Effective 5/18/2020, we're improving our Flagship investment strategy mandate. Flagship will now be more opportunistic and tax-efficient. Here is what we're evolving and why.

1. Opportunistic trade timing: We'll now have the flexibility to make portfolio updates when the market presents outsized opportunities or dislocations (instead of strictly 1x per quarter when hedge fund filings are published).

We don't expect this timing change to increase our average trading activity or portfolio turnover, as we're still operating under our Flagship long-term oriented, low-turnover model. However, the increased flexibility around timing should give us greater flexibility to react to meaningful intra-quarter opportunities and shifts.

2. Tax optimization: We'll no longer rebalance every stock every quarter, or sell small amounts of them to cover advisory fees. Instead, we'll only rebalance stocks whose weightings have meaningfully deviated from their target weights. We'll cover monthly fees using a small cash reserve.

As a result, you'll see meaningfully fewer transactions on your year-end 1099 tax statement. Fewer taxable events >> more long-term compounding for your portfolio.

For our complete investment program details, see our Form ADV Part 2A.

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