FOUNTAINHEAD SPECIAL VALUE FUND
SUPPLEMENT DATED DECEMBER 18, 1997
TO PROSPECTUS DATED DECEMBER 23, 1996
The following should be read in conjunction with the section titled "General" on
page 13 of the Prospectus: The Fund may invest in mortgage related securities,
invest in foreign securities other than ADR's, and may buy and write put and
call options and futures on stock indices, provided the Fund's investment in
each does not exceed 5% of its net assets. The Fund may also invest in Rule 144A
Securities. Rule 144A Securities are securities in the United States that are
not registered for sale under Federal securities laws but which can be resold to
institutions under SEC Rule 144A. Provided that a dealer or institutional
trading market in such securities exists, these restricted securities are
treated as exempt from the Fund's limitation that it will not invest more than
5% of its net assets in illiquid securities (those which cannot be disposed of
promptly and in the ordinary course of business without taking a reduced price).
Under the supervision of the Board of Trustees, the Advisor determines the
liquidity of restricted securities and, through reports from the Advisor, the
Board will monitor trading activity in restricted securities. If institutional
trading in restricted securities were to decline, the liquidity of the Fund
could be adversely affected.
