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.
Ryan C. Kelley, CFA Co-Portfolio Manager
Ryan C. Kelley, CFA joined FBR in 1997 as an associate in the Corporate Finance Department,
where he worked for 5 years. In 2002, Ryan became an equity analyst and later a senior equity
analyst in the research department of FBR.
Ryan joined The FBR Funds in November of 2005 and currently serves as Portfolio Manager of the
Pegasus Mid Cap Fund and Co-Portfolio Manager of The FBR Pegasus Fund
and assistant to Mr. Ellison on the management of the FBR Large and Small Cap Financial Funds.
Ryan received his B.A. from Oberlin College in 1996 and completed his CFA designation in 2003.
Total annual Fund operating expenses were 2.21%, net expenses were 1.97%.
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.
Shares in the fund carry risks including the possible loss of principal.
There are special risks associated with international investing, including
currency fluctuations, government regulation, political developments and
differences in liquidity. Additionally, the Fund invests a portion of the
assets in mid and small capitalization companies, which may increase the
risk of greater price fluctuations. See the prospectus for a complete list
of principal risks.
Investment Goals The investment objective of the FBR Pegasus Fund is
long-term capital appreciation.
Fund Strategy We believe the key to long-term investment success is
having a focused approach and the discipline to adhere to that approach through all market cycles and
trends. Strict attention to valuations increases the prospect of enhancing long-term returns with the
intended effect of dampening the downside risks associated with equity investing. We believe that
conservative and balanced investing begins with the strength of a company’s balance sheet.
The Pegasus Fund employs a series of fundamental value-oriented screens to identify companies with
strong balance sheets, low leverage, positive tangible book value and profitability without regard to
capitalization or sector. The result is a diversified portfolio that emphasizes conservatively financed
companies selling below peer and market valuations.
Our team managed approach allows the portfolio managers to examine and understand a large sample of
companies across multiple sectors. This provides a sound basis for greater comparison among industry
and peer groups to better determine which companies meet the strict criteria required for inclusion
within the portfolio.
The indices are unmanaged and unlike the Pegasus 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.
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.
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