THE LIPPER FUNDS, INC.
Lipper U.S. Equity Fund
PROSPECTUS SUPPLEMENT
September 13, 2000
The Fund's Prospectus dated March 30, 2000 is revised as follows:
The section entitled "RISK/RETURN SUMMARY-Principal Investment Strategies
of the Fund" is deleted in its entirety and replaced with the following:
PRINCIPAL INVESTMENT STRATEGIES OF THE FUND
The Fund invests primarily in large capitalization U.S. common stocks.
Lipper & Company, L.L.C., the Fund's investment adviser, employs a
growth-oriented approach with two fundamental drivers: (1) identify
long-term themes that present valuable investment opportunities; and (2)
utilize "bottom-up" analysis by focusing on a company's price, current
earnings and three- to five-year expected growth rates. The Adviser seeks
to identify solidly growing companies with high quality management teams
who have proven themselves to be successful.
The Adviser will attempt to minimize stock-specific and sector risks
by investing in a minimum of thirty high quality companies, using a
benchmark of the S&P 500 for sector allocation and performance measurement.
The Adviser's balanced portfolio may overweight or underweight certain S&P
500 sectors.
The Fund may also invest as much as 15% of its total assets in equity
securities of very high growth, quality medium capitalization companies.
The Adviser will seek to identify companies with a proven track record of
success and exceptional management early in the companies' growth curves.
The Adviser will attempt to minimize the stock-specific risk in these
positions by initiating positions generally no greater than 1.5% of the
Fund's total assets.
The Fund is suitable for investors who seek long-terms capital
appreciation, stability, diversification and growth, and who seek to
outperform the benchmark S&P 500 index, through a core portfolio of steady,
large capitalization growth companies and some medium-sized, high growth
holdings.
The section entitled "INVESTMENT OBJECTIVE, PRINCIPAL INVESTMENT STRATEGIES
AND RELATED RISKS-Investment Objective and Principal Investment Strategies" is
deleted in its entirety and replaced with the following:
INVESTMENT OBJECTIVE AND PRINCIPAL INVESTMENT STRATEGIES
The Fund's investment objective is capital appreciation. The Fund
invests primarily in large capitalization U.S. common stocks.
The Adviser, employs a growth-oriented approach with two fundamental
drivers: (1) identify long-term themes that present valuable investment
opportunities; and (2) utilize "bottom-up" analysis by focusing on a
company's price, current earnings and three- to five-year expected growth
rates. The Adviser seeks to identify solidly growing companies with high
quality management teams who have proven themselves to be successful. By
employing a three- to five-year focus, the Adviser seeks to realize the
growth potential of high quality companies and therefore long-term tax
advantaged capital gains.
The Adviser will attempt to minimize stock-specific and sector risks
by investing in a minimum of thirty high quality companies, using a
benchmark of the S&P 500 for sector allocation and performance measurement.
The Adviser's balanced portfolio may overweight or underweight certain S&P
500 sectors.
The Fund may also invest as much as 15% of its total assets in equity
securities of very high growth, quality medium capitalization companies.
The Adviser will seek to identify companies with a proven track record of
success
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and exceptional management early in the companies' growth curves. The
Adviser will attempt to minimize the stock-specific risk in these positions
by initiating positions generally no greater than 1.5% of the Fund's total
assets.
By combining a core portfolio of steady, large capitalization growth
companies with some medium-sized, high growth holdings, the Adviser seeks
to provide a balance of stability, diversification and growth, which should
generate returns in excess of the benchmark S&P 500 index.
The section "MANAGEMENT-Executive Officers and Members of the Investment
Committee" is deleted in its entirety and replaced with the following:
EXECUTIVE OFFICERS AND PORTFOLIO MANAGER
Set forth below is a biographical description of the Executive
Officers of the Adviser and the Portfolio Manager of the Fund.
Kenneth Lipper is the Chief Executive Officer and President of
the Adviser and has been Chief Executive Officer and President of
Lipper & Company and its affiliates since founding the firm in 1987.
Prior to founding Lipper & Company, Mr. Lipper was a General Partner
of Lehman Brothers Inc. from 1969 to 1975 and a General Partner and
Managing Director of Salomon Brothers Inc. from 1976 to 1982. He
served as Deputy Mayor of New York City from 1983 to 1985. Mr. Lipper
is a Director and Chairman of the Audit Committee of Case New Holland
N.V., a member of the Federal Reserve Bank of New York's International
Advisory Board, and a member of the Advisory Board of The Chase
Manhattan Bank. He is a Trustee of the Sundance Institute and serves
on the Harvard Executive Committee on University Resources. Mr. Lipper
graduated from Columbia University and Harvard Law School and is a
member of Phi Beta Kappa and the New York State Bar. Mr. Lipper wrote
the novels Wall Street and City Hall, wrote and produced the film City
Hall and produced the films The Winter Guest and The Last Days, for
which he received an Academy Award for best feature length documentary
film. Mr. Lipper is co-publisher of Penguin Lives, the Lipper/Viking
series of short biographies of famous cultural figures by celebrated
authors, and is also the co-publisher of the Lipper/Norton scientific
series on great discoverers and their discoveries.
Abraham Biderman is an Executive Vice President of the Adviser
and Lipper & Company, L.P. Mr. Biderman is co-manager of Lipper
Convertibles, L.P., an investment limited partnership and an affiliate
of the Adviser. Prior to joining Lipper & Company in 1990, Mr.
Biderman was the Commissioner of the New York City Department of
Housing, Preservation and Development from January 1988 through
December 1989 and the Commissioner of the New York City Department of
Finance from May 1986 through January 1988. Mr. Biderman was Special
Advisor to former Mayor Edward I. Koch from 1985 to 1986 and assistant
to former Deputy Mayor Kenneth Lipper from 1983 through 1985. Mr.
Biderman is a Director of the Municipal Assistance Corporation for the
City of New York. Mr. Biderman graduated from Brooklyn College and is
a certified public accountant.
Edward Strafaci is an Executive Vice President and Director of
Fixed Income Money Management for the Adviser and Lipper & Company,
L.P. and co-manager of Lipper Convertibles. Mr. Strafaci is
principally responsible for the trading operations of Lipper and its
affiliates. Prior to joining Lipper & Company in 1989, Mr. Strafaci
was a General Partner at Cohen Feit & Company from 1985 to 1989 and a
trader at Dean Witter Reynolds Inc. from 1983 to 1985. He received a
B.S. in Accounting and Economics and an M.B.A. in Finance from St.
John's University.
Steven Finkel is an Executive Vice President of the Adviser and
Lipper & Company, L.P. Prior to joining Lipper & Company in 1987, Mr.
Finkel was a tax partner with the certified public accounting firm of
Oppenheim, Appel, Dixon & Co. from 1972 to 1987, where he served as
the tax partner in charge of such securities industry clients as
Salomon Brothers Inc. Mr. Finkel graduated from Baruch College and is
a certified public accountant.
Diane Montague is the Portfolio Manager for the Fund and a
Managing Director of Lipper & Company, L.P. Prior to joining Lipper &
Company, Ms. Montague was a Senior Portfolio Manager at Fiduciary
Trust Company International from 1996 to 2000. From 1983 to 1996, she
worked at J.P. Morgan and was a Senior Portfolio Manager of individual
and institutional portfolios and the U.S. Equity Common Trust Fund,
with assets under management of $1.5 billion. Ms. Montague received
her B.A. from Elmira College and J.D. from New York Law School.
