Large Cap Growth Commentary

December 31, 2007

The Driehaus Large Cap Growth Composite outperformed its benchmark, the Russell 1000 Growth Index (the “Index”), by over 1,300 basis points for the quarter. Large cap growth companies were able to post the best performance relative to mid, small, and micro cap stocks during the quarter.  Large cap growth stocks recovered from a seven-year period of underperformance relative to other domestic equity asset classes. All major economic sectors posted a positive contribution to return for the Strategy during the quarter with the exception of the Energy, Telecommunication Services, and Utilities sectors.

The performance of the Strategy was primarily aided by stock selection in the Materials, Information Technology, Industrials, and Health Care sectors. Holdings in the concentrated phosphate fertilizer segment within the Materials sector also aided return during the quarter. In addition, hardware and equipment holdings within the Information Technology sector contributed to return.

The Strategy closed the quarter overweighted, versus the Index, in the Materials and Industrials sectors. Further, the Strategy remained underweighted to the Financials, Consumer Staples, and Health Care sectors at quarter-end.

The Strategy continues to identify large cap stocks, many of which are less interest rate sensitive growth opportunities as we enter the first quarter. In addition, the Strategy continues to build upon several themes including agriculture and industrial machinery.

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 large 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 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index.