Otter Creek Focus Strategy

The Otter Creek Focus Strategy invests in U.S.-listed equity securities of small- and mid-capitalization companies. The Strategy invests primarily in publicly traded stocks of U.S. companies which the Advisor considers to have a small to mid-size market capitalization.

Portfolio by the Numbers

We view our portfolio as a conglomerate of high‐quality businesses where we have ownership positions in real operating business that we believe can compound capital at above‐average rates

3-5 year investment

20-25 positions

3-5% position weights

<25% expected turnover

Valuation Framework

Growth

Sustainable Earnings Growth over 10%

Profitability

Double digit Return on Equity and Capital

Risk

How durable is the company’s growth and profitability outlook? Is it overly dependent on the macro outlook?

Intrinsic Value

3‐5 year double‐digit IRR

Strategy vs. Benchmark

The portfolio represents a conglomerate of companies that, on average have higher profitability, more attractive growth profiles, and high levels of free cash flow than that of alterative benchmarks

Growth

We expect the portfolio companies, in aggregate, to grow about ~400‐500bps more than the indices

Profitability

We expect the portfolio companies, in aggregate, to grow about ~400‐500bps more than the indices

Valuation

Our portfolio is valued approximately in‐line with the broader benchmark despite the portfolio’s better financial profile, enduring competitive positions, and favorable growth outlooks

OC MIDCAP
FOCUSED
STRATEGY*
RUSELL
MIDCAP
S&P 500
INDEX
Average Market Cap
$19B
$25B
$725B
P/E Ratio
18X
20X
22X
Operating Margin
16%
9%
17%
LT EPS Growth
16%
9%
10%
Return on Equity
18%
12%
18%
Active Share
95%
0%
0%

*Represents composite valuation as of June 30,2023 sourced from Bloomberg

Performance

Strategy Performance (Rolling)

As of June 30, 2024
DATE Focus Strategy Net* Focus Strategy Gross Russell Midcap Index
Current Month -2.97% -2.93% -0.66%
Last 3 Months -5.21% -5.10% -3.35%
Calendar Year 13.92% 14.21% 4.96%
1 Year 23.18% 23.82% 12.85%
3 Year 18.88% 20.60% 7.21%
Since Inception** 94.84% 98.89% 64.18%
1 Year Annualized 23.18% 23.82% 12.85%
3 Year Annualized 5.93% 6.44% 2.35%
Since Inception Annualized** 17.72% 18.31% 12.89%

*Net of 50 basis point fee

**Inception: May 29, 2020

All values represent a composite return for the strategy as of March 31, 2024.

See end of document for more details about calculations.

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