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<PAGE> PAGE 22
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<PAGE> PAGE 23
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<PAGE> PAGE 24
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<PAGE> PAGE 25
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SIGNATURE ANGELA PALMER
TITLE SR FINANCIAL ANALYST
<TABLE> <S> <C>
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<CIK> 0000932510
<NAME> ICAP FUNDS, INC.
<SERIES>
<NUMBER> 1
<NAME> ICAP DISCRETIONARY EQUITY PORTFOLIO
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<NET-INVESTMENT-INCOME> 3,134,884
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<ACCUMULATED-NII-PRIOR> 4,372
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</TABLE>
<TABLE> <S> <C>
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<CIK> 0000932510
<NAME> ICAP FUNDS, INC.
<SERIES>
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<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 28,033,823
<DIVIDEND-INCOME> 599,902
<INTEREST-INCOME> 50,993
<OTHER-INCOME> 897
<EXPENSES-NET> (242,136)
<NET-INVESTMENT-INCOME> 409,656
<REALIZED-GAINS-CURRENT> (152,423)
<APPREC-INCREASE-CURRENT> 4,699,989
<NET-CHANGE-FROM-OPS> 4,957,222
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (426,390)
<DISTRIBUTIONS-OF-GAINS> (938,757)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,746,129
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<TABLE> <S> <C>
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<CIK> 0000932510
<NAME> ICAP FUNDS, INC.
<SERIES>
<NUMBER> 4
<NAME> ICAP SELECT EQUITY PORTFOLIO
<S> <C>
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<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
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<OVERDISTRIBUTION-GAINS> 0
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<DIVIDEND-INCOME> 146,409
<INTEREST-INCOME> 7,473
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<PER-SHARE-NAV-BEGIN> 20.00
<PER-SHARE-NII> .28
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<PER-SHARE-DIVIDEND> (.29)
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</TABLE>
Exhibit to Accompany
Item 77J (b)
Form N-SAR
ICAP Funds, Inc.
( the "Fund")
According to the provisions of Statement of Position 93 - 2 (SOP 93 - 2)
"Determination, Disclosure and Financial Statement Presentation of
Income, Capital Gain and Return of Capital Distributions by Investment
Companies," the Fund is required to report the accumulated net
investment income (loss) and accumulated net capital gain (loss) accounts
to approximate amounts available for future distributions on a tax basis
(or to offset future realized capital gains). Accordingly, at December 31,
1998, reclassifications were recorded to increase undistributed net
investment income by $4,626, $51,774, $6,562 and $16,734; increase
accumulated net realized loss on investments by $562, $47,711, $0 and
$10,013; and decrease paid-in-capital in excess of par by $4,064, $4,063,
$6,562 and $6,721 for the Discretionary Equity, Equity, Select Equity
and Euro Select Equity Portfolios, respectively.
This reclassification has no impact on the net asset value of the Fund and
is designed to present the Fund's capital accounts on a tax basis.
K:\ICAP\NSAR\77J1298.txt
02/19/99
Report of Independent Accountants
To the Board of Directors
of ICAP Funds, Inc.
In planning and performing our audits of the financial statements of
ICAP Funds, Inc. (comprising, respectively, ICAP Discretionary Equity
Portfolio, ICAP Equity Portfolio, ICAP Select Equity Portfolio and
ICAP Euro Select Equity Portfolio) (the "Funds") for the year ended
December 31, 1998, we considered its internal control, including control
activities for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, not to
provide assurance on internal control.
The management of the Funds is responsible for establishing and
maintaining internal control. In fulfilling this responsibility, estimates
and judgments by management are required to assess the expected
benefits and related costs of control activities. Generally, controls that
are relevant to an audit pertain to the entity's objective of preparing
financial statements for external purposes that are fairly presented in
conformity with generally accepted accounting principles. Those
controls include the safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud may
occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of
the design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or
operation of any specific internal control component does not reduce to a
relatively low level the risk that errors or fraud in amounts that would be
material in relation to the financial statements being audited may occur
and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no
matters involving internal control, including control activities for
safeguarding securities, that we consider to be material weaknesses as
defined above as of December 31, 1998.
This report is intended solely for the information and use of management
and the Board of Directors of ICAP Funds, Inc. and the Securities and
Exchange Commission.
/s/ PRICEWATERHOUSECOOPERS LLP
Milwaukee, Wisconsin
January 29, 1999
