Corporate OverviewAs of: 6/30/2019

7250 Woodmont Avenue

Suite 310

Bethesda, MD 20814

Company Profile

HCM-19-85

2

About Hillman Capital Management, Inc.

Hillman Capital Management, Inc. (“HCM”) was founded by Mark A. Hillman in the Spring of 1998. The

Firm offers portfolio management services to an international client base of foundations, endowments,

corporations, pension plans, and private investors. In addition to its separate accounts, the Firm is the

Investment Adviser to the Hillman Capital Management Funds, a family of registered mutual funds

available to the general public.

Mr. Hillman provides wealth management services where appropriate. He works closely with

investors to determine appropriate asset allocation guidelines, investment criteria and benchmarks.

Leveraging the knowledge he has gained over many decades in the investment business, Mark

constructs portfolios designed to meet the guidelines and criteria established for each client. Each

quarter, HCM provides reporting that compares actual allocations to guidelines and performance to

benchmarks appropriate to the clients’ guidelines and criteria.

For equity investors, HCM employs a unique portfolio management style through which it endeavors to

outperform the capital markets over various economic cycles and generate positive returns for its clients.

In selecting equities for client portfolios, HCM invests only in enterprises that they believe have a

competitive advantage in their industries or niche markets. While other firms may follow trends, HCM

follows a discipline that calls for investment in industry leaders when the investment team believes that

their stocks are undervalued using established quantitative measures.HCM-19-85

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About Hillman Capital Management, Inc.

HCM-19-85

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Mark Hillman has continuously managed client accounts as a Registered Investment Adviser Since 1991

● Focused Advantage Equity Strategy

● Offered directly to Institutions and Individuals and through intermediaries (Sub-Advisory and Wrap Fee)

● Continuously managed since 1995

● Advantage Equity Strategy

● Offered directly to Institutions and Individuals and through intermediaries (Sub-Advisory and Wrap Fee)

● Continuously managed since 1996

● Total Return, Balanced and Wealth Management services offered since 1991

● Hillman Capital Management Funds continuously offered since 2001

Hillman Capital Management Inc. is 69% employee owned and 31% owned by friends and family

The History of HCM

Mark Hillman

launches the

Advantage

and Focused

Advantage

Strategies

HCM is spun

off from

Menocal

Capital

Management

HCM launches

its family of

mutual funds

HCM relocates

from Annapolis,

MD to

Bethesda, MD

HCM is selected for

the Wells Fargo

(Wachovia) Masters

Investment

Consulting platform*

HCM selected by a

large state Teachers’

Retirement System*

1998 2000 2004 2005 2006 2007

Mark Hillman is

featured in the

FORTUNE Magazine

article “The Bargain

Hunter”

2008 2009

HCM is selected to

manage institutional

accounts for several

municipal clients*

HCM is selected as

a sub-advisor for a

European based

mutual fund*

HCM-19-85

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2010

Hillman Capital

Management Mutual

Funds ten year

anniversary

2015

HCM moves to new

offices on “Bethesda

Row”

HCM hired

by Sir John

Templeton*

*THE CLIENTS NOTED ABOVE WERE CHOSEN TO NOTE CERTAIN EVENTS IN HCM’S HISTORY, NOT ON

PERFORMANCE. IT IS NOT KNOWN WHETHER THE CLIENTS LISTED APPROVE OF HCM OR OF THE ADVISORY

SERVICES PROVIDED BY HCM. HCM DOES NOT CURRENTLY MANAGE THESE NOTED ACCOUNTS.

Investment Team

Mark A. Hillman, CEO and Chief Investment Officer, founded HCM in 1998, bringing into the firm assets of predecessor companies he established in the early 1990s. His

first investment advisory company, Custom Asset Management, merged with Menocal Capital Management in 1993 and he became Chief Investment Officer of the

combined firms. Prior to founding his first firm, he was a financial consultant with Shearson Lehman Hutton. A graduate of Tufts University, he has done graduate

coursework at Harvard University Extension School. An expert sailboat racer, he has competed successfully in National and World Championships over four decades.

