We believe there are two ways the market can be evaluated from an investment standpoint: Market Cap Based Stock price multiplied by outstanding shares Assumes markets are efficient and prices reflect all information at all times. Indexes invests in companies proportional to market valuation Seeks equity risk premium, not alpha, return Economic Based Based on a company’s fundamental factor Markets are constantly seeking fair value and prices may not reflect all information. Some companies may be overpriced and some are underpriced Certain economic metrics are value-driven and can create strategies that may outperform market cap returns.