I’m a portfolio manager for Arquitos Capital Management. Earlier this year while doing research, I was looking at a few corporations that I knew were donors to conservative causes and free market oriented organizations. I noticed they had outperformed the S&P 500 over a long period. That made sense to me. Corporations who have a culture based on capitalism and creative destruction should do better than other corporations, for no other reason than they recognize that they must constantly reinvest in themselves and their products. While I believed this to be true, I decided to run a test based on these ideas. The problem I had was, how do I create a portfolio of corporations that most epitomized free market principles?

I kept coming back to the thought that the easiest and least subjective way to determine if a corporation believes in free market ideas, is if they support research and promotion of free market principles. Would this capture all of the most entrepreneurial corporations? Of course not, but it’s a good start. I took the leading free market-oriented public policy organizations and looked at all of their corporate supporters. I then created a portfolio just including those corporations. Then I looked at their historical performance since 2000. Without going into performance details here, I can say that I was overwhelmed by how well this portfolio did. To see the results yourself, please visit The Hayek Fund’s website and read the disclaimer carefully.

I have two theories as to why the portfolio does so well. Corporations and their leaders who embrace free market principles are, most likely, more entrepreneurial in nature than their competitors. I also believe that corporations who have the financial ability to support public policy organizations are more likely to be profitable year in and year out, and probably create a tremendous amount of free cash. Corporations who create a high amount of free cash tend to do better than the overall market over the long term.

I launched The Hayek Fund portfolio on September 7, 2010 and linked up my first client to it, myself. I run it as a Spoke Fund, the same way I run the other portfolio I manage, The Freedom Fund. If you’re interested in learning more, please visit The Hayek Fund’s website, and if you have any questions, please send me an email or give me a call. I look forward to hearing from you.

Annandale, VA, September 14, 2010 — Arquitos Capital Management, a Virginia-based investment management firm, has announced the launch of The Hayek Fund. The Hayek Fund is the first investment portfolio solely dedicated to free market principles. The entire portfolio consists of corporations who have made donations to free market-oriented public policy organizations.

A performance backtest of a portfolio made up of the current stocks and allocations of The Hayek Fund has significantly outperformed the S&P 500 since 2000. More information on the historical performance of this model may be viewed at The Hayek Fund’s website.

The Hayek Fund’s portfolio manager, Steven Kiel, thinks there are two primary reasons why this strategy will be successful, “Corporations who financially support free-market organizations are, most likely, more entrepreneurial in nature than their competitors. Corporations and their leaders who embrace the ideas of creative destruction are more likely to have higher profits and more innovative products. Additionally, corporations who have the ability to financially support public policy organizations are more likely to create a tremendous amount of free cash year over year. Corporations who create a high amount of free cash tend to outperform the overall market.”

The Hayek Fund is managed as a spoke fund. Spoke funds offer numerous advantages for investors when compared to mutual funds. Investors own the underlying shares in the portfolio, which allows for significant tax advantages. Portfolios may be accessed online 24/7, expenses are clear and low, and the portfolio is focused. Most importantly, all spoke funds require that the portfolio manager invests a significant portion of his own money in the fund he manages.

Clients can place individual, joint, retirement, trust, and business accounts in The Hayek Fund. To learn more, please visit www.hayekfund.com or contact Steven Kiel at steven.kiel@arquitos.com or (571) 766-8089.

About Arquitos Capital Management:
Arquitos Capital Management is a Virginia-based independent, fee-only investment management firm. The firm manages two portfolios: The Freedom Fund, a value-oriented spoke fund, and The Hayek Fund, a spoke fund dedicated to free market principles.

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PRESS RELEASE
For immediate release

Contact: Steven Kiel

(571) 766-8089
steven.kiel@arquitos.com

Annandale, VA, May 18, 2010 — Arquitos Capital Management, a Virginia-based investment management firm, announced today that it will donate a portion of its fees from The Freedom Fund to soldier support organizations. The Freedom Fund is a spoke fund that launched on May 5, 2010 and is designed to be more transparent, with lower expenses and a more investor-friendly structure than mutual funds.

