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.
Total annual Fund operating expenses were 3.77%, 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.
Investing in small-cap companies can involve risks such as less publicly
available information, higher volatility, and less liquidity than in the case
of larger companies. More information regarding the risks involved with
investing in the Fund can be found in the Prospectus.
Investment Goals
The Fund invests for capital appreciation.
Fund Strategy
Fund investments focus primarily in common stocks of small-cap securities,
defined by the Adviser as companies with market capitalizations below $3
billion, as measured at the time of purchase.
Within the small-cap universe, the portfolio manager employs a series of
traditional and proprietary value-oriented screens to identify companies
that exhibit the following characteristics:
solid business model with a sustainable competitive position
low leverage and/or improving balance sheets
expanding profit margins
purchased at reasonable valuations
The net result is a diversified portfolio of small-cap securities that
emphasizes the best-run, conservatively financed companies selling below
peer and market valuations.
The indices are unmanaged and unlike the Pegasus Small Cap 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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