Dear Investor

In 2010, our investments returned 18.8% versus the S&P 500's return of 15.1%. Overall, it was a decent year, one largely buoyed in Q4 by a few stocks that played out its thesis or was catalyzed by an unforeseen event, namely, a leveraged buyout. They are discussed in more details below with the hope that it sheds light on how I think about investments, and whether or not that fits with your investment goals and philosophy.

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