Sohra Peak Partnership: Q1 2023 Performance Report

Dear Partners and Friends,

Our partnership recorded a gain of +7.8% net of all fees, expenses, and allocations for the quarter ending March 31, 2023. Over the same period, the S&P 500 recorded a gain of +7.5% including dividends.

Period1		Partnership Returns1,2		S&P 500 Returns1,3
Q3 2021		9.5%		(0.9%)
Q4 2021		13.5%		11.0%
2021		24.5%		10.0%
Q1 2022		(1.3%)		(4.6%)
Q2 2022		(18.9%)		(16.1%)
Q3 2022		(12.8%)		(4.9%)
Q4 2022		18.8%		7.6%
2022		(17.0%)		(18.1%)
Q1 2023		7.8%		7.5%
2023		7.8%		7.5%
Annualized Return Since Inception		6.6%		(1.9%)
Inception to Date		11.4%		(3.1%)

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The below table highlights the partnership’s key portfolio composition metrics as of March 31, 2023:

Key Portfolio Composition Metrics4
Number of Holdings:	15	Average Market Cap5:	$320MM
Top 5 Holdings Concentration:	50.0%	Investments ex-U.S.6:	52.2%

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Please see important footnotes to the above tables under the “Disclaimer” section at the end of this letter.

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I am happy to report that our partnership slightly outperformed the S&P 500 for the first quarter, one which proved to be challenging for active managers and small-cap investors alike. Remarkably, a mere 10 stocks accounted for 90% of the S&P 500’s (SP500) overall gains this quarter, while the Russell 2000 exhibited a modest gain of +2.7%.⁷ Nevertheless, our high-conviction investments made in the preceding months and years have continued to yield positive returns for our partnership.

I am also pleased to report that as of April 30, 2023, our partnership recorded a year-to-date gain of +22.9% net of all fees, expenses, and allocations.² Our top year-to-date contributors have included familiar holdings including Mader Group (OTCPK:MADGF), Dino Polska (OTCPK:DNOPF), Auto Partner, Duratec (OTCPK:DURCF), as well as a new holding, not yet disclosed to non-partners, which we are quite excited about.

Above all, I am thankful for our exceptional partners for their unwavering commitment and confidence in our investment approach. It is our partners who enable us to adopt a long-term view of our holdings, which I firmly believe to be a competitive advantage in this business, and which in turn should continue to serve our partnership well over time. In May, we welcomed two new limited partners, bringing our total partner count to 18. If our current partners know any accredited investors who might align well with our partnership, or if any prospective partners wish to learn more, we are currently open to new introductions.

Which Benchmark is Best?

Revisiting the S&P 500’s top-heavy performers for a moment, today’s concentration among the index’s top constituents is not only the highest in S&P 500’s history, it has also created an environment so far this year that has penalized active managers for opting to steer clear of the most popular stocks on the Street.⁸ In fact, only one-third of large-cap mutual funds managed to outperform their benchmark this past quarter.⁹

With the likes of mega-cap companies such as Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA) delivering the lion’s share of the entire market’s cumulative gains this year, why have I chosen for our partnership, which focuses almost exclusively on small-cap and micro-cap companies, to compare its returns against those of the S&P 500? This is a question I receive from time to time, and a reasonable one.

In my inaugural partnership letter, I discussed how in addition to the S&P 500, a strong argument could also be made for selecting either the Russell 2000 (RTY), which most closely resembles the small-cap nature of our portfolio, or the MSCI World Index, which most closely resembles the geographically diverse nature of our holdings, as our most comparable benchmark.

My decision then, and which I still firmly hold today, was to select the S&P 500 as our benchmark because of its wide acceptance as a broad representation of the market to the typical investor, and also because of its role as an individual investor’s most likely opportunity cost in which they would otherwise place their money, if not in this partnership. Additionally, with history showing that the vast majority of fund managers fail to outperform the S&P 500, our outperformance would already position us among the top decile or two of returns within the universe of all investment funds.

It is worth pointing out that since the inception of our fund, the Russell 2000 and MSCI World Index have lagged the S&P 500 by a considerable margin. From our launch until the recent quarter-end, the Russell 2000 and MSCI World Index have cobbled together total returns of -17.4% and -9.1% respectively, while the S&P 500 delivered a total return of -3.1%, the strongest among the three. Nevertheless, we plan to continue using the S&P 500 as a fair yardstick, and will endeavor to continue outperforming all three indices as we pursue our goal of responsibly maximizing long-term capital gains for our partners.

