Buford, Dickson, Harper & Sparrow, Inc.

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Portfolio Characteristics

SMALL CAP GROWTH
Average Number of Positions:	30 holdings
Turnover:	Averages two buys and two sells per month
Appropriate Benchmark:	Russell 2000

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Overview

The Small Cap Portfolio is the result of the same process that has been used for our Large Cap portfolio since inception. BDHS invests exclusively in stocks that demonstrate high and sustainable growth momentum. Called a Momentum Growth Strategy, this investment approach seeks stocks that have demonstrated superior long-term returns compared to general market indexes. With a lucrative track record in our Large Cap portfolio, we saw an opportunity to broaden the success of this strategy using Small Cap Stocks.

To identify potential opportunities, BDHS considers all market capitalizations. Until recently, however, we had been choosing only stocks with a capitalization greater than $5 billion for our Large Cap Portfolio. The Small Cap portfolio was created to be able to use the same ideas generated from this process, but were not eligible for inclusion in the Large Cap portfolio, because of their capitalization size.

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Portfolio Criteria

• All stocks equally weighted at the time of initial purchase.
• Sector weightings fall within 50% and 150% of the Russell 2000 Growth weightings.
• No more than 5% of holdings invested in any one security.
• No more than 20% of holdings invested in foreign securities. (ADRs only)
• Cash equivalents held if there are no appropriate issues available.

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Portfolio Sector Weightings (as of 12/31/2011)

The BDHS portfolio tends to resemble the capitalization mix found in general stock market indexes, and BDHS maintains the flexibility to invest in momentum opportunities of any capitalization size.

Consumer Discretionary	28%
Industrials	24%
Basic Industry & Energy	16%
Technology	13%
Consumer Staples & Healthcare	10%
Financials	8%
Telecom Services & Utilities	0%
Other	0%
TOTAL	99%

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Portfolio Representative Holdings (as of 12/31/2011)

• ACUITY BRANDS INC
• ADVANCED AUTO PARTS INC
• AMERICAN PUBLIC EDUCATION
• ASBURY AUTOMOTIVE GROUP
• GOODYEAR TIRE & RUBBER COMPANY
• IAC/INTERACTIVECORP
• LINCARE HLDGS INC
• LINCOLN ELEC HLDGS INC
• MSC INDUSTRIAL DIRECT CORP
• OLD DOMINION FREIGHT LINES INC

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View BDHS Small Cap Growth Performance