Micro Cap Growth Commentary

December 31, 2007

The Driehaus Micro Cap Growth Composite outperformed its benchmarks, the Russell 2000 Growth Index by 312 basis points and the Russell Microcap Growth Index by 698 basis points, for the fourth quarter.  In general, micro cap stocks continued to struggle, as reflected by the performance of the Russell Microcap Growth Index, which posted a negative return for the fourth quarter.  Additionally, micro cap stocks underperformed small, mid and large cap growth stocks on a relative basis for the quarter and year.

The fourth quarter return associated with the Driehaus Micro Cap Growth Strategy (the “Strategy”) benefited from stock selection in the Industrials, Materials, and Health Care sectors. The performance of the Industrials sector was aided by key agricultural machinery and electrical product holdings. Additionally, select medical services holdings in the Health Care sector contributed to performance during the quarter.

By quarter-end, the Information Technology sector represented the largest weighting in the Strategy. The Strategy also increased its exposure to the Industrials and Financials sectors over the quarter. Exposure to the Materials, Information Technology, and Consumer Staples sectors were reduced over the quarter.

Despite this relatively weaker performance of micro cap stocks during 2007, the Strategy remains positioned to capture attractive micro cap growth opportunities as we enter the new calendar year.

NOTES

Sources: Driehaus Capital Management LLC, FactSet, Morgan Stanley Capital International and Standard & Poor’s Global Industry Classification Standard, Russell Indices, and the Wall Street Journal.

The performance numbers represent a composite of micro cap growth accounts managed by Driehaus Capital Management LLC.  These numbers are estimated for the period as all underlying accounts have not yet been reconciled. All rates of return include reinvested dividends and other earnings and are net of fees and brokerage commissions. The performance data shown above represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted.

The Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The performance data includes reinvested dividends. The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index.

The Russell Microcap Growth Index measures the performance of those Russell Micro Cap companies with higher price-to-book ratios and higher forecasted growth values. The performance data includes reinvested dividends. The Russell Microcap Index is represented by the smallest 1,000 securities in the small cap Russell 2000 Index plus the next 1,000 securities.