As investors, we seek companies with a strategic market position in their competitive marketplace, consistent unit growth, and high returns on invested capital. All are of paramount importance. Our Investment Team also insists on investing in companies, regardless of the economic backdrop, possessing the ability to internally finance their growth so as not to be dependent on the credit and capital markets. Key to this is our assessment of company management. Endurance demands strong leadership.

Unlike most market participants today, Holden Global Asset Management LLC is committed to investing in companies for the long term, sometimes for decades. In fact, many of the companies in our portfolio have an investment horizon exceeding ten years. Over this long time period, many variables change. Geopolitics shift. Interest rates and inflation ebb and flow. Investors celebrate bull markets and cope with bear markets. Too many management teams lose their way while attempting to navigate these events and the ever-changing landscape. Due to short-term performance pressures, management teams tend to prioritize execution and efficiency and often neglect their original reason for existence. This inattention to mission leads to a slow but consistent erosion of corporate culture. Strong management teams are needed to traverse these ever-changing conditions while executing their corporate missions.

Holden Global Asset Management LLC is distinguished by our definition of quality management and the rigorous demands we place on our business leadership. Shortening investor time horizons have shifted the definition of "good management" toward short-term execution rather than long-term vision. At Holden Global Asset Management LLC, we firmly believe in the adage that "culture eats strategy for breakfast." We invest in management teams focused on the next decade and beyond. Sustainability requires leadership that fosters a culture that encourages, even demands, continuous innovation—even at the expense of short-term returns. Professional management teams understand that this sacrifice leads to increased profitability.

Holden Global Asset Management LLC validates its management assessments through a peer review process. Following extensive discussions and on-site visits with prospective companies' management teams, our investment team conducts a detailed peer review. We meet with customers, suppliers, competitors, and other industry participants to understand their perspectives on the management team. We seek to understand any discrepancies between how management views itself and how they are perceived by others in the competitive marketplace. This approach naturally helps us identify management teams that are well-respected by their peers.

As market displacement becomes increasingly prevalent in the global economy, strong leadership is essential. Technological innovation has lowered barriers to entry in many industries. Companies with visionary leaders are better positioned to navigate the evolving market environment. These leaders understand and carefully cultivate their cultural strengths to retain talent and build lasting soft skills within their organizations. Holden Global Asset Management LLC continues to identify companies with strong leadership capable of responding to this changing environment.