THE BAUPOST FUND (the "Fund")
Supplement dated July 22, 1997 to the Statement of
Additional Information (the "SAI") dated
February 28, 1997
On March 31, 1997 the Trustees of the Fund approved the elimination of
nonfundamental investment restriction (4) from the section of the SAI entitled
"Investment Restrictions." The nonfundamental investment restriction to be
deleted reads as follows:
"It is contrary to the Fund's present policy, which may be changed by
the Trustees without shareholder approval, to....
(4) Purchase or sell interests in limited partnerships that have as
their primary business purpose the development or management of real
estate."
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The last paragraph of the section of the SAI entitled "Standard
Performance Measures" is replaced with the following:
The Fund's average annual total return since the commencement
of its operations (December 14, 1990) through October 31, 1996 was
16.17%. The Fund's total return for the one-year and five-year periods
ended October 31, 1996 was 22.51% and 15.06%, respectively.
