Strategy. The Fund intends to pursue its investment objective by investing in equity securities of companies with small or mid-sized market capitalizations. Under normal market conditions, the Fund will invest no less than 80% of its net assets (plus the amount of any borrowings for investment purposes) in common stocks and other equity type securities (including preferred stock, convertible debt securities and warrants) of small cap or mid cap companies, which the Adviser currently defines as securities within the range of the Russell 2500 Value Index (the Index) at the time of investment. The market cap range of the Index changes daily, and as a result, the capitalization of small and mid-cap companies in which the Fund invests will also change. … Show more… The Fund intends to pursue its investment objective by investing in equity securities of companies with small or mid-sized market capitalizations. Under normal market conditions, the Fund will invest no less than 80% of its net assets (plus the amount of any borrowings for investment purposes) in common stocks and other equity type securities (including preferred stock, convertible debt securities and warrants) of small cap or mid cap companies, which the Adviser currently defines as securities within the range of the Russell 2500 Value Index (the Index) at the time of investment. The market cap range of the Index changes daily, and as a result, the capitalization of small and mid-cap companies in which the Fund invests will also change. As of December 31, 2025, the market capitalization range of the Index was approximately $18 million to $70.6 billion. In making investment decisions for the Fund, the Adviser employs a value investment philosophy, which is based upon the belief that, at times, the market value of an asset may deviate from its underlying (intrinsic) value, and that the market price and the intrinsic value should converge over the long term. The Adviser focuses its attention on particular kinds of undervalued stocks and constructs the Funds portfolio using a rigorous, bottom-up investment process that concentrates on individual companies (rather than on macroeconomic trends), particularly those undergoing major changes (for example, corporate restructuring), including: ? corporate spin-offs (tax-free distributions of a parent companys division to shareholders); ? financial restructuring, including acquisitions, recapitalizations and companies emerging from bankruptcy; ? savings and loan and insurance conversions from mutual to stock companies; and ? event driven, special situations that may create enhanced opportunities through industry and/or corporate dislocation (for example, overall industry change or restructuring, the presence of undervalued assets, or corporate or management change). As part of this process, the Adviser conducts extensive research into, and analyses of, each candidate companys business fundamentals, seeking undervalued companies that meet certain criteria identified by the Adviser from time to time. Each stock is judged on its potential for above-average capital appreciation. The Adviser does not take into account current dividend or interest income when choosing securities for the Fund. The Adviser continuously monitors each holding in the Funds portfolio and adjusts its view on the intrinsic value of such securities, as necessary, to reflect changes in a companys fundamentals. It is the Advisers intention for the Fund typically to hold securities for more than two years to allow the corporate restructuring process to yield results. The Adviser usually sells a stock when the market price meets or exceeds the Advisers estimate of the stocks intrinsic value. However, the Adviser may sell securities for a number of reasons, including when a more attractive opportunity emerges, when a companys fundamentals deteriorate and impair the long-term quality of the companys business, when a company becomes over-weighted in the portfolio, when operating difficulties or other circumstances make selling desirable, or when the Advisers investment thesis otherwise no longer holds for the security. As long as an investment continues to meet the Funds criteria set forth above, the Fund may choose to hold such securities even if the companys capitalization moves outside the Russell 2500 Value Index range. If less than 80% of the Funds net assets (plus the amount of any borrowings for investment purposes) are invested in companies with a small or a mid-size market capitalization, the Fund will not invest in companies other than those with a small or a mid-size market capitalization until the 80% threshold is restored. The Fund may be suitable for the more aggressive section of an investors portfolio. The Fund is designed for people who want to grow their capital over the long term and who are comfortable with possible frequent short-term changes in the value of their investment. An investment in the Fund should not be considered a complete investment program. Show less