Portfolio Updates

Our partners are encouraged to read our commentary on our partnership’s top 5 holdings in Appendix A attached to the end of this letter.

As of quarter-end, if our portfolio were viewed as one see-through company, based on sell-side consensus estimates (or when unavailable our own estimates), our portfolio would be trading at a 1-year-forward P/E multiple of 7.6x and a 3-year forward P/E multiple of 5.2x.^10,11 This implies a ~21% net income CAGR and assumes no share repurchases over that period.^10,11 I am optimistic about the prospects of our current portfolio, particularly the margin of safety that I believe is embedded in our see-through multiple.

It is often argued that a tradeoff between “growth” and “multiple” is an inevitable consideration in investing, a notion which I have found to be a myth. As you know from our last letter, our highest-conviction, best performing investments have tended to be in quality companies with durable, rapidly growing profits, which have also been available for purchase at bargain prices. To date, we have consistently found such opportunities by focusing on areas of the market that we perceive to be structurally inefficient (e.g., microcap companies, internationally listed companies) and attempting to unearth these opportunities before much of the broader investment community. There are likely many more ways to escape this “inevitable” tradeoff, though we believe we have found one of them.

While it is near guaranteed that we will harbor our fair share of future setbacks, I remain confident that allocating as much of our capital towards companies that we view as embodying all three elements of high quality, high-value, and high-growth should continue to yield favorable results for us over the long-term.

Last, though certainly not least, as mentioned earlier we accumulated shares in a new holding this past March and April. As of this writing, its shares have appreciated +116% from our average cost, and we believe that a further +100-150% in near-term upside exists. Given that shares currently trade for just 2.3x our estimate of this year’s earnings, with expectations of even greater earnings next year, we also assign a low probability of meaningful downside risk from today’s prices. Partners can find detailed commentary on this holding in Appendix A.

In a memo released earlier this year, which you can find here, I organized my thoughts as to why I believed Duratec represented a compelling investment opportunity. Since then, the company’s shares have performed well, and through continued research my conviction in the long-term prospects of Duratec has grown stronger.

MEnD Consulting as a Competitive Advantage

One aspect that received relatively less attention in our initial memo than it should have, but deserves further discussion given its importance to the overall business, is Duratec’s subsidiary MEnD Consulting. I thought it would be worthwhile to provide a more comprehensive overview of MEnD Consulting in order to better complete the discussion on Duratec.

As a brief refresher, Duratec is an Australian company specializing in infrastructure remediation services for asset owners with a roster of over 900 project staff and engineers. MEnD Consulting, a wholly owned subsidiary and division of Duratec, provides value-added services to Duratec’s prospective and existing clients in the form of comprehensive asset evaluations and laboratory petrography.

Of all of the components that comprise Duratec, management considers MEnD as its most valuable asset and the component that gives Duratec a true competitive advantage within its industry.¹² Historically, MEnD’s value to both Duratec and its clients have appeared evident: 80% of MEnD’s clients have converted into Duratec clients, every $1 of MEnD revenue has converted into $25 (and increasing) of Duratec revenue, and the retention rates of clients who transition from MEnD to Duratec have been aboveaverage.¹² Moreover, MEnD’s state-of-the-art technological capabilities have helped to reduce project remediation risk and costs for its typical client.

This last item, MEnD’s industry-leading technological capabilities, is worth expanding upon, given its importance to Duratec’s business along with the lack of communication that I have found regarding the advantages that MEnD Consulting provides Duratec.

Proprietary 3D Geospatial Modeling Software

MEnD’s crown jewel, AnnoView, is the consultancy’s proprietary 3D geospatial modeling software. To fully appreciate AnnoView’s significance to MEnD and Duratec’s competitive standing, it is key to fist understand exactly what is being modeled, and how MEnD obtains this information.

When MEnD begins its work with a client, its objective is to ultimately provide the client with a comprehensive, complete assessment of the client’s asset in order to identify all existing and potential defects requiring remediation in order to prevent structural damage. An asset may include a bridge, a military wharf, a port, a mining plant, or an aircraft hangar.

