Performance in 2nd Quarter 2012

Ignoring currency changes but accounting for trading expenses, the fund returned -3.09% in the 3 months to 30 June 2012. Over this same time period, the S&P500 returned -4.01%.

So the fund moderately outperformed the index.

For the half year ended 30 June 2012, the fund returned 5.52% Over this same time period, the S&P500 returned 6.66%, so the fund is still underperforming the index by a moderate amount.

The current internal rate of return of the fund (the best measure, but the hardest to compare to the S&P500) as of today (July 14) is 7.52%.

The best performers in the portfolio for the quarter were:

• Origin Financial (ORGN) (+35.51% including dividend) 
• Tree.com (TREE) (+16.10%), 
• Asta Funding (ASFI) (+15.45%), 

The worst performers for the quarter were:

• LCA-Vision (LCAV) (-42.95%), 
• Aperam (APEMY) (-40.49%) 
• Dell Computers (DELL) (-29.15%)