The fund’s manager, Steven Kiel, is a captain in the United States Army Reserves and a veteran of Operation Iraqi Freedom. Kiel said, “When I was in Iraq, my platoon members and I benefited greatly from the generosity of people who put together care packages back home. I’ll never forget their thoughtfulness, and I want them to know how much I appreciated it. Our first donation will be to Operation Care Package in Joliet, Illinois. I encourage others to follow our lead.” Operation Care Package can be found at www.operationcarepackages.org

Arquitos Capital Management was created with a mission to treat investors fairly and ethically. SEC investigations into Wall Street firms have underscored the fact that those firms don’t have a fiduciary duty to put the interests of their clients ahead of their own. As a registered investment advisory firm, Arquitos Capital Management gladly has that duty, and demonstrates it in the way they treat their clients.

“Investors in The Freedom Fund are not nameless and faceless, like they would be if they invested in a mutual fund,” said Kiel. “They can call me up to chat about our investments at any time. Most importantly, though, our investors know that my interests as the fund manager are in complete agreement with theirs. I have nearly my entire net worth in the fund right alongside their investment.”

Clients can place individual, joint, retirement, trust, and business accounts in The Freedom Fund. To learn more about The Freedom Fund and to sign up for the monthly newsletter, visit Arquitos Capital Management’s Web site, located at www.arquitos.com, or contact Steven Kiel at (571) 766-8089.

About Arquitos Capital Management:
Arquitos Capital Management is an independent, fee-only investment management firm based in Virginia. The firm manages individual, retirement, business, and trust accounts using a conservative, value-oriented investing approach.

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Contact: Steven Kiel

(571) 766-8089
steven.kiel@arquitos.com

Annandale, VA, May 6, 2010 — Arquitos Capital Management, a Virginia-based investment management firm, launched The Freedom Fund on May 5, 2010. The fund, which follows a unique model called a Spoke Fund, is more client focused than traditional funds and carries lower fees and easier account access.

The fund’s manager, Steven Kiel, oversees the portfolio that includes three distinct types of stocks: arbitrage and special situations, undervalued stocks, and companies that have superior management.

“By running the portfolio with these three non-correlated categories, we reduce risk and take advantage of volatility,” said Kiel. “Unlike mutual funds, who try to reduce risk by buying morestocks, we diversify by combining different investing styles.”
The Spoke Fund model allows individual clients to own the underlying shares of a company while being linked to a model portfolio. Unlike mutual funds, client accounts are not pooled with other client’s funds, they have online access to view their holdings, and trading, sales, and load fees are reduced or eliminated. Additionally, the firm’s custodian provides tax advantages to the client by matching sales and purchases in the most tax effective manner,
potentially reducing the overall burden.

Clients can place individual, joint, retirement, trust, and business accounts in The Freedom Fund. Arquitos Capital Management charges a flat 1.5% annual fee to manage client accounts. To celebrate the launch, the minimum account size has been reduced to $2,500 until June 1.

To learn more about The Freedom Fund, visit Arquitos Capital Management’s Web site, located at www.arquitos.com, or contact Steven Kiel at (571) 766-8089.

About Arquitos Capital Management:
Arquitos Capital Management is an independent, fee-only investment management firm based in Virginia. The firm manages individual, retirement, business, and trust accounts using a conservative, value-oriented investing approach.
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Contact: Steven Kiel

(571) 766-8089
steven.kiel@arquitos.com

Annandale, VA, April 19, 2010 — Arquitos Capital Management, a Virginia-based investment management firm, will launch The Freedom Fund on May 1, 2010. The Freedom Fund is an innovative investment management fund called a spoke fund, focusing on individual clients who are dissatisfied with their current investment choices.

A spoke fund provides a unique structure where individual accounts are linked to a model portfolio, like a spoke to a hub. When changes are made to the model, the separate accounts are updated to reflect these changes.

“A spoke fund,” said Steven Kiel, president of Arquitos Capital Management, “combines the best aspects of a mutual fund and a separately managed account, and leaves out the worst.”

The Freedom Fund utilizes the spoke fund structure in order to provide significant advantages to clients. Since clients actually own the underlying stock, liquidity risk is greatly reduced. Plus, there is complete transparency. Clients have online access 24/7 to view the holdings in their accounts. Fees are also lower since the vast majority of commissions are waived by the custodian, and there are no hidden fees, like a 12B-1 fee, that mutual funds charge to pay their salespeople.

