The events of the third quarter clearly approached historic standards and it was truly difficult to find any bright spots across nearly any global asset class, much less individual equity sectors. We have done a decent job in financial stocks as we developed and stayed with a strategy that sought to minimize our exposure to global credit markets.While continuing to look for financial companies with balance sheets that made them survivors, we focused on management teams whose history suggested an ability to take advantage of cyclically difficult times and come out on the other end much stronger and more valuable. We continue to think the survivors in this area represent compelling value for the long term.While the multitude of headlines and zeroes associated with today's financial environment make it difficult to get a clear understanding of recent events, the basic theme remains that the world is grappling with a global retrenchment from what was practically speaking the easiest credit environment in the post-WWII era.As the pendulum swings from greed to fear, we are working our way through a myriad of economic players who are cutting spending, hoarding cash and focusing on return of capital rather than return on capital.
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