Once the client accepts MEnD’s services, MEnD employees will show up to the client’s site and begin to deploy airborne drones equipped with high-resolution cameras. The purpose of these drones is to capture every square inch of the client’s asset, from multiple angles, in order to gather a complete set of data needed to later re-create the client’s asset in MEnD’s proprietary 3D software.

Once the drones capture the data they need, MEnD uploads this data to AnnoView, which then re-creates the asset with remarkable accuracy. Actual samples of AnnoView’s models can be foundhere. At this point, MEnD’s in-house PhDs utilize AnnoView to analyze the asset, identifying and flagging defects directly within the software itself. Following this analysis, MEnD returns to the client, they jointly review the AnnoView model together, and MEnD provides a copy of the model to the client which they can use in collaboration with their chosen asset remediator. 80% of the time, that remediator turns out to be Duratec.¹²

The outcome of this process, in my view, is exceedingly valuable to the client for several reasons:

1. First, MEnD’s comprehensive analysis allows the client to de-risk the asset as much as reasonably possible. With a comprehensive 360-degree virtual model of the asset, the client can rest assured that all identifiable defects will be addressed, regardless of whether they hire Duratec or another contractor for the remediation project,. Additionally, the remediator benefits from higher margins as MEnD’s work helps minimize the number of “surprise” defects that were not specified in the initial contract, which are also a common source of cost overruns for the remediation contractor.¹²
2. Second, MEnD’s work often saves the client a great deal of time and money. Due to the lack of 3D-modeling offered in the industry, the inspection phase for many asset owners consists of a traditional manual inspection process. This requires field engineers to spend significant time, often months for more complex assets, before a complete assessment can be made. MEnD’s technology, on the other hand, allows clients to substantially complement or substitute this process.¹² In a recent example, Duratec purports to have begun a project with mining giant BHP which they had won following successful client conversion from MEnD. After BHP and MEnD had reviewed BHP’s 3D asset model together, BHP apparently found the model so thorough that they felt comfortable proceeding directly to the asset remediation phase with Duratec and skipped the traditional inspection stage entirely.¹² BHP mentioned that skipping this phase saved them ~$1MM in cost and 12 months of work that they would have otherwise spent on engineers.¹² Given these savings and the positive experience BHP had with MEnD, what is the likelihood that BHP’s site manager in this example will continue hiring MEnD and Duratec for future asset remediation projects? I would wager quite high.
3. Third and lastly, MEnD’s services hold particular value for its clients for the reason that there are very few other firms that offer MEnD’s capabilities within the asset remediation space in all of Australia, and there are no other companies of its kind that are also vertically integrated with an asset remediator such as Duratec.^11,12 The combination of MEnD and Duratec is the only vertically integrated company of its kind in Australia.¹¹ Within the industry, the other firms who offer 3D-modeling solutions of comparable quality to MEnD are standalone consultancy firms.¹² In my view, having a vertically integrated, highly reputable asset remediator in Duratec is beneficial for the client, because it allows the client to seamlessly transition between two firms that work smoothly together, which minimizes coordination costs. The alternative scenario, where an asset owner is handed a model from a standalone consultancy and is left to contact asset remediators, is by all means a workable method. However, it appears to add friction to the client experience, and could add unnecessary risk to the project if there were any misinterpretation of the consultancy’s model by the third-party remediator. Aside from the comparable standalone consultancies, there are other “competitors” who attempt to offer similar drone and 3D-modeling solutions like MEnD, but their offerings are reportedly inferior, with their 3D-modeling not nearly as high-quality as AnnoView’s, and therefore lacking a compelling value proposition to the client.^11,12 As a recent anecdote and evidence of MEnD’s services being at the frontier of its industry, Duratec recently met with a U.S.-based 3D geospatial data software firm who informed them that, based on the geospatial models they have seen working with their multi-national clients, MEnD is “doing the biggest, most complex structures anywhere in the world at the moment.”¹² Whether or not this is precisely accurate, it appears to further the viewpoint that MEnD is providing unique, valuable work for its clients, to the ultimate benefit of Duratec and the entire combined company.

