Estee Lauder / EL Human Genome Science / HGSI KB Home / KBH

KeyCorp / KEY Lab Corp. of America / LH Medco Health / MHS Morgan Stanley / MS Precision Castparts / PCP Prudential Financial / PRU Stanley Black Decker / SWK Time Warner / TWX Time Warner Cable / TWC Valeant Pharma / VRX Xerox / XRX

Banco Santander / STD Bank of America / BAC Beckman Coulter / BEC Capital One / COF CME Group / CME Family Dollar Stores / FDO Google / GOOG Hewlett-Packard / HPQ Ingersoll-Rand / IR InterMune / ITMN Lennar / LEN

McKesson / MCK NVR / NVR Pall Corp. / PLL Pfizer / PFE Psychiatric Solution / PSYS Qwest Comms / Q Rockwell Collins / COL Visa / V Walt Disney / DIS WellPoint / WLP










Services27%

Financial23%Technology

15%

Other35%



West Coast (Lance Helfert and Paul Orfalea) Lace Helfert and Paul Orfalea co-founded West Coast Asset Management in 2000. Helfert, who directs the firm’s investments, previously oversaw a $1 billion portfolio at Wilshire Associates. Orfalea is the founder of Kinko’s copy shops. West Coast invests in undervalued equities and follows a concentrated investment approach. MOI Signal Rank™ – Top Current Ideas of West Coast Asset Management

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Automatic Data / ADP 19,818 39.40 -2% 206 new <1% 8% 16x 15x 3.6x 2 Broadridge Financial / BR 2,555 20.16 6% 414 new <1% 8% 13x 11x >9.9x 3 American Defense / EAG 13 0.26 13% 5,084 0% 10% 1% n/a n/a n/m 4 Angiotech Pharma / ANPI 39 0.46 -39% 59 0% <1% <1% n/a n/a n/m 5 Live Nation / LYV 1,527 8.80 -16% 506 -17% <1% 5% n/m 73x n/m

Top Holdings of West Coast Asset Management – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Johnson & Johnson / JNJ 161,796 58.74 -1% 225 -24% <1% 13% 12x 12x 7.4x 2 Clorox / CLX 9,073 64.42 4% 200 -20% <1% 13% 14x 13x n/m 3 Kimberly-Clark / KMB 26,487 64.71 7% 197 -17% <1% 13% 13x 12x >9.9x 4 Molson Coors / TAP 8,538 45.92 8% 273 -17% <1% 13% 13x 12x 6.5x 5 McCormick / MKC 5,450 40.90 8% 267 -21% <1% 11% 16x 15x n/m 6 Broadridge Financial / BR 2,555 20.16 6% 414 new <1% 8% 13x 11x >9.9x 7 Automatic Data / ADP 19,818 39.40 -2% 206 new <1% 8% 16x 15x 3.6x 8 Kraft Foods / KFT 50,752 29.10 4% 171 -58% <1% 5% 14x 13x n/m 9 Sonde Resources / SNG 181 2.90 -5% 1,657 -79% 3% 5% n/a n/a .8x 10 Live Nation / LYV 1,527 8.80 -16% 506 -17% <1% 5% n/m 73x n/m

New Positions Sold Out Positions Automatic Data / ADP Broadridge Financial / BR

None











42%

Services21%

Health Care13%

Other23%



WL Ross & Co. (Wilbur Ross) Wilbur Ross, born in 1937, has become well-known for restructuring failed companies in a variety of industries. He has been a leveraged buyout and distressed investor in steel, coal, telecom, financial and other companies. MOI Signal Rank™ – Top Current Ideas of WL Ross & Co.

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Jo-Ann Stores / JAS 1,039 38.03 1% 172 77% <1% 1% 12x 10x 1.8x 2 Cooper Tire & Rubber / CTB 1,118 18.19 -7% 389 42% <1% 2% 8x 8x 2.8x 3 Key Energy Services / KEG 1,063 8.46 -8% 234 new <1% <1% >99x 14x 3.3x 4 Innophos / IPHS 591 27.60 6% 71 new <1% <1% 10x 9x 2.6x 5 Assured Guaranty / AGO 3,124 17.00 28% 16,016 0% 9% 60% 6x 4x .8x 6 International Coal / ICO 1,009 4.95 29% 24,537 0% 12% 27% 20x 8x 1.4x 7 Lear / LEA 3,847 77.76 17% 67 97% <1% 1% 14x 10x 2.6x 8 Cyclacel Pharma / CYCC 57 1.55 -10% 814 0% 2% <1% n/m n/m 4.0x 9 Callidus Software / CALD 108 3.44 6% 1,701 0% 5% 1% n/m 25x 8.7x 10 MetroPCS / PCS 3,178 8.98 10% 3,225 -1% <1% 6% 14x 10x n/m

Top Holdings of WL Ross & Co. – By Dollar Value

Market Price Shares Owned Holdings P/E (Est.) Price/ Value Recent ∆ from Recent ∆ from as % of This Next Tang. Company / Ticker ($mn) ($) Jun. 30 ('000) Mar. 31 Co. Fund* FY FY Book 1 Assured Guaranty / AGO 3,124 17.00 28% 16,016 0% 9% 60% 6x 4x .8x 2 International Coal / ICO 1,009 4.95 29% 24,537 0% 12% 27% 20x 8x 1.4x 3 MetroPCS / PCS 3,178 8.98 10% 3,225 -1% <1% 6% 14x 10x n/m 4 Cooper Tire & Rubber / CTB 1,118 18.19 -7% 389 42% <1% 2% 8x 8x 2.8x 5 Jo-Ann Stores / JAS 1,039 38.03 1% 172 77% <1% 1% 12x 10x 1.8x 6 Callidus Software / CALD 108 3.44 6% 1,701 0% 5% 1% n/m 25x 8.7x 7 Lear / LEA 3,847 77.76 17% 67 97% <1% 1% 14x 10x 2.6x 8 Key Energy Services / KEG 1,063 8.46 -8% 234 new <1% <1% >99x 14x 3.3x 9 Innophos / IPHS 591 27.60 6% 71 new <1% <1% 10x 9x 2.6x 10 Cyclacel Pharma / CYCC 57 1.55 -10% 814 0% 2% <1% n/m n/m 4.0x

New Positions Sold Out Positions Innophos / IPHS Key Energy Services / KEG

None










Financial60%

Energy27%

Services8%

Other5%



Aon Corp. (AON) – Breeden , FPA , Southeastern , Weitz Financial: Insurance (Miscellaneous), Member of S&P 500

Chicago, IL, 312-381-1000

www.aon.com

Trading Data Consensus EPS Estimates Valuation Price: $36.91 (as of 8/20/10) Month # of P/E FYE 12/31/09 17x 52-week range: $35.10 - $44.34 Latest Ago Ests P/E FYE 12/31/10 11x Market value: $10.0 billion This quarter $0.69 $0.68 13 P/E FYE 12/31/11 11x Enterprise value: $11.2 billion Next quarter 0.94 0.94 13 P/E FYE 12/30/12 9x Shares out: 269.7 million FYE 12/31/10 3.28 3.22 16 EV/ LTM revenue 1.5x

Ownership Data FYE 12/31/11 3.51 3.54 16 EV/ LTM EBIT 11x Insider ownership: 1% FYE 12/30/12 3.98 4.03 9 P / tangible book n/m Insider buys (last six months): 0 LT growth 10.0% 9.3% 4 Greenblatt Criteria Insider sales (last six months): 16 EPS Surprise Actual Estimate LTM EBIT yield n/m Institutional ownership: 81% 7/30/10 $0.81 $0.75 LTM pre-tax ROC n/m

Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 6/30/10 6/30/09 6/30/10 Revenue 9,464 8,607 6,651 6,770 7,234 7,528 7,595 7,669 1,882 1,898 Gross profit n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m Operating income 1,074 733 577 830 1,003 940 1,021 976 220 268 Net income 625 540 733 720 864 1,462 747 649 149 153 Diluted EPS 1.94 1.45 1.23 1.45 2.03 2.04 2.18 2.16 0.50 0.63 Shares out (avg) 318 320 322 317 305 293 283 282 285 278 Cash from operations 1,312 1,184 884 968 1,263 959 375 1,150 (456) 408 Capex 241 80 126 152 170 103 140 158 32 38 Free cash flow 1,071 1,104 758 816 1,093 856 235 992 (488) 370 Cash & investments 4,355 5,018 4,347 4,616 4,826 1,266 639 734 1,117 734 Total current assets 13,108 13,428 16,752 17,613 18,068 14,526 13,989 15,497 15,881 15,497 Intangible assets 4,685 4,744 4,253 4,666 5,119 6,416 6,869 6,463 6,659 6,463 Total assets 27,027 28,329 27,832 24,384 24,929 22,940 22,958 23,956 24,438 23,956 Short-term debt 53 2 7 42 252 105 10 370 681 370 Total current liabilities 19,050 19,533 18,913 14,356 14,577 12,803 12,640 14,138 14,859 14,138 Long-term debt 3,429 2,115 2,105 2,243 1,893 1,872 1,998 1,601 1,249 1,601 Total liabilities 22,479 23,176 22,515 19,166 18,708 17,630 17,579 18,528 18,572 18,528 Preferred stock 50 50 0 0 0 0 0 0 0 0 Common equity 4,498 5,103 5,317 5,218 6,221 5,310 5,379 5,428 5,866 5,428 Ten-Year Stock Price Performance and Trading Volume Dynamics

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BUSINESS OVERVIEW Aon provides insurance and reinsurance brokerage services, risk management, and consulting services worldwide. In July, Aon announced it is to merge with Hewitt Associates (HEW) in a half cash/half shares deal valuing Hewitt’s equity at $4.9 billion based on Aon’s closing price on July 9. Aon expects the transaction to close by mid-November. INVESTMENT HIGHLIGHTS

• #2 insurance broker worldwide, based on revenue, behind Marsh & McLennan and ahead of Willis, according to 2008 Business Insurance rankings.

• Hewitt merger expands consulting business. The merged Aon-Hewitt consulting/outsourcing operations had pro-forma revenue of $4.3 billion in 2009 (~50% outsourcing). The combined business is #1 in benefits and human resources outsourcing.

• Aon shares may be worth twice the recent price by 2013, assuming a 12x multiple of pro-forma 2009 EBITDA-capex, adjusted for the realization of targeted synergies of $355 million by 2013.

• Post-deal leverage to remain manageable with net debt of ~$3.6 billion representing 1.6x pro-forma 2009 EBITDA. While Aon has $1.2 billion of net debt and is assuming another $2.5 billion in the deal, Hewitt had $111 million of net cash at 6/30.

• ~60% of post-deal EBITDA from insurance brokerage, based on 2009 pro-forma EBITDA.

• Does not assume underwriting risk. As an insurance broker, Aon solely negotiates and places risks on behalf of clients. It derives revenue mainly from commissions paid by insurance companies.

INVESTMENT RISKS & CONCERNS

• Will Hewitt deal create value? While Aon is paying what appears to be a reasonable 10x multiple of Hewitt’s 2009 EBITDA-capex, this is above Aon’s multiple of less than 9x. As Aon is issuing 64 million shares in the deal, value creation will depend on realization of targeted synergies.

• M&A hype is masking weak underlying trends in Aon’s business. YTD organic revenue fell 2% in risk/brokerage operations, while consulting was flat.

• Shareholders may not be best served with Aon having insurance brokerage and consulting under one roof. Synergies are not readily apparent.

MAJOR HOLDERS Insiders 1% | Cap World 9% | Southeastern 8% | T. Rowe 7% State Street 5% | NWQ 4% | Vanguard 3% | BlackRock 3%

SELECTED OPERATING DATA1 FYE December 31 2007 2008 2009 1H10 ∆ revenue 7% 4% 1% 2% ∆ organic revenue – risk/insurance n/a 2% -1% -2% ∆ organic revenue – consulting n/a 3% -2% 0% Revenue ($bn) 7.2 7.5 7.6 3.8 % of revenue by segment: Risk/Insurance brokerage 82% 82% 83% 83% Consulting 19% 18% 17% 17% Revenue growth by segment: Risk/Insurance brokerage 7% 5% 2% 2% Consulting 5% 1% -7% 5% EBIT margin by segment:2 Risk/Insurance brokerage 16% 14% 20% 21% Consulting 13% 15% 17% 16% Corporate -2% -2% -2% -2%

Total EBIT margin 14% 12% 17% 18% % of revenue by geography:3 U.S. 37% 35% 37% 36% Other Americas 11% 11% 12% 12% U.K. 18% 17% 17% 15% Europe/Mideast/Africa 26% 28% 26% 28% Asia Pacific 8% 9% 9% 9% Revenue growth by major geography: U.S. 0% -1% 5% 2% Other Americas 6% 11% 6% 7% U.K. 13% -3% 1% -6% Europe/Mideast/Africa 14% 13% -6% 1% Selected items as % of revenue: Net income 9% 8% 8% 9% D&A 3% 3% 3% 3% Capex 2% 1% 2% 2% ∆ shares out (avg) -4% -4% -3% -3%

1 Based on continuing operations. In 2008 and 2009, Aon sold all of its insurance underwriting operations. Figures include the contribution from the acquisition of reinsurance intermediary Benfield effective November 2008. 2 2007 and 2008 EBIT is as reported. 2009 and YTD figures exclude restructuring charges, pension-related charges and other special items. 3 Based on the location of the resources producing the revenues. COMPARABLE PUBLIC COMPANY ANALYSIS

Price ($)

Market Value ($mn)

Price to Tangible

Book

This FY P/E

Next FY P/E

FY End Date

MMC 23.10 12,550 n/m 14x 12x Dec-31 WSH 29.90 5,100 n/m 11x 10x Dec-31 BRO 2,770 2,730 2.9x n/m 18x 17x AJG 24.80 2,610 n/m 18x 16x Dec-31 AON 36.90 9,955 n/m 11x 11x Dec-31

RATINGS VALUE Intrinsic value materially higher than market value? DOWNSIDE PROTECTION Low risk of permanent loss? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends?

THE BOTTOM LINE Insurance broker Aon has made a transformative bid for Hewitt in July. The $4.9 billion deal adds scale to Aon’s small consulting/outsourcing practice, catapulting it to the largest provider of benefits and human resources outsourcing. Aon shares appear undervalued if management can fully achieve targeted deal synergies. However, the risk-reward is not compelling given execution risk around integrating a “people business,” and weak organic growth in Aon’s core operations. Based on the latter, management may have opted for an easier, but not necessarily value-creating, route to accelerate growth.



…additional insight into Aon: OUR ESTIMATE OF THE EQUITY FAIR VALUE RANGE – EXCLUDES MERGER WITH HEWITT ASSOCIATES

($ in millions) Conservative Base Case Aggressive

Valuation Methodology 8x 2009 adjusted EBITDA minus normalized capex

10x 2009 adjusted EBITDA minus normalized capex

12x 2009 adjusted EBITDA minus normalized capex

2009 adjusted EBITDA1 $1,619 $1,619 $1,619 Estimated normalized capex 100 100 100 2009 estimated EBITDA-capex $1,519 $1,519 $1,519 Fair value multiple 8.0x 10.0x 12.0x

Estimated Enterprise Value $12,152 $15,190 $18,228 Less: Net debt as of 6/30/2010 (1,237) (1,237) (1,237) Less: Net post-retirement liability as of 6/30/2010 (1,716) (1,716) (1,716)

Estimated fair value of the equity of Aon2 $9.2 Billion $12.2 Billion $15.3 Billion

$34 per share $45 per share $57 per share 1 As reported by Aon in the Aon/Hewitt merger presentation from July 12, 2010 (page 20). Adjusted EBITDA excludes restructuring charges, pension curtailment, Benfield integration costs and costs of anti-bribery and compliance initiatives. The implied margin is 21.3% of 2009 revenue. 2 Based on 270 million shares outstanding. Source: Company filings, Manual of Ideas analysis, assumptions and estimates. OUR ESTIMATE OF THE EQUITY FAIR VALUE RANGE – INCLUDES MERGER WITH HEWITT ASSOCIATES


Valuation Methodology

8x 2009 pro-forma, post-synergy EBITDA minus

normalized capex (assumes 0% of targeted

synergies achieved)

10x 2009 pro-forma, post-synergy EBITDA

minus normalized capex (assumes 50% of targeted synergies

achieved)

