SUPPLEMENT TO THE PROSPECTUS OF
WEISS, PECK & GREER, L.L.C.
MUTUAL FUNDS
WPG Government Money Market Fund
WPG Tax Free Money Market Fund
WPG Intermediate Municipal Bond Fund
WPG Government Securities Fund
WPG Growth and Income Fund
WPG Tudor Fund
Weiss, Peck & Greer International Fund
WPG Growth Fund
WPG Quantitative Equity Fund
Dated May 1, 1996
Weiss, Peck & Greer International Fund
The following disclosure replaces the paragraph captioned "Weiss, Peck &
Greer International Fund" on page 29 of the attached Prospectus:
Weiss, Peck & Greer International Fund. David Kiddie has been the portfolio
manager of the Fund since June, 1996. Mr. Kiddie has been a Director of HSIM
since April 1996. Prior thereto, Mr. Kiddie was Head of the European Equities
Team at Lloyds Investment Management International Limited, the Fund's previous
subadviser (1994-1996), Director of European Equities at Sun Life Investment
Management (1992-1994), and Director of European Equity Strategies at Enskilda
Securities (1991-1992).
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WPG Quantitative Equity Fund
The following disclosure replaces the paragraph captioned "WPG Quantitative
Equity Fund" on page 29 of the attached Prospectus:
WPG Quantitative Equity Fund. Daniel J. Cardell is primarily responsible for
the day-to-day management of the Fund. Mr. Cardell has been a principal of WPG
since May 1996. Prior to joining WPG, Mr. Cardell was Senior Vice President
and Director of Equities for the Bank of America.
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Each Fund
To the extent that a Fund is required by policies of the staff
of the Securities and Exchange Commission to cover its obligations under
certain securities transactions, the Fund may maintain in a segregated account
with its custodian either cash or liquid securities having a value (determined
daily) at least equal to the amount of the Fund's obligation.
WPG Quantitative Equity Fund
The following disclosure replaces the "Investment Program" section which
begins on page 17 of the attached prospectus.
QUANTITATIVE EQUITY FUND
Investment Objective. The Quantitative Equity Fund seeks to provide investment
results that exceed the performance of publicly traded common stocks in the
aggregate, as represented by the capitalization weighted Standard & Poor's 500
Composite Stock Price Index (the "S&P 500 Index").
Investment Program. To seek to achieve its investment objective, the
Quantitative Equity Fund will, under normal market conditions, invest in a
portfolio of stocks that is considered more "efficient" than the S&P 500 Index
of selected common stocks. An efficient portfolio is one that has the maximum
expected return for any level of risk. The efficient mix of such a portfolio's
investments is established quantitatively, taking into account the expected
return and volatility of returns for each security in a given universe. To
implement this strategy, WPG compiles historical data for over 1,000 stocks
comprised of the S&P 500 Index, and 500 other large capitalization stocks. WPG
then derives expected returns for each stock and seeks to maximize the expected
return for a given level of risk. Using a sophisticated software program
incorporating risk reduction techniques that have been developed by investment
professionals of WPG, a portfolio is constructed that is believed to have
optimized risk/reward ratios. WPG selects the combination of stocks, together
with their appropriate weightings, that WPG believes will comprise the optimal
portfolio for the Fund. It is expected that the Fund's optimal portfolio will
consist of between 100 and 180 stocks. This optimal portfolio is designed to
have a return greater than, but highly correlated to, the return of the S&P 500
Index. After the optimal portfolio is constructed, the portfolio will be
rebalanced from time to time to maintain the optimal risk/reward trade-off. WPG
continually assesses each stock's changing characteristics relative to its
contribution to portfolio risk. The S&P 500 Index is a market weighted
compilation of 500 common stocks selected on a statistical basis by S&P. The S&P
500 Index is typically composed of issues in the following sectors: industrial,
financial, public utilities and transportation. Most of the stocks that comprise
the index are traded on the New York Stock Exchange, although some are traded on
the American Stock Exchange and in the over-the-counter market. While the
Quantitative Equity Fund will generally be fully invested in equity securities,
it may invest up to 35% of its total assets in fixed income obligations maturing
in one year or less that are rated at least AA by S&P or Aa by Moody's, or their
equivalents, or unrated securities determined by WPG to be of comparable
quality. The Fund may also purchase and sell futures contracts on securities and
securities indices and options on such futures contracts, as well as purchase
and sell (write) exchange-traded and over-the-counter put and call options on
securities and securities indices. The Fund also may lend its portfolio
securities to generate additional income, enter into repurchase agreements,
invest in warrants and ADRs, and purchase securities on a forward commitment or
when-issued basis. The realization of current income is not a significant part
of the Fund's investment strategy, and any income generated will be incidental
to the Fund's objective of outperforming the S&P 500 Index. WPG's research
personnel will monitor and occasionally make changes in the way the portfolio is
constructed or traded. Such changes may include: determining better ways to
derive expected returns, improving the manner in which each stock's contribution
to risk is determined, altering constraints in the optimization process, and
effecting changes in trading procedure (to reduce transaction costs or enhance
the effects of rebalancing). Any such changes are intended to be consistent with
the Fund's basic philosophy of seeking higher returns than those that could be
obtained by investing directly in all of the stocks in the S&P 500 Index. There
can be no assurance that the Fund will achieve its investment objective. For
further information concerning the Fund's investment techniques, policies and
risks, see "Risk Considerations and Other Investment Practices and Policies of
the Funds" in this Prospectus.
Dated January 21, 1997