As the architect of the firm’s proprietary investment process and Chief Investment Officer at HCM, Mark Hillman continues to lead the investment process. Since 1994, his

investment results have spoken for themselves and have been recognized by investors and media alike. He has appeared in Fortune Magazine, The New York Times,

MSN Money, USA Today, Bloomberg News, Dow Jones Marketwatch, The Baltimore Sun, The San Francisco Chronicle, Bloomberg Television, Kiplinger’s and

Forbes.com.

Trevor Lee, MBA, Analyst, focuses on assessing the competitive dynamics and valuation of companies. Trevor joined Hillman Capital Management in 2008 and is a

member of HCM’s Investment Committee. Trevor evaluates companies from the unique perspective of his solid background in marke ting and product development for

Fortune 500 companies, including Procter and Gamble, Kraft, and Sara Lee. A graduate of Tufts University, Trevor earned his MBA at The Wharton School of the

University of Pennsylvania.

Operations and Compliance Team

Peter W. Beebe, President, has served in leadership roles for institutional investment firms and platforms, including Affiliated Managers Group (AMG) and Jones Lang

LaSalle (JLL). Pete has over two decades of experience in the investment management industry, primarily working with boutique investment management firms. He has

developed and executed strategic plans that have entailed all aspects of the business lifecycle including launching, scaling, and restructuring various enterprises. Pete

serves as a member of the HCM Investment Committee. Mr. Beebe earned an MBA from Stetson University and a B.S. in Finance with a minor in Spanish.

Jeffrey T. Long, Director of Systems and Operations, began consulting HCM in 2002 and joined the team in 2005. Jeff has more than a decade of hands on experience

managing trading and operations at HCM and more than three decades of experience as a software development consultant. In addition to extensive expertise in software

development for financial management organizations, he has worked on many different hardware platforms for various clients such as FedEx, Jaguar Land Rover, AT

Kearney, Cadbury Schweppes, Microsoft, Lucent, Mobil and Lever Brothers. Mr. Long holds a Bachelor’s Degree in Computer Science and Management Information

Systems from James Madison University.

C. Frank Watson III, Chief Compliance Officer, has served as the Chief Compliance Officer for Hillman Capital Management, Inc. since 2005. He previously held officer

positions for multiple investment companies and currently serves as Treasurer and Principal Financial Officer for the Hillman Capital Management Investment Trust. Apart

from Hillman Capital Management, Mr. Watson founded Fairview Investment Services in 2005 which provides compliance support services to over 75 registered

investment advisers with assets under management totaling 100 billion. Mr. Watson oversees Fairview’s multiple lines of business, which, in addition to compliance

administration, include private fund administration and regulatory reporting for investment companies. Mr. Watson earned a B.S. in Economics from the University of North

Carolina, Chapel Hill.HCM-19-85

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A Commitment to “Best Practices”

• Hillman Capital Management, Inc. claims compliance with GIPS® standards and is verified by an

independent 3rd party auditor, The Spaulding Group. Please see full GIPS® disclosure on pages

21 and 22 of this presentation.

• Daily portfolio reconciliation and drift reporting keep the Investment Team informed about the

dispersion of portfolios in the HCM models.

• Consistent implementation of the Trade Rotation Policy to ensure all HCM client interests are met

in a fair and balanced manner.

HCM-19-85

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Equity Investment Philosophy

and Process

HCM-19-85

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HCM-19-85

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1. We believe that companies with sustainable competitive advantage will

outperform the broad market over time.

2. We believe that market volatility can be exploited to purchase companies at a

discount to their intrinsic value.

3. We believe that consistent adherence to a discipline based on fundamental

valuation techniques will produce results.

Investment Philosophy

The Screening Process

RANKING

• The Qualified Universe of Investment Candidates is

ranked according to valuation.

•Securities calculated to be overvalued are ineligible

for inclusion in client portfolios.

QUANTITATIVE MEASURES*

1. Discounted Cash Flow Model

2. Price to Book Model

3. Price to Sales Model

*May include, but not limited to.

STOCK UNIVERSEQUALITATIVE CONCERNS

1. Is the company an industry leader or does it dominate a certain

niche market?

