November 3, 2006
Dear Valued Shareholder: During the third quarter, inflation expectations and Federal Open Market Committee actions drove investor sentiment and stock prices. Most notably, on August 8th, the FOMC held its targeted rate for Fed funds at 5.25%. After 17 consecutive rate increases, the Fed’s “pause” buoyed stock prices as returns after the August 8th meeting reversed the negative slide experienced by the majority of equity styles since the beginning of the third quarter. The table below summarizes the Brazos Small Cap Fund’s returns as of September 30, 2006. Third Quarter Year-toOne 2006 Date Year 0.41% 5.62% 4.56% -1.76% 4.21% 5.88% 0.44% 8.69% 9.92% 5.67% 8.53% 10.79% Three Year* 8.95% 11.80% 15.46% 12.29% Five Years* 3.20% 10.14% 13.77% 6.97% Inception to Date* 9.55% 4.10% 8.73% 7.92%
Brazos Small Cap Fund - Class Y Russell 2000 Growth Index Russell 2000 Index S&P 500 Index
*Annualized. Performance is net of fees. Performance data quoted represents past performance and is not indicative of future results. Investment returns and principal values may fluctuate so that, when redeemed, shares may be worth more or less than their original value. Current performance of the Fund may be lower or higher than the performance quoted in the table above. Performance data current to the most recent month end may be obtained by visiting www.brazosfunds.com. Performance shown is for class Y shares, which do not have sales charges. Sales charges would diminish the performance shown. Investment performance reflects voluntary fee waivers and expense reimbursements in effect. In the absence of such waivers and reimbursements, total return would be reduced. The longer-term performance results presented for the Micro Cap, Small Cap, Mid Cap, and Growth Funds reflect periods of above average performance attributable in part to investments in certain securities during their initial public offering or non-recurring factors. In particular, the returns for certain periods, such as 1997 and 1998 for Small Cap, 1998 and 1999 for Micro Cap, 2000 for Mid Cap, and 1999 for Growth, reflect substantial benefits from first-day realized or unrealized gains from participation in initial public offerings. It is unlikely that the Funds will benefit to the same extent from these types of gains in the future, especially if a Fund's assets remain at current levels or if they increase. Fund returns are shown net of fees. Mutual fund investing involves risk. Principal loss is possible. Stocks of micro cap and small cap companies are more volatile than stocks of larger cap companies. Micro cap and small cap companies are subject to additional risk including, but not limited to, limited liquidity and greater volatility compared to investments in larger moreestablished equity securities.
Table 2 below outlines returns for the major indices and for the Brazos Funds before and after that Fed announcement. By examining these returns, one can see that market participants embraced riskier asset classes, including small and mid-capitalization stocks, following the Fed’s August meeting. 1 Brazos Capital Management, L.P. • 5949 Sherry Lane, Suite 1600 • Dallas, Texas 75225 • 214-365-5200 • www.BrazosCapital.com
Table 2 Brazos and Benchmark Performance 06/30/06 thru 08/08/06 relative to 08/08/06 thru 09/30/06
Returns 06/30/06 - 08/08/06 08/08/06 - 09/30/06 0.42 4.91 0.27 5.38 -5.07 9.71 -6.10 -4.48 -5.29 -6.31 5.97 5.12 3.22 3.53
Dow Jones Industrial Average S&P 500 Nasdaq Composite Brazos Microcap Fund Brazos Smallcap Fund Brazos Midcap Fund Brazos Growth Fund
Source: Bloomberg
The FOMC will meet on October 24th/25th and again on December 12th for the final meeting of 2006. In our opinion, the key to a sustained year-end rally driven by riskier asset classes lies in the Fed’s next move regarding liquidity. Should the Fed raise rates again, we would expect small and mid-capitalization stocks to once again come under pressure. However, if the Fed holds rates at the current 5.25% or eases rates, we would expect a fairly robust rally. While we do not want to get ahead of ourselves in the interest rate debate, we are encouraged by the recent trend in “headline” CPI numbers published by the Bureau of Labor Statistics. Specifically, after increasing steadily for four consecutive months and peaking at 4.3%, “headline” CPI declined to 4.1% in July and to 3.8% in August (Chart 1), indicating the Fed may in fact engineer a soft landing. Chart 1
Source: Bureau of Labor Statistics, Consumer Price Indexes
2
Year-to-date Review A year-to-date review of the major equity indices in general and the Brazos Funds specifically shows two disparate markets (Chart 2).
