Intrepid Capital Management Inc

"Item 5: Fees and Compensation" above.

        c. Wealth management services are offered to business entities, institutions, and individuals.
           See "Item 4: Advisory Business" and "Item 5: Fees and Compensation" above.

        d. The Partnership offers interests only to "accredited investors" and "qualified clients," a
           general description of the Partnership account minimums is described in Item 4: Advisory
           Business, IV - Private Fund. Please also reference the Partnership's Private Offering
           Memorandum for further information. See "Item 4: Advisory Business" and "Item 5: Fees
           and Compensation" above.

    1400 Marsh Landing Parkway, Suite106 I   Jacksonville, Florida 32250   I   904.246.3433   I   www.intrepidcapital.net

      ITEM 8: METHOD OF ANALYSIS, INVESTMENT STRATEGIES AND RISK
                               OF LOSS

Method of Analysis - Overview
The following discussion generally describes the Firm’s proprietary investment analysis process, including
as applied to SMA strategies. Our research is done internally following a bottom-up, value-based strategy.
Analysts focus on company filings, conference calls, discussions with management and other sources
when generating company reports. We emphasize the use of primary research over sell-side materials.
Securities and Exchange Commission ("SEC") filings are critical to understanding a business's history and
stability, as well as the primary drivers for the business. The core concept is to value a business in its
entirety, as if we were buying the stock in a private market transaction.

We discount free cash flows using normalized assumptions, as opposed to cash flows at the peak or
trough of the business cycle. For businesses in which discounting free cash flows could be problematic
(e.g., financials or commodity-related businesses), we attempt to value the business via an asset
valuation. We typically use discount rates between 10% and 15% depending upon a business's level of
overall risk and cyclicality. Finally, we use realistic growth rate assumptions, which tend to be between 3%
and 5%. Management contact (typically via phone) can be important to better clarify accounting
questions or to understand the challenges/opportunities facing the target business in question. Once
we have valued the entire business, we can determine whether the stock price is at a discount (below) or
premium (above) to our intrinsic valuation.

Ideas are shared across the firm and between portfolios. The research team is composed of portfolio
managers and research analysts who search for and evaluate ideas. The investment team meets on a
weekly basis to review ideas. Ultimately, the lead portfolio manager of the investment strategy has final
decision rights and responsibility for which securities are bought and sold in each strategy. However, all
analysts and portfolio managers work in close proximity to one another; ideas are shared throughout
the course of each business day.

Method of Analysis - Equity Securities
We start with our investable universe of securities, ranging from $200 million to roughly $9 billion in market
cap for the small cap portfolio, and $200 million and above for the other equity portfolios. These inc lude
domestic and foreign securities. We generally eliminate companies which do not meet our criteria. We prefer
companies that tend to be profitable, generate positive free cash flows, and have reasonable financial
leverage. Oftentimes when we are screening, we use firm valuation metrics (i.e. Enterprise Value) to
account for use of leverage. In addition to screening based on valuation (e.g. EV/EBIT or free cash flow
yield), we also screen for companies trading near their 52-week low price levels that may be out of favor or
otherwise mispriced by the market. Another important source of ideas comes from the body of knowledge
built by the research staff over the years. Some high-quality businesses have been followed continuously
but may not be owned at a particular time. When the prices of such stocks decline to a level that affords us
an adequate margin of safety, we stand prepared to invest. Ideas are also sourced from our credit team
as they evaluate modestly leveraged investment grade and high yield debt issuers. When we believe there
is a clear path to debt reduction, we may buy these securities for our equity portfolios.

    1400 Marsh Landing Parkway, Suite106 I   Jacksonville, Florida 32250   I   904.246.3433   I   www.intrepidcapital.net

Once a portfolio candidate is found, we thoroughly review the company's business strategy, financials,
competitors, and outlook. If the candidate passes our initial due diligence, we may ask questions to
management or others in the industry to firm our understanding of the business. The final step in our
process is to discount the candidate company's future free cash flows to determine our intrinsic value. This
value is then adjusted to reflect excess working capital, hidden assets, hidden liabilities, and debt. If the
market value is near 20% below our calculated intrinsic value, the candidate is placed on our potential buy
list. While the existence of a catalyst may be desirable, we do not require a catalyst before investing in a
security. Although discounting free cash flows is our primary valuation methodology, we also calculate
asset valuations when appropriate, and use a conservative multiple of normalized earnings in other
instances. Determining the potential takeover price for a business allows us to understand potential upside,
but it is not our main technique.
We are very valuation sensitive. We will not usually acquire a company unless we can buy it at a material
discount to intrepid value, which is generally 20%. Positions are generally sold or reduced in size when
they cross our intrinsic value estimate. Our sell discipline is typically driven by the occurrence of three
potential events:
...