2. Has management been prudent and proactive over various

economic cycles?

3. Does the company have pricing power with customers?

4. Does the company have purchasing power with suppliers?

5. Do barriers to entry exist for prospective competitors?

6. Does the company have a strong brand/franchise with

brand loyalty?

7. Does the company deliver excellent products or services?

8. Does the company provide outstanding customer service?

9. Does the company have enough financial flexibility to weather

short term problems, an economic downturn or increased

competitive pressures?

QUALITATIVE SCREEN

• HCM analysts evaluate companies by addressing nine

qualitative concerns to identify candidates with

sustainable competitive advantage.

• The HCM investment committee reviews analyst

findings and companies deemed to have sustainable

competitive advantage are added to our Qualified

Universe of Investment Candidates.

• All public U.S. Equities with a market capitalization

greater than three billion dollars.

QUANTITATIVE SCREEN

• The four quantitative measures are applied to each

company in the Qualified Universe of Investment

Candidates.

HCM-19-85

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Advantage Equity Portfolios

PORTFOLIO CONSTRUCTION

The 45 securities in our Advantage Equity model are purchased

in equal proportion, with each stock representing approximately

2.2% of total portfolio value, subject to the following limitation s:

No sector may represent more than 25% and no industry may

represent more than 10% of the total portfolio at the time of

purchase.

SELL DISCIPLINE

• Sell all shares if a portfolio holding fails the qualitative screen.

• Sell all shares if the price of a security exceeds fair value.

• Re-balance each holding to its target weight:

Buy if position < 1.5% of total market value.

Sell if position > 2.9% of total market value.

Focused Advantage Equity Portfolios

PORTFOLIO CONSTRUCTION

The 20 securities in our Focused Advantage Equity model are

purchased in equal proportion, with each stock representing

approximately 5.0% of total portfolio value, subject to the

following limitation: No industry may represent more than 25% of

the total portfolio at the time of purchase.

Two Ways of Leveraging our Investment Approach

SELL DISCIPLINE

• Sell all shares if a portfolio holding fails the qualitative screen.

• Sell all shares if the price of a security exceeds fair value.

• Re-balance each holding to its target weight:

Buy if position < 2.5% of total market value.

Sell if position > 10.0% of total market value.

HCM-19-85

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Key Factors in Risk Management

Fundamental - The creation of HCM’s Qualified Universe of Investment Candidates

• A competitive analysis is conducted to identify industry leaders with financial flexibility and competitive advantage in their market place. We believe that investing exclusively in companies that meet our qualitative criteria can help to mitigate risk.

Diversification - To prevent overexposure to an industry we use two approaches.

• Portfolio Construction – Equal weighted position targets, in conjunction with industry weighting limits are used.

• Qualitative Process – We believe that our pursuit of “best of breed” companies reduces the number of qualified investment candidates in any one industry.

Sell Discipline - Our ongoing investment process helps us to manage security specific risk in our portfolios.

• Company’s that we believe no longer maintain a sustainable competitive advantage or sufficientfinancial flexibility are removed from the portfolio and qualified universe.

• We have an ongoing portfolio review process with specific triggers for rebalancing to maintain portfolio balance.

HCM-19-85

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Performance and Characteristics

Advantage Equity

and

Focused Advantage Equity

Portfolios

HCM-19-85

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A Proven Approach - Advantage Equity

The graph to the right depicts

the growth of $1,000,000

invested in the Advantage

Equity Composite (Net of Fees)

at the start of January 1996

versus the same $1,000,000

invested in the Russell 1000

Value Index and the S&P 500

with dividend reinvestment.

At Hillman Capital Management, Inc., we have engineered a discipline through which we seek to invest in strong companies when we believe their

stocks are undervalued. The strength of this discipline is derived from our independent research focusing on companies believed to have a

sustainable competitive advantage and investing in these companies only when they are trading at a discount to our calculated intrinsic value.

Continued adherence to our principles have supported our results.