Chart 2 Year-to-Date Benchmark and Brazos Performance 01/01/06 thru 05/05/06 relative to 05/05/06 thru 09/30/06
Source: Baseline Past performance does not guarantee future results. Please see page5 for important disclosures and definitions.
From January 1 until May 5, the major indices logged very respectable gains with the Dow Jones Industrial Average outpacing both the S&P 500 and the Nasdaq Composite. During this time frame, the Brazos Funds significantly outpaced not only the indices mentioned above, but each of their respective Russell Benchmarks as well. When inflation and interest rate fears rocked the market in early May, investors fled to large capitalization stocks leaving only the Dow Jones Industrial Average and S&P 500 in positive territory for the period from May 5 through September 30. Even though this was a particularly difficult period for stocks, especially small and midcapitalization stocks as evidenced by the negative performance in the Russell 2000 Growth and Russell Mid Cap Growth benchmarks, the Brazos Micro and Small Cap Funds performed extremely well year-to-date.
3
Brazos Small Cap Fund Quarterly Review Brazos Small Cap was led by Smith & Wesson Holdings (SWHC). Investors bid up Smith & Wesson, suggesting that management has turned this business around and new customer and product initiatives were beginning to take hold. We purchased the stock in March 2006 at $6 and investors bid the stock up to approximately $15, more than 30 times the 2008 (April fiscal year end) earnings estimate. We have reduced the position as of the end of Q3. Materials stocks were the weakest performing sector of the Fund as investors sold this group on concerns of slowing global economic growth. Brazos Small Cap suffered from a decline in Genesee & Wyoming, Inc. (GWR), as investors sold off transportation stocks and Transaction System Architects (TSAI), a software company that had weak guidance for the third quarter. Transaction System remains in the portfolio, while Genesee & Wyoming was sold. We have a new investment theme that we are very excited about as it helped the performance in the Fund meaningfully in the third quarter and should help going forward. However, there are only two public companies one can invest in to take advantage of this newly uncovered initiative. We believe there is currently a supply/demand imbalance in this country’s prison system, which is benefiting the two public companies that build and manage prisons for the federal government and individual states. Brazos Small Cap’s largest holding is Corrections Corporation of America (CXW). While the industry has been in its sweet spot throughout this year, the outlook got even brighter in the first couple of weeks in October when California Governor Arnold Schwarzenegger declared a state of emergency on California’s prisons and called for an immediate outsourcing of some of the state’s prisoners to third parties like Corrections Corp. Higher demand will allow for better utilization, increased pricing, and better margins for these companies. While this stock has made nice moves and benefited the fund meaningfully in the third quarter, we believe there is still plenty of upside to be realized.
Fourth Quarter Outlook With the Fed nearing what appears to be the end of the current tightening cycle, and with the seasonally strong period for equities upon us, we have positioned the Brazos Small Cap Fund for a Q4 rally led by technology. In July as the market was bottoming, we took advantage of favorable technology valuations by adding to existing positions, and initiating new positions. A new addition to the Fund includes Standard Microsystems Corporation (SMSC). Standard Microsystems reported quarterly earnings recently and beat street estimates by $0.04 and we believe similar results will be experienced by the remainder of our technology holdings. In addition to technology, we built a substantial position in the software game and retail space adding THQ, Inc (THQI) and GameStop Corporation (GME) to the Fund. Both stocks are trading above our cost and we see strong catalysts ahead, as game enthusiasts upgrade to the new console offerings from Sony, Microsoft and Nintendo.
4
We at Brazos Capital Management thank you for your commitment and support. We continue to work extremely hard, and with diligence and patience, in order to provide you with the level of performance and service you have come to expect. We enter Q4 with tremendous enthusiasm and look forward to updating you on our Q4 and 2006 results during our next quarterly letter. Sincerely,
Brazos Capital Management, L.P.
