• Our opinion on timing of the length of this downturn and the reopening of the economy is really no more informed than what you get from the media. But where we are optimistic is in our view of what the economy will look like after it's finally reopened and we can be out in public again without fear of catching the disease.
  • We expect an eventual recovery to a level that will make last year look more like a normal year than a peak year.
  • Four weeks ago today, we established a firm-wide work from home test. It went smoothly and we haven't been back in the office since. I have the same screens on my desk at home that I have at work, all the same data feeds.
  • We have messaging and video chats available with all our employees. Our investment team replicates our lunch table discussions in the office with a virtual video lunch. Our weekly stock selection meetings occur as they always have but now on WebEx. We're functioning just fine. And you'll definitely not hear us say that we would have done a, b, or c had we been in the office but couldn't because we're now working from home.
  • On balance, we believe the trades we made in the quarter resulted in a portfolio that is priced at a larger discount to fair value, with higher quality businesses and businesses with better balance sheets.
  • The ones we purchased tended to have better balance sheets or businesses that we expect to be less harmed by the shutdown. To be clear, we are happy to take on risk when we believe we're getting overpaid to do so.
Risks:
All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

3046008.1.1