HCM-19-85

14

0 M

2 M

4 M

6 M

8 M

10 M

12 M

14 M

16 M

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

Advantage Equity Composite (Net)

Russell 1000 (Value) Index

S&P 500 with Dividend Reinvestment

SEE PAGE 21 FOR DISCLOSURE STATEMENTS.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

*Includes dividends.

HCM-19-85

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SEE PAGE 21 FOR DISCLOSURE STATEMENTS.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

ANNUALIZED PERFORMANCE THROUGH JUNE 30, 2019

Advantage Equity CompositeYEARLY PERFORMANCE –ADVANTAGE EQUITY COMPOSITE

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

Advantage Equity Composite (Net)

Russell 1000 (Value) Index

S&P 500 with Dividend Reinvestment

2019 YTD One Year Three Years Five Years Ten Years

Inception

(01/01/1996)

Advantage Equity (Gross) 19.81% 13.52% 16.74% 12.58% 15.78% 12.96%

Advantage Equity (Net) 19.21% 12.38% 15.59% 11.54% 14.93% 12.14%

Russell 1000 (Value) Index 16.23% 8.45% 10.19% 7.46% 13.19% 8.83%

Standard & Poor's 500 Total Return* 18.54% 10.42% 14.20% 10.72% 14.70% 8.93%

Advantage Equity Composite Characteristics

THE PORTFOLIO CHARACTERISTICS SLIDE IS SHOWN AS SUPPLEMENTAL INFORMATION ONLY HCM-19-85

16

SECTOR WEIGHTINGS MARKET CAP WEIGHTINGS TOP 10 HOLDINGS

1. MCDONALD’S

2. LAM RESEARCH

3. FACEBOOK

4. MICROSOFT

5. COMCAST

6. ANHEUSER-BUSCH

7. EBAY

8. GENERAL MILLS

9. CATERPILLAR

10. GOLDMAN SACHS

Small (< $2 billion)

Mid ($2-7 billion)

Large (> $7 billion)

CONSUMER DISCRETIONARY 11.7%

CONSUMER STAPLES 13.5%

ENERGY 4.1%

FINANCIALS 13.1%

HEALTH CARE 15.2%

INDUSTRIALS 13.3%

INFORMATION TECH 11.3%

MATERIALS 4.1%

COMMUNICATION 13.7%

UTILITIES 0.0%

REAL ESTATE 0.0%

STATISTICS AS OF JUNE 30, 2019

Weighted

Average

Market Cap

Portfolio

Beta

Dividend

Yield

Price/

Book

Price/

Cash Flow

Price/

Earnings

Trailing

Price/

Earnings

Forward

Pre-Tax

ROA

Debt to

Capital

Projected

LT Earnings

Growth

Advantage Equity Composite 173,574 mm 1.03 2.57% 3.49 11.89 11.19 10.64 8.89% 0.33 8.31%

HCM-19-85

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A Proven Approach – Focused Advantage Equity

The graph to the right depicts

the growth of $1,000,000

invested in the Focused

Advantage Equity Composite

(Net of Fees) at the start of

January 1995 versus the same

$1,000,000 invested in the

Russell 1000 Value Index and

the S&P 500 with dividend

reinvestment.

SEE PAGE 22 FOR DISCLOSURE STATEMENTS. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

At Hillman Capital Management, Inc., we have engineered a discipline through which we seek to invest in strong companies when we believe their

stocks are undervalued. The strength of this discipline is derived from our independent research focusing on companies believed to have a

sustainable competitive advantage and investing in these companies only when they are trading at a discount to our calculated intrinsic value.

Continued adherence to our principles have supported our results.

0 MM

5 MM

10 MM

15 MM

20 MM

25 MM

30 MM

35 MM

40 MM

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

Focused Advantage Equity Composite (Net)

Russell 1000 (Value) Index

S&P 500 with Dividend Reinvestment

SEE PAGE 22 FOR DISCLOSURE STATEMENTS

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.

*Includes dividends.

