Palomino Capital corporation

PUBLIC EQUITY

Our fund of hedge funds operation was established to manage the internal assets of Palomino through a concentrated portfolio of hedge fund investments. Since inception we have invested with over 25 different hedge fund managers across a wide variety of investment strategies. Our manager selection process is focused on seeking out and identifying best of breed, high conviction managers who manage concentrated portfolios within their given strategy. We are focused on value investing as a discipline and hence a majority of our managers are value investors. We are not concerned with short term volatility as we believe that superior returns can only be generated over the course of many years.

RDA Capital is a hedge fund management boutique. It specializes in research, development and implementation of quantitative trading strategies. Palomino currently holds an interest in RDA Capital.

Francois Magny founded RDA Capital. Francois, who previously co-founded Starmark Holdings Ltd., was a Vice President and senior trader in exchange derivatives for NationsBank in London, following a period as a floor options market maker with Banque D’Escompte/CRT on the Matif and Nations/CRT on Liffe. Francois received a B.Com in Finance from McGill University in 1990.

Spencer Capital Management is a hedge fund that is managed to maximize absolute returns over multiple market cycles. The fund seeks investment opportunities through an event-driven value approach supported by bottom-up idea generation and rigorous research and analysis. Specifically, the fund seeks to invest in companies experiencing specific events that create short-term difficulties but do not affect the long-term economic value. Palomino currently holds an interest in Spencer Capital Management, LLC.

The Principal and Portfolio Manager of Spencer Capital is Kenneth Shubin Stein, MD, CFA. Dr. Shubin Stein is the founder of Spencer Capital Management, LLC. Most recently he was a portfolio manager at Promethean Investment Group LLC and co-founded Compo Asset Management, LLC, a U.S. based, value investment partnership, which merged into Promethean. Dr. Shubin Stein completed his orthopaedic internship at the Mount Sinai Medical Center in New York. He is a graduate of the Albert Einstein College of Medicine where he completed a 5-year medical and research program with a focus on molecular genetics and was graduated A.B. from Columbia College in 1991 with dual concentrations in Premedical Studies and Political Science. He is the Chairman of the Board of MRV Communications and is an adjunct professor at the Columbia University Graduate School of Business. Dr. Shubin Stein holds the CFA designation.