Main Management looks for asset classes, sectors and sub-sectors that have underperformed on an absolute and relative basis. There are essentially three key steps to the process:

- Fundamentals - We establish whether a sector or sub-sector is correctly valued by the equity markets. To make this determination we primarily analyze growth rates, P/E multiples and dividends flows. We believe that the equity markets will correct the short term pricing inefficiencies. As a result, making the correct assessment generates positive returns when undervalued sectors become fairly valued. Rebalancing to maintain target allocations and to reduce volatility are important facets of this exercise.

- Leadership - Equity markets have historically had well defined sectors of market leadership. Accurately identifying these sectors are both an art and a science. It requires experience and an understanding of what catalysts and scenarios might propel certain market sectors or countries to outperform.

- Trends - In combination with fundamental analysis, it is important to also observe technical trends. These indicators help to identify short term dislocations in valuations that may be irrational in the big picture. Reconfiguring a portfolio accordingly can help to capture gains and minimize downturns.