MEnD’s contribution to Duratec’s revenues and profits has historically been strong, and only appears to be increasing. According to management, of Duratec’s $310MM of revenue in FY 2022, roughly $100MM was generated through projects that began by working with MEnD, and every $1 in MEnD revenue translated into $25 in Duratec asset remediation revenue. This implies $4MM in MEnD revenue for the year FY 2022, which management believes is on track to grow to $6MM in FY 2023.¹²

In addition, as Duratec’s size allows it to scale to bigger projects and work with bigger clients, MEnD’s services are being introduced to industry stalwarts such as the Department of Defense (DoD), BHP, Rio Tinto, and others. For instance, a $600,000 revenue project for MEnD recently converted into an $80MM contract for Duratec, or a $1 to $80 conversion ratio.¹² This has included stealing contracts from other leading asset remediators, such as Monadelphous, which suggests that Duratec is becoming increasingly viewed as a high-quality alternative to other leading brand names in the asset remediation space.

Laboratory Petrography Services

Aside from its 3D geospatial modeling, MEnD Consulting’s other valuable offering is its laboratory petrography service it providers for third-party clients across Australia. Petrography as applied by MEnD is the study of rock and mineral samples from infrastructure assets under a specialized microscope.

Before or during an asset remediation project, one helpful tool that project engineers use to make decisions is a petrography analysis of the asset’s rock or mineral samples. For instance, a petrographer can help conclude whether a crack is benign and surface-level, or a more serious structural issue; or, to help confirm the identity of the underlying substance present in a portion of the asset.

While MEnD’s petrography services may not add distinct value to the typical client in the way its 3Dmodeling does, the petrography lab’s true value to Duratec lies in its capacity as a robust client lead generator. Presently, MEnD captures 10-15% of the entire Australian petrography market for infrastructure assets, meaning that 10-15% of all infrastructure asset samples in Australia are analyzed through MEnD’s labs.¹² This is powerful, because by analyzing these samples, Duratec has amassed a database that it can use to effectively determine when any given asset within this database might be due, even years in advance, for a remediation project. This allows Duratec the ability to engage with prospective clients before competitors can, even before the client themselves may be aware that their asset is due for maintenance.

Within the large total addressable market of Duratec’s asset maintenance industry, which we estimate to be $50B, this lead generation tool at Duratec’s disposal could provide them with insights into the remediation schedule for a substantial number of projects, amounting to $5.0-7.5B.¹¹ It is easy to see how this strategic advantage could further give Duratec a leg up over its competitors.

According to MEnD, they have built this market share by focusing on high-end, specialized petrography, rather than commodity petrography sampling which most petrography labs focus on. For instance, MEnD’s in-house lab recently became the first lab in Australia to receive NATA-accreditation (Australia’s leading national accreditation body for laboratories) for concrete petgrography.¹³ In addition, MEnD points out that there are only two other petrography labs in Australia capable of analyzing high-end, expensive concrete samples to the degree they can, and that both are independent labs not owned by Duratec’s competitors.¹²

Tying all of the above together, Duratec and MEnD Consulting appear to complement one another to create a unique, dominant vertically-integrated business in Australia’s asset remediation industry. While there are subsets of quality competitors that exist within each vertical of 3D-modeling, laboratory petrography, and contractors who provide remediation services, no other Australian firms combine all three under one roof. As noted in my initial memo, too, executives at both Duratec and MEnD feel strongly that it would take years for any competitor to replicate Duratec’s current setup with any degree of success.

Valuation

At the moment, at a price of $0.93 per share, Duratec’s market cap stands at AUD $227MM. After subtracting $33MM of net excess cash, we arrive at a market cap of $194MM.

Based on management’s recent upgrade to guidance for FY 2023 ending June 30, I expect the company to produce $20MM of net income, $25MM of Owner’s Earnings, and EBIT of $28MM. This implies a 13% Owner’s Earnings yield, P/E of 9.7x, and EV/EBIT of 6.9x.

Although shares are not cheaply priced as they were five months ago, I think Duratec’s shares still contain substantial long-term upside. From a fundamental perspective, my view is that profits should continue to grow at high rates for a number of years to come, for a variety of reasons:

