PRUDENT BEAR FUNDS INC
497, 1998-08-10
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                            PRUDENT BEAR FUNDS, INC.


                                Supplement to the

                       Statement of Additional Information

                             dated January 30, 1998





         The Fund has  increased  the  percentage  of its net assets that may be
invested  in  securities  of other  investment  companies  from 10% to 25%.  See
non-fundamental investment restriction no. 5.

                    The date of this Supplement is August 10, 1998.



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