12x 2009 pro-forma, post-synergy EBITDA

minus normalized capex (assumes 100% of targeted synergies

achieved) 2009 pro-forma EBITDA1 $2,209 $2,209 $2,209 Estimated normalized capex2 225 225 225 2009 pro-forma EBITDA-capex, PRE-SYNERGIES $1,984 $1,984 $1,984 Targeted deal synergies3 355 355 355 Assumed synergies realization factor 0% 50% 100% Assumed realized synergies 0 178 355 2009 pro-forma EBITDA-capex, POST-SYNERGIES $1,984 $2,162 $2,339 Fair value multiple 8.0x 10.0x 12.0x

Estimated Enterprise Value $15,872 $21,615 $28,068 Less: Pro-forma net debt as of 6/30/20104 (1,126) (1,126) (1,126) Less: Transaction debt assumed (cash portion of deal price) (2,450) (2,450) (2,450)

Less: Restructuring and deal costs5 (300) (300) (300) Less: Pro-forma net post-retirement liability (1,716) (1,716) (1,716)

Estimated fair value of the equity of Aon/Hewitt6 $10.3 Billion $16.0 Billion $22.5 Billion

$31 per share $48 per share $67 per share 1 Adds Hewitt's 2009 adjusted EBITDA of $590 million (19.6% margin on 2009 revenue) to Aon's 2009 adjusted EBITDA of $1,619 million (21.3% margin on 2009 revenue). 2 Assumes Hewitt's normalized capex is proportionately higher relative to Aon due to Hewitt's focus on more capital-intensive outsourcing. 3 As reported by Aon in the Aon/Hewitt merger presentation from July 12, 2010 (page 10). The full $355 million of synergies are expected to be achieved by 2013 (not reflected in our valuation for simplicity purposes). Synergies represent 10% of Aon Hewitt’s FY2009 operating expense base. 4 Adds Hewitt's net cash of $111 million as of June 30, 2010 to Aon's net debt of $1,237 million. Combined pro-forma net debt (including transaction debt of $2.45 billion) to 2009 pro-forma EBITDA is 1.6x. 5 Based on restructuring costs of $249 million as disclosed in the Aon/Hewitt merger presentation from July 12, 2010 (page 10). The remainder is assumed to be transaction costs. 6 Based on 334 million pro-forma shares outstanding, including 64.0 million newly issued shares to pay for the share-based part of the Hewitt deal consideration). Source: Company filings, Manual of Ideas analysis, assumptions and estimates.



…additional insight into Aon: SLIDES FROM PRESENTATION ON HEWITT MERGER, JULY 2010



Chesapeake Energy (CHK) – BP Capital , Icahn , Southeastern Energy: Oil & Gas Operations, Member of S&P 500

Oklahoma City, OK, 405-848-8000

www.chk.com

Trading Data Consensus EPS Estimates Valuation Price: $20.38 (as of 8/20/10) Month # of P/E FYE 12/31/09 n/m 52-week range: $19.62 - $30.00 Latest Ago Ests P/E FYE 12/31/10 7x Market value: $13.3 billion This quarter $0.65 $0.67 27 P/E FYE 12/31/11 7x Enterprise value: $26.3 billion Next quarter 0.72 0.75 26 P/E FYE 12/30/12 6x Shares out: 654.3 million FYE 12/31/10 2.94 2.95 29 EV/ LTM revenue 3.0x

Ownership Data FYE 12/31/11 2.83 2.79 29 EV/ LTM EBIT 21x Insider ownership: <1% FYE 12/30/12 3.22 3.24 9 P / tangible book 1.1x Insider buys (last six months): 0 LT growth 8.0% 7.5% 4 Greenblatt Criteria Insider sales (last six months): 0 EPS Surprise Actual Estimate LTM EBIT yield 5% Institutional ownership: 72% 8/3/10 $0.75 $0.69 LTM pre-tax ROC 5%

Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 6/30/10 6/30/09 6/30/10 Revenue 1,717 2,709 4,665 7,326 7,800 11,629 7,702 8,844 1,673 2,012 Gross profit 1,092 1,645 2,782 5,070 4,881 6,808 4,221 7,656 1,390 1,709 Operating income 655 968 1,703 3,413 2,650 1,273 (9,147) 1,235 412 378 Net income 291 439 880 1,904 1,233 504 (5,853) 623 237 235 Diluted EPS 1.20 1.53 2.51 4.35 2.63 0.92 (9.56) 0.97 0.39 0.37 Shares out (avg) 211 253 322 398 456 536 612 617 603 631 Cash from operations 939 1,432 2,407 4,843 4,974 5,357 4,356 5,336 737 1,795 Capex 800 1,426 2,856 4,766 6,744 9,177 5,226 5,164 1,058 1,711 Free cash flow 139 6 (449) 77 (1,770) (3,820) (870) 172 (321) 84 Cash & investments 41 7 60 3 1 1,749 307 601 554 601 Total current assets 342 568 1,183 1,154 1,396 4,292 2,446 3,018 2,948 3,018 Intangible assets 0 0 0 0 0 0 0 0 0 0 Total assets 4,572 8,245 16,119 24,417 30,734 38,593 29,914 32,169 30,469 32,169 Short-term debt 0 0 0 0 0 0 0 0 0 0 Total current liabilities 513 964 1,964 1,890 2,761 3,621 2,688 3,655 2,974 3,655 Long-term debt 2,058 3,075 5,490 7,376 10,950 13,175 12,295 10,501 13,568 10,501 Total liabilities 2,840 5,082 9,944 13,166 18,604 21,576 18,470 17,354 18,467 17,354 Preferred stock 552 491 1,577 1,958 960 505 466 3,065 466 3,065 Common equity 1,180 2,672 4,598 9,293 11,170 16,512 10,978 11,750 11,536 11,750 EBIT/capital employed 17% 18% 17% 20% 11% 4% -31% 5% n/m n/m Ten-Year Stock Price Performance and Trading Volume Dynamics

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BUSINESS OVERVIEW Chesapeake is an onshore U.S. natural gas producer. INVESTMENT HIGHLIGHTS

• Second-largest producer of U.S. natural gas with 2Q10 production of 2.5 bcf per day. Chesapeake has ~16 years of reserve life based on proved reserves of ~16 tcfe (54% developed; 90%+ natural gas).

• $27 billion after-tax “PV-10” as of June 30, based on NYMEX strip prices (average of $6.30/mcf and $84/bbl). Deducting $10 billion of net debt yields a fair value of $22/share – in-line with recent prices.

• Recent market valuation implies zero value for unproved reserves and other assets. Chesapeake has ~226 tcfe of unrisked, unproved resources, which it estimates is worth $28 billion on a risked PV-10 basis at a gas price of $4/mcf. Midstream and other assets could be worth another $7 billion.

• “Able to add 2.5-3.0 tcfe per year of new proved reserves at <$1.00/mcfe for years to come,” even after replacing production. The company aims to have 24 tcfe of proved reserves by yearend 2012, with less debt and no material share count growth.

• Targeting asset monetizations of $3.0-3.5 billion in 2H10 and $2.5-3.0 billion in 2011.

• Low-cost producing assets. Total lease operating, G&A and DD&A costs totaled $3.02/mcfe YTD.


• Value of unproved reserves may be far less than estimated by Chesapeake, especially if natural gas prices decline from recent levels. Additional risks include dry holes and higher than anticipated capex.

• High capex carries reinvestment risk. Trailing capex is $5.1 billion with another $1.7 billion spent on purchases of gas/oil properties, net of sales.

• $9.9 billion of net debt and $3.1 billion of preferred stock (at liquidation value) as of June 30.

