PBHG INSURANCE SERIES FUND, INC.
SUPPLEMENT DATED FEBRUARY 8, 2000
TO THE PROSPECTUS DATED MAY 1, 1999
This Supplement updates certain information contained in the Prospectus.
You should retain the Prospectus and all Supplements for future reference. You
may obtain an additional copy of the Prospectus, as supplemented, free of charge
by calling 1-800-347-9256.
On January 31, 2000, a meeting of the Board of Directors of PBHG Insurance
Series Fund, Inc. was held, at which the Directors approved modifying the PBHG
Large Cap Value Portfolio's non-fundamental investment strategy to provide that
the Portfolio will invest at least 65% of its total assets in value securities
of no more than 30 large capitalization companies. The Directors also approved
changing the name of the Portfolio to the PBHG Select Value Portfolio. This
modified investment strategy and name change will become effective on May 1,
2000. Accordingly, effective May 1, 2000, the following will replace in its
entirety the information appearing under the heading "Main Investment
Strategies" on page 6 of the Prospectus:
Main Investment Strategies:
Under normal market conditions, the Portfolio invests at least 65% of its total
assets in value securities, such as common stocks, of no more than 30 companies
with large market capitalizations. These companies generally have market
capitalizations greater than $1 billion. The value securities in the Portfolio
are primarily common stocks that Pilgrim Baxter and Value Investors believe are
currently underpriced using certain financial measurements, such as their
price-to-earnings ratios, dividend income potential and earnings power. Pilgrim
Baxter and Value Investors use their own research, computer models and
proprietary measures of value in managing this Portfolio. The Portfolio may sell
a security for a variety of reasons, such as when it becomes overvalued or shows
signs of deteriorating fundamentals.
The Portfolio may use options and futures contracts for hedging and risk
management.
In addition, the following risk disclosure will be added under the heading
"Main Investment Risks" on page 6 of the Prospectus:
Main Investment Risks:
The Portfolio invests in a limited number of stocks in order to achieve a
potentially greater investment return than a more widely diversified fund. As a
result, the price change of a single security, positive or negative, has a
greater impact on the Portfolio's net asset value and will cause its shares to
fluctuate in value more than it would in a more widely diversified fund.
