INVESTMENT PHILOSOPHY

Thunderstorm Value Fund believes that stock-market profits are achieved in the long term by investing in out-of-favor stocks.

Our conviction is that unpopular stocks – those selling for below-average multiples of earnings, sales or book value – offer appreciation potential for an investor with a time horizon measured in months or years, rather than days or weeks.

We love to buy what we regard as good companies on bad news. We think that we have some ability to distinguish bad news that is temporary from bad news with a more lasting impact.

In our view, common stocks are not trading vehicles. We view stock ownership as taking a partial stake in a business. We look for staying power in the business, for a management team that is passionate, smart and honest, and for a business plan that makes sense to us over the next 3 to 5 years.

Please see the core values section for more on how we view our business, and the stock selection section for details on how we pick stocks.

The Price to Book (P/B) Ratio is calculated by dividing the current price of the stock by the company's book value per share. Price to Earnings Ratio is a common tool for comparing the prices of different common stocks and is calculated by dividing the current market price of a stock by the earnings per share. Price to Sales Ratio is a tool for calculating a stock's valuation relative to other companies, calculated by dividing a stock's current price by its revenue per share.

Mutual fund investing involves risk; principal loss is possible. The Fund will invest in small- and mid-cap companies, which involve additional risks such as limited liquidity and greater volatility. The Fund will invest in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. In addition to the risks of foreign securities in general, countries in emerging markets are generally more volatile and can have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues.