Small Cap Growth Commentary

December 31, 2007

The Driehaus Small Cap Growth Composite outperformed its benchmark, the Russell 2000 Growth Index (the “Index”), by 948 basis points during the fourth quarter.  As a group, small cap growth stocks underperformed relative to mid and large cap growth stocks during the quarter.

Performance of the Small Cap Growth Strategy (the “Strategy”) was primarily aided by holdings in the Industrials, Consumer Discretionary, and Health Care sectors. Key contributors to return in the Industrials sector included electrical components used in the alternative energy segment. Additionally, online travel holdings in the Information Technology sector aided performance. Contribution to return was constrained by commitments in the Materials and Financials sectors.

As the quarter ended, the Strategy was overweighted to the Industrials and Health Care sectors and underweighted to the Information Technology, Materials, and Financials sectors versus the Index.

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 small 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.