THE MANAGERS FUNDS
Supplement dated January 29, 1999
to Prospectus dated May 1, 1998
The Prospectus is hereby supplemented as
follows:
On January 29, 1999, The Managers Funds, L.P.
(the "Manager") and its partners entered into
an agreement (the "Purchase Agreement") with
Affiliated Managers Group, Inc. ("AMG").
Under the Purchase Agreement, at the closing,
The Managers Funds, L.P. will convert into a
Delaware limited liability company ("LLC") and
AMG will acquire a 95% interest in its profits
and a 100% interest in the capital of the
Manager with the remaining 5% interest in the
profits to be retained by certain key
employees of the Manager (the "Transaction").
AMG will become managing member of the LLC.
AMG is a publicly-traded Delaware corporation
that acquires and holds interests in
investment management firms. The Transaction
is expected to close on or about April 2,
1999, subject to various conditions.
At an in-person meeting held on January 13,
1999, the Board of Trustees of The Managers
Funds considered the proposed Transaction and
approved a new advisory agreement between each
Fund (other than Managers Money Market Fund)
and the LLC, new sub-advisory agreements and
other contracts with the LLC on the same terms
as the existing contracts, and to take effect
upon effective date of the Transaction. The
approval of the advisory agreements with the
LLC and of the Sub-Advisory Agreement on
behalf of Managers Capital Appreciation Fund
and Essex Investment Management Company, LLC
(an affiliate of AMG) are subject to the
approval by the shareholders of the applicable
Funds. A special meeting of shareholders will
be held to consider these matters before the
proposed Transaction is consummated. A proxy
statement describing the matters to be
considered will be mailed to each shareholder
in advance of the meeting.
January 29, 1999
