<PAGE>
WARBURG PINCUS LONG-SHORT MARKET NEUTRAL FUND
WARBURG PINCUS LONG-SHORT EQUITY FUND
Supplement to the Prospectuses and Statement of Additional Information
(each dated September 11, 1998)
-------------------------------
The following information modifies the table in the Prospectuses under the
section entitled "The Funds' Expenses." Capitalized terms used below, unless
otherwise defined, have the same meaning assigned to them in the Prospectuses.
"Other Expenses" and "Total Fund Operating Expenses" do not include dividend and
interest expenses incurred in connection with short sales (estimated at 1.50%
and 1.35% for the first fiscal year of the Long-Short Neutral Fund and the
Long-Short Equity Fund, respectively), which are included in and reduce the
investment return of the Funds.
The Funds' investment adviser and, with respect to the Common Shares of the
Funds, Counsellors Service have undertaken to limit Total Fund Operating
Expenses of each of the Funds for the one-year period following the closing date
of the reorganization of the relevant BEA Fund to the extent necessary for the
net expense ratio of each Fund (exclusive of dividends and interest paid on
securities sold short) to be no higher than that of the corresponding series of
The RBB Fund, Inc. (exclusive of dividends and interest paid on securities sold
short) for the thirty-day period ending on the closing date of the
reorganization of such series, plus the Performance Adjustment applicable to the
Long-Short Neutral Fund.
The expense examples for the Funds exclude dividend and interest expenses
incurred in connection with short sales.
The following information supersedes certain information in the Prospectuses
under the section entitled "Management of the Funds -- Investment Adviser" and
in the Statement of Additional Information under the section entitled
"Investment Advisory and Servicing Arrangements -- Advisory Agreements."
Capitalized terms used below, unless otherwise defined, have the same meaning
assigned to them in the Prospectuses.
In addition to the undertaking to limit expenses described under "The Funds'
Expenses" in the Prospectuses, the Funds' investment adviser and, with respect
to the Common Shares of the Funds, Counsellors Service have voluntarily
undertaken to limit the operating expenses of each Fund until further notice to
the extent required to limit the total annual operating expenses (which do not
include nonrecurring account fees, extraordinary expenses and dividends and
interest paid on securities sold short) of each class of shares to the
percentage of a Fund's average daily net assets attributable to that class
described under "The Funds' Expenses -- Total Fund Operating Expenses" in the
Prospectuses, plus the Performance Adjustment applicable to the Long-Short
Neutral Fund.
Dated: October 21, 1998