• Management is confident that FY 2024 will see continued growth over FY 2023, which is supported by Duratec’s current order book and tenders. As stated in the company’s most recent update on April 24, their orderbook stood at $495MM and tenders at $748MM.¹⁴ Given order book projects must be completed within 1-2 years and tenders historically have a ~1 in 3 win rate, this suggests that the lion’s share of FY 2024 revenue and profits may already be secured, with a whole year ahead during which the company can pick up additional projects. Given this visibility, I would not be surprised to see revenue growth of +20-30% or greater next year.
• Department of Defense business continues to grow strongly, most recently growing +104% YoY as of 1H FY 2023, and shows no signs of slowing down. Duratec is winning greater market sharewith the DoD in an expanding pie as the Australian government has budgeted sustainment spend to almost double over the span of this decade. Additional DoD tailwinds continue to surface, such as the AUKUS military alliance which has guaranteed $8B of DoD maintenance spend at the HMAS Stirling navy base, which Duratec has been servicing since 2015 and which management believes could easily lead to an additional $500MM-1B of revenue for Duratec over that span.¹⁵
• Annual growth is generally contained due to the importance of avoiding high levels of project concentration, implying that Duratec generally has the ability to win more business in any given year, and therefore in future years, than any given year’s revenue growth rate might suggest.¹¹
• Duratec has recently been winning more, and larger, contracts with blue chip clients (e.g., DoD,BHP, Rio Tinto), and occasionally at the expense of larger, respected competitors, suggesting Duratec is establishing important future revenue streams along with a strong brand name for itself.
• The runway for buildings & façades refurbishment remains lengthy, with billions of dollars in mandatory remediation required across the sector. Duratec’s revenues in this segment have expanded at a +65% CAGR since FY 2019 and should continue to grow.
• MEnD Consulting’s services have not yet penetrated much of Australia’s east coast, which the company views as a significant opportunity over the intermediate-term.¹²Wilson’s Pipe Fabrication has, in my view, been by all measures a home run of an acquisition.Duratec expects Wilson’s to trigger its full contingent consideration threshold, which suggests Duratec will have paid AUD $18MM all-in for Wilson’s which is expected to deliver over $5MM of EBITDA for FY 2023. Duratec expects strong continued growth ahead for Wilson’s through geographic expansion across Australia, cross-selling its capabilities to the DoD, layering MEnD’s entire set of value-adds to Wilson’s clients, and organic growth within its segment. The success of this acquisition also fosters confidence in management’s ability to run this playbook for any future tuck-in acquisitions that would allow it to efficiently enter new remediation sectors.
• DDR, which has grown revenue rapidly from $10MM in FY 2019 to $73MM in FY 2022, should continue to expand its profit contribution to Duratec over time.
• Approximately 80% of Duratec’s business each year is derived from repeat clients, suggesting that the company should continue to maintain a lumpy but fairly stable existing book of business going forward, to which it can continually add new clients.¹²
• As speculation entirely on my part, future optionality could exist for Duratec to leverage MEnD’s best-in-class 3D-modeling and laboratory services on a global scale, given a large portion of these processes can be performed remotely. Whether Duratec would decide to expand its core engineering and contracting business beyond Australia’s borders makes for a separate discussion, but with respect to MEnD, it could become a high-end consultant to international clients through its 3D-modeling service or partner with select asset remediators to serve as a lead generator and earn a share of remediation economics. MEnD’s laboratory petrography business can be performed completely remote with the option of also somehow monetizing its lead generating capability.

Considering the various ways that we believe Duratec can continue expanding its business, it is reasonable to us to see how this business could do quite well in the foreseeable future, and we think demonstrates why paying a 7.8x multiple of Owner’s Earnings for this business today could prove to be a bargain in retrospect.

It is worth noting that despite its upward valuation re-rating over recent months, Duratec still maintains the lowest set of valuation multiples among its peer group of Australian E&C companies Monadelphous Group, SRG Global, and Saunders International.

Examining Monadelphous specifically, with whom Duratec competes directly in mining and now oil and gas, Monadelphous trades at 24x P/E. This is despite having arguably a lower quality business given its 5050 split with remediation (higher quality)-construction (lower quality), and despite Duratec possessing what I consider a competitive advantage over Monadelphous in its MEnD Consulting business. Surely, Monadelphous having a revenue base 4-5x larger than Duratec’s and a market cap higher up on the liquidity spectrum are of benefit to Monadelphous. Though, it gives you a sense of where Duratec’s valuation multiples could be headed as the company continues to grow in size.

Closing Thoughts

Thank you for taking an interest in our latest letter. I am excited about our partnership’s future.

I remain confident that our partnership’s north star will always be to compound our capital at the highest rate of return responsibly possible. In some respects, this approach may render our partnership uninvestible by the majority of institutional investors. That is perfectly fine by me. We will continue to accept as partners only those who understand, and who are aligned with, our objective.

