M&R Capital is a large to mid size capitalization Value Manager. We use a very clear-cut view of the financial markets to build a sophisticated investment approach. Specifically, we view securities in their most elemental form - as claims against underlying assets. Our approach entails three basic requirements:

1. We identify opportunities where the publicly traded securities are trading at valuations of 50-75% of our estimate of the intrinsic value of the underlying assets
2. We limit our interest to those areas where the assets are fundamentally increasing in value over time
3. We make a positive investment conclusion when we see factors in play which suggest the discount between the intrinsic value and the public price will close within a reasonable time frame.

Inasmuch as we are looking for gains of between 25-50% on our investments, we take a relatively long-term view in our purchases. Specifically, we generally expect to hold a security for one to two years, in order to realize capital appreciation in that order of magnitude. Because out approach is research and fundamentally based, we tend to view depressed price action in our securities as a buying opportunity rather than a sell signal. We know the market can be inefficient over the short term - we rely on that to create our opportunities. However, we expect such inefficiency will run its course, and those intrinsic values will be recognized by the marketplace over time. On the other hand, we are not hesitant to realize gains when our investment hypothesis is borne out, and investments reach our price targets.

We believe this value approach tends to limit downside risk while providing attractive upside participation. We have found that downside risk can be contained better through selectivity rather than through over-diversification. Consequently, our position sizes tend to range between 3-5% of the overall portfolio value, and fully invested portfolios tend to hold 25-35 individual investments.

Balanced portfolios typically include instruments that genuinely span the risk spectrum. These range from value-oriented equities, to higher yielding equities, preferred shares, higher yielding debt instruments as well as investment grade corporate bonds and US agency and treasury securities.

Press Release and Media:

- Forbes - Financially Speaking - Oct 15 2007.

- Barrons - Malone's Best-Kept Secret - Aug 06 2007.

- Business Week - Inside Wall Street - Apr 30 2007.

- Barron's - Not All Pans Get the Gold - Mar 26 2007.

- Business Week Inside Wall Street - Mar 12 2007.

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