Perkins Discovery Fund
Seeking Capital Appreciation through the Discovery of Emerging Companies
Perkins Discovery Fund
Seeking Capital Appreciation through the Discovery of Emerging Companies

A Letter to Our Investors

Dear Investor:

Thank you for your interest in the Perkins Discovery Fund, managed by Perkins Capital Management, Inc. (PCM). We are excited about the investment opportunities presented by the marketplace.

After many years in the investment management business, we have had the opportunity to be involved with many types of companies. At Perkins Capital Management, Inc., we seek to find investment opportunities primarily by searching for companies that we believe are in the process of undergoing some positive fundamental change.

Stocks are purchased when it is believed that change will result in higher earnings and/or a higher price/earnings ratio, and thus a higher share price when the change is recognized by others. Companies undergoing change may have new products, processes, strategies, management, or may be subjected to change by external forces. Perkins Capital Management uses a combination of both fundamental and technical analysis in its quest to uncover investment opportunities. We want to have a good understanding of what companies do and to know who’s running them. This investment style can best be described as “bottom-up” investing, as opposed to the “top-down” style of following general market trends.

The Perkins Discovery Fund uses this approach to focus on micro-cap companies, under $1 billion in market capitalization at the time of investment. While investing in smaller companies may involve greater risks, we believe companies fitting this criteria present an opportunity to achieve superior returns because they are not well known to the investing public and have less investor following.

Our Fund provides you with an investment advisor team averaging over 36 years of investment experience.

Please read the Perkins Discovery Fund Prospectus or Summary Prospectus carefully, not only as a disclosure document, but also as your invitation to join us in the adventure of pursuing investment success through micro-cap investing.


Richard C Perkins
President and Portfolio Manager
Perkins Capital Management, Inc.

Daniel S. Perkins
Chief Operating Officer and Portfolio Manager
Perkins Capital Management, Inc.

The Price to Earnings (P/E) Ratio is the most common measure for how expensive a stock is, and it is calculated by dividing current price of the stock by the company’s trailing 12 months’ earnings per share