Gator Small Cap PortfolioQuarterly Review

November 2010

Derek Pilecki, CFAPortfolio Manager(813) 381-5376derek.pilecki@gatorcapital.com

www.gatorcapital.com

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Disclaimer

• This summary, which has been furnished on a confidential basis to the recipient, does not constitute an offer of any securities or investment advisory services. This summary is intended exclusively for the use of the person it has been delivered by Gator Capital Management, LLC, and it is nor to be reproduced or redistributed to any other person without the prior consent of Gator Capital Management, LLC.

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Goals for the Webinar

• Background on Firm and Portfolio Manager

• Review Firm’s Investment Philosophy and Process

• Review Small Cap Portfolio

• Review Strong and Weak Stocks in the Portfolio

• How and Why to Invest in the Portfolio

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Firm Overview

• Gator Capital Management, LLC was founded in 2008 by Derek Pilecki.

• Gator is a registered investment advisor.

• Based in downtown Tampa, Florida.

• Gator offers concentrated equity portfolios in separately managed accounts.• Blue Chip Portfolio• Small Cap Portfolio• Micro Cap Portfolio• Multi-cap Portfolio• Energy Portfolio

• Gator manages a long/short equity strategy focused on the Financials sector.

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Portfolio Manager Bio

Derek Pilecki has been the Portfolio Manager for Gator Capital Management, LLC since founding the firm in 2008.

6 years at Goldman Sachs Asset Management as Financials analyst for the Growth Equity Team Co-Chair of the Investment Committee on Goldman Sachs Asset Management’s

Growth Equity Team. Co-Portfolio Manager on Goldman Sachs Capital Growth Fund (a $2 billion large cap

portfolio.)

3 years as Financials sector analyst at Clover Capital Management & Burridge Growth Partners.

5 years performing interest rate risk analysis at Fannie Mae prior to graduate school.

MBA with honors from University of Chicago in Finance & Accounting.

BA from Duke University in Economics.

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Gator Investment Philosophy

• Buy the underlying business

• Focus on high quality companies

• Buy businesses we understand

• Focus on growing businesses

• Buy with a margin of safety

• Opportunity in small cap stocks

• Opportunity in corporate events

• Concentrate holdings into best ideas

• Maintain a strong sell discipline

• Taxes matter

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Gator Investment Process

• Narrow Potential Universe• Generate Investment Ideas

• Reading• Networking with Peers• Follow other investors we respect

• Fundamental Research• Read SEC filings and press releases• Build financial model• Interview management, competitors, suppliers

• Written Investment Thesis

• Compare to Existing Holdings

• Take Action in Portfolio

• Review Holdings

• Sell Discipline

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Gator Small Cap Portfolio

• Managed using the Firm’s Investment Philosophy

• The portfolio is suitable for investors willing to take higher than average stock market risk and who have a five year time horizon.

• Holds 25 to 35 small company stocks. Currently, 30 stocks in the portfolio.

• Small Cap is a market capitalization of less than $3 billion at the time of the initial purchase.

• Stocks are not sold because they get too large.

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Small Cap Portfolio as of September 30, 2010

Holding % of Portfolio Holding % of Portfolio

Brigham Exploration 8.2% Interoil Corp 3.0%Rex Energy 6.0% Teekay Corp 3.0%Akamai Technologies 5.7% Equinix 2.9%Fossil 5.2% Raymond James Financial 2.7%DineEquity 4.5% First Industrial Realty 2.5%Biglari Holdings 4.2% OneOK 2.4%SBA Communications 4.0% Tivo 2.3%PetsMart 3.8% Tessera Technologies 2.3%Newcastle Investment 3.7% Wellcare Health Plans 2.2%Oppenheimer Holdings 3.6% MedAssets 2.0%Gamestop 3.5% eHealth 1.5%Primerica 3.5% Wendy's Arby's Group 1.5%Sally Beauty Holdings 3.2% Prestige Brands 1.4%Health Management Associates 3.1% Form Factor 0.9%Affiliated Managers 3.0% Cash 1.2%Atlas America 3.0%

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Small Cap Portfolio Characteristics

S&PRisk Metrics GSC 500Concentration 31.6% 11.6%% Months Negative 22.7%

38.3%Std Dev 24.9%

5.0%Downside Std Dev 12.5%

3.5%Beta

1.49 1.00Information Ratio 0.52

0.00Sharpe Ratio 2.26 -0.11Sortino Ratio 4.52 -0.16Turnover 27.9% NA

Sector CompositionFinancial 27% Consumer Cyclicals 24% Energy 23% Technology 18% Transportation 3% Healthcare 3% Utilities 2%

