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The HFIR Energy Income Portfolio is managed by Jon Costello. Jon has been an independent professional investor since 2007, managing a private investment partnership and separately managed accounts. He has actively invested in publicly traded energy securities since 2008 and has focused on the energy sector as a specialist since 2016. Jon is a value investor who seeks to purchase undervalued securities and hold them for the long term. The energy sector’s inherent volatility has provided a particularly fertile hunting ground for this approach, creating opportunities to purchase fundamentally sound businesses at substantial discounts to their intrinsic value.

The HFIR Energy Income Portfolio seeks to identify and hold undervalued energy-sector securities that generate attractive cash flows and income. The portfolio emphasizes businesses capable of growing cash flow over time, with the objective of preserving and compounding capital over the long term. This approach has also produced significant capital appreciation since the portfolio’s inception. The intended holding period for investments is generally three to five years, although actual portfolio turnover since inception has been relatively low. The portfolio manager maintains a broad investment mandate and may occasionally pursue opportunities outside these criteria when the prospective risk and return are sufficiently attractive.