Strategy. The Fund seeks superior long-term performance by acquiring equity securities of a limited number of small-cap U.S. companies that we believe meet our qualitative and quantitative criteria: ? Strong businesses that are understandable, financially sound, competitively entrenched, and will generate growing free cash flow; ? Good management partners who are capable operators, responsible capital allocators, trustworthy, and shareholder-oriented; and ? Good price that is typically 60% or less of our conservative appraisal determined through fundamental financial analysis using disciplines weve applied for almost 50 years. We believe purchasing equities at prices substantially less than their intrinsic worth establishes a margin of safety that should protect capital from significant permanent loss and provide the opportunity for substantial appreciation if the market … Show more… The Fund seeks superior long-term performance by acquiring equity securities of a limited number of small-cap U.S. companies that we believe meet our qualitative and quantitative criteria: ? Strong businesses that are understandable, financially sound, competitively entrenched, and will generate growing free cash flow; ? Good management partners who are capable operators, responsible capital allocators, trustworthy, and shareholder-oriented; and ? Good price that is typically 60% or less of our conservative appraisal determined through fundamental financial analysis using disciplines weve applied for almost 50 years. We believe purchasing equities at prices substantially less than their intrinsic worth establishes a margin of safety that should protect capital from significant permanent loss and provide the opportunity for substantial appreciation if the market recognizes the companys value. We sell securities when they approach our appraisals, when we perceive a change in company fundamentals, a decline in attractiveness relative to other issues, or if the original reasons for purchase materially change. The Small-Cap Fund normally invests at least 80% of net assets plus any borrowings for investment purposes in the equity securities, including convertible securities, of a limited number of companies whose market capitalizations at the time of purchase are considered small cap. The Fund primarily owns common stock but may purchase other types of securities. The Fund may invest up to 30% of assets in non-U.S. securities, which could include emerging market issuers, and may achieve its exposure to non-U.S. securities through investing in American depositary receipts (ADRs). The Fund is non-diversified, which means that it may invest a significant portion of its assets in a relatively small number of issuers, and generally invests in 15 to 25 companies. Definition of Small-Cap Currently, a company will be considered small cap if its market capitalization (including the market capitalization of businesses to which a tracking stock relates) at the time of purchase is within the range of companies in the Russell 2000 Index, the S&P Small-Cap 600 Index, or the Wilshire US Small-Cap Index during the most recent 12-month period (based on month-end data). This capitalization range will change over time. Fund investments are not limited to companies in these indices, however, and there is no requirement to sell securities of a company if it subsequently exceeds the top of the capitalization range. Show less