HCM-19-85

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ANNUALIZED PERFORMANCE THROUGH JUNE 30, 2019

Focused Advantage Equity CompositeYEARLY PERFORMANCE – FOCUSED ADVANTAGE EQUITY COMPOSITE

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18

Focused Equity Composite (Net)

Russell 1000 (Value) Index

S&P 500 with Dividend Reinvestment

2019 YTD One Year Three Years Five Years Ten Years Inception (01/01/1995)

Focused Advantage Equity (Gross) 20.85% 7.54% 14.29% 10.19% 14.32% 16.87%

Focused Advantage Equity (Net) 20.42% 6.86% 13.44% 9.32% 13.61% 15.98%

Russell 1000 (Value) Index 16.23% 8.45% 10.19% 7.46% 13.19% 9.90%

Standard & Poor's 500 Total Return* 18.54% 10.42% 14.20% 10.72% 14.70% 9.97%

Focused Advantage Equity Composite

Characteristics

Weighted

Average

Market Cap

Portfolio

Beta

Dividend

Yield

Price/

Book

Price/

Cash Flow

Price/

Earnings

Trailing

Price/

Earnings

Forward

Pre-Tax

ROA

Debt to

Capital

Projected

LT Earnings

Growth

Focused Advantage

Equity Composite231,406 mm 1.02 2.65% 3.17 11.91 12.83 10.05 8.40% 0.55 9.20%

STATISTICS AS OF JUNE 30, 2019

THE PORTFOLIO CHARACTERISTICS SLIDE IS SHOWN AS SUPPLEMENTAL INFORMATION ONLY HCM-19-85

19

SECTOR WEIGHTINGS MARKET CAP WEIGHTINGS TOP 10 HOLDINGS

1. MICROSOFT

2. MCDONALD’S

3. BANK OF AMERICA

4. GENERAL MILLS

5. AMAZON.COM

6. AT&T

7. WALT DISNEY

8. WESTERN UNION

9. BIOGEN

10. GENERAL ELECTRIC

Small (< $2 billion)

Mid ($2-7 billion)

Large (> $7 billion)

CONSUMER DISCRETIONARY 12.1%

CONSUMER STAPLES 14.9%

ENERGY 8.7%

FINANCIALS 19.7%

HEALTH CARE 12.5%

INDUSTRIALS 9.6%

INFORMATION TECH 6.9%

MATERIALS 4.5%

COMMUNICATION 10.9%

UTILITIES 0.0%

REAL ESTATE 0.0%

Disclosure Statements

HCM-19-85

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Disclosure StatementsPast performance is not indicative of future results. This material is not financial advice or an offer to sell any product.

The portfolio characteristics shown relate to the Hillman Advantage Equity Composite. Not every client's account will

have these exact characteristics. The actual characteristics with respect to any particular client account will vary based on

a number of factors including but not limited to: (i) the size of the account; (ii) investment restrictions applicable to the

account, if any; and (iii) market exigencies at the time of investment. Hillman Capital Management, Inc. reserves the right

to modify its current investment strategies and techniques based on changing market dynamics or client needs. The

information provided in this report should not be considered a recommendation to purchase or sell any particular security.

There is no assurance that any securities discussed herein will remain in an account's portfolio at the time you receive this

report or that securities sold have not been repurchased. The securities discussed may not represent an account's entire

portfolio and in the aggregate may represent only a small percentage of an account's portfolio holdings. It should not be

assumed that any of the securities transactions, holdings or sectors discussed were or will prove to be profitable, or that the

investment recommendations or decisions we make in the future will be profitable or will equal the investment

performance of the securities discussed herein.

Hillman Capital Management, Inc. is a registered investment advisor. More information about the advisor including its

investment strategies and objectives can be obtained by visiting www.hillmancapital.com. Registration does not imply a

certain level of skill or training. The firm maintains a complete list of composite descriptions, which is available upon

request. Visit our website for a fully compliant performance presentation.