ITEM 7: TYPES OF CLIENTS

We provide advisory services and non-advisory services to corporate, institutional, and high net worth
individuals. We also provide advisory services to mutual funds (registered investment companies) and
pooled investment vehicles that are not registered as investment companies.

        a. SMA's are offered to business entities, institutions, and high net worth individuals. See "Item 4:
           Advisory Business" and "Item 5: Fees and Compensation" above.

        b. For the mutual funds in the ICFT, the type of investment and minimum investment varies based
           on the type and class of the fund. Each fund is generally described as follows; ICMBX and
           ICMVX - moderate allocation balanced, and ICMUX - income. The minimum initial amount of
           investment is $2,500 for investor class shares of the Funds (ICMBX), $2,500 for institutional
           class shares of ICMUX and $250,000 for institutional class shares of the Funds (ICMVX).
           Subsequent investments in the investor class or institutional class shares of the Funds may be
           made with a minimum investment of $100. Please also reference the Funds' Prospectus and
           Statement of Additional Information for further information. See "Item 4: Advisory Business" and
           "Item 5: Fees and Compensation" above.

        c. Wealth management services are offered to business entities, institutions, and individuals.
           See "Item 4: Advisory Business" and "Item 5: Fees and Compensation" above.

        d. The Partnership offers interests only to "accredited investors" and "qualified clients," a
           general description of the Partnership account minimums is described in Item 4: Advisory
           Business, IV - Private Fund. Please also reference the Partnership's Private Offering
           Memorandum for further information. See "Item 4: Advisory Business" and "Item 5: Fees
           and Compensation" above.

    1400 Marsh Landing Parkway, Suite106 I   Jacksonville, Florida 32250   I   904.246.3433   I   www.intrepidcapital.net

      ITEM 8: METHOD OF ANALYSIS, INVESTMENT STRATEGIES AND RISK
                               OF LOSS

Method of Analysis - Overview
The following discussion generally describes the Firm’s proprietary investment analysis process, including
as applied to SMA strategies. Our research is done internally following a bottom-up, value-based strategy.
Analysts focus on company filings, conference calls, discussions with management and other sources
when generating company reports. We emphasize the use of primary research over sell-side materials.
Securities and Exchange Commission ("SEC") filings are critical to understanding a business's history and
stability, as well as the primary drivers for the business. The core concept is to value a business in its
entirety, as if we were buying the stock in a private market transaction.

We discount free cash flows using normalized assumptions, as opposed to cash flows at the peak or
trough of the business cycle. For businesses in which discounting free cash flows could be problematic
(e.g., financials or commodity-related businesses), we attempt to value the business via an asset
valuation. We typically use discount rates between 10% and 15% depending upon a business's level of
overall risk and cyclicality. Finally, we use realistic growth rate assumptions, which tend to be between 3%
and 5%. Management contact (typically via phone) can be important to better clarify accounting
questions or to understand the challenges/opportunities facing the target business in question. Once
we have valued the entire business, we can determine whether the stock price is at a discount (below) or
premium (above) to our intrinsic valuation.

Ideas are shared across the firm and between portfolios. The research team is composed of portfolio
managers and research analysts who search for and evaluate ideas. The investment team meets on a
weekly basis to review ideas. Ultimately, the lead portfolio manager of the investment strategy has final
decision rights and responsibility for which securities are bought and sold in each strategy. However, all
analysts and portfolio managers work in close proximity to one another; ideas are shared throughout
the course of each business day.

Method of Analysis - Equity Securities
We start with our investable universe of securities, ranging from $200 million to roughly $9 billion in market
cap for the small cap portfolio, and $200 million and above for the other equity portfolios. These inc lude
domestic and foreign securities. We generally eliminate companies which do not meet our criteria. We prefer
companies that tend to be profitable, generate positive free cash flows, and have reasonable financial
leverage. Oftentimes when we are screening, we use firm valuation metrics (i.e. Enterprise Value) to
account for use of leverage. In addition to screening based on valuation (e.g. EV/EBIT or free cash flow
yield), we also screen for companies trading near their 52-week low price levels that may be out of favor or
otherwise mispriced by the market. Another important source of ideas comes from the body of knowledge
built by the research staff over the years. Some high-quality businesses have been followed continuously
but may not be owned at a particular time. When the prices of such stocks decline to a level that affords us
an adequate margin of safety, we stand prepared to invest. Ideas are also sourced from our credit team
as they evaluate modestly leveraged investment grade and high yield debt issuers. When we believe there
is a clear path to debt reduction, we may buy these securities for our equity portfolios.

    1400 Marsh Landing Parkway, Suite106 I   Jacksonville, Florida 32250   I   904.246.3433   I   www.intrepidcapital.net

Once a portfolio candidate is found, we thoroughly review the company's business strategy, financials,
...