From: Elena Rodriguez <erodriguez@brickfieldep.com>
To: David Kim <dkim@brickfieldep.com>
Date: June 27, 2023 12:00 AM
Subject: Sector rotation strategy - Acme Corporation

**From:** James Anderson <j.anderson@capitalgrowthpe.com>  
**To:** Sarah Thompson <s.thompson@capitalgrowthpe.com>  
**Date:** October 12, 2023  
**Subject:** Sector Rotation Strategy Discussion for Acme Corporation  

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Dear Sarah,

I hope this message finds you well. As we continue to refine our investment strategies, I wanted to discuss our sector rotation approach concerning our portfolio company, Acme Corporation, particularly in light of the recent market fluctuations.

As you know, Acme Corporation has been a strong performer over the past two quarters, with a year-to-date EBITDA increase of 15%, surpassing our initial projections of 10%. However, with the looming economic headwinds and changing consumer behaviors, I believe it's prudent to consider adjustments to our sector focus to ensure sustained growth and mitigate risks.

Currently, Acme operates predominantly within the Consumer Discretionary sector. Given the recent trends indicating a potential downturn in discretionary spending, I recommend we explore the feasibility of increasing exposure to the Consumer Staples sector. This shift could help us capitalize on the growing demand for essential goods, especially in the face of increasing inflationary pressures.

Specifically, I propose allocating approximately $5 million of our available capital towards targeted acquisitions in the Consumer Staples space. Companies such as GreenLeaf Foods and FreshHarvest Corp have shown promising growth metrics and could strategically align with Acme's operational capabilities. 

I would appreciate your insights on this proposed strategy, particularly regarding any financial modeling or due diligence that may be required. Additionally, could we schedule a meeting next week to evaluate preliminary targets and align our approach? Please let me know your availability.

Looking forward to your feedback.

Best regards,

James Anderson  
Senior Associate  
Capital Growth Partners  
(555) 019-6789  
j.anderson@capitalgrowthpe.com