Birdrock SCV Brochure Q3 16

Table of Contents

•Firm Overview

•Philosophy

•Performance

•Process

•Portfolio Construction

•Risk Management

•Stock Examples

•Biographies

•Appendix

•GIPS

•Contact Information

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Firm Overview

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Executive Summary BirdRock Small Cap Value. Firm founded in 2006

Portfolio Inception 01/31/2004

Strategy Long-only, unhedged Small Cap Value

Firm AUM $159 million as of September 30, 2016

Team Steve Levy, PM since portfolio inception in 2004. Christina Borger, Assistant PM since firm inception in 2006.

Accolades: Informa-PSN “Top-Guns of the Decade” Award for period ending 12/31/2014. Five-Star Morningstar ranking for the 10-year period ending Q3 2015.

Competitive Advantages Stable, experienced team through multiple market cycles. Strong historical downside capture ratios. Solid, long-term alpha generator.Over a decade of managing the strategy.

Interests Aligned Substantial partner investment in the strategy

Firm wide GIPS compliant Yes

Location Austin, Texas

Philosophy

Our investment philosophy is based on the premise that value investing (buying companies trading at what we believe to be a discount to future value) provides investors with the best risk-adjusted long-term returns. While we believe that the market is fairly efficient at discounting current information, this is not always the case, especially with regard to smaller market cap securities. In order to exploit these inefficiencies and add value through active management, one must take a contrarian approach to information that may be interpreted differently and perhaps incorrectly by other interested parties.

The objective of our approach is to provide attractive, sustainable returns over the long term. Our risk-adjusted approach stems from an emphasis on positive return consistency and, correspondingly, minimizing downside risks in the portfolio. Our investment discipline integrates what we believe to be the most proven and enduring principles of value investing while simultaneously seeking to avoid some of the more common perils of value management – namely concentrated deep value positions that either take years to make a turn around or move against the investor.

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Performance

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Annualized Composite Returns Versus the Russell 2000 Value Index for Periods Ending Sept. 30, 2016:

One Quarter: 3 YearsBirdRock Small Cap Value 6.86% BirdRock Small Cap Value 4.94%Russell 2000 Value 8.87% Russell 2000 Value 6.77%

1 Year 5 YearsBirdRock Small Cap Value 9.18% BirdRock Small Cap Value 13.89%Russell 2000 Value 18.81% Russell 2000 Value 15.45%

Since Inception* 10 YearsBirdRock Small Cap Value 10.54% BirdRock Small Cap Value 8.91%Russell 2000 Value 7.36% Russell 2000 Value 5.78%*1/31/2004

Year by Year2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004*

BirdRock Small Cap Value -3.27% 4.47% 33.04% 17.00% 10.11% 25.24% 21.36% -26.76% 3.62% 25.61% 17.04% 14.57%Russell 2000 Value -7.47% 4.22% 34.52% 18.05% -5.50% 24.50% 20.58% -28.92% -9.78% 23.48% 4.71% 18.16%*2/1/2004 - 12/31/2004

Past performance is no guarantee of future results.

Performance – Growth of a Dollar Through Sept. 30, 2016

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$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

YTD 2016

BRSCVR2KV

Performance Bar Periods Ending Sept. 30, 2016

Past performance is not indicative of future results 7

Market CaptureSept. 30, 2006 – Sept. 30, 2016

Past performance is not indicative of future results8

Multiple Statistics Sept. 30, 2006 – Sept. 30, 2016

Past performance is not indicative of future results9

Portfolio MonitoringRisk ControlLitigation WatchExcessive Valuation Excessive Valuation historically & Relative to PeersMonitor Portfolio GuidelinesMaintain Sell Discipline

Portfolio Construction

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•40-60 stocks – typically equally weighted

•Long only unhedged portfolio

•Initial position size around 2%

•Maximum position size 7%, although 4%-5% is more typical

•Maximum industry exposure 30%

•Maximum sector exposure 40%

•Cash is a residual of the investment process.

•Individual stock selection always takes precedence over sector, industry, and capitalization concentrations.

•Value on the Move

Risk Management

Guidelines for Controlling Risk:

• Watching trends in company liabilities to assets.

• Monitor valuation trends.

• Initial positions of 2% is typical, but initial positions occasionallyvary from 1% - 3.5%.

