THE PBHG FUNDS, INC.
SUPPLEMENT DATED JULY 31, 2000
To the Prospectuses for the PBHG Class and Advisor Class Shares
This Supplement updates certain information contained in the Prospectus for
the PBHG Class shares dated July 31, 2000, and in the Prospectus for the Advisor
Class shares dated July 31, 2000. You should retain the Prospectus for future
reference. You may obtain an additional copy of the PBHG Class Prospectus or the
Advisor Class Prospectus free of charge by calling 1-800-433-0051.
On June 19, 2000 United Asset Management Corporation, the parent
corporation of Pilgrim Baxter & Associates, Ltd., the investment adviser for
each Fund, announced that it had agreed to be acquired by Old Mutual plc (the
"Transaction"). The closing of the Transaction is expected to take place during
the fourth quarter of 2000 and is subject to a number of conditions, including
regulatory approval, approval of the shareholders of United Asset Management,
and approval by those funds managed by Pilgrim Baxter which represent 90% of
Pilgrim Baxter's aggregate fund management fees as of May 31, 2000. The
Directors of The PBHG Funds, Inc. will be asked by United Asset Management and
Old Mutual plc to approve the new investment advisory agreements to take effect
upon consummation of the Transaction. The Directors will consider this request
at an upcoming board meeting, and if they approve, the fund shareholders will be
asked to vote to approve such agreements.
