CLEARLINE CAPITAL LP

The Funds employ a fundamental and intensive research process to assess the fundamentals of a business and the dynamics of an investment situation. They aim to identify securities or financial instruments whose trading value differs materially from their fundamental value. Additionally, they consider liquidity, sector, and other qualities that would enhance the Fund's overall portfolio. The Funds' research process is driven by a rigorous scenario analysis informed by their macroeconomic view. They run multiple operating scenarios and overlay the earnings and cash flow outputs with a historical range of valuation metrics. They seek to ensure a pessimistic approach when evaluating long positions and an optimistic approach when evaluating short positions. The Funds prioritize investments with significant upside potential, allowing for a "margin-of-comfort" even in the face of unforeseen negative events. They also seek to confirm that investments have minimal downside risk and that the underlying cash flows provide a "margin-of-safety" to minimize losses.