RCB controls portfolio risk by limiting our exposure to any single industry to 25% and by limiting a single position within our portfolio to 10%.

The factors that can spur a sale are:

1. Stock materially exceeds RCB estimate of intrinsic value
2. Management disappointment, change in company fundamentals or change in the course of business
3. Superior risk/reward candidate identified

A material drop in the price of the stock compared to its peer group will prompt a full review of the company by a second analyst in order to determine if a sale is in order or whether an opportunity to add to a position is at hand.