THIS PRESENTATION IS FOR INFORMATIONAL AND EDUCATIONAL PURPOSES ONLY AND SHALL NOT BE CONSTRUED TO CONSTITUTE INVESTMENT ADVICE. NOTHING CONTAINED HEREIN SHALL CONSTITUTE A SOLICITATION

1. HAWKSHAW Scuttlebutt Research – Inv
on
H A W K S H A W
Scuttlebutt Research –
Investing with
Conviction
Kian Ghazi, CFA
Managing Partner
Hawkshaw Capital Management
SHAW CAPITAL MANAGEMENT ECONOMY NEWS

2. THIS PRESENTATION IS FOR WE HAVE NO OBLIGATION TO
INFORMATIONAL AND UPDATE THE INFORMATION
EDUCATIONAL PURPOSES ONLY CONTAINED HEREIN AND MAY
AND SHALL NOT BE CONSTRUED MAKE INVESTMENT DECISIONS
TO CONSTITUTE INVESTMENT THAT ARE INCONSISTENT WITH THE
ADVICE. NOTHING CONTAINED VIEWS EXPRESSED IN THIS
HEREIN SHALL CONSTITUTE A PRESENTATION. WE MAKE NO
SOLICITATION, REPRESENTATION OR WARRANTIES
RECOMMENDATION OR AS TO THE ACCURACY,
ENDORSEMENT TO BUY OR SELL COMPLETENESS OR TIMELINESS OF
ANY SECURITY OR OTHER THE INFORMATION, TEXT,
FINANCIAL INSTRUMENT OR TO GRAPHICS OR OTHER ITEMS
BUY ANY INTERESTS IN THE CONTAINED IN THIS
INVESTMENT FUNDS OR OTHER PRESENTATION. WE EXPRESSLY
ACCOUNTS MANAGED BY DISCLAIM ALL LIABILITY FOR
HAWKSHAW CAPITAL ERRORS OR OMISSIONS IN, OR THE
MANAGEMENT, LLC MISUSE OR MISINTERPRETATION
(“HAWKSHAW”). HAWKSHAW OF, ANY INFORMATION
OWNED STOCK IN LEARNING CONTAINED IN THIS
TREE AND LESCO AT THE TIME OF PRESENTATION. PAST
PUBLICATION (NOVEMBER 1, PERFORMANCE IS NO GUARANTEE
2006). OF FUTURE RESULTS AND FUTURE
RETURNS ARE NOT GUARANTEED

3. Our Investment
Just like most of you,
Strategy
we are value investors.
We search among a targeted group of
stocks for asymmetric risk/reward
potential.
 Our mission is to establish concentrated
investments in good businesses that are
mis-priced as a result of what we believe
are overly pessimistic expectations or
underappreciated potential.
 We demand a high margin of safety –
consisting of 3 components:
 Own quality businesses with high
incremental returns on capital.
 Invest only when the stock trades at a
substantial discount to our conservative
appraisal value.
a
research to help confirm (or refute) our
thesis.

4. What is Scuttlebutt
AND…
Research?
 Speaking with
Proprietary, Non-  Barriers to entry
Wall Street  Threat of substitutes
Contacts  Hawkshaw – a slang term
 Customers from the 1800’s meaning
 Competitors detective. 5
 Suppliers  I Know What Many of You
 Other industry
Are Thinking…
veterans
 Co-Sourcing our  “I don’t do scuttlebutt
Company/Industry research, and my returns are
Analysis to just fine.”
Understand:  “I’m a long term investor,
 Strengths and not a channel checker or
weaknesses data point chaser.”
 Headwinds and  “It simply produces
tailwinds
 Level of
anecdotal information that
competitiveness creates a lot of noise.”
 Power of buyers
and suppliers

5.  “It’s too time intensive relative to the
usefulness of the information.”
 “What a man believes upon grossly
insufficient evidence is an index into his
desires – desires of
 which he himself is often unconscious.”
- Bertrand Russell