COMPARABLE PUBLIC COMPANY ANALYSIS P / This Next MV EV EV / Tang. FY FY ($mn) ($mn) Rev. Book P/E P/E DVN 27,030 30,480 3.1x 2.5x 10x 10x APC 24,100 33,080 2.9x 1.6x 25x 20x PXD 6,720 9,050 3.8x 1.8x 30x 20x CHK 13,340 26,310 3.0x 1.1x 7x 7x

MAJOR HOLDERS Insiders <1% | Southeastern 12% | FMR 6% | BlackRock 4% State Street 4% | Vanguard 3% | Mackenzie 2%

SELECTED OPERATING DATA1

FYE December 31 2006 2007 2008 2009 YTD

6/30/10 ∆ revenue 57% 6% 49% -34% 31% ∆ production 23% 24% 18% 7% 12% ∆ proved reserves 19% 21% 11% 18% 23% Selected information on proved reserves (period-end):2 Reserves (tcfe) 9.0 10.9 12.1 14.3 15.5 % developed 62% 64% 67% 58% 54% After-tax NPV ($bn) 10.0 15.0 11.8 8.2 12.9 Selected production data: Natural gas (bcf) 526 655 775 835 437 Oil (mmbbl) 9 10 11 12 8 Total (bcfe) 578 714 843 906 487 Average sales prices ($ per ...):3 Natural gas (…mcf) 8.76 8.14 8.09 5.93 5.97 Oil (…barrel) 59.14 67.50 70.48 58.38 64.35 Total (…mcfe) 8.86 8.40 8.38 6.22 6.46 excl. all derivatives 6.69 6.71 8.39 3.63 4.46 Selected expenses ($ per mcfe):4 Lease operations5 1.16 1.20 1.39 1.09 1.04 G&A 0.24 0.34 0.45 0.38 0.44 DD&A 2.53 2.78 2.55 1.78 1.54 Total 3.93 4.32 4.39 3.25 3.02 Revenue ($bn) 7.3 7.8 11.6 7.7 4.8 % of revenue by segment: Exploration/production 77% 72% 68% 66% 64% Midstream6 22% 26% 31% 32% 34% Other7 2% 2% 1% 2% 2% Pre-tax income margin by segment:8 Exploration/production 57% 41% 48% 36% 52% Midstream 3% 2% 2% 2% 3% Other/eliminations 17% 10% -3% -21% -18%

Total pre-tax margin 44% 30% 33% 24% 34% Selected items as % of revenue: EBIT8 47% 34% 37% 28% 34% Net income9 26% 16% 4% -76% 20% DD&A 20% 25% 18% 21% 16% Capex excl. acquisitions 60% 86% 79% 68% 63% Acquisitions, net 54% 39% 22% 10% 30% Return on tang. equity10 24% 12% 4% -43% 8% Tang. equity / assets10 38% 37% 40% 40% 37% ∆ shares out (avg) 24% 15% 18% 14% 5%

1 tcf(e) = trillions of cubic feet (equivalents); b/(mm)= b/(m)illion; m=thousand. 2 Based on SEC pricing method, i.e. based on trailing 12-month average prices at each period-end (at 6/30/10: gas price of $4.10/mcf; oil price of $75.78/bbl). 3 Excludes unrealized gains/losses on derivatives only. 4 Excludes interest expense. 5 Includes production taxes. 6 Markets, gathers, compresses gas/oil mainly from company-operated wells. 7 Includes rig/trucking operations mainly used on company-operated wells. 8 Excludes impairments of $11.1 billion in 2009 and $2.8 billion in 2008. 9 Stated after preferred stock dividends ($23 million in 2009). 10 Based on equity/net income after subtracting preferred stock/dividends. RATINGS VALUE Intrinsic value materially higher than market value? DOWNSIDE PROTECTION Low risk of permanent loss? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends?

THE BOTTOM LINE With natural gas prices remaining depressed, especially relative to oil, investors may be reluctant to consider an investment in Chesapeake. Risk-reward, however, is attractive as proved reserves alone justify the recent share price, based on NYMEX strip pricing. The vast unproved reserves (~15x proved reserves), midstream and other assets represent additional sources of value, which may exceed recent market capitalization. Given the relative predictability of monetizing the onshore asset base, and the unpredictability of natural gas prices, shares offer good downside protection while retaining meaningful upside.



…additional insight into Chesapeake Energy: OUR ESTIMATE OF THE EQUITY FAIR VALUE RANGE

($ in billions) Conservative Base Case Aggressive

Valuation Methodology:1

Proved reserves

After-tax PV-10 based on NYMEX strip pricing (assumes average

natural gas price of $6.30/mcf and oil price of $84/bbl)





Unproved reserves2 Assumes zero value 50% of PV-10 value of risked

unproved reserves @ gas price of $4/mcf and oil price of $79/bbl

100% of PV-10 value of risked unproved reserves @ gas price of

$4/mcf and oil price of $79/bbl

Other assets3 Assumes zero value Values per company estimate @ gas price of $6/mcf

Values per company estimate @ gas price of $6/mcf

Estimated Value of …

Proved reserves $26.8 $26.8 $26.8

Unproved reserves – 13.8 27.5

Other assets – 7.1 7.1

Less: Net debt (9.9) (9.9) (9.9)

Estimated fair value of the equity of Chesapeake4

$16.9 billion $37.8 billion $51.5 billion $22 per share $50 per share $68 per share

1 Based on June 30, 2010 data. 2 As disclosed by Chesapeake in August 2010 investor presentation (slides 28/29). 3 Includes value of hedges, midstream assets (including CMD and CHKM), the present value of future drilling receivables and net working capital. Values are based on Chesapeake estimates per August 2010 investor presentation (slide 29). To access the presentation, visit http://bit.ly/9lbAGB 4 Based on 758 million diluted shares, per investor presentation dated August 2010 (slide 29). All preferred stock is assumed converted to common shares. Source: Company filings, Manual of Ideas analysis, assumptions and estimates. CHESAPEAKE MANAGEMENT’S ESTIMATE OF THE EQUITY FAIR VALUE RANGE

1 Pro forma for $2 billion Senior Note offering and related redemption of $1.5 billion Senior Notes, revolver reduction and fees 2 NYMEX gas price changes and NYMEX oil price held constant at $79.19 per bbl 3 95.4 tcfe of unproved resources, see page 28 for valuation approach 4 Per Outlook issued on 8/3/10 5 CMD assets based on net book value and CHKM assets based on a price of $23.00 per unit 6 Building, drilling rigs, other assets at net book value and investments at market value 7 Excludes existing carries included in proved reserve report above 8 Based on common stock price of $22.00 per share Source: Chesapeake investor presentation, August 2010, http://bit.ly/9lbAGB


http://bit.ly/9lbAGB�




MANAGEMENT’S 2010 FINANCIAL PROJECTIONS AT VARIOUS NATURAL GAS PRICES

1 Before effects of unrealized hedging gain or loss 2 Includes the non-cash effect of lifted hedges 3 Includes charges related to stock based compensation 4 Before changes in assets and liabilities 5 Net Debt = long-term debt less cash 6 Fixed charges ($754 mm) = interest expense of $639 million plus deferred dividends of $115 million 7 MEV (Market Equity Value) = $16.7 billion ($22.00/share x 758 mm fully diluted shares as of 6/30/10) 8 EV (Enterprise Value) = $29.5 billion (Market Equity Value, plus $10.6 billion in net long-term debt plus $2.2 billion working capital deficit) 9 Pro forma debt redemptions $2.1 billion; debt offering of 2.0 billion 10 Assuming a common stock price of $22.00/share Source: Chesapeake investor presentation, August 2010, http://bit.ly/9lbAGB MANAGEMENT’S 2011 FINANCIAL PROJECTIONS AT VARIOUS NATURAL GAS PRICES

1 Before effects of unrealized hedging gain or loss 2 Includes the non-cash effect of lifted hedges 3 Includes charges related to stock based compensation 4 Before changes in assets and liabilities 5 Net Debt = long-term debt less cash 6 Fixed charges ($765 mm) = interest expense of $595 million plus deferred dividends of $172 million 7 MEV (Market Equity Value) = $16.7 billion ($22.00/share x 758 mm fully diluted shares as of 6/30/10) 8 EV (Enterprise Value) = $29.5 billion (Market Equity Value, plus $10.6 billion in net long-term debt plus $2.2 billion working capital deficit) 9 Pro forma debt redemptions of $2.1 billion; debt offering of $2.0 billion 10 Assuming a common stock price of $22.00/share Source: Chesapeake investor presentation, August 2010, http://bit.ly/9lbAGB





NCR Corp. (NCR) – Greenlight

Technology: Electronic Instruments & Controls, Member of S&P MidCap 400 Duluth, GA, 937-445-1936 www.ncr.com

Trading Data Consensus EPS Estimates Valuation Price: $12.61 (as of 8/20/10) Month # of P/E FYE 12/31/09 n/m 52-week range: $9.18 - $16.00 Latest Ago Ests P/E FYE 12/31/10 9x Market value: $2.0 billion This quarter $0.33 $0.31 7 P/E FYE 12/31/11 8x Enterprise value: $1.6 billion Next quarter 0.52 0.54 7 P/E FYE 12/30/12 8x Shares out: 160.5 million FYE 12/31/10 1.41 1.39 7 EV/ LTM revenue 0.3x