If you wish to learn more about the partnership, please feel free to reach out to me directly. Our partnership currently welcomes introductions to new investors who are aligned with our philosophy and our long-term approach. Accredited Investors interested in receiving future letters can also register on our website at www.sohrapeakcapital.com.

I value the trust you have placed in me to invest your hard-earned capital, as the substantial majority of my own wealth is presently invested alongside yours. I look forward to writing to you again next quarter.

Most Sincerely,

Jonathan A. Cukierwar, CFA

Manager of Sohra Peak Partnership LLC, the General Partner of Sohra Peak Capital Partners LP

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Footnotes (1) Sohra Peak Capital Partners LP launched 7/22/2021; results for the Partnership and S&P 500 Index for Q3 2021 are presented from that date forth. (2) Returns are presented on an unaudited basis for a theoretical Limited Partner net of expenses, 1% management fee, and 15% performance allocation. (3) S&P 500 Index returns include dividends reinvested. Please refer to the disclaimer at the end of this letter regarding comparison to indices. (4) Metrics reported in this table exclude short positions held by the fund intended as market or position-specific hedges. (5) Calculated as the median market capitalization in USD among our portfolio holdings. Excludes cash. (6) Measured as the percentage of portfolio assets, including cash, invested in companies with primary operations conducted outside of the U.S. (7) Source: NASDAQ. Top 10 Names in S&P 500 Responsible for 90% of Q1 Gains. Top 10 Names in S&P 500 Responsible for 90% of Q1 Gains (8) Source: Star Tribune. The S&P 500 has never been more top heavy. The S&P 500 has never been more top heavy (9) Source: WSJ. Stock Pickers Failed to Take Part in First-Quarter Rally. Stock Pickers Failed to Take Part in First-Quarter Rally (10) Source: TIKR. Calculations are performed by Sohra Peak Partnership LLC, are based on forward-looking sell-side “Net Income” consensus estimates, and may be subject to error. Data used to perform these calculations are as of May 17, 2022. (11) Source: Estimates, thoughts, opinions, and research of Sohra Peak Partnership LLC. (12) Source: Estimates, thoughts, and opinions of Duratec Limited management. (13) Source: Inspec Magazine. First Lab in Australia to be NATA-Accredited for Concrete Petrography. Autumn 2023. (14) Source: Duratec. Duratec Upgrades FY23 Guidance. https://bit.ly/43ajeXD. (15) Source: The West Australian. AUKUS deal: WA major winner with HMAS Stirling in line for $8b upgrade to house nuclear-powered submarines. https://t.co/0zwgSpCPph.

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Disclaimer This report is based on the views and opinions of Jonathan A. Cukierwar, which are subject to change at any time without notice. The information contained in this report is intended for informational purposes only and is qualified in its entirety by the more detailed information contained in the Sohra Peak Capital Partners LP offering memorandum (the “Offering Memorandum”). This report is not an offer to sell or a solicitation of an offer to purchase any investment product, which can only be made by the Offering Memorandum. An investment in the Partnership involves significant investment considerations and risks which are described in the Offering Memorandum. The material presented herein, which is provided for the exclusive use of the person who has been authorized to receive it, is for your private information and shall not be used by the recipient except in connection with its investment in the Partnership. Sohra Peak Partnership LLC is soliciting no action based upon it. It is based upon information which we consider reliable, but neither Sohra Peak Partnership LLC nor any of its managers or employees represents that it is accurate or complete, and it should not be relied upon as such. Performance information presented herein is historic and should not be taken as any indication of future performance. Among other things, growth of assets under management of Sohra Peak Capital Partners LP may adversely affect its investment performance. Also, future investments will be made under different economic conditions and may be made in different securities using different investment strategies. The comparison of the Partnership’s performance to a single market index is imperfect because the Partnership’s portfolio may include the use of margin trading and other leverage and is not as diversified as the Standard and Poor’s 500 Index or other indices. Due to the differences between the Partnership’s investment strategy and the methodology used to compute most indices, we caution potential investors that no indices are directly comparable to the results of the Partnership. Statements made herein that are not attributed to a third-party source reflect the views, beliefs and opinions of Sohra Peak Partnership LLC and should not be taken as factual statements.e

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