The Chesapeake Growth Fund
The Chesapeake Growth Fund seeks capital appreciation by investing primarily in growth equities of medium and large capitalization companies. The cornerstone of the Fund’s intensive in-house fundamental analysis is constant contact with the management, customers, competitors and suppliers of both current and potential investments.
Sector Weights
As of 12/31/09
Portfolio Characteristics
As of 12/31/09
| Number of Positions | 49 |
| Median Market Cap (in bil) | $5.0 |
| P/E Ratio - 2010 Earnings Estimates | 19x |
Sources: Baseline Financial Services, Inc. December 31, 2009
Performance Summary
Annualized Performance
As of 12/31/09
| 1 Year | 5 Year | 10 Year | |
|---|---|---|---|
| The Chesapeake Growth Fund Investor Shares (CHEAX)* | 48.97% | 1.20% | -2.30% |
| The Chesapeake Growth Fund Institutional Shares (CHESX)** | 49.21% | 1.38% | -1.96% |
*Total Gross Expense Ratio as of 02/28/10 was 2.88%.
Net Expense Ratio as of 02/28/10 was 1.88%. Net Expense Ratio as of 10/31/09 was 2.49%.
**Total Gross Expense Ratio as of 02/28/10 was 2.63%.
Net Expense Ratio as of 02/28/10 was 1.63%. Net Expense Ratio as of 10/31/09 was 2.25%.
As of March 1, 2009, the investment adviser has contractually agreed to reduce its fees until February 28, 2010, so long as the Fund’s net assets are less than $11 million and the aggregate expenses of every character, including but not limited to investment advisory fees of the investment adviser (exclusive of (i) interest, (ii) taxes, (iii) brokerage commissions, (iv) other expenditures which are capitalized in accordance with generally accepted accounting principles, (v) other extraordinary expenses not incurred in the ordinary course of the Fund’s business, and (vi) dividend expense on short sales), incurred by the Fund during the term of the agreement exceed 3.00% for the Investor shares and 2.75% for the Institutional shares. The adviser may be entitled to recoupment of any fees reduced during any of the previous three (3) years, less any reimbursements previously paid, pursuant to such agreement, provided the Fund’s net assets are greater than or equal to $11 million and overall expenses fall below 3.00% for the Investor shares and 2.75% for the Institutional shares. The Chesapeake Growth Fund’s inception date was April 6, 1994. Class A Investor Shares has been renamed to Investor Shares as of 10/13/09.
Total Annual Fund Operating Expenses have been restated to reflect current contractual arrangements with certain of the Trust’s service providers, and a reduction in expenses as a result of litigation that was settled in the prior fiscal year and will not be recurring in the current fiscal year. As of March 1, 2010, the Adviser has contractually agreed to reduce its fee in whole until February 28, 2011. This agreement will terminate automatically if the Fund’s investment advisory agreement with the Adviser is terminated.
The Fund has entered into brokerage/service arrangements with several brokers through commission recapture programs (e.g., a program where a portion of the brokerage commissions paid on portfolio transactions to a broker is returned directly to the Fund). These portions are then used to offset overall Fund expenses. There can be no assurance that these arrangements will continue in the future. For more information, please see the prospectus and summary prospectus.
Performance shown is for the period ended December 31, 2009. The performance data quoted above represents past performance, which is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. View performance data current to the Fund’s most recent month end.
During part of the period cited the adviser assumed certain expenses and/or waived a portion of its fee. Total return would have been lower absent such assumptions or fee waivers. These fee waivers and/or reimbursements are believed not to have had a significant effect on the Fund’s performance.
Historical performance has been calculated by using the performance of the original Fund class (now called the Institutional Shares) from inception on 4/6/94 until the date of issuance of the Class A Shares on 4/7/95. During part of the period cited the adviser assumed certain expenses and/or waived a portion of its fee. Total return would have been lower absent such assumptions or fee waivers. These fee waivers and/or reimbursements are believed not to have had a significant effect on the Fund’s performance.
The Fund is subject to investment risks, including, without limitation, equity securities risk, market risk, internal change risk, medium capitalization risk, portfolio turnover risk, short-term investment risk, investment adviser risk, and overweighting in certain market sectors risk. As an investor in the Fund, you are subject to the risk that you may lose your money as a result of the impact of the Fund’s investment risk on the Fund’s net asset value per share. When you sell your investment in the Fund, the value of your investment may be more or less than your initial investment.
The Chesapeake Funds are distributed by Ultimus Fund Distributors. The investor should consider the investment objectives, risks, charges and expenses carefully before investing. This and other information can be found in the prospectus and summary prospectus. View a free prospectus and summary prospectus, which contains detailed information, including fees and expenses, and the risks associated with investing in these funds. The prospectus and summary prospectus can also be obtained by calling the fund directly at (800) 430-3863, or the Fund’s Adviser at (610) 558-2800. The prospectus and summary prospectus should be read carefully before investing. Mutual Fund investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results.
The Fund is available for sale in the following states:
AL, CA, CO, CT, DE, FL, GA, IL, IN, MA, MD, MN, MS, NC, NY, OH, PA, RI, SC, TN, TX, VA, WA, WY
