INVESTMENT PHILOSOPHY

Unity Trust Financial’s investment philosophy is based on long-standing value-oriented investing principles.

These principles are best described as viewing a security, such as a common stock, as a fractional ownership in the underlying business. The principles require developing a thorough fundamental analysis of each business and its financial condition as a prerequisite to establishing an appraised or estimated value of the enterprise. Investments are made only when a sufficient margin exists between a stock’s quoted price and the analyst’s estimated value. This important part of value-oriented investment principles is referred to as a Margin of Safety and accounts for the imprecision of market pricing and financial estimates.

Unity Trust Financial’s Associates strive to invest in companies, not trade stocks. We seek to initiate investments which we believe have fallen out of favor or become disliked by market participants, thus creating a temporarily undervalued investment opportunity. We seek to exploit inefficiencies we believe are inherent in the capital markets, not as a result of breadth or timing of information dissemination, but rather as a result of the misinterpretation of information. The increase in algorithmic trading and instantaneous decision making based on superficial news-flow has increased inefficiencies in our view.

We seek to arbitrage discrepancies between price and value when this occurs and creates wide gaps between our appraised value and the last quoted stock price. We are patient, long-term investors willing to hold investments for years in order to maximize returns.