Ownership Data FYE 12/31/11 1.66 1.63 8 EV/ LTM EBIT 20x Insider ownership: 2% FYE 12/30/12 1.58 n/a 1 P / tangible book 3.5x Insider buys (last six months): 0 LT growth n/a n/a n/a Greenblatt Criteria Insider sales (last six months): 0 EPS Surprise Actual Estimate LTM EBIT yield 5% Institutional ownership: 76% 7/22/10 $0.35 $0.27 LTM pre-tax ROC 9%

Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 6/30/10 6/30/09 6/30/10 Revenue 5,598 5,984 4,561 4,582 4,970 5,315 4,612 4,686 1,124 1,177 Gross profit 1,534 1,616 936 927 1,040 1,183 883 902 229 241 Operating income 130 233 120 152 219 322 73 81 39 31 Net income 58 290 529 382 274 229 (33) (29) 23 31 Diluted EPS 0.30 1.51 1.67 0.83 0.94 1.38 (0.21) (0.25) 0.13 0.12 Shares out (avg) 190 188 185 180 180 165 159 159 159 160 Cash from operations 441 347 514 482 374 396 223 267 27 95 Capex 229 165 92 144 112 138 182 229 36 56 Free cash flow 212 182 422 338 262 258 41 38 (9) 39 Cash & investments 689 750 810 947 952 711 451 447 407 447 Total current assets 2,422 2,633 2,927 3,332 3,088 2,557 2,299 2,349 2,239 2,349 Intangible assets 105 124 129 91 84 99 122 99 100 99 Total assets 5,197 5,554 5,287 5,227 4,780 4,255 4,094 4,125 3,819 4,125 Short-term debt 3 2 2 1 1 301 4 0 0 0 Total current liabilities 1,579 1,724 1,645 1,770 1,530 1,693 1,382 1,370 1,312 1,370 Long-term debt 307 307 305 306 307 7 11 10 7 10 Total liabilities 3,322 3,468 3,252 3,346 3,023 3,815 3,530 3,447 3,368 3,447 Preferred stock 0 0 0 0 0 0 0 0 0 0 Common equity 1,875 2,086 2,035 1,881 1,757 440 564 678 451 678 EBIT/capital employed 15% 27% 14% 17% 24% 38% 9% 9% n/m n/m Ten-Year Stock Price Performance and Trading Volume Dynamics

$0

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$15

$20

$25

$30

$35




BUSINESS OVERVIEW NCR manufactures, sells and services ATMs, retail point-of-sale and checkout terminals, and other self-service kiosks. INVESTMENT HIGHLIGHTS

• #1 global ATM service provider. NCR services 350,000+ ATMs in 100+ countries. Sales of ATMs and related products have historically accounted for 50%+ of product revenue. The financial services vertical is a ~$9 billion addressable market globally.

• Strong presence in retail vertical, a ~$10 billion addressable market globally. NCR is #2 in retail POS behind IBM and #1 in self-service checkout equipment (~65k units installed at ~150 retailers).

• Expanding into DVD rental kiosks, which NCR expects will represent 50% of the ~$8 billion DVD rental market by 2013. NCR aims for 10,000 kiosks installed by yearend 2010 for a cost of $85 million. EBITDA is expected at $25-35 million in 2011.

• Pension accounting and DVD start-up costs mask profitability of core ATM/retail business. NCR is guiding for EBIT of $340-360 million in 2010, excluding $215 million of pension expense and $30 million of costs related to the DVD roll-out.

• Net cash and FCF generation give NCR ability to deal with pension liability. Net cash was $437 million June 30. Core ATM/retail business should generate ~$200 million of FCF in 2010.

• Increased share repurchase authorization by $210 million in July, to $250 million in total.

• “Orders increased 9% year over year” in 2Q10. NCR could benefit from a recovery in customers’ capex budgets and upgrades to the installed base.

• Services revenue (~50% of total) is largely recurring, offsetting volatility in product sales.


• $1.5 billion unfunded employee benefit liability at yearend 2009. NCR has a $5.4 billion pension obligation ($1.1 billion funding shortfall at 5.4% discount rate) and is contributing $110 million of cash in 2010. Post-retirement and post-employment liabilities total roughly $400 million.

• Will expansion into DVD kiosks create value? NCR aspires to become “the leading global provider of self-service entertainment solutions.” It faces strong competition from incumbent Redbox.

• Competitors include IBM, HP, Fujitsu and “vertical” rivals (Diebold, Wincor, SITA, Coinstar).

SELECTED OPERATING DATA1 FYE December 31 2005 2006 2007 2008 2009 1H10 Revenue ($bn) 4.6 4.6 5.0 5.3 4.6 2.2 ∆ revenue -2% 0% 8% 7% -13% 3% % of revenue by type: Products 53% 53% 54% 54% 48% 48% Services 47% 47% 46% 46% 52% 52% Revenue growth by type: Products 1%3 0% 11% 6% -22% 6% Services 0%3 1% 6% 8% -3% 1% % of revenue by segment: Americas 48% 46% 43% 43% 44% 44% EMEA 35% 37% 38% 39% 36% 36% Asia Pacific/Japan 17% 18% 18% 18% 20% 20% Revenue growth by segment: Americas 4%3 -5% 2% 6% -11% 2% EMEA 0%3 5% 14% 8% -20% 2% Asia Pacific/Japan -6%3 7% 13% 7% -4% 11% Selected items as % of revenue: Gross profit 21% 20% 21% 22% 19% 20% R&D 3% 3% 3% 3% 3% 4% EBIT (as reported) 3% 3% 4% 6% 2% 1% EBIT (ex. pension costs) 7% 7% 7% 8% 7% 6% Net income 7% 3% 3% 4% -1% 0% D&A 2% 2% 2% 2% 3% 3% Capex2 2% 3% 2% 3% 4% 5% Return on tangible equity 17%3 8%3 10% 23% -8% 0% Tangible equity to assets 36%3 36%3 35% 23% 10% 12% ∆ shares out (avg) -1% -3% 0% -8% -4% 1%

1 Financials exclude Teradata (spun-off in 2007), unless noted otherwise. YTD figures exclude discontinued operations tied to certain environmental liabilities. 2 Includes additions to capitalized software. 3 Includes Teradata business.

• Exposed to financials, retailers. That said, NCR benefits from trend toward self-service checkout.

COMPARABLE PUBLIC COMPANY ANALYSIS

P / This Next MV EV EV / Tang. FY FY ($mn) ($mn) Rev. Book P/E P/E DBD 1,790 1,980 .7x 3.3x 13x 12x CSTR 1,540 1,740 1.3x 7.9x 24x 17x NCR 2,020 1,580 .3x 3.5x 9x 8x

MAJOR HOLDERS CEO Nuti 2% | Other insiders <1% | Greenlight 5% | FMR 5% | Thornburg 5% | LSV 4% | Vanguard 4% | SAC 2%

RATINGS VALUE Intrinsic value materially higher than market value? DOWNSIDE PROTECTION Low risk of permanent loss? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? 1 MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? * The large pension deficit more than offsets NCR’s net cash position.

THE BOTTOM LINE Large accounting losses on pension obligations and start-up losses related to the new DVD kiosk business may lead investors to miss strong underlying cash generation at NCR. The core ATM and retail-based operations benefit from a large installed base, which provides recurring service income and potential replacement product revenue. While the outsized pension plan represents a major risk, the current valuation more than offsets for it: even if pension and related liabilities are taken at their accounting value of $1.5 billion (likely overstated given current low interest rates and depressed asset values), investors are “getting” the core ATM/retail business at just 8x 2010 estimated EBIT, with no value attached to the DVD kiosk opportunity.



…additional insight into NCR: OUR ESTIMATE OF THE EQUITY FAIR VALUE RANGE


Valuation Methodology

8x low-end of 2010 EBIT guidance for core business; zero value for DVD Kiosks; 100% of net retirement benefits liability per 12/09 balance sheet

10x mid-point of 2010 EBIT guidance for core business; 8x low-end of 2011 EBITDA guidance for DVD Kiosks; 75% of net retirement benefits liability per 12/09 balance sheet

12x high-end of 2010 EBIT guidance for core business; 10x high-end of 2011 EBITDA guidance for DVD Kiosks; 50% of net retirement benefits liability per 12/09 balance sheet

Value of Core Business (ATM & Retail Terminals):

2010E EBIT $340 $350 $360

Fair value multiple 8.0x 10.0x 12.0x

Estimated Enterprise Value of Core Business $2,720 $3,500 $4,320

Value of DVD Kiosk Business:

2011E EBITDA $25 $35

Fair value multiple 8.0x 10.0x

Estimated Enterprise Value of DVD Kiosk Business $0 $200 $350

Estimated Enterprise Value of Operating Businesses $2,720 $3,700 $4,670

Plus: Net cash 437 437 437

Less: Estimated retirement benefits liability (1,466) (1,100) (733)

Estimated fair value of the equity of NCR1 $1,691 million $3,038 million $4,374 million

$11 per share $19 per share $27 per share

Source: Company filings, Manual of Ideas analysis, assumptions and estimates. NON-PENSION OPERATING INCOME, 2005-2010E

Source: Company presentation dated August 2010.