Kiel is disappointed with the way most mutual funds are marketed and managed. “The mutual fund model is broken. I really think the spoke fund concept will gain traction in the next few years as investors look for money managers who put the interests of investors first. Most mutual fund investors would make a better return simply by buying an S&P 500 index fund, but for those who want to make a higher return, choices are limited. The vast majority of investors don’t have enough money to reach the account minimums for a separately managed account. A spoke fund will allow them to take advantage of the benefits of a more tax-friendly structure and a more focused portfolio at a low cost and a low account minimum. The Freedom Fund will help lead the charge for better managed funds.”

To learn more about the Freedom Fund, visit Arquitos Capital Management’s Web site, located at www.arquitos.com.

About Arquitos Capital Management:
Arquitos Capital Management is an independent, fee-only investment management firm based in Virginia. The firm manages individual, retirement, business, and trust accounts using a conservative, value-oriented investing approach.
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To start, can you tell us a bit about your investing approach?

We strive to maximize returns while minimizing risk. Many investors wrongly assume that in order to produce higher gains, you must take higher risks. Our experience tells us that by examining the downside risk first, we have a much higher chance for positive returns. As Warren Buffett has said, “Rule No. 1 is to not lose money. Rule No. 2 is to never forget Rule No. 1.”

What is the highest conviction stock position in your client accounts?

Our favorite stock for the next decade is Biglari Holdings (BH). You may know it better as Steak n Shake (SNS); they officially changed their name last Friday.

Let me go into a little more detail on how we manage client accounts and how Biglari Holdings fits into our portfolios. In order to reduce volatility and strive for absolute return, we put a portion of our client portfolios in things like mergers, spinoffs, tender offers, or other special situations. An example of this is Sycamore Networks (SCMR), which paid a large one-time dividend at the end of last year that wasn’t fully reflected in the stock price. These are short-term holdings where we’re trying to take advantage of the situation and then get out.

We also put a portion of client portfolios in deeply undervalued securities. I recently wrote a post analyzing Huron Consulting (HURN), which fits in this category. Here, we’re willing to hold on until the stock becomes fully valued. If this happens in three weeks, great – we’ll sell then. If it takes three years, no problem, we’ll still have a good gain.

Finally, we like a few companies that we want to hold onto forever. We call these our superior leadership stocks. For these companies, we have a tremendous amount of respect for management’s ability to create value for us, and we want to ride on their coattails. Think Berkshire Hathaway (BRK.B), Joe Massoud’s Compass Diversified (CODI), and David Einhorn’s Greenlight Re (GLRE), all of which we own – or Eddie Lampert’s Sears Holding (SHLD), which we don’t own. Biglari Holdings falls into the superior leadership category for us, which means we value it differently from the stocks in the rest of our portfolio and our holding period is, we hope, forever.

Tell us a little bit about Biglari Holdings and its industry.

Sure. For those who haven’t been following the transformation over the past few years, it is no longer a casual dining restaurant company. It’s a holding company controlled by Sardar Biglari. I first found out about Biglari a few years ago when his hedge fund, The Lion Fund, bought into Western Sizzlin (WEST). I really respect his approach and am a big fan of his ability to allocate capital to its best use.

A little bit about Biglari: He started The Lion Fund soon after college. It was seeded with money he made from the sale of an Internet service provider he had founded and sold, and by all accounts he had tremendous returns in the last decade. Did I mention he’s only 32?

Like many young money managers, Biglari is a fanatical Buffett follower and value investor. A few years ago, as I mentioned, he bought into and took over Western Sizzlin and then proceeded to merge it into Steak n Shake, which he bought in 2008. That merger just closed a few weeks ago. He has some other small holdings as well, which fall under the control of the home office in San Antonio.

I didn’t go to the annual meeting this past week, but apparently Biglari is considering merging his hedge fund into the company. If any of the readers did attend the meeting on April 8, I’d love to hear about it. Please feel free to contact me. I can’t make any judgment about that potential merger since there isn’t a lot of public information out there, but I would trust Biglari’s judgment.

As for its industry, I would call Biglari Holdings a conglomerate that currently owns two restaurant properties. If you’re valuing it against McDonald’s (MCD) or Darden Restaurants (DRI), you’re making a mistake. Undoubtedly Biglari will be adding companies outright, and making large investments in public companies. We don’t know where he’ll next find value, but we know he will. Just recently Biglari was rebuffed in his attempt to take over Fremont Michigan InsuraCorp (FMMH.OB). It’s a good bet that he would go after another insurance company in the future in order to gain control of the float.

