THE PBHG FUNDS, INC.
SUPPLEMENT DATED OCTOBER 14, 1997
TO THE
PROSPECTUS DATED JUNE 30. 1997
This Supplement updates certain information contained in the above-referenced
Prospectus of The PBHG Funds, Inc. (the "Fund"). You should retain both this
Supplement and the Prospectus for future reference. You may obtain an
additional copy of the Prospectus, free of charge, by calling 1-800-433-0051.
The following information should be added following the first numbered paragraph
under "Investment Limitations" on page 23 of the Prospectus:
The Board of Directors has approved, and has recommended that the
shareholders approve, a change to a fundamental investment policy applicable
to the Large Cap 20 Fund. If the shareholders approve the change, the Large
Cap 20 Fund, with respect to 50% of its total assets, will not be permitted
to purchase securities of any issuer (except securities issued by the United
States, its agencies and instrumentalities and repurchase agreements involving
such securities) if, as a result, more than 5% of the total assets of such
Portfolio would be invested in securities of such issuer. Currently, this
limitation applies to 75% of the Portfolio's total assets. This change in
investment policy will result in the classification of the Portfolio as a
non-diversified investment company, while it is currently classified as a
diversified investment company. The Board of Directors has called a special
meeting of shareholders of the Portfolio to be held on December 11, 1997, at
which meeting the shareholders will be asked to approve the proposed change.