The investment objective of the Advantage Equity Composite (the “Composite”) is long-term capital appreciation utilizing

a strategy comprised of 45 securities. The Composite was created April 1, 1998. Performance presented prior to April 1,

1998 occurred while the Portfolio Manager was affiliated with a prior firm and the Portfolio Manager was the only

individual responsible for selecting securities to buy and sell. The annual composite dispersion is an asset-weighted

standard deviation calculated for the accounts in the composite for the entire year. The three-year annualized standard

deviation measures the variability of the composite and the benchmark over the preceding 36-month period. Leverage is

not used in this composite. Non-fee-paying accounts are not included in this composite. The U.S. dollar is the currency

used to express performance. The Russell 1000 Value Index measures the performance of the large-cap value segment of

the U.S. equity universe. It includes those Russell 1000 Index companies with lower price-to-book ratios and lower

expected growth values. It is not possible to invest in this index. The volatility of the Composite may be greater or less

than its respective benchmark. Prior to January 23, 2019, the benchmark of the Composite was the S&P 500. The firm

believes the Russell 1000 Value Index is a more appropriate and accurate index against which to compare the Composite’s

performance than the S&P 500 because the composition of the Russell 1000 Value Index more closely aligns with the

Composite’s principal investment strategies.

Hillman Capital Management, Inc. claims compliance with the Global Investment Performance Standards (GIPS®) and

has prepared and presented this report in compliance the GIPS standards. Hillman Capital Management, Inc. has been

independently verified for the periods April 1, 1998 through December 31, 2017. A copy of the verification report is

available upon request. Verification assesses whether (1) the firm has complied with all the composite construction

requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to

calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any

specific composite presentation.

Returns are presented gross and net of investment advisory fees and include the reinvestment of all income. All returns

reflect the deduction of trading expenses and the deduction of custodian expenses. Gross returns will be reduced by

investment advisory fees. For example, a 3% annual fee deducted quarterly (.75%) from an account with a ten year

annualized growth rate of 14% will produce a net result of 10.8%. Actual performance results will vary from this example.

Net of fee performance was calculated using actual management fees.

The fee schedule for Hillman’s investment advisory services is 1.00% for the first $5 million, 0.85% for the next $15

million, 0.75% for the next $50 million, and 0.50% thereafter. Actual investment advisory fees incurred by clients may

vary. A complete description of Hillman’s fee schedule can be found under Form ADV Part 2 at www.hillmancapital.com.

Additional information regarding policies for valuing portfolios, calculating performance and preparing compliant

presentations is available upon request. HCM-19-85

ADVANTAGE EQUITY COMPOSITE

N.A. - Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year.

Total Firm Composite Assets Annual Performance Results

Year Assets USD Number of Composite Composite Composite

Russell

1000 Benchmark Composite

End (M) (M) Accounts Gross Net 3-yr St Dev Value 3-yr St Dev Dispersion

2018 85,758 1,447

Five or

fewer -1.86% -2.83% 11.59% -8.27% 10.82% NA

2017 87,678 1,548

Five or

fewer 20.99% 19.79% 10.85% 13.66% 10.20% NA

2016 76,431 1,347

Five or

fewer 18.03% 16.97% 11.29% 17.34% 10.77% NA

2015 76,852 1,183

Five or

fewer -0.24% -0.99% 10.37% -3.83% 10.68% NA

2014 77,240 0.843

Five or

fewer 14.52% 13.59% 9.60% 13.45% 9.20% NA

2013 77,477 0.816

Five or

fewer 37.91% 36.54% 12.26% 32.53% 12.70% NA

2012 63,536 0.842

Five or

fewer 14.42% 13.81% 15.22% 17.51% 15.51% NA

2011 155,861 66,446 9 1.04% 0.75% 20.05% 0.39% 20.69% 0.68%

2010 452,309 84,464 11 10.68% 10.30% 24.05% 15.51% 23.18% 0.75%

2009 506,468 69,144 10 43.66% 43.14% 22.12% 19.69% 21.10% 1.42%

2008 313,481 32,061 7 -38.04% -38.26% 16.35% -36.85% 15.36% 0.50%

Disclosure Statements

N.A. - Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year.

Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product.

The portfolio characteristics shown relate to the Hillman Focused Advantage Equity Composite. Not every client's

account will have these exact characteristics. The actual characteristics with respect to any particular client account

will vary based on a number of factors including but not limited to: (i) the size of the account; (ii) investment

restrictions applicable to the account, if any; and (iii) market exigencies at the time of investment. Hillman Capital

Management, Inc. reserves the right to modify its current investment strategies and techniques based on changing

market dynamics or client needs. The information provided in this report should not be considered a recommendation to

purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an

account's portfolio at the time you receive this report or that securities sold have not been repurchased. The securities

discussed may not represent an account's entire portfolio and in the aggregate may represent only a small percentage of

an account's portfolio holdings. It should not be assumed that any of the securities transactions, holdings or sectors

discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the

future will be profitable or will equal the investment performance of the securities discussed herein.

Hillman Capital Management, Inc. is a registered investment advisor. More information about the advisor including its

investment strategies and objectives can be obtained by visiting www.hillmancapital.com. Registration does not imply

a certain level of skill or training. The firm maintains a complete list of composite descriptions, which is available upon

request.

The investment objective of the Focused Advantage Equity Composite (the “Composite”) is long-term capital

appreciation, utilizing a concentrated strategy focusing on 20 securities. The Composite was created April 1, 1998.

Performance presented prior to April 1, 1998 occurred while the Portfolio Manager was affiliated with a prior firm and

the Portfolio Manager was the only individual responsible for selecting the securities to buy and sell. The annual

composite dispersion is an asset-weighted standard deviation calculated for the accounts in the composite for the entire

year. The three-year annualized standard deviation measures the variability of the composite and the benchmark over

the preceding 36-month period. Leverage is not used in this composite. Non-fee-paying accounts are not included in

this composite. The U.S. dollar is the currency used to express performance. The Russell 1000 Value Index measures

the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 Index

companies with lower price-to-book ratios and lower expected growth values. It is not possible to invest in this index.

The volatility of the Composite may be greater or less than its respective benchmark. Prior to January 23, 2019, the

benchmark of the Composite was the S&P 500. The firm believes the Russell 1000 Value Index is a more appropriate

and accurate index against which to compare the Composite’s performance than the S&P 500 because the composition

of the Russell 1000 Value Index more closely aligns with the Composite’s principal investment strategies.

Hillman Capital Management, Inc. claims compliance with the Global Investment Performance Standards (GIPS®) and

has prepared and presented this report in compliance the GIPS standards. Hillman Capital Management, Inc. has been

independently verified for the periods April 1, 1998 through December 31, 2017. A copy of the verification report is

available upon request. Verification assesses whether (1) the firm has complied with all the composite construction

requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to

calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of

any specific composite presentation.

Returns are presented gross and net of investment advisory fees and include the reinvestment of all income. All returns

reflect the deduction of trading expenses and the deduction of custodian expenses. Gross returns will be reduced by

investment advisory fees. For example, a 3% annual fee deducted quarterly (.75%) from an account with a ten year

annualized growth rate of 14% will produce a net result of 10.8%. Actual performance results will vary from this

example. Net of fee performance was calculated using actual management fees.

The fee schedule for Hillman’s investment advisory services is 1.00% for the first $5 million, 0.85% for the next $15

million, 0.75% for the next $50 million, and 0.50% thereafter. Actual investment advisory fees incurred by clients may

vary. A complete description of Hillman’s fee schedule can be found under Form ADV Part 2 at

www.hillmancapital.com. Additional information regarding policies for calculating and reporting returns is available

upon request. HCM-19-85

FOCUSED ADVANTAGE EQUITY COMPOSITE

Total Firm Composite Assets Annual Performance Results

Year Assets USD Number of Composite Composite Composite Russell 1000 Benchmark Composite

