Mid Cap Growth Commentary

December 31, 2007

The Driehaus Mid Cap Growth Composite (the “Composite”) outperformed its benchmark, the Russell Midcap Growth Index, by over 1,600 basis points for the quarter. As a group, domestic mid cap growth stocks outperformed small and micro cap growth stocks for the year. All major economic sectors, with the exception of Energy and Utilities, posted positive contribution to the return of the Composite during the quarter.

The performance of the Driehaus Mid Cap Growth Strategy (the “Strategy”) was largely aided by commitments to the Industrials, Information Technology, and Health Care sectors.  Specifically, within the Information Technology sector, the Strategy had success with select holdings in the software services and Internet software services areas. Holdings in the health care technology and medical device segments within the Health Care sector continued to contribute to performance.

The Strategy reduced its weighting, during the quarter, in the Information Technology and Consumer Discretionary sectors due to more attractive growth investment opportunities in other sectors.  As the quarter ended, the Strategy reflected an increase in commitment to holdings in the Industrials, Health Care, Financials, and Materials sectors relative to the levels at the end of the previous quarter. The increase in exposure to the Health Care sector was primarily due to select holdings in the health care equipment and biotechnology area.  In general, the Industrials weighting within the Strategy continues to benefit from the alternative energy segment within the sector.

The Strategy continues to focus on company earnings and indications of future growth potential – particularly in light of the onset of the fourth quarter earnings reports.

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 mid 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 Midcap Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values.  The performance data includes reinvested dividends. The performance data includes reinvested dividends. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 30% of the total market capitalization of the Russell 1000 Index.