Public Stock
Quaker believes that independence of thought, discipline and opportunism are critical characteristics of successful investment managers.  Quaker believes optimal long-term results can be achieved by vigorously pursuing the best risk reward opportunities in the marketplace wherever they may be and whatever the size of the company.

Quaker screens the universe of domestic securities and ADRs to identify candidates for portfolios.  Investment candidates are likely to possess low multiples of cash flow, low PEG (P/E to growth rate) ratios or low price to private transaction values.  Discipline requires that a stock trade at a minimum 50% discount to Quaker's estimate of long term "intrinsic" value for the company.  Stocks at the greatest discount to intrinsic value with minimal downside risk, while possessing a catalyst to drive the stock to intrinsic value, become candidates for portfolios.  The firm attempts to minimize over-diversification which may dilute performance.

Private Equity
Quaker invests in a limited amount of private equity within its hedge funds.  Future private equity investments are generally restricted to those ideas which develop from our public company research.  Examples of such private equity ideas could include PIPEs (private placements into public companies) for the purpose of providing growth/acquisition capital or balance sheet restructuring capital to public companies.  We may also consider providing equity capital to facilitate the privatization of a public company or a division of a public company.  An example of a private equity transaction was Quaker’s 2004 investment in a private placement in the equity of Wilson’s Leather Experts, www.wilsonsleather.com, to facilitate a restructuring of that company’s balance sheet.