LMH Fund, Ltd.
Supplement to Prospectus dated November 1, 1995
On July 3, 1996, the Fund's directors unanimously approved a Sub-Advisory
Agreement between the Fund's Advisor, Heine Management Group, Inc., and Matrix
Asset Advisors, Inc. ("Matrix") whereby Matrix would become Sub-Advisor to the
Fund, effective immediately. Mr. David Katz, C.F.A., President and Chief
Investment Officer of Matrix, will be responsible for the management of the
Fund's portfolio, together with Mr. Leonard Heine, President of the Advisor. Mr.
Katz has been appointed as Vice President, Chief Investment Officer and
Secretary of the Fund.
The Sub-Advisory agreement provides that prior to the end of calendar year 1996,
a meeting of Fund shareholders will be convened to consider the approval of a
new investment advisory agreement whereby Matrix will replace Heine Management
as Investment Advisor to the Fund and Mr. Heine will retire from active
management of the Fund. . It is anticipated that under that new Investment
Advisory Agreement to be considered by shareholders, the annual advisory fee
rate payable to Matrix will be the same as that paid by the Fund to the Advisor
under the current investment advisory agreement, i.e., 1% of the Fund's average
daily net assets.
While serving as Sub-Advisor, Matrix has agreed to waive any Sub-Advisory fees
payable from the Advisor. Also, while Matrix serves as sub-Advisor, the Advisor
has agreed to waive payment of fees payable under the existing Investment
Advisory Agreement in excess of 25% of the net advisory fees due thereunder.
Matrix is a registered investment advisor which was founded in 1986. Matrix
provides investment advisory services to individuals, endowment and pension
accounts with a value of over $330 million. Matrix is controlled by Mr. David
Katz and Mr. Morley Goldberg and is located at 444 Madison Avenue, New York, NY
10022.
July 15, 1996