…additional insight into NCR: COMPONENTS OF INTRINSIC VALUE, AS SEEN BY MANAGEMENT

Source: Company presentation dated August 2010. MANAGEMENT’S PLAN TO ADDRESS “VALUATION GAP”

Source: Company presentation dated August 2010.



Snapshot of 100 Superinvestor Holdings

In Alphabetical Order Recent YTD Market Enter. Price Price Value Value Company / Ticker Industry Notable Shareholders ($) ∆ ($mn) ($mn) Website American Capital / ACAS Investment Services Kleinheinz, Paulson 5.01 105% 1,707 nm www.americancapital.com

Aon Corp. / AON Insurance (miscellaneous) Breeden, Southeastern 36.91 -4% 9,955 nm www.aon.com

Apollo Group / APOL Schools Scout, Tiger Global, Weitz 40.72 -33% 6,007 5,278 www.apollogrp.edu

Apple / AAPL Computer Hardware Blue Ridge, Greenlight 249.64 18% 228,062 203,774 www.apple.com

Arris Group / ARRS Comms Equipment Sageview, Shamrock 8.57 -25% 1,073 622 www.arrisi.com

Automatic Data / ADP Business Services Pershing Sq., West Coast 39.40 -8% 19,818 18,186 www.adp.com

Bally Technologies / BYI Casinos & Gaming Breeden, Wanger 33.04 -20% 1,797 1,826 www.ballytech.com

Bank of America / BAC Money Center Banks Chou, Fairholme, Paulson 12.87 -15% 129,136 nm www.bankofamerica.com

Bank of NY Mellon / BK Investment Services Maverick, Southeastern 24.65 -12% 29,926 nm www.bnymellon.com

Baxter International / BAX Medical Equipment Sageview, Shumway 44.57 -24% 26,045 28,559 www.baxter.com

BP / BP Oil & Gas - Integrated Chou, Fairholme 36.40 -37% 113,998 131,135 www.bp.com

Broadridge Financial / BR Business Services Brave Warrior, Centaur 20.16 -11% 2,555 2,466 www.broadridge.com

Canadian Natural / CNQ Oil & Gas Operations Wintergreen 32.20 -11% 35,078 43,997 www.cnrl.com

CF Industries / CF Chemical Manufacturing Appaloosa, H Partners 90.01 -1% 6,398 8,398 www.cfindustries.com

Chesapeake Energy / CHK Oil & Gas Operations BP, Icahn, Southeastern 20.38 -21% 13,335 26,300 www.chk.com

Citigroup / C Money Center Banks ESL, Fairholme, Paulson 3.75 13% 108,651 nm www.citigroup.com

Coca-Cola / KO Beverages (non-alcoholic) BRK, Eagle, Wintergreen 55.30 -3% 127,713 129,256 thecoca-colacompany.com

Coca-Cola Enterprise / CCE Beverages (non-alcoholic) Gates, Scout, Third Point 29.02 37% 14,585 22,047 www.cokecce.com

Cooper Tire & Rubber / CTB Tires WL Ross, Donald Smith 18.19 -9% 1,118 1,227 www.coopertires.com

Corning / GLW Comms Equipment Cap Re, Maverick 16.10 -17% 25,142 22,834 www.corning.com

Covidien / COV Medical Equipment Artisan, FPA, Pennant 38.09 -20% 19,104 19,942 www.covidien.com

DaVita / DVA Healthcare Facilities Gates, Glenview, Pennant 63.82 9% 6,548 9,334 www.davita.com

Dell / DELL Computer Hardware Hawkshaw, Southeastern 12.07 -16% 23,636 16,448 www.dell.com

DIRECTV / DTV Broadcasting & Cable Southeastern, Tiger Global 38.05 14% 33,811 40,520 www.directv.com

Discovery Comms / DISCA Broadcasting & Cable Blue Ridge, Eagle, Weitz 37.82 23% 10,765 13,665 discoverycommunications.com

Dollar Tree / DLTR Retail (dep't & discount) Akre, Blue Ridge 44.62 39% 5,665 5,451 www.dollartree.com

eBay / EBAY Retail (online) Centaur, FPA, Scout 23.37 -1% 30,665 25,767 www.ebay.com

Ensco / ESV Oil Well Services Eagle, Greenlight 41.51 4% 5,936 4,965 enscointernational.com

Enstar Group / ESGR Insurance (miscellaneous) Akre, Flowers, Royce 70.35 -4% 973 nm www.enstargroup.com

Estee Lauder / EL Household Products Lone Pine, Viking 57.39 19% 11,296 11,404 www.elcompanies.com

Fiserv / FISV Computer Services Brave Warrior, BRK 51.26 6% 7,694 10,795 www.fiserv.com

Franklin Resources / BEN Investment Services Edinburgh, Wintergreen 98.92 -6% 22,266 17,973 /www.franklintempleton.com

GameStop / GME Retail (technology) Adage, Centaur, Munder 18.81 -14% 2,828 2,987 www.gamestop.com

General Electric / GE Conglomerates Edinburgh, Markel 15.03 -1% 160,689 576,578 www.ge.com

Goldman Sachs / GS Investment Services Fairholme, Pabrai, Paulson 148.24 -12% 76,435 nm www.goldmansachs.com

Google / GOOG Computer Services Brave Warrior, Weitz 462.02 -25% 147,249 117,190 www.google.com

H&R Block / HRB Personal Services Artisan, Breeden, Davis 13.47 -40% 4,355 3,665 www.handrblock.com

Hess / HES Oil & Gas - Integrated BP, Cap World, Viking 51.24 -15% 16,828 19,791 www.hess.com

Innophos / IPHS Chemical Manufacturing Integrity, WL Ross 27.60 20% 591 714 www.innophos.com

Intel / INTC Semiconductors Fairfax, Markel, Pennant 18.91 -7% 105,291 89,261 www.intel.com

Ituran Location / ITRN Security Solutions Baupost, Sageview 13.65 6% 320 258 www.ituran.com

Jo-Ann Stores / JAS Retail (specialty) SouthernSun, WL Ross 38.03 5% 1,039 984 www.joann.com

Johnson & Johnson / JNJ Major Drugs BRK, Fairfax, West Coast 58.74 -9% 161,796 154,547 www.jnj.com

JPMorgan Chase / JPM Investment Services Lone Pine, Paulson 37.14 -11% 147,266 nm www.jpmorganchase.com

Key Energy Services / KEG Oil Well Services H Partners, MHR, WL Ross 8.46 -4% 1,063 1,539 www.keyenergy.com

Kraft Foods / KFT Food Processing BRK, Pershing Square 29.10 7% 50,752 77,928 kraftfoodscompany.com

Leap Wireless / LEAP Comms Services Citadel, H Partners, MHR 11.13 -37% 872 3,062 www.leapwireless.com

Liberty Interactive / LINTA Broadcasting & Cable Southeastern, Third Point 10.50 -3% 6,280 11,275 www.libertymedia.com

Life Technologies / LIFE Biotechnology & Drugs Glenview, Sageview 44.33 -15% 8,127 10,081 www.lifetechnologies.com

Lincare / LNCR Healthcare Facilities FPA, Glenview, Lone Pine 23.76 -4% 2,331 2,701 www.lincare.com


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Lowe's / LOW Retail (home improvement) Eagle, Southeastern 20.64 -12% 29,371 32,934 www.lowes.com

Macquarie Infrastr. / MIC Misc. Transportation Axial, MSD, Senator 13.23 8% 605 1,758 www.macquarie.com/mic

Macy's / M Retail (dep't & discount) Appaloosa, Third Point 20.97 25% 8,854 15,748 www.macysinc.com

MasterCard / MA Retail Financial Services Brave Warrior, Scout 206.37 -19% 27,005 23,571 www.mastercard.com

