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LONGLEAF PARTNERS FUNDS TRUST
SUPPLEMENT TO MAY 1, 1998 PROSPECTUS
LONGLEAF PARTNERS FUND
OPENING OF FUND TO NEW INVESTORS
LOGO
Effective October 16, 1998, Longleaf Partners Fund is open to all investors. The
required minimum initial investment and other procedures for purchasing and
redeeming shares are the same as for other Longleaf Partners Funds and are
described on pages 22 through 27 of the Prospectus. Longleaf Partners Small-Cap
Fund remains closed to new investors except for those listed on page 22.
LONGLEAF PARTNERS SMALL-CAP FUND
CHANGE IN DEFINITION OF SMALL CAPITALIZATION COMPANIES
On August 7, 1998, the Board of Trustees of Longleaf Partners Small-Cap Fund
authorized a change in the definition of small capitalization companies in which
the Fund invests its portfolio. Under the new definition, at least 65% of the
Fund's total assets will be invested in companies within the capitalization
range of companies included in the Russell 2000 stock index. Previously,
companies with a market capitalization of less than $1 billion were considered
as "small-cap" companies.
At September 30, 1998, the market capitalization of companies included in the
Russell 2000 ranged from a low of $5.9 million to a high of $2.4 billion. To the
extent that the market-cap of companies in the Russell 2000 changes in the
future, the size of the maximum market-cap of companies in which the Small-Cap
Fund will be able to invest at least 65% of its total assets will
correspondingly change.
The Small-Cap Fund adopted the Russell 2000 as its official comparative stock
index at the end of the third quarter of 1997. However, the Fund continued to
use $1 billion as the stated maximum capitalization for a small-cap company,
which has limited the universe of undervalued companies available for
investment. The present change in the Fund's definition of "small-cap"
companies, which recognizes the general market-cap increase during the 1990's,
will increase the Fund's universe of potential investments and is consistent
with the earlier adoption of the Russell 2000 as the Small-Cap Fund's official
comparative index.
LONGLEAF PARTNERS FUNDS
Managed By
SOUTHEASTERN ASSET MANAGEMENT, INC.
6410 Poplar Avenue; Suite 900
Memphis, TN 38119
(800) 445-9469 (901) 761-2474
