Portfolio Management

Hussman Investment Growth Fund

1. INTRODUCTION:

Ticker symbol: HSGFX

Investment manager: John P. Hussman

Investment adviser: Hussman Strategic Advisors

Administrator, transfer agent, fund accounting agent: Ultimus Fund Solutions, LLC

1. Fund’s objectives:

* Long-term capital appreciation

* Protection of capital during unfavorable market conditions.

2. Investment strategies:

* Investments in common stocks

* Investments in options and index futures in case of unfavorable market conditions in order to reduce Fund’s exposure.

The fund seeks to achieve long-term capital appreciation, with added emphasis on the protection of capital during unfavorable market conditions. It achieves this objective by investing primarily in common stocks favored by Hussman Strategic Advisors, Inc. and the Fund’s investment manager, and uses hedging strategies to vary the exposure of the Fund to general market fluctuations. When market conditions are favorable, the Fund may invest in options and futures to increase the exposure. According to prospectus, the Fund is designed for investors willing to participate in the stock market and at the same time reduce their exposure to general market fluctuations.

STOCK SELECTION:

The selection of portfolio’s components focuses on securities with:

* favorable valuations

and/or

* market actions

The selection of portfolio’s components focuses on securities with favorable valuations so measuring the underlying value of stocks and their long-term returns resulted from its current market prices and market actions meaning evaluating the economic outlook of investors and their willingness to accept market risk.

In assessment of favorable valuations the following are primar considerations:

* Relationship between stock’s current price and the present value of expected future cash flows per share

* Ratio of the stock price to earnings/revenue/expected future growth of cash flows.

In...