• 1.What do you think of Numeric as a firm? How are long-short products of Numeric different from its long-only products?

• 2.How useful is Exhibit 3 in understanding the characteristics of the stocks included in the various funds of Numeric?

• 3.How does Numeric's investment process work? Understand especially the Pepsico example in the case. What are the assumptions on which Numeric's two models are based? What are the sources of value added? What are the weaknesses?

4.How should Numeric think about its capacity to manage money? In particular, what limits should Numeric place on asset growth in its funds?

5.What advice would you give to Numeric's partners concerning the future direction of the firm?