Opinions expressed are those of Brazos Capital Management and are subject to change, are not guaranteed and should not be considered recommendations to buy or sell a security. Please refer to the remainder of this document for additional information, including portfolio holdings. Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. Stocks of micro cap and small cap companies are more volatile than stocks of larger cap companies. Micro cap and small cap companies are subject to additional risk including, but not limited to, limited liquidity and greater volatility compared to investments in larger more-established equity securities. Alpha is an annualized return measure of how much better or worse a fund’s performance is relative to an index of funds in the same category, after allowing for differences in risk. Mutual fund investing involves risk. Principal loss is possible. You cannot invest directly in an index. (a) Russell 2000 Growth Index measures the performance, for those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index consists of the smallest 2,000 companies in a group of 3,000 U.S. Companies in the Russell 3000 Index, as ranked by market capitalization. (b) Russell 3000 Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth indexes. (c) Russell Midcap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book-ratios and higher forecasted growth values. The Russell Midcap Index consists or the 800 smallest companies in the Russell 1000 Index, which represent approximately 24% of the total market capitalization of the Russell 1000 Index. (d) The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. Often referred to as "the Dow", the DJIA is the oldest and single most watched index in the world. The DJIA includes companies like General Electric, Disney, Exxon and Microsoft (e) The S&P 500 is an index consisting of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large-cap universe. (f) The NASDAQ Composite Index represents all the stocks that trade on the NASDAQ stock market Price-to-Earnings (P/E) - A valuation ratio of a company's current share price compared to its per-share earnings on the trailing twelve months. Price-to-Earnings Institutional Brokers Estimate System (P/E I/B/E/S) - Price compared to earnings on the forward twelve month estimate as compiled on stock analyst's estimates. I/B/E/S is system that gathers and compiles the different estimates made by stock analysts on the future earnings for the majority of U.S. publicly traded companies. Price-to-Book (P/B) - A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. Price-to-Sale (P/S)- A ratio for valuing a stock relative to its own past performance, other companies or the market itself. Price to sales is calculated by dividing a stock's current price by its revenue per share for the trailing 12 months. Price-to-Earnings Growth ratio (PEG) - A ratio used to determine a stock's value while taking into account earnings growth. PEG is a widely used indicator of a stock's potential value. It is favored by many over the price/earnings ratio because it also accounts for growth. Similar to the P/E ratio, a lower PEG means that the stock is more undervalued. Must be preceded or accompanied by a current prospectus. Read it carefully before you invest. Distributed by Quasar Distributors, LLC. 10/06.
5
Brazos Capital Management Brazos Small Cap Fund Portfolio Characteristics
September 30, 2006 Size Average Annual Revenues
Unweighted average of revenues for the latest 4 quarters (includes excise taxes).
$770 mil
Market Cap: Current Mean
Unweighted average of current market caps
$1.2 bil $1.1 bil $934 mil
Mean at Cost
Unweighted average of market caps time of first purchase
Median
Median of current market caps
Growth Revenues: Last Quarter
(Revenue for latest quarter – revenue for same quarter 1 year ago)/revenue for same quarter 1 year ago
25% 22% 14%
Current Year
(Revenue for latest four quarters – revenues for previous four quarters) / revenue for previous four quarters
Last 5 Years
Slope of the Least Squares Regression Line which is fitted to the data, expressed in terms of 4 Qtr. Rolling Sum
Earnings: Last Quarter
(EPS for latest quarter – EPS for same quarter 1 year ago)/EPS for same quarter 1 year ago
33% 39% 40%
Current Year
(EPS for latest four quarters – EPS for previous 4 quarters)/EPS for previous 4 quarters
Last 5 Years
5 Yr. Historical Growth Rate, expressed in terms of 4 Qtr. Rolling Sum
Earnings Surprise: Last Quarter
Difference in First Call EPS vs. Consensus divided by absolute value of First Call Consensus of latest qtr.
9% 17% 13%
Prior Quarter
Difference in First Call EPS vs. Consensus divided by absolute value of First Call Consensus of prior qtr.
Two Quarters Ago
Difference in First Call EPS vs. Consensus divided by absolute value of First Call Consensus of prior two qtrs.
Brazos Capital Management Brazos Small Cap Fund Portfolio Characteristics
September 30, 2006 Quality** Return on Equity
Company’s net income / Total Shareholders Equity
19% 21% 13%
Debt to Capitalization
Long Term Debt / (Long Term Debt + Stockholders Equity)
Negative Quarter Earnings
Companies with negative earnings surprises for latest qtr. / Total companies reporting
Valuation P/E
Current price / Sum of next 4 qtrs. Earnings
22x 1.07
P/E to Growth Ratio
P/E of next 4 qtrs. / Long Term Secular Growth Rate (estimated forperiod of 3-5 years)
Source: FactSet / Baseline. Past performance is no guarantee of future results. These figures represent averages of the Fund’s holdings. Portfolio Characteristics vary over time. **Quality = Evaluation data used by the Fund’s Managers to assess whether or not a company fits the Fund’s criteria for purchase. The Brazos Small Cap Fund invests in smaller capitalization companies, which will involve additional risks, such as limited liquidity and greater volatility than stocks of larger capitalization companies.