• Stocks purchased are typically trading below intrinsic value.

• Limiting industry exposure to 30% and economic sector exposure to 40%.

• Varieties of cap sizes within the small cap arena.

• Individual positions are typically trimmed before reaching 5%, but must betrimmed upon reaching 7%.

• Review for dividend changes.

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Sell Discipline

Possible reasons for selling a security are:

• It fails to retain a strong ranking relative to prospective candidates.

• The position becomes too large in the portfolio – most positions aretrimmed upon reaching 5% - 7%.

• Financial statement anomalies or diminishing future prospects.

• Qualitative factors such as pending litigation or a management change.

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Stock Purchase Example: Stewart Information Services(STC)

Market Cap: $500MM

Purchased: 01/29/2013 for $26.87Sector: FinancialIndustry: Specialty InsuranceValuation: P/E and Price/Sales vs peer group attractive and discounted per tangible book.

Recent Insider purchases exceed 25%

Relative Strength: StrongDividend Yield: Positive

• Price-to-free-cash-flow margin improvement year over year. • Direct distribution increased from 38% to 48% in Q1 2015• U.S. and Canada commercial revenues increase from $93MM to $156MM in 2014. • Eliminated $100+ million in annual operating expenses post financial crisis. • Capital Return Program: New share repurchase program as well as dividend hike• Above market growth• Improving margins with a 10% pre-tax margin goal.

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Stock Sell Example: Columbus McKinnon(CMCO)

Bought: 04/29/2014 @ $26.75Sold: 04/27/2015 @ $24.44

Macro-driven name that fell short of analyst expectations primarily to negative impact of foreign currency movement.

Partially off-set by gains from acquisitions and organic growth.

Weakness continues in the oil and gas industry, as well as soft demand from heavy OEM manufacturers, forex losses and limitations.

Geographies were mixed with weakness in North America and China but some signs of bottoming in Europe.

Estimated Revisions: Downward estimates prevail.

US sales flat year over year and Industrial Capacity Utilization, a leading indicator for CMCO, has declined 100 bps year to date. Some positive trends from recent Magnetek AcquisitionAnnualized $1.2MM run rate of savings compared to its expectations to reach $5MM. Acquisition was also approximately 100bps accretive to margin excluding restructuring expenses.

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Biographies

Stephen Levy Founding Partner, President, Portfolio ManagerPrior to Founding BirdRock in 2006, Mr. Levy served for five years as an Investment Manager for Richard P. Slaughter & Associates as well as Senior Portfolio Manager for the proprietary Small Cap Value equity product launched in 2004. Steve was also a member of the Investment Committee while at Richard P. Slaughter & Associates. Prior to that, Steve was with Janus Capital and worked as a Reinsurance Analyst with the JI Companies in Austin, TX. Mr. Levy has 20 years of financial service experience and has his B.A. in Political Science and Spanish with an emphasis in International Relations from San Diego State University. Further, he studied emerging markets, economics and U.S. Foreign Policy in Latin America at the Universidad Colegio Anahuac in Guadalajara, Mexico.

Christina Borger Managing Director, Assistant Portfolio ManagerMs. Borger has over 15 years of investment experience and served as the Assistant Chief Investment Officer for the Public Employees Retirement System of Nevada. She was also an Investment Analyst for the San Antonio Fire and Police Pension Fund prior to her joining BirdRock when the firm opened in September 2006. Prior to her work in the public sector, Ms. Borger worked at Janus Capital and Randolph Brooks Federal Credit Union. Ms. Borger has an undergraduate degree from Texas A&M University and a Masters of Business Administration from Georgetown University.

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Biographies

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Heather Justman, CPA Chief Financial OfficerHeather Justman serves as Chief Financial Officer for BirdRock Asset Management. She is responsible for the firm’s accounting and taxes. She has a diverse accounting background, working in real estate management and development, oil and gas property acquisition, and non-profit accounting, as well as partnership taxation. Ms. Justman received her Bachelor of Science in Accounting from the University of Wisconsin - Eau Claire.

