Institutional Investment Management At Quantum Capital Management, our core investment philosophy focuses on high long-term risk-adjusted returns. We are intent on providing competitive returns in advancing markets while preserving wealth in declining markets, and therefore give as much weight to the risk of an investment in a company as we do its prospective return. At the core of our investment philosophy is to leverage our internal, proprietary, research methods to identify companies with significant intrinsic value. At the same time, we expect our selected companies to increase growth of sales and profits over a full economic cycle. This serves capital preservation objectives, while enhancing the long-term growth of capital. Remaining true to our discipline by consistently and repeatedly employing the same process of investing through all market conditions, enables us to deliver high long-term risk-adjusted returns for our clients. Portfolio Strategies Our core portfolio strategies are designed to meet the diverse needs of clients, while retaining the common philosophy and discipline resulting from Quantum's investment process. Each strategy employs a disciplined approach to relative sector weighting against its respective benchmark, as well as rebalancing to strategic allocations in order to optimize the risk-adjusted returns of the portfolio. The common trait among our portfolio strategies is to maximize risk-adjusted returns. Our discipline across all strategies is to realize lower volatility and increase consistency of returns relative to respective benchmarks. Quantum Capital Management's strategies are independently Audited and Verified in compliance with Global Investment Performance Standards (GIPS®). Quantum Dividend Growth This strategy focuses on achieving above average growth of capital and current income. We specifically target companies that efficiently invest in the growth of their addressable markets while being committed to consistently increasing their dividends to shareholders. The focus on identifying dividend paying 'growth' companies results in a long-term balance of current growth in earnings, dividends, and company investment in future activities to sustain the company's future growth in earnings and dividends. We utilize the same fundamental research process as our other equity disciplines, but limit our stock selection to U.S. domiciled companies that are greater than $2 billion in market capitalization and that pay at least 80% of the dividend yield of their respective GICS sector. Additionally, we look for projected dividend growth at least double the rate of inflation. The portfolio is exposed to all ten S&P GICS sectors and is benchmarked to the S&P 500 Index. Quantum Long Term Growth This strategy seeks to invest in well-established large capitalization companies with meaningful growth prospects, solid fundamentals and a proven record of increasing sales and profits through efficient reinvestment of profits into the company. The portfolio is exposed to all ten S&P GICS sectors and is benchmarked to the Russell 1000 Growth Index. Our company selections are limited to U.S. domiciled companies that are greater than $2 billion in market capitalization. Quantum Mid Cap Growth This strategy seeks to invest in mid-capitalization companies focused on growing their market share within rapidly growing end-markets. The basis for a company's inclusion is based upon a successful record of realizing above industry growth rates, a growth culture in its management and subsequent opportunities for meaningful reinvestment of profits into new areas of growth. The portfolio is exposed to all ten S&P GICS sectors and is benchmarked to the Russell Mid Cap Growth Index. Company selections are limited to US domiciled companies that range between $1 to $10 billion in market capitalization. Quantum Global Growth This strategy aims to achieve superior returns through a strategically designed exchange traded fund (ETF) portfolio. The portfolio seeks exposure to more rapid global growth opportunities through large multinational allocations, and focused participation in the more rapidly growing segments of the U.S. economy and emerging markets. The portfolio is constituted using ETFs covering all ten economic GICS sectors, U.S. small and mid cap growth stocks, and emerging markets. ETF holdings are actively managed at the global GICS sector level in order to benefit from our sector over/under weighting discipline. If you would like to obtain a current summary sheet on any of Quantum Capital Management's equity strategies, please contact us through the form below, or by calling Mat Johnson or Stephen Bradley Jr. at (415) 927-8430.

	© 2008 Quantum Capital Management. All Rights Reserved.