Biglari has really gone his own way, which has been great. He did a 20-for-1 reverse stock split in order to raise the price of the stock, not to protect if from being delisted, but to get the price into the hundreds! He caught a lot of flak for that, but I loved it, and I loved the rationale. If you’re trying to attract long-term investors, a stock price at $400 is better than a stock price at $20, even though the value of the company is the same.

So where’s the value in Biglari Holdings?

You can’t use simple metrics like the P/E ratio to value Biglari Holdings. In fact, Biglari himself tells you in the annual letter that he cares about generating cash, not earnings. Remember, the key is to pretend a company is a private company, and figure out how much you would pay for it then without having a daily stock price. If you look at it that way, you’ll care a lot more about cash, and a lot less about stated earnings.

In order to invest in Biglari Holdings, you have to buy into the story, and you have to have a tremendous amount of respect for Biglari’s ability to properly allocate that cash. Let’s not be blind about it, though. The fact is that Biglari turned the company around in a tremendous way, and within a short time period.

Biglari can be held responsible for 2009’s full-year results. In 2009, more free cash was generated than any of the past ten years. Revenue wasn’t much different, but capital expenditures were only $5.8 million for the year. Compare that to $68.6 million in 2007, and an unbelievable $67 million in 1999. Where did all this money go? It seems to have been wasted.

In my visits to Steak n Shake over the last year, I thought the restaurants were cleaner than in the past, the menu was more interesting and enticing, and the customer service was better. The steakburgers and milkshakes still tasted as great as ever. It seems obvious that there had been an egregious misallocation of capital through the years. Those times are over, and an extra $60 million of cash annually will be flowing to company headquarters for Biglari to invest.

There are a number of other opportunities for Biglari Holdings. They have said they will be implementing a new franchise model, which will allow the brand to grow in a low-cost, effective manner. In order to raise even more cash, they will have the opportunity to sell some of their real estate and lease it back, if the real estate market ever turns. Right now, at the parent company, Biglari has about $62 million to invest and about $9 million already invested.

They’re building a big cash pile, but are there other factors to determine the firm’s value?

In terms of valuation, it’s not going to be easy to judge this one. There have, obviously, been a lot of changes over the last two years, and it’s difficult to make assumptions. I try to use some of the cash flow estimates and the cash on hand, which Biglari can use to invest, to come up with a range. I use a sum-of-the-parts analysis for it and have a price between $350 and $450. If he‘s able to buy into an insurance company, which I think he’ll do at some point, growth will be higher because the float would allow him to lever the company up.

Don’t get me wrong, I usually like much more predictability, but I take more of a Charlie Munger approach with this one and with the other stocks in our superior leadership category. Really, though, no matter what the price estimate is, if you don’t believe in the Biglari story, you really shouldn’t be in the stock.

What is the current sentiment on Biglari Holdings? How does your view differ from the consensus?

Wall Street analysis of Biglari Holdings is virtually nonexistent. Yahoo Finance lists one analyst estimate. There have been a few general articles about Biglari in Forbes, but the best analysis has been in some of the great articles on Seeking Alpha. I’ve only heard one money manager talk about Biglari Holdings on any of the investing television or radio shows I follow (Scott Rothbort of LakeView Asset Management).

So, the current sentiment on Wall Street is… “We don’t care about some regional restaurant company led by a wanna-be Warren Buffett.” This is actually great news for us as investors. The story is not even thought about enough to be unloved. At some point, coverage will change, though.

If no one follows it, what are the catalysts?

I do follow the maxim that value is a catalyst by itself, but here the value isn’t as obvious. If a casual investor looked at Biglari Holdings they would see a regional restaurant company led by an inexperienced CEO, whose same-store sales are improving, but whose forward P/E is more than 20. Not the most compelling investment case, if you’re too lazy to look into it.

Since the company is still misunderstood, I do think there is the chance for a few catalysts. The name change will certainly help investors understand that it is a holding company. That was the purpose of the change. The closing of the Western Sizzlin merger has made some news and will help to provide certainty to those investors who are watching the company. When a new company is added to the portfolio, Biglari’s strategy will also be highlighted. Fundamentally, though, as more cash is generated, the value will naturally be recognized. We may just have to wait for that.