Jack TamezResearch AnalystJackTamez joined BirdRock Asset Management in 2013 and focuses on portfolio metrics, corporate valuations, and daily operational needs. Prior to joining BirdRock, Jack was a Senior Trader at Kershner Trading Group, an equity trading fund also based in Austin, Texas. His group oversaw junior traders and developed strategies to balance risk and return in varying market conditions over shorter time frames. Jack earned a BS from the University of Texas in Applied Mathematics and is currently working towards further degrees in Economics and Biochemistry. During his time at school, he worked as an assistant for UT’s Center for High Energy Physics and served in board roles for both the University Investors Association and the Society of Hispanic Professional Engineers.

Biographies

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Aaron SoderbergDirector of Institutional Sales and MarketingMr. Soderberg has over 20 years of experience in the investment industry. Prior to joining BirdRock, he was responsible for marketing and business development at Glovista Investments, serving clients within the institutional, public and RIA marketplace. Prior to Glovista, he served as Senior Vice President of third party marketing firm Parenteau Associates. Prior to Parenteau, Aaron was a Managing Partner and founder of Portable Storage of MN, Inc. and Gold AaroCapital Partners, LLC. He began his career in 1989 as an Account Executive with Minnesota based Equity Securities Trading Company, Inc., a regional clearing broker dealer and boutique investment banking firm. He received his Bachelor’s degree from the University of Minnesota with major in International Relations, East Asian Studies.

Gustavo ArtazaFounding Partner, Senior Relationship DirectorMr. Artaza brings over 30 years of executive leadership to BirdRock Asset Management. As a founding member of BirdRock and Managing Partner of BirdRock’s leadership team, Mr. Artaza is responsible for developing and maintaining key client relationships including Family Office, Bank & Trust Co(s) and private institutional client relationships. Mr. Artaza serves on BirdRock’s Executive Committee helping to oversee the firm’s strategic direction. Prior experience includes Founder and CEO of International Studies Abroad, one of the world’s largest study abroad providers. Mr. Artaza graduated from the University of Texas at Austin in 1985.

Biographies

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Stephanie BoekeClient Relationship ManagerStephanie Boeke joined BirdRock in 2013 and serves as Head of Client Relations. She is a Series 65 registered Investment Advisor Representative. Stephanie brings 12 years of professional customer focused experience from her background as a Pharmaceutical Sales Representative for Solvay Pharmaceuticals, Inc. and as Account Executive for Republic National Distributing Company. Stephanie received her Bachelor of Science from The University of Texas at Austin in 1991.

Appendix

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• Performance

• Market Capture

• Portfolio Characteristics

• Quartile Ranking

• Disclosures and GIPS

Portfolio Characteristics

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(as of Sept. 30, 2016)

Portfolio Characteristics versus Russell 2000 Value Index

BirdRock Russell 2000 Value Index

# of Holdings: 45 1,338

Weighted Market Cap: 1,645 1,733

Median Market Cap: 1,310 631

P/E (ex negative earnings): 21.56 22.18

Price/Book: 2.38 1.41

Dividend Yield: 1.90% 2.14%

Portfolio Characteristics (as of Sept. 30, 2016)

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10.11%

7.97%

0.00%

29.90%

5.42%

17.23%

21.89%

6.72%

0.00%

5.31%

10.55%

3.02%

5.06%

40.95%

4.64%

12.10%

10.01%

4.52%

0.81%

7.75%

Consumer Discretionary

Consumer Staples

Energy

Financials

Healthcare

Industrials

Information Technology

Materials

Telecom

Utilities

R2kvBRSCV

Top 10 Holdings (as of Sept. 30, 2016)

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Name Weight

Horace Mann Educators 3.60%Selective Ins. Group Inc. 3.40%Booz Allen Hamilton 3.30%Navigators Group Inc. 3.10%Cooper Tire & Rubber 2.90%Fbl Financial Group Inc 2.90%Piper Jaffray Co. 2.90%National Healthcare Co. 2.80%Science Applications Intl. 2.80%Benchmark Electronics Inc. 2.70%

Total 32.70%

GIPS Compliant Presentation

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Small Cap Value Composite1/31/04 – 12/31/2015

BRAM claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. BRAM has been independently verified for the periods August 15, 2006 – June 30, 2015. The verification report(s) is/are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

Firm Information: BirdRock Asset Management (BRAM) is an SEC registered investment advisor that manages equity, fixed income, and balanced assets for individuals and institutions. The firm charges a flat 1% fee, subject to change and negotiation in certain circumstances.

