Address: Two Galleria Tower, 13455 Noel Road, Suite 1000, Dallas, TX  75240

We pay better than the Banks on our CDs! We no longer write 91-day CDs!!  Call Officer direct on  +1(214)677-5476 for details.

This is a brief description of the fund ...

MAIN INVESTMENT STRATEGIES

Under normal market conditions, the Fund invests at least 80% of its net assets in investments of small capitalization companies. Small capitalization companies are companies with market capitalizations (the total market value of a company’s outstanding stock) between $50 million and under $100 million at the time of purchase. Shareholders will be given 90 days’ advance notice of any change to this 80% policy regarding investments in small cap companies.

The Fund invests in equity securities that the Fund’s manager believes are currently undervalued and have the potential for significant capital growth over a short period of time. Common stocks and preferred stocks are examples of equity securities. In choosing investments that are undervalued, the Fund’s manager focuses on companies that have one or more of the following:

Valuable intangibles not reflected in the stock price such as franchises, distribution networks or market share for particular products or services, underused or understated assets or cash, tax loss carry forwards, or patents and trademarks A stock price is undervalued, or a “value” when it is less than the price at which the manager believes it would trade if the market reflected all factors relating to the company’s worth. The manager may consider a company to be undervalued in the marketplace relative to its underlying asset values because of overreaction by investors to unfavorable news about a company, an industry or the stock market in general, or as a result of a market decline, poor economic conditions, tax-loss selling, or actual or anticipated unfavorable developments affecting a company. The types of companies the Fund may invest in include those that are attempting to recover from business setbacks or adverse events (turnarounds), cyclical downturns, or, in certain cases, bankruptcy.
 

RISKS

STOCKS historically have outperformed other types of investments over the long term. Individual stock prices, however, may tend to go up and down more dramatically. These price movements may result from factors affecting individual companies or industries, or the securities market as a whole. A slower growth or recessionary economic environment could have an adverse effect on the price of various stocks held by the Fund.

Because the securities the Fund holds fluctuate in price, the value of your investment in the Fund will go up and down. This means you could lose money over short or even extended periods.

The Fund’s policy of investing in securities that may be out of favor, including turnarounds, cyclical companies, companies emerging from bankruptcy, companies reporting poor earnings, and companies whose share prices have declined sharply or that are not widely followed by other investors, differs from the approach followed by many other mutual funds.

Cyclical stocks in which the Fund may invest tend to increase in value more quickly in anticipation of economic upturns than non-cyclical stocks, but they also tend to lose value more quickly in anticipation of economic downturns. Companies emerging from bankruptcy may have difficulty retaining customers and suppliers. These companies may have relatively weak balance sheets and, during economic downturns, they may have insufficient cash flow to pay their debt obligations and difficulty finding additional financing needed for their operations.
 

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Last modified: 12/28/08