MBIA / MBI Property & Casualty Fairfax, Fairholme 9.06 128% 1,816 nm www.mbia.com

McClatchy / MNI Printing & Publishing Chou, Paulson 2.87 -19% 243 1,997 www.mcclatchy.com

McDonald's / MCD Restaurants Clarium, Blue Ridge, Scout 73.08 17% 77,782 86,743 www.mcdonalds.com

Merck / MRK Major Drugs Appaloosa, Fairfax 34.44 -6% 107,393 116,925 www.merck.com

Microsoft / MSFT Software & Programming Eagle, Greenlight, Weitz 24.23 -21% 209,676 178,827 www.microsoft.com

Nalco Holding / NLC Chemical Manufacturing BRK, Legg, MSD, MS 23.01 -10% 3,182 5,951 www.nalco.com

NCR / NCR Electronic Instruments Greenlight, LSV, Perkins 12.61 13% 2,024 1,587 www.ncr.com

News Corp. / NWSA Broadcasting & Cable Baupost, Viking Global 12.73 -7% 33,368 37,979 www.newscorp.com

Novartis / NVS Major Drugs Dodge & Cox, Gruss 50.75 -7% 116,091 111,736 www.novartis.com

Ocwen Financial / OCN Retail Financial Services Second Curve, Kleinheinz 9.07 -5% 909 nm www.ocwen.com

Oracle / ORCL Software & Programming Children's, Glenview 23.02 -6% 115,704 111,890 www.oracle.com

Pfizer / PFE Major Drugs Appaloosa, Greenlight 15.92 -12% 128,413 156,340 www.pfizer.com

Philip Morris / PM Tobacco Markel, Wintergreen 51.98 8% 95,273 108,920 philipmorrisinternational.com

Pinnacle Airlines / PNCL Airline Apollo, Pabrai, RenTech 4.97 -28% 92 578 www.pncl.com

Potash / POT Non-Metallic Mining Cap World, Pabrai, Weitz 149.67 38% 44,392 47,821 www.potashcorp.com

Pride International / PDE Oil Well Services FPA, MHR, Primecap 23.04 -28% 4,047 4,913 www.prideinternational.com

Redwood Trust / RWT Real Estate Operations NWQ, Perkins, Weitz 14.34 -1% 1,118 5,011 www.redwoodtrust.com

Republic Airways / RJET Airline Greenlight, Kleinheinz 6.69 -9% 232 2,848 republicairways.com

Reynolds American / RAI Tobacco Wintergreen 56.64 7% 16,512 19,310 reynoldsamerican.com

Sears Holdings / SHLD Retail (dep't & discount) Chou, ESL, Fairholme 61.59 -26% 6,815 8,808 www.searsholdings.com

Service Corp. / SCI Personal Services Southeastern 7.97 -3% 1,967 3,677 www.sci-corp.com

Smurfit-Stone / SSCC Paper & Paper Products Lane Fine 18.30 -44% 1,830 2,696 www.smurfit.com

Sprint Nextel / S Comms Services Chou, Harbinger 4.19 14% 12,505 28,529 www.sprint.com

SuperMedia / SPMD Business Services Appaloosa, Paulson 11.94 na 185 2,458 www.supermedia.com

Symantec / SYMC Software & Programming Edinburgh, Hawkshaw 13.80 -23% 10,893 10,051 www.symantec.com

Target / TGT Retail (dep't & discount) Pershing Square, Weitz 52.15 8% 37,684 52,696 www.target.com

Teva Pharma / TEVA Biotechnology & Drugs Maverick, Shumway 50.28 -11% 47,012 49,151 www.tevapharm.com

Time Warner / TWX Broadcasting & Cable Shumway, Viking 30.31 4% 34,075 46,357 www.timewarner.com

TN Commerce Banc / TNCC Regional Banks Second Curve 4.37 0% 25 nm www.tncommercebank.com

Transocean / RIG Oil Well Services FPA, H Partners 51.00 -38% 16,269 24,807 www.deepwater.com.

TravelCenters / TA Retail (specialty) Bares, Leucadia 3.61 -18% 62 8 www.tatravelcenters.com

Tree.com / TREE Retail Financial Services Second Curve, Weitz 7.15 -22% 80 nm www.tree.com

Tyco International / TYC Conglomerates Scout, Viking, Weitz 38.70 8% 19,261 21,606 www.tyco.com

U.S. Bancorp / USB Money Center Banks Brave Warrior, BRK, Fairfax 21.74 -3% 41,679 nm www.usbank.com

Union Pacific / UNP Railroads Children's, Shumway 74.26 16% 36,949 44,997 www.up.com

Viacom / VIA.B Broadcasting & Cable Children's, Tiger Global 31.68 7% 19,266 25,347 www.viacom.com

ViaSat / VSAT Comms Equipment Baupost, Times Square 34.40 8% 1,396 1,648 www.viasat.com

Visa / V Retail Financial Services Brave Warrior, Children's 70.10 -20% 58,890 53,647 www.visa.com

Wal-Mart / WMT Retail (dep't & discount) BRK, Eagle, Markel 50.22 -6% 186,299 225,337 walmartstores.com

Walt Disney / DIS Broadcasting & Cable Markel, Southeastern 33.05 2% 63,212 72,888 disney.go.com

Washington Post / WPO Printing & Publishing Bares, BRK, Weitz 347.68 -21% 3,187 2,547 www.washpostco.com

Wells Fargo / WFC Regional Banks Appaloosa, BRK, Fairfax 24.60 -9% 128,742 nm www.wellsfargo.com

Xerium Technologies / XRM Textiles - Non-Apparel Third Point 10.97 -28% 164 605 www.xerium.com

Xerox / XRX Office Equipment Glenview, Greenlight 8.97 6% 12,406 21,939 www.xerox.com

Yum! Brands / YUM Restaurants Pershing Sq., Southeastern 42.32 21% 19,764 22,469 www.yum.com


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Favorite Stock Screens For Value Investors

Company Ticker Price Market Value

Enterprise Value

Relevant Financial Data Point Notable Shareholders Industry

"Magic Formula," based on Trailing Financials

Trailing EBIT / EV

1 Synta Pharma SNTA $2.90 $118mn $70mn 132% Caxton (Kovner) Major Drugs

2 * VirnetX VHC $6.38 $303mn $176mn 60% Dimensional (DFA) Software & Programming

3 InfoSpace INSP $6.90 $249mn $25mn 58% DFA, RenTech, Royce Computer Services

"Magic Formula," based on This Year's EPS Estimates EPS Yield FY0 1 * VirnetX VHC $6.38 $303mn $176mn 24% DFA Software &

Programming 2 ITT Educational ESI $52.22 $1,754mn $1,624mn 22% Blum, Wanger Schools 3 Bridgepoint Edu. BPI $13.07 $715mn $509mn 15% Jennison, Parnassus Schools

"Magic Formula," based on Next Year's EPS Estimates

EPS Yield FY1

1 ITT Educational ESI $52.22 $1,754mn $1,624mn 24% Blum, Wanger Schools 2 Bridgepoint Edu. BPI $13.07 $715mn $509mn 19% Jennison, Parnassus Schools 3 Jiangbo Pharma JGBO $10.49 $127mn $54mn 29% Pope Biotechnology & Drugs

Contrarian: Biggest YTD Losers (deleveraged & profitable)

∆ Price YTD

1 Broadwind Energy BWEN $1.73 $185mn $178mn -79% Tontine (Gendell) Construction Machinery 2 China Nepstar NPD $2.76 $291mn $123mn -62% GS, MS, Kleinheinz Retail (drugs) 3 Fuqi International FUQI $7.03 $194mn $69mn -61% Lonestar, Sunrise Jewelry & Silverware

Value with Catalyst: Cheap Repurchasers of Stock ∆ Shares Q-Q 1 United Overseas Bank UOVEY $27.50 $20,708mn n/m -20% Citibank, DBS, Raffles Regional Banks 2 * Brasil Telecom SA BTM $18.90 $3,716mn $5,045mn -12% Brandes, RenTech Comms Services 3 * LaBranche LAB $4.31 $181mn n/m -12% Kleinheinz, Passport Investment Services

