Introduction
Robert "Bob" Barringer, CFA, joined The FBR Funds in July of 2004 from the Citizens Funds,
a privately held mutual fund company with $1 billion in assets under management. While with the
Citizens Funds, Bob held various positions including Portfolio Manager of the Citizens Core
Growth Fund and Co-Portfolio Manager of the Citizens Balanced Fund. Prior to joining Citizens,
Bob served as Director and Co-Portfolio Manager at AEW Capital and began his investment management
career as an equity research assistant at Fidelity Investments.
Currently, Bob serves as Portfolio Manager of the FBR Pegasus Small Cap Growth Fund (FBRCX) and the Pegasus
Small Cap Fund(FBRYX) and Co-Portfolio Manager of the FBR Pegasus Fund (FBRPX). Bob's investment
philosophy and discipline involves identifying companies with differentiated business strategies, strong
balance sheets and below average valuations.
Born in 1961, Bob received his B.A. in Economics from Wesleyan University in 1984. He earned his
MBA from Harvard University in 1990 and holds a CFA designation.
Investment Goals The investment objective of the Pegasus Small Cap Growth Fund
is long-term capital appreciation.
Fund Strategy Under normal market conditions, the Pegasus Small Cap Growth Fund
invests at least 80% of its total assets in securities of small-capitalization companies
that are principally engaged in the research, design, development, manufacturing or distributing products
or services in the technology industry. For these purposes, the Fund currently considers
small-capitalization companies to be those companies with market capitalizations of less than $3
billion dollars, measured at the time of purchase. The Pegasus Small Cap Growth Fund primarily invests in
equity securities (which include common stocks, preferred stocks, warrants and other securities
convertible into common stocks, including convertible bonds and convertible preferred stock) of small
capitalization companies listed on a U.S. securities exchange or NASDAQ expected to experience earnings
growth as a result of technology. Potential investments would include, but not be limited to, the
following industries: computer software and hardware, semiconductors, scientific instrumentation,
telecommunications, pharmaceuticals, chemicals, synthetic materials, defense and commercial electronics,
data storage and retrieval, biotechnology, and healthcare and medical supplies.
The Adviser makes investment decisions for the Pegasus Small Cap Growth Fund on the basis
of fundamental security analysis. Once an issuer is identified as an attractive
candidate for the Pegasus Small Cap Growth Fund's portfolio, the Adviser assesses the
relative value and growth potential of the security on the basis of various factors,
which may include price to book ratio, price to earnings ratio, and earnings yield and
cash flow, among others. The Pegasus Small Cap Growth Fund may invest to a limited degree
in securities issued in initial public offerings ("IPOs"). Many of the common stocks
in which the Pegasus Small Cap Growth Fund invests do not pay dividends; instead, stocks
are bought for the potential that their prices will increase and provide capital
appreciation for the Fund.
Ratings* as of 3/31/2008
Specialty-Technology
Overall
3 Year out of 267 Funds
5 Year n/a
10 Year n/a
The Overall Morningstar Rating for a fund is derived from a weighted average of the performance
figures associated with its 3-, 5- and 10-yr (if applicable) Morningstar Rating metrics.
Fund data as of 4/30/2008
Inception: 01/20/04
Q1'08
1 Month
03/31/08-04/30/08
Average Annual Total Return
6 Months
09/30/07-03/31/08
1 Year 03/31/07-03/31/08
3 Years
03/31/05-03/31/08
Since Inception01/20/04
FBR Pegasus Small Cap Growth Fund
-17.09%
5.91%
-15.58%
-9.53%
8.13%
2.77%
NASDAQ Comp Index
-13.88%
5.89%
-15.28%
-5.12%
5.27%
3.47%
Russell 2500 Tech Index
-15.24%
6.37%
-19.07%
-13.19%
5.51%
0.01%
Total annual Fund operating expenses were 3.81%, net expenses were 1.95%.
FBR Fund Advisers, Inc has agreed in writing to waive a portion of its advisory
fee and assume certain expenses of the Fund to the extent annual operating
expenses exceed 1.95% of the Fund’s average daily net assets. The Adviser has
agreed to maintain these expense limitations through November 1, 2008.
TOTAL RETURNS REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS. The current
performance may be lower or higher than performance data quoted. Investment return and principal will
fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost.
The performance data does not reflect the deduction of redemption fees and if reflected, the redemption
fee would reduce the performance quoted.
Investors should consider the investment objectives, risks, charges and expenses carefully before
investing. This and other important information about the investment company can be found in the
fund's prospectus. To obtain a prospectus, please visit the prospectus page or call 888.200.4710.
Please read the prospectus carefully before investing.
Fund investments are focused in the technology industry, which may be
adversely affected by rapidly changing technology, availability of capital,
R&D, government regulation and the relatively high risks of obsolescence
caused by scientific and technological advances.
The indices are unmanaged and unlike the Pegasus Small Cap Growth Fund have no management fees or operating costs
that reduce reported returns. The volatility and other risk characteristics for the fund will differ
from the volatility and risk characteristics of the indices.
S&P 500 is a capitalization-weighted Index of 500 stocks. The Index is designed to represent
the broad domestic economy through changes in aggregate market value of 500 stocks representing all major
industries.
Philadelphia Bank Index (BKX) is a capitalization-weighted index consisting of 24 exchange-listed
and national market system stocks, representing national money center banks and leading regional
institutions.
Dow Jones Utility Index is a price weighted average of 15 utility companies listed on the New
York Stock Exchange and are involved in the production of electrical energy.
Russell 2000 is comprised of the smallest 2000 companies of the Russell 3000 Index, representing
approximately 11% of the Russell 3000’s total market-capitalization.
Lipper Fund Averages, Lipper Analytical Services, Inc., is a nationally recognized organization
that reports on mutual fund total return performance and calculates fund rankings. Peer averages are based
on universes of funds with the same investment objective. Peer group averages include reinvested dividends
and capital gains, if any, and exclude sales charges. These averages include the following: Lipper
Financial Services Index and the Lipper Small Cap Value Index.
Morningstar proprietary ratings reflect risk-adjusted performance as of the period stated above. For each fund with at least a 3-yr history,
Morningstar calculates a Morningstar Rating™ based on a Morningstar risk-adjusted return measure that accounts for variation
in a fund's monthly performance placing more emphasis on downward variations and rewarding consistent performance. The top
10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars the next 35% receive 3 stars, the next 22.5%
receive 2 stars and the bottom 10% receive 1 star.
1- Price-to-Earnings Ratio – Market price per share divided by earnings per share.
2– Tangible Price-to-Book – Shareholder equity minus intangible assets and goodwill divided by shares outstanding.
3- Earnings per Share – Profit available to equity shareholders divided by average number of shares outstanding.
The Daily NAV is as of the previous business day's closing. Funds NAV are updated at approximately
5:30 p.m. EST daily.
This website does not constitute an offer to sell or a solicitation of an offer to buy shares of
the FBR Funds to any person in any jurisdiction in which such offer, solicitation, purchase or sale
would be unlawful under the securities laws of such jurisdiction.
Investors should consider the investment objectives, risks, charges and expenses carefully before
investing. This and other important information about the investment company can be found in the
Fund's prospectus. To obtain a free prospectus, please call 888.200.4710. Please read the prospectus
carefully before investing.
The FBR Funds are distributed by FBR Investment Services, Inc. Member FINRA/SIPC.
Ratings* as of 3/31/2008
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