Year End Total Return Gross of Fees

Total Return Net of Feesc

Benchmark Return

Number of Portfolios Dispersion

Total Composite Assets ($thous)b

Total Firm Assets

($thous)b

Percentage of Firm Assets

2004a 14.57% 13.53% 18.16% 1 NA $275 - -

2005a 17.04% 15.89% 4.71% 2 NA $561 - -

2006a 25.61% 24.26% 23.48% 2 NA $1,088 $6,552 16.60%

2007 3.62% 2.61% -9.78% 9 NA $2,710 $11,337 23.90%

2008 -26.76% -26.06% -28.92% 11 0.63% $2,109 $9,728 21.68%

2009 21.36% 20.18% 20.58% 11 0.84% $2,487 $12,104 20.55%

2010 25.24% 24.01% 24.50% 10 0.42% $3,630 $15,579 23.30%

2011 10.11% 9.02% -5.50% 11 0.59% $4,357 $19,060 22.86%

2012 17.00% 15.87% 18.05% 13 0.30% $6,863 $36,404 18.85%

2013 33.04% 31.75% 34.52% 15 0.27% $9,636 $46,686 20.64%

2014 4.47% 3.44% 4.22% 18 0.14% $9,690 $41,659 23.26%

2015 -3.27% -4.23% -7.47% 21 0.17% $12,806 $39,588 32.34%

GIPS Compliant Presentation

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Composite Characteristics: The Small Cap Value Composite was created on August 15, 2006, may include both taxable and nontaxable assets, and is comprised of accounts with market values of $100,000 or more that are actively managed and invested primarily in the stocks of domestic small cap companies. The composite benchmark is the Russell 2000 Value Index. This index is used for comparison purposes as it is broadly representative of the U.S. small cap value universe. The index is unmanaged and cannot be invested in directly. New accounts become part of the composite on the first day of the quarter after which all requirements of inclusion are met. Closed account data is included in the composite as mandated by the standards in order to eliminate a survivorship bias. A complete list and description of all firm composites is available upon request.

Calculation Methodology: Valuations and returns are computed and stated in U.S. dollars on both the individual account and composite level. Returns are calculated on a monthly, quarterly, and annual basis. Pricing information is supplied by Charles Schwab & Co. All performance is calculated using time-weighted rate of return. Periodic returns are geometrically linked and adjusted for cash flows. Gross of fees returns are calculated gross of management fees and net of transaction costs. Net of fees returns are calculated net of management fees and transaction costs and gross of custodian fees. Net of fees returns are calculated using actual annual client fees, pro-rated on a quarterly basis. Both returns are calculated net of all withholding taxes on foreign dividends and ADR management fees. The composite results portrayed reflect the reinvestment of dividends, capital gains, and other earnings. The dispersion measure is the asset-weighted standard deviation of accounts in the composite for the entire year.

Other Disclosures: Past performance does not guarantee future results. This performance report should not be construed as a recommendation to purchase or sell any particular securities. The portfolio is subject to a number of risks and may not be suitable for all investors. The portfolio may decline in value causing a loss of principal. Please consider investment objectives, risks, charges and expenses carefully before investing. Policies for valuing portfolios, calculating performance, and preparingcompliant presentations are available upon request.

a 2004 performance is for the period 1/3/04 through 12/31/04. The period 1/31/04 - 8/15/06 represents performance that occurred while the Portfolio Manager was affiliated with a prior firm and was the individual responsible for selecting all investments. Performance results between the two firms have been linked. This presentation meets the GIPS requirements regarding portability of investment results. bTotal firm assets stated are discretionary assets only. The combined total discretionary and advisory assets as of 12/31/15 is $160 million, which is provided as supplemental information.c Net of fees are calculated ising a model fee of 1% annually. However, fees are negotiable.d3yr annualized ex-post standard deviation for composite and benchmark, respectively are 18.71% and 26.05% for 2011; 15.37% and 19.89% for 2012; 12.99% and 15.82% for 2013; 12.66% and 12.79% for 2014, and 14.03% and 13.46% for 2015. This information is not presented prior to 2011 as it is not required.

Contact Info

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BirdRock Asset Management9433 Bee Cave Rd.Bldg 2, Suite 203Austin, TX 78733

(512) 236-0071www.birdrockam.com