Profitable Dividend Payors with Decent Balance Sheets

Div. Yield

1 Am. Capital Agency AGNC $26.98 $908mn $834mn 21% Vertex One, Calpers Real Estate Operations 2 Mesabi Trust MSB $25.37 $333mn n/m 13% Beddow, ValueWorks Misc. Financial Services 3 Fifth Street Finance FSC $10.06 $549mn n/m 12% Greenlight Misc. Financial Services

Deep Value: Lots of Revenue, Low Enterprise Value EV/Revenue 1 Tech Data TECD $37.97 $1,926mn $1,405mn .06x Tradewinds, Acadian Computer Hardware 2 Ingram Micro IM $15.76 $2,469mn $2,059mn .06x Artisan, GS, Aronson Computer Hardware 3 World Fuel Services INT $25.19 $1,499mn $1,203mn .08x Argyll, Frontier Oil & Gas Operations

Deep Value: Neglected Gross Profiteers

EV/GP

1 * WellCare WCG $25.15 $1,069mn $89mn .10x Fairholme, Times Sq. Health Insurance 2 Winn-Dixie Stores WINN $8.24 $454mn $302mn .15x Advisory, Sterling Retail (grocery) 3 Humana HUM $48.51 $8,210mn $1,242mn .19x Fairholme Health Insurance

Activist Targets: Potential Sales, Liquidations or Recaps NCAV / MV * 1 * Qiao Xing Mobile QXM $2.40 $126mn -$183mn 311% Shah, Weiss, Pope Comms Services 2 * Qiao Xing Universal XING $1.47 $135mn -$246mn 209% Shah Comms Services 3 * Fuqi International FUQI $7.03 $194mn $69mn 145% BNY Mellon, Lonestar Jewelry & Silverware

* NCAV = net current asset value = current asset minus total liabilities



“Magic Formula,” based on Trailing Operating Income Companies with high returns on capital employed, trading at high trailing EBIT-to-enterprise value yield

▼ ▼ Move To Trailing EBIT/ Price/ Price 52-Week MV EV EV/ EBIT/ Capital Tax Tangible Company Ticker ($) Low High ($mn) ($mn) Sales EV Employed Rate Book

1 Synta Pharma SNTA 2.90 -12% 140% 118 70 .5x 132% infinite n/m 3.3x 2 * VirnetX VHC 6.38 -71% 25% 303 176 .9x 60% infinite 32% 4.4x 3 InfoSpace INSP 6.90 -2% 76% 249 25 .1x 58% infinite 9% 1.1x 4 Terra Nova Royalty TTT 7.31 -16% 92% 221 137 .3x 43% infinite 62% 1.1x 5 Bridgepoint Edu. BPI 13.07 -2% 110% 715 509 .9x 36% infinite 42% 3.5x 6 SuperGen SUPG 1.99 -14% 91% 120 17 .4x 44% 894% n/m 1.1x 7 ITT Educational ESI 52.22 -4% 134% 1,754 1,624 1.1x 35% 1674% 39% >9.9x 8 EarthLink ELNK 8.59 -9% 9% 929 604 .9x 32% 1325% n/m 1.4x 9 ePlus PLUS 18.35 -20% 5% 148 116 .2x 29% infinite 39% .9x 10 Unisys UIS 22.71 -25% 78% 968 1,308 .3x 32% 801% 13% n/m 11 InterDigital IDCC 26.61 -31% 13% 1,172 687 1.9x 32% 448% 28% 8.4x 12 Jiangbo Pharma JGBO 10.49 -31% 38% 127 54 .5x 95% 249% 28% 1.4x 13 Apollo Group APOL 40.72 -6% 89% 6,007 5,278 1.1x 25% 802% 42% 7.9x 14 Impax Labs IPXL 16.49 -56% 36% 1,046 718 1.0x 47% 266% 36% 2.8x 15 Metropolitan Health MDF 3.56 -48% 26% 144 112 .3x 29% 337% 38% 3.0x 16 Amedisys AMED 23.58 -3% 173% 680 768 .5x 32% 281% 39% n/m 17 H&R Block HRB 13.47 0% 72% 4,355 3,665 .9x 21% infinite 38% >9.9x 18 Tessera Technologies TSRA 15.92 -5% 102% 800 362 1.4x 27% 296% 44% 1.6x 19 Career Education CECO 17.54 -1% 105% 1,425 1,115 .6x 29% 265% 34% 4.5x 20 United Online UNTD 4.87 -2% 91% 425 607 .6x 20% infinite 39% n/m 21 USA Mobility USMO 14.19 -31% 8% 313 184 .7x 32% 232% 38% 1.9x 22 Oshkosh OSK 26.59 -1% 68% 2,407 3,424 .4x 38% 196% 33% n/m 23 Ambassadors Group EPAX 11.25 -10% 54% 213 106 1.3x 19% infinite 35% 2.5x 24 Amerigroup AGP 37.75 -45% 4% 1,926 1,536 .3x 19% infinite 37% 2.4x 25 Immunomedics IMMU 3.14 -9% 128% 236 211 3.4x 18% infinite n/m 6.0x 26 * DragonWave DRWI 6.06 -27% 133% 223 107 .5x 39% 154% 1% 1.5x 27 Corinthian Colleges COCO 4.49 -2% 352% 396 468 .3x 51% 135% 39% 5.8x 28 Foster Wheeler FWLT 23.19 -12% 54% 2,957 2,167 .5x 19% 334% 22% 4.0x 29 ViroPharma VPHM 12.84 -43% 12% 1,000 736 2.0x 22% 236% 43% 5.9x 30 Medicis Pharma MRX 27.06 -34% 4% 1,628 1,254 1.9x 17% infinite 38% 3.6x 31 * Vonage VG 2.05 -79% 36% 434 518 .6x 17% infinite n/m n/m 32 Sohu.com SOHU 47.74 -16% 51% 1,806 1,207 2.2x 17% 1217% 16% 3.0x 33 Almost Family AFAM 25.59 -8% 72% 237 208 .6x 24% 166% 41% 4.5x 34 * Forest Labs FRX 27.60 -12% 20% 7,881 4,591 1.1x 22% 180% 32% 2.0x 35 Genoptix GXDX 17.28 -10% 126% 304 164 .8x 31% 124% 46% 1.5x 36 AmSurg AMSG 17.11 -2% 38% 529 801 1.2x 28% 130% 17% n/m 37 * MedQuist MEDQ 7.80 -26% 28% 293 271 .8x 17% 442% 6% 6.5x 38 McGraw-Hill MHP 28.18 -16% 31% 8,710 8,764 1.5x 16% 5873% 36% n/m 39 * Argan AGX 7.50 -1% 117% 102 40 .2x 19% 217% 33% 1.5x 40 * Aeropostale ARO 22.68 -16% 42% 2,121 1,808 .8x 22% 159% 40% 4.7x 41 Continucare CNU 3.40 -24% 54% 204 172 .6x 20% 163% 39% 4.0x 42 * Providence Service PRSC 13.87 -31% 34% 180 315 .4x 20% 159% 39% n/m 43 * Kirkland's KIRK 12.15 -7% 109% 241 175 .4x 31% 106% 31% 2.4x 44 * Lihua International LIWA 8.68 -47% 46% 253 168 .7x 24% 120% 29% 2.0x 45 * KBR KBR 23.02 -25% 7% 3,597 2,463 .2x 23% 121% 31% 2.2x Company website SEC Y! Price Charts

* New additions are highlighted.

Screening criteria: ► Market value > $100 million ► ADRs and banks excluded MV = market value. EV = enterprise value.


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This Month’s Top 10 Web Links A Selection of Our Favorite Freely Accessible Internet Resources Click on the link next to each title, or type the Web address into your Web browser:

Wilbur Ross Talks to Charlie Rose http://bit.ly/aiiIDz

Fed’s Quarterly Report on Household Credit http://bit.ly/cdN9k2

Malcolm Gladwell on Why Some Succeed Where Others Fail http://bit.ly/da6WW0

Richard Thaler on Overconfidence Problem in Forecasting http://nyti.ms/8ZJoZU

What “The Oracle of the North” Sees Ahead http://yhoo.it/cHr7Gq

Bill Gross’s Investment Outlook http://bit.ly/bS2k1D

Walter Schloss at Richard Ivey School of Business http://bit.ly/dlnwv6

Profitable Lessons from Michael Price http://bit.ly/cvMGGG

James Montier: Mean Reversion Is Not Dead http://bit.ly/9umeA3

Richard Perry’s Q2 2010 Letter http://scr.bi/9rvTwk


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Portfolio Manager's Review - The Superinvestor Issue