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Small Cap Performance

YTD Since09Q1 09Q2 09Q3 09Q4 2009 10Q1 10Q2

10Q3 10Q4* 2010 Inception*Gator Small Cap Portfolio -6.2% 35.3% 13.1% 16.0% 81.6% 7.6%

-14.2% 20.8% 11.4% 24.2% 145.0%

Russell 2000 -11.2% 20.2% 18.9% 3.5% 25.2% 8.5% -10.2%10.9% 5.9% 14.4% 50.9%

Relative 5.0% 15.1% -5.8% 12.5% 56.4% -0.9% -4.0%9.9% 5.5% 9.8% 94.1%

Note - * through 11/12/2010

Past performance is not indicative of future results.

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3rd Quarter Portfolio Transactions

Purchases

Date Company Price7/20 Primerica $21.40

8/25 Student Loan $20.28

9/14 Newcastle Investment $2.60

9/17 Gamestop $19.39

Additions

9/14 Student Loan $20.52

9/20 Primerica $21.67

Sales

Date Company PriceReturn

7/20 Neutral Tandem $11.87 -27%

8/25 Legg Mason $25.26 27%

9/14 Ares Capital $15.23 52%

9/17 Student Loan $29.90 47%

Trims

8/25 InterOil $56.22

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Stocks Adding to 3rd Quarter Performance

• DineEquity was up 61%.

• Fossil was up 55%.

• InterOil was up 54%.

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DineEquity

• Owned since inception of the portfolio.

• Parent company to IHOP and Applebee’s.

• Poor timing of Applebee’s acquisition just prior to recession left company with too much debt.

• In 2009 and 2010, company has made progress on several fronts.

• Applebee’s turnaround is taking hold with new menu and improved execution.

• Have sold a material number of Applebee’s locations to franchisees.

• Have refinanced debt to improve financial flexibility.

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Fossil

• Owned since portfolio inception. Have followed stock closely it since 1997.

• Very disciplined management team focused on creating brand equity.

• Focused on cash returns. Historically, they’ve be very shareholder friendly.

• Execution has been great coming out of the recession.

• They have a strong tailwind in fashion watch business.

• Continue to surpass expectations.

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InterOil

• Purchased stock in early 2009.

• Sitting on a vast resource base of natural gas and liquids.

• During the quarter, they signed an agreement to have a LNG facility built.

• Also, company announced discovery high ratio of liquid condensate in its Antelope field.

• Trimmed position in stock during the quarter to manage position size.

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Stocks Detracting from 3rd Quarter Performance

• FormFactor was down 20%.

• MedAssets was down 8%.

• Health Management Associates was down 1%.

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Form Factor

• Purchased stock in September 2009.

• Has not worked as the company missed promised delivery dates for new products.

• Board dismissed management team in May.

• Continue to hold the stock because of its strong balance sheet and the upside potential.

• Business model is also attractive.

• We think the new management hired in September can execute the turnaround.

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MedAssets

• Purchased position at the inception of the portfolio.

• We like the recurring revenue business model.

• We are frustrated with recent sales performance.

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Health Management Associates

• Purchased position in October 2009.

• We think the management team is executing the turnaround.

• The financial and operating leverage in the business allow for high potential returns.

• Q2 performance reflects hospital industry and not a company specific factor.

• Q3 earnings showed strength in the company’s results.

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Why Invest in Gator Small Cap Portfolio

• Attractive Investment Philosophy

• Disciplined Investment Process

• We are Attempting to Significantly Outperform the Market

• Accessible Portfolio Manager (call me to talk about the portfolio)

• Opportunity in Small Company stocks

• We Invest Alongside Our Clients

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How to Invest with Gator

There are three ways to invest in the Gator Small Cap Portfolio.

1. Invest directly with Gator Capital.Call us directly (813) 282-7870.Email me directly derek.pilecki@gatorcapital.com.$100,000 account minimum.

2. Invest through the WealthFront.com platform.https://www.wealthfront.com/gator-capital$10,000 account minimumSame fee structure – WealthFront gets paid out of Gator’s fee.

3. Invest through your financial advisor.Have your financial advisor call us (813) 282-7870.

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Questions & Answers

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