Adirondack Funds

The Adirondack Small Cap Fund (ADKSX) is an owner operated, no-load mutual fund managed by Adirondack Research and Management since the fund’s inception in April 2005. At Adirondack Funds, we believe that the best opportunity for investment success is focusing on smaller companies that have fallen out of favor with investors. Our mission is to identify and monitor the most attractive small-cap turnaround situations before mainstream investors take notice. By assembling a diversified portfolio* of these opportunities we believe we can offer our shareholders compelling risk-adjusted returns over the long-run.

As active managers we allocate capital to companies that, in our view, have the best chance of regaining investor support within three years. We look in all sectors for value. The best additions to the portfolio are ones that have little correlation with what we already own. What attracts us to smaller companies is the relative inefficiency of this market. It’s an asset class where investors who are willing to invest the time can actually develop a formidable edge against the passively managed index.

At Adirondack Funds we aren’t just managers, we are shareholders. We are pleased to say that the Fund’s managers, board of trustees and employees are investors in the fund. Simply put, we eat our own cooking. We like the motivation that this produces. We reap the benefits of good performance and feel the pain of weak markets, just like every other shareholder.

To access the investor forms for the Adirondack Small Cap Fund (ADKSX), click here.

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 888-686-2729, or visiting www.adirondackfunds.com.

The fund invests in smaller companies, which involve additional risks such as limited liquidity and greater volatility. Additionally, value investing is subject to the risk that a company’s intrinsic value may never be fully realized by the market.

The fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 1-888-686-2729, or visiting www.adirondackfunds.com. Read it carefully before investing. The Adirondack Small Cap Fund is distributed by Rafferty