If you’re looking to hold on to a company for a decade, I really don’t think it matters if there are any upcoming catalysts that you can predict. If it’s a successful company, investors will find it. The problem is, you don’t know when they’ll find it. You can’t predict when institutional buyers will decide to get in. You won’t know when Biglari is about to make a purchase that will add tremendous value to the company. Unless you’re privy to inside information, you couldn’t predict when an analyst from a large firm will initiate coverage. That’s when the stock will begin to reflect its true value. Until then, you just have to have trust that the market will eventually find it.

The story sounds compelling, but what are some of the risks?

There are risks. I mean, he did name the company after himself, right? I understand the charge that he’s a little full of himself. I look at it differently, though. I think he’s trying to tell us that this company will be his life’s work. He won’t do anything to it that will damage his reputation. If you owned a local restaurant and had it named after yourself, you might care a little more about the quality of the food, right? You don’t want your neighbor bad-mouthing the food and your name.

That being said, I think a lot of us had higher expectations about Eddie Lampert and Sears Holdings a few years ago. While there is still value there, it’s not reflected in the stock price. A similar thing could happen here. Biglari could overreach, or he could fail to adequately invest in the restaurants, he could fail to find other companies to buy into, or he could lose his magic touch. He’s said that he likes to use a very focused investment approach. He could use a lot of that cash flow from Steak n Shake in one investment and it may not turn out well. That would crush the stock. I think Biglari is a smart guy, though, and will be able to work through any problems that come up. I don’t think the situation is really comparable to Sears Holdings either.

Some people are calling Biglari the next Buffett, while others aren’t nearly as kind. Let’s put all that aside and just say that he’s a guy with a proven track record, running a company that has tremendous prospects for creating free cash flow. He’s good at investing that cash. If you put those things together, the stock will have a good return and that will make all of us happy.

Thanks, Steven, for sharing your pick with us.

Huron Consulting (HURN) is a business consulting firm that rose out of the ashes of Arthur Anderson and experienced tremendous growth measured by any metric. The number of consultants exploded, the number of clients increased exponentially, and its earnings and stock price rose accordingly. Just one example of this growth was a rise in revenue from $51 million in 2002 to $680 million in 2009.

Unfortunately this demand for continued revenue growth led to the scandal that nearly ruined the company. On August 3, 2009, the stock dropped from $44.35 to $13.69 after announcing it had to restate its earnings for 2006, 2007, 2008 and the first quarter of 2009. The chairman and CEO, who was one of the firm’s founders, was let go, as was the CFO and a few others. It turned out that, allegedly, there were kick-back schemes associated with a number of acquisitions during this time period. If there was any silver lining in the experience, it’s that the board of directors actually did their job. It was the audit committee of the board that found out about the schemes and investigated them.

For a consulting firm, your reputation is your moat. This was a major reason why the stock dropped so heavily. When your reputation suffers you can easily lose your clients, which is obvious. What is not as obvious, though, is that you can easily lose your consultants. Consulting is all about relationships, and when scandal causes a consultant to leave, the relationships they had with their clients goes out the door as well. It’s been more than seven months since the scandal hit, which is enough time to determine if there will be a mad rush of clients and consultants leaving.

There are a few things we know. On the whole, the clients have not left. Yes, a few may have canceled projects, and perhaps a few more used the scandal as an excuse to delay or cut projects. But, look, the scandal was very public and the senior leadership was forced out. It’s very impressive that the company can come and give 2010 revenue guidance of $600 to $640 million, which they call conservative. Conservative or not, it’s only slightly below last year’s revenue.

How about consultants? On the most recent conference call, we heard that only two out of 100 managing directors in their health and education field have left. Health and education covers 58% of their firm. We don’t know for sure how many managing directors left companywide because of the scandal or because of natural turnover. Either way, though, it certainly hasn’t been catastrophic.

Before we can decide whether valuing a company based on an expectation to get back to normalized earnings is the right way to go, we need to determine whether the negative event has passed. I’m comfortable that the damage from last year has been contained. There will still be some lawsuits out there, but the leadership has been replaced, the new leaders seem to be talented and focused, and revenue and profits are back on the right trajectory. It seems that their reputation has been salvaged.

