About SBAuer, LLC, advisor to the Auer Growth Fund

While managing their personal investment assets over the past 20 years, the Auer Growth Fund portfolio managers have scoured every quarterly earnings report from approximately 9,000 companies trading in U.S. exchanges. They searched daily for companies showing uncommon growth and trading at very low P/E ratios for their individually managed accounts.

Today, they apply the same process in selecting stocks for the Auer Growth Fund.

Our Philosophy:
We believe in old-fashioned hard work with our sleeves rolled-up, not computer screening and "quant" models. We trust our eyes and brains more than a black-box computer model. In fact, we believe we don't pick stocks, but rather, stocks pick us since we purchase nearly every stock that meets our qualifications.

Why such hard work and diligence? We treat the Fund like its our own money, because much of it is. Our portfolio managers are among the largest shareholders of the Fund. We are constantly monitoring the company news and analyst reports to seek the potential for probabilities, not possibilities.

Our Process:
The Auer Growth Fund is a "go anywhere" fund. It is not limited to certain size companies, specific industries or a particular investment style. Since the Fund's inception, the smallest company that has been included in the Fund traded with a market value of only $6 million and the largest, $450 billion.

Buy Discipline:
The Fund seeks companies with:

• 20% quarterly year-over-year revenue growth
• 25% quarterly year-over-year earnings growth
• trading at a P/E ratio below 12*

Sell Discipline:
If a stock appreciates 100% (doubles) over its purchase price, the issue is sold and replaced with a new name.

The Fund does not intend to hold significant cash as long as new stock names can be found that exhibit the growth characteristics and below market price earnings values the managers seek. In other words, unlike other funds, the managers do not employ any timing or general market sentiment in the portfolio design.

The holdings are monitored actively, several times a day. Turnover is typically high with the potential for an annual tax liability that may be higher than the average fund. The Fund looks to maximize capital appreciation by holding equities that combine extremely high sales and profit growth, yet trade at what the managers feel is a very attractive, reasonable valuation.

To do this, the managers search through all 9,000 listed stocks every quarter, and typically keep the Fund invested in 150 names or more, seeking the approximately 2% of all U.S. stocks that meet the Fund's criteria. By doing this, the fund gives excellent exposure to the small and mid-capitalization sectors, yet still adds a very strict buy and sell discipline.  One unique feature of the Fund is that it seeks stocks which it believes have similar characteristics to other stocks that have doubled in value in the past.

Small- Cap investing involves greater risk not associated with investing in more established companies, such as greater price volatility, business risk, less liquidity and increased competitive threat.

*Price Earnings Ratio is a measure of the price paid for a share relative to the annual profit earned by the firm per share. The Auer Growth Fund only buys stocks that are trading less than 12 times this year or next year’s earnings forecast.