BRAZOS CAPITAL MANAGEMENT
2006 THIRD QUARTER PERFORMANCE Month by Month Breakdown
Period Ending 9/30/2006 Brazos Small Cap Fund Class Y* Russell 2000 Growth w/Inc. Russell 2000 w/Inc. S&P 500 w/Inc.
*net of fees
July -4.58% -5.19% -3.25% 0.62%
August 3.31% 2.93% 2.96% 2.38%
3 rd Quarter September 2006 1.86% 0.41% 0.68% -1.76% 0.83% 0.44% 2.58% 5.67%
Market Characteristics
Brazos Small Cap vs. Russell 2000 Growth
July The 10-year Treasury note yield fell during July. The U.S. equity The consumer discretionary sector positively contributed to markets had a rough July following the sell-off in the second quarter. performance due to good stock selection in the commercial services Only large cap stocks showed a positive return, with mid cap and and retail industries. The energy sector also added to the Fund’s small cap trailing by a wide margin. relative performance due to strong stock selection and exposure in the utility gas pipelines and oil well equipment and services industries. Although no sectors showed positive returns during July, the utilities The financial services sector detracted from the Fund’s performance sector led the down market. The financial services sector was the next due to poor stock selection in the diversified financial services best performing sector. The technology sector was the worst industry. The materials and processing sector underperformed the performing sector during the month. The consumer discretionary benchmark due to underweighting in the agricultural fishing and sector also performed poorly in the benchmark. ranching industries. August The 10-year Treasury note yield fell during the month. The markets The energy sector outperformed the benchmark due to exposure in began August timidly, but accelerated towards the end as the price of the energy equipment industry. The consumer discretionary sector oil fell to roughly $70/barrel by the end of the month. Large cap added to the Fund’s relative performance due to strong stock stocks led small cap and mid cap for the month. selection in the retail industry. The technology sector underperformed relative to the benchmark due to poor stock selection in the semi-conductors/components industry. The utilities sector was also one of the worst performing sectors due to poor stock performance in the telecommunications industry. September The 10-year Treasury note yield fell during the month. Oil continued The technology sector added to the Fund’s relative performance due to slide lower, falling to the low $60’s by the end of the month. to strong stock selection in the communications technology and Likewise, the Fed “pause” caused the markets to rally, and large cap computer technology industries. Favorable stock selection in the stocks led small cap and mid cap for the month of September. biotechnology and health care services industries contributed to the Fund’s relative performance in the health care sector during the month. The materials and processing sector detracted the most from the Fund’s performance due to poor performance in the metal fabricating and agricultural fishing and ranching industries. The energy sector also underperformed relative to the benchmark due to weak performance in the crude oil producers industry. 3rd Quarter 2006 The 10-year Treasury note yield fell during the quarter. The third Strong stock selection in the health care facilities industry quarter continued to be a difficult market, as large cap stocks contributed to the Fund’s positive relative performance in the health remained the only place to hide from market corrections. The falling care sector during the quarter. The consumer discretionary sector price of oil and “pause” by the Federal Reserve set up the fourth also outperformed relative to the benchmark due to stock selection in quarter to be a strong performer. Large cap stocks continued to lead the commercial services industry. both small and mid cap stocks. The consumer discretionary sector led during the quarter. The financial services sector was the next best performing sector. The energy sector was the worst performing sector for the three month period. The producer durables sector also performed poorly. The materials and processing sector detracted the most from the Fund’s performance in part due to overexposure and underperformance in the agricultural fishing and ranching and miscellaneous building industries. The financial services sector also underperformed due to poor performance in the diversified financial services industry. The consumer discretionary sector led the market back higher during the month followed by the financial services sector. The energy sector was the worst performing sector during September. The health care sector was the next worst performing sector. The technology sector led the market during August. The health care sector was the next best performing sector. The energy sector was the worst performing sector during the month, as was the utilities sector.
Sector and industry allocations are subject to change at any time and are not to be considered a recommendation to buy or sell any security.