End (M) (M) Accounts Gross Net 3-yr St Dev Value 3-yr St Dev Dispersion

2018 85,758 11,643

Five or

fewer -6.97% -7.55% 12.33% -8.27% 10.82% NA

2017 87,678 12,587

Five or

fewer 16.93% 15.91% 12.53% 13.66% 10.20% NA

2016 76,431 12,111

Five or

fewer 13.36% 12.42% 12.55% 17.34% 10.77% NA

2015 76,852 10,751

Five or

fewer 2.50% 1.58% 12.20% -3.83% 10.68% NA

2014 77,240 10,329

Five or

fewer 11.75% 11.21% 11.55% 13.45% 9.20% NA

2013 77,477 9,282

Five or

fewer 42.14% 41.23% 15.09% 32.53% 12.70% NA

2012 63,536 14,330

Five or

fewer 14.06% 13.72% 17.63% 17.51% 15.51% NA

2011 155,861 24,039 6 -5.15% -5.59% 21.43% 0.39% 20.69% 0.25%

2010 452,309 279,361 10 14.81% 14.23% 24.66% 15.51% 23.18% 0.88%

2009 506,468 274,985 11 43.11% 42.45% 22.76% 19.69% 21.10% 2.21%

2008 313,481 122,118 15 -43.39% -43.75% 16.92% -36.85% 15.36% 1.20%

Data Definitions:

Jensen’s Alpha – This measure is a risk-adjusted performance measure that represents the average return on a

portfolio or investment above or below that predicted by the capital asset pricing model (CAPM) given the

portfolio’s or investment’s beta and the average market return.

Information Ratio – The information ratio is an efficiency measure calculated by dividing the Excess Rate of

Return by the Standard Deviation of the Excess Rate of Return stream (Tracking Error). Please refer to the

definition of Excess Rate of Return or Tracking Error for further details. The information ratio is most useful for

measuring the performance of an active manager against an appropriate benchmark and can be used as a guide

to choosing active manager within a universe of similar asset/style managers.

Excess Return – The Excess Rate of Return is calculated by taking the difference between the quarterly return of

a portfolio minus the quarterly return of a benchmark. The quarterly excess is then linked and annualized to get

the number.

Standard Deviation – A measure of dispersion about an average in applied statistics. It is a good measure of the

historical variability of the return earned by an investment manager. The assumption is the greater variability in

the rate of return connotes greater risk undertaken in achieving the return. For example, one would prefer a

portfolio that earns 5% each period to one that alternates between a return a zero in one period and 10% the next.

A general rule is that, for any given rate of return, the lower the standard deviation, the better; similarly, for any

given standard deviation, the manager who provides the highest rate of return is best. The denominator for this

calculation is N.

Sharpe Ratio – A return/risk measure developed by William Sharpe. It is a measurement of efficiency utilizing

the relationship between annualized risk-adjusted return and standard deviation. High Sharpe Ratio measures

good performance (efficiency). Therefore, a Sharpe Ratio of 1 is better than a ratio of .05. The standard

deviation in this Sharpe Ratio formula is divided by N-1.

Data Definitions:

Treynor Ratio – Similar to the Sharpe Ratio, Treynor Ratio is a measurement of efficiency utilizing the

relationship between annualized risk-adjusted return and risk. Unlike Sharpe Ratio, Treynor Ratio utilizes

“market” risk (beta) instead of total risk (standard deviation). Good performance efficiency is measured by a high

ratio. The Treynor Ratio attempts to measure how well an investment has compensated its investors given its

level of risk. The Treynor Ratio relies on beta, which measures an investment’s sensitivity to market movements,

to gauge risk. The premise underlying the Treynor Ratio is that systematic risk—the kind of risk that is inherent to

the entire market (represented by beta)—should be penalized because it cannot be diversified away.

Tracking Error – A measurement that indicates the standard deviation of the difference between a selected

market index and a manager’s quarterly returns. For example, a manager selects an index as a benchmark for

comparison against his/her portfolio. Each quarter generates new returns for both the manager and the selected

index. The returns for the manager are then compared to the indexes to determine the amount of excess return,

which produces a tracking error. A low tracking error indicates that the manager is tracking the selected index

closely or has roughly the same returns as the index. The standard deviation for this calculation uses N.

Risk-Free Rate – The risk-free rate of return is the theoretical rate of return of an investment with zero risk. The

risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a

specified period of time.

CONTACT US

Hillman Capital Management, Inc.

7250 Woodmont Avenue

Suite 310

Bethesda, MD 20814

Phone: (240) 744-4500

www.hillmancapital.com