ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

So within health, which you do like, do you currently hold in your top 10 holdings a name you believe will be acquired? Is that a reason that a company gets into your top 10 holdings?

DAVID BECHTEL, MANAGER, BARROW ALL-CAP CORE FUND (ENGLISH) SAYING:

It's really not. What we're looking for is high quality companies, great cash flows, growth, wide operating margins that are robust the future of shocks, that are available at discounted pricing. And we look at it through private equity lenses, so we bring to the table a different approach to looking at quality and valuation. And we found that a private equity approach to stock-picking tends to be predictive to some degree of where private equity firms are active in acquiring names. So in our portfolio I think, for the last five years that we've been running this strategy, we've had well-over 50 takeovers. That's an incidence of takeover activity in our book that's four times the incidence of the market as a whole. So we tend to be pretty good takeover predictors but not because of a story concerning any particular stock, it's really because of our general approach where we're looking for quality and value through our private equity lenses. And it seems to be the sort of things that buyout firms and strategic acquirers like as well. We've been rewarded for that through large control premium in our portfolio.

ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

So you mentioned large cap health names. And you have a few of them. Large cap in general you don't often think of in the M&A space. So are there still opportunities on large caps versus mid caps or small because you hold all three?

DAVID BECHTEL, MANAGER, BARROW ALL-CAP CORE FUND (ENGLISH) SAYING:

We do, yeah. We're pretty evenly distributed- large, mid and small throughout our portfolio. In the large cap space, our estimate of intrinsic value versus market pricing shows that there's some room to run in large caps, which also means that there should be some room for additional takeover activity there. In the mid cap space, we're converging on fair value, plus or minus 5% or 10%. And it's really the small caps that I think are a little frothy right now. Although in our portfolio, we've been able to find some good bargains, great quality companies that we think are trading at around a 45% discount to their intrinsic value. As a whole, we think the Russell 2000 looks a little lofty right now.