At Arquitos Capital Management, we take a long-term investing approach. While the meaning of that phrase seems obvious, I think it is often misunderstood. Taking a long-term approach doesn’t mean we’re buy and hold investors. It doesn’t mean we ignore short term factors. It doesn’t necessarily mean we’re hitching our faith on the brand of the company or its leadership. What it does mean is that we recognize our advantage is attempting to value a company a few years ahead, not predict its stock price three months ahead. The price of the stock in the short term really is unpredictable. Too many things that are out of the control of the company can affect a company’s short term stock price. For example, macroeconomic factors can crush the short term earnings or PE ratio or a sector can temporarily be out of favor. If Huron Consulting was a private company and you wanted to buy it, you’d want to know what it is worth in three years, not three months. It’s that private sale price that allows for some connection to its stock price.

Of course there is risk attempting to determine the value three years ahead or, in this case, attempting to determine what normalized earnings are. To account for that risk, we need to have a large margin of safety. We have this margin of safety to account for unexpected events or mistaken analysis. Taking a long-term approach also gives us plenty of time to allow for a company’s stock price to fully reflect a company’s value. We try to buy a stock when it’s trading for 50 percent or less of what we think the current value should be today, discounted back from, in this case, our predicted normalized earnings. For more stable businesses, we may want to use a discounted cash flow analysis, not a normalized earnings analysis. To be honest, though, most of the stocks we’re interested in just don’t lend themselves too easily to a discounted cash flow model.

Once we feel comfortable that the company can regain a lot of its past glory, we try to make a prediction. We want to see the forest, not the trees. We’re not concerned that, for example, the first quarter of 2010 is going to be light on the revenue side. Although we’re following the guidance set by management, we want to remain skeptical, so we also look to the history of the company and other factors like the opinion of their competitors. As we mentioned before, the company expects between $600 and $640 million in revenue for 2010. The company also provided guidance of GAAP EPS of $1.55-$1.75 for 2010. Looking ahead three years, let’s put GAAP EPS between $2.00 and $2.50. You should note that their non-GAAP figures are higher.

Huron is out of favor now, for obvious reasons, so its stock price isn’t going to reflect its historical PE. The fact that it has already run up from its low of $11.30 in early August doesn’t help either. But, three years from now, we’ll assume the PE has returned to where it should be, or slightly lower than where it should be. Historically Huron has traded at a PE between 15 and 38. Let’s put a 23 on it, which gives us a range of $46 to $57.50. Then, let’s determine the present value of that stock price by applying a 5% risk free rate. This gives us a present value of $39.74 to $49.67. So, given this information, we’re willing to buy in today at anything below an amount between $20 and $25. Inexact? Yes, but that’s how this type of analysis should be done. It’s the big picture that matters.

Think about it this way, going back to the forest among the trees analogy. We’ve examined a variety of individual trees, and are comfortable that they are strong, disease-free, and are very likely to grow tall. Not every tree will turn out that way, but if we feel that enough of them will reach their potential, then the forest will be fine and, in this case, will be densely populated with strong trees. Therefore, we shouldn’t get too hung up on the fact that a few trees, which are our assumptions, don’t reach their potential.

So, we’re willing to buy in at a max of $25, and with the information we know right now, we want to sell out at $39.74 to $49.67.Of course that sale price will change as time goes by, because the present value is different. It will also change as new information comes forward, either negative or positive. It’s also important to keep in mind that even with our margin of safety, I’ve made a number of conservative assumptions along the way. The PE ratio is on the lower end of its historical range, and the EPS growth rate is lower than in the past, which I think is justified due to the problems with acquisitions that led Huron to where they are today. Because of that, there probably will be fewer acquisitions over the next three years. On the other hand, margins are still strong, revenue is near record levels, and EPS should recover. As the economy improves, all of this should continue to get better.

I’m going to end with the risks, because it’s always important to keep the risks at the front of your mind. We want to be vigilant about monitoring these risks and do more research if we think any of them change. While it appears that clients and staff have not left, we want to keep an eye out for it. I also have some concerns about their debt level, which is high for a consulting firm. I’m not a big fan of stock based compensation, but it seems to be inherent in the consulting business. The SEC is still involved as well, and we need to follow that. I’m also concerned that a lot of revenue this year will be back-loaded to the end of the year. While I’m not as concerned about a one year revenue miss, I do want to keep an eye out for the reasons if the back-loaded 2010 revenue slips into 2011.

My firm, Arquitos Capital Management, owns Huron for our clients and would be a buyer under $25. We can’t predict the short-term stock swings, but we feel confident that over the long term, Huron’s stock price will reflect its full value. At that point, we’ll exit our position and be satisfied with a healthy gain.