As a listed investment company, ALF comprises a portfolio of publicly traded Australian shares. The fund looks to invest in leading Australian companies, with strong business fundamentals on attractive terms. By constructing a portfolio of these undervalued shares we hope to deliver superior returns to our shareholders over time. Our investment process is similar to other funds with a primary goal of identifying mispriced securities. We look to buy good companies on occasions when they are undervalued by the market. However, ALF is different to a traditional fund in taking this process to the next logical step and selling (short) the shares of businesses that are fundamentally challenged, where these shares can be sold for more than they are worth. The proceeds raised from selling these shares are an additional source of funding for the company's balance sheet. These funds are either retained in cash or re-invested into the investment portfolio of shares we expect to outperform. This is a more active approach to portfolio construction and balance sheet management than a traditional fund. It allows shareholders to profit from mispricing in all segments of the market, not just from buying undervalued shares but from short selling expensive ones as well. It also provides greater flexibility in managing portfolio risk through the cycle as short positions are a natural hedge for the company's assets if shares fall in value. [Less]