PORTFOLIO APPRAISAL
Brazos Capital Management
PORTFOLIO APPRAISAL
Brazos Small Cap Portfolio
September 30, 2006
Quantity Security COMMON STOCK INDUSTRIAL 6,100 ANIXTER INTL INC COM 5,400 BUCYRUS INTL INC NEW CL A 42,000 COMFORT SYS USA INC COM 10,500 ENCORE WIRE CORP COM 28,300 FLOW INTL CORP COM 6,200 MANITOWOC INC COM Unit Cost Total Cost Price Market Value Pct. Assets
55.80 52.54 13.81 32.76 12.92 45.06
340,405.60 283,700.52 579,962.99 344,031.18 365,699.63 279,372.00 2,193,171.92
56.47 42.42 11.46 35.29 12.97 44.79
344,467.00 229,068.00 481,320.00 370,545.00 367,051.00 277,698.00 2,070,149.00
1.2 0.8 1.7 1.3 1.3 1.0 7.1
DEFENSE 69,700
FORCE PROTECTION INC COM NEW
6.92
482,058.20
8.37
583,389.00
2.0
TECHNOLOGY SERVICES & SOFTWARE 38,700 NESS TECHNOLOGIES INC COM 37,000 SMITH MICRN SOFTWARE COM 55,700 STELLENT INC COM 17,300 TRANSACTION SYS ARCHIT COM
12.48
482,968.26
13.35
516,645.00
1.8
11.41 10.75 38.87
422,270.20 599,037.99 672,497.55 2,176,774.00
14.38 10.84 34.32
532,060.00 603,788.00 593,736.00 2,246,229.00
1.8 2.1 2.0 7.7
ELECTRONIC COMPONENTS 22,300 ATHEROS COMMUNICATIONS COM 15,900 DIODES INC COM 33,100 INTEGRATED DEVICE TECH COM 39,900 NU HORIZONS ELECTRS CP COM 145,280 TRANSWITCH CORP COM 24,200 TRIDENT MICROSYSTEMS COM
16.82
375,146.21
18.13
404,299.00
1.4
36.79 15.99 13.67 2.13 20.30
585,001.21 529,395.35 545,326.53 309,287.68 491,155.35
43.17 16.06 12.74 1.41 23.26
686,403.00 531,586.00 508,326.00 204,844.80 562,892.00
2.4 1.8 1.8 0.7 1.9
2,835,312.33 TELECOMMUNICATIONS 13,900 ANAREN INC COM 31,000 BRIGHTPOINT INC COM NEW 25,200 COMMSCOPE INC COM 36,000 GENERAL COMMUNICATION CL A 131,200 STRATEX NETWORKS INC COM
2,898,350.80
10.0
21.77 15.68 28.38 11.88
302,571.03 486,228.45 715,235.85 427,775.85
21.07 14.22 32.86 12.39
292,873.00 440,820.00 828,072.00 446,040.00
1.0 1.5 2.9 1.5
3.94
517,552.41
4.44
582,528.00
2.0
2,449,363.59 ENERGY 7,400 ARENA RESOURCES INC COM 36.28 268,456.56 32.12
2,590,333.00
8.9
237,688.00
0.8
1
Brazos Capital Management
PORTFOLIO APPRAISAL
Brazos Small Cap Portfolio
September 30, 2006
Quantity 3,900 Security CORE LABORATORIES N V COM EXCO RES INC COM MATRIX SVC CO COM Unit Cost 53.49 Total Cost 208,606.10 Price 63.80 Market Value 248,820.00 Pct. Assets 0.9
34,500 47,000
12.20 11.82
420,729.92 555,401.39 1,453,193.97
12.41 13.09
428,145.00 615,230.00 1,529,883.00
1.5 2.1 5.3
BASIC RESOURCES (NON ENERGY) 11,800 ANDERSONS INC COM 12,300 DYNAMIC MATLS CORP COM 7,900 OREGON STL MLS INC COM
39.55 32.44 44.99
466,655.53 399,056.98 355,433.42 1,221,145.93
34.15 32.42 48.87
402,970.00 398,766.00 386,073.00 1,187,809.00
1.4 1.4 1.3 4.1
FINANCIAL INSTITUTIONS 9,300 GLACIER BANCORP NEW COM 6,400 PRIVATEBANCORP INC COM 11,700 STERLING BANCSHS INC COM
31.24 46.76 19.93
290,511.05 299,260.52 233,192.94 822,964.51
34.17 45.72 20.25
317,781.00 292,608.00 236,925.00 847,314.00
