• A global equity portfolio has flexibility to vary weightings during periods of country/sector turmoil, thereby capitalizing on best growth opportunities worldwide.
   
• As a general rule, a non-profit fund can expect to decrease portfolio risk by as much as 40% by investing globally.
   
• Recent data reviewing price/cash earnings ratios suggests that overseas stocks are inexpensive on a relative and absolute basis.  
   
• A fully integrated global portfolio allows for one manager to oversee investing worldwide, ensuring that the portfolio isn’t invested in assets that are highly concentrated in one industry/country. 

Boston Business Journal

“Bay State Companies Can't Ignore China Syndrome”

August 29-September 4, 2003

Bernard Horn, manager of the Polaris Global Value Fund, said a continued flow of jobs to Asia could force lower prices for goods in the U.S. and contribute to a sustained fall in prices.  As an example, Teradyne Inc. previously dismissed manufacturing in China, but opened an office in Shanghai in 2003, finding the quality of work every bit as good as in the U.S.

United Media

“Opportunities Abound Worldwide”

August 21, 2003

Managed by Bernard Horn, the Polaris Global Value Fund has outpaced the average Lipper World Equity Fund over the past five years.  The Fund’s investment strategy blends model-driven quantitative analysis with bottom-up stock picking.

Mr. Horn mentioned the firm’s leverage of investment technology to ensure that most time is spent on fundamental research.  The first step of the process is a global valuation model; the second step is a screen on stocks. Following this model, the Fund has been shifting away from the U.S. market (mainly large caps), in favor of overseas investments like Continental AG, Barratt Development and Peugeot.

Ticker Magazine

“It’s Free World Cash”

June 23 – July 23, 2003

The road to mitigated risk high returns is paved with the world’s undervalued free cash flows, according to Bernard R. Horn Jr., manager of the Polaris Global Value Fund.  Mr. Horn discussed the collision course between Eastern/Western capitalism, and the different stakeholder/shareholder structures that limit free cash flow in China.

In what does the Fund invest?  Mr. Horn points to resurgence in U.S. financials and healthcare, Irish paper companies, Canadian methanol producers and many others.  The Fund has a strong weighting in Northeast banks (particularly Banknorth), as they provide tremendous alpha.  Alpha is the difference between a stock’s actual returns and its expected performance, given its level of risk as measured by Beta (volatility).

Financial Advisor

“Worth Banking On?”

June 2003

Tenuous stock markets and low money fund yields aid banks and thrifts, says Bernard Horn, manager of the Polaris Global Value Fund.  Lending activity is on the rise as investors buy real estate instead of stocks, and simultaneously, allocate cash to higher yielding bank products. What banks will capitalize on this trend?  Mr. Horn looks to California banks that are filling the gaps created by consolidation.  Some of his picks include:  Pacific Crest Capital and Hawthorne Financial Corp.

Bloomberg Television
"Contrarian Plays: Bernie Horn"
April 25, 2003

Bernie Horn, fund manager of the Polaris Global Value Fund, picks contrarian plays - unpopular stocks that historically have exhibited positive returns. One of his top choices has been Methanex, a company that supplies 26% of the world's supply of menthanol. According to Mr. Horn, Methanex is characteristic of the companies in which the Fund invests, as it has a high amount of free cash flow and low debt level.

One contrarian play for which Mr. Horn holds out hope: Parmalat, an Italian company that specializes in ultra pasteurized milk and diversifies along other food lines. Mr. Horn commented about the company's decision to issue debt and subsequent decision to pull it. He believes the stock has recovered quite well since Parmalat's decision to forego the issuance of debt.

Physician's Money Digest
"Portfolios Need International Infusions"
April 15, 2003

(Byline Highlights - Author Bernard R. Horn Jr.)

When the U.S. stock market retreats, some foreign exchanges tend to shift to a lesser degree - proof that international and U.S. markets are not perfectly correlated.

There is no question that foreign markets can outperform the United States and vice versa. For instance, according to Lipper Inc., for the year ending 1/31/03 foreign stock funds faired significantly better, declining 14.41% vs. a drop of 22.86% for the average U.S. fund.

If the dollar weakens further, foreign stocks held by U.S. investors tend to rise in value because the underlying foreign currencies appreciate.

Many foreign stocks now have significantly cheaper price/cash earnings ratios than their U.S. counterparts. Countries like Germany, France and South Africa are trading at a little less than 8 times the expected 2003 cash earnings, while U.S. stocks remain overvalued.

CNBC on MSN
"Tech And Growth Are Hot - Again"
March 25, 2003

Bernie Horn, manager of the Polaris Global Value Fund, is not sanguine about the recovery of the market. He has reduced his U.S stock exposure in the past few months, and he remains concerned about the revival of corporate profits.

Looking overseas, Mr. Horn likes Italy's Parmalat, a company which makes ultra pasteurized milk and other foods. The company's shares are down due to a misstep in their financial structure, says Mr. Horn, but they have plenty of cash flow to pay down debt accumulated through acquisitions.

Time Magazine
"Float Your Bucks"
February 24, 2003

A weakening dollar and a multitude of inexpensive foreign stock picks have encouraged U.S. investors to start buying overseas. In the 12 months ended 1/31/03, stocks in the U.S. fell an average of 23%, while European stocks dropped 32%. But because the dollar weakened - down 20% against the Euro - U.S. investors would have fared better in European stocks, which in dollar terms lost only 18%.

One manager who continues to look overseas is Bernard Horn, manager of the Polaris Global Value Fund. He is overweighting resource-rich countries like South Africa and is buying material company stocks around the globe. Mr. Horn's picks include paper firms Sappi in South Africa and Svenska Cellulosa in Sweden. According to Mr. Horn, Australia and Canada, two countries rich in natural resources, are also poised to benefit.