1.1 1.0 0.8 2.9
FINANCIAL SERVICES & SOFTWARE 26,200 SWS GROUP INC COM 26,200 TRADESTATION GROUP INC COM
24.03 13.99
629,524.02 366,498.12 996,022.14
24.89 15.07
652,118.00 394,834.00 1,046,952.00
2.2 1.4 3.6
CONSUMER NON DURABLES 40,100 SMITH & WESSON HLDG COM CONSUMER DURABLES 33,000 TEMPUR PEDIC INTL INC COM CONSUMER SERVICES 16,100 COPART INC COM 18,200 LKQ CORP COM
6.75
270,599.91
13.88
556,588.00
1.9
13.94
460,180.54
17.17
566,610.00
2.0
27.88 20.45
448,896.56 372,150.64 821,047.20
28.19 21.97
453,859.00 399,854.00 853,713.00
1.6 1.4 2.9
CONSUMER MERCHANDISING 13,000 BON-TON STORES INC COM 17,700 CHRISTOPHER & BANKS CP COM 12,200 GAMESTOP CORP NEW CL A 14,000 GUESS INC COM
27.00 25.97 40.56 41.41
351,010.92 459,603.73 494,812.41 579,757.48 1,885,184.54
29.74 29.48 46.28 48.53
386,620.00 521,796.00 564,616.00 679,420.00 2,152,452.00
1.3 1.8 1.9 2.3 7.4
HEALTHCARE PRODUCTS 15,900 AMERICAN MED SYS HLDGS COM 10,900 DJ ORTHOPEDICS INC COM 24,800 NUVASIVE INC COM
17.62 38.17 19.37
280,102.35 416,079.84 480,313.00
18.43 41.53 20.11
293,037.00 452,677.00 498,728.00
1.0 1.6 1.7
2
Brazos Capital Management
PORTFOLIO APPRAISAL
Brazos Small Cap Portfolio
September 30, 2006
Quantity 7,500 Security WEST PHARMACEUTCL SVCS COM Unit Cost 34.93 Total Cost 261,955.80 Price 39.27 Market Value 294,525.00 Pct. Assets 1.0
1,438,450.99 HEALTHCARE TECHNOLOGY 11,300 FOXHOLLOW TECHNOLOGIES 13,600 HOLOGIC INC COM 26,400 HUMAN GENOME SCIENCES COM 46,400 PHASE FORWARD INC COM 13,700 RESPIRONICS INC COM
1,538,967.00
5.3
33.63 43.02 11.21 9.85 36.47
380,016.18 585,108.79 296,007.36 457,050.71 499,648.93 2,217,831.97
34.19 43.52 11.54 11.94 38.61
386,347.00 591,872.00 304,656.00 554,016.00 528,957.00 2,365,848.00
1.3 2.0 1.0 1.9 1.8 8.1
HEALTHCARE SERVICES 17,700 HEALTHCARE SVCS GP INC COM 44,000 HMS HLDGS CORP COM 7,200 ICON PUB LTD CO SPONSORED ADR (F)
21.22 10.37 57.06
375,526.01 456,420.67 410,852.00 1,242,798.68
25.16 12.62 70.58
445,332.00 555,280.00 508,176.00 1,508,788.00
1.5 1.9 1.7 5.2
TRANSPORTATION 5,500 AMERICAN COML LINES COM NEW 9,750 TRINITY INDS INC COM
54.01 41.93
297,052.09 408,859.10 705,911.19
59.45 32.17
326,975.00 313,657.50 640,632.50
1.1 1.1 2.2
MEDIA 53,800 24/7 REAL MEDIA INC COM NEW 8.41 452,410.47 8.54 459,452.00 1.6
BUSINESS SERVICES 11,600 ALLIANCE DATA SYS CORP COM 48,700 AT ROAD INC COM 27,450 CORRECTIONS CP AM NEW COM NEW 57,000 HOME SOLUTIONS AMER COM
52.88 5.91 30.01 6.34
613,439.64 287,850.52 823,712.59 361,211.85 2,086,214.60 26,210,636.68
55.19 5.84 43.25 5.48
640,204.00 284,408.00 1,187,212.50 312,360.00 2,424,184.50 28,067,643.80
2.2 1.0 4.1 1.1 8.3 96.6
CASH AND EQUIVALENTS BRAZOS SMALL CAP GROWTH PORTFOLIO DIVIDEND RECEIVABLE ACCOUNT
968,882.12
968,882.12
3.3
4,800.00
4,800.00
0.0
973,682.12 TOTAL PORTFOLIO 27,184,318.80
973,682.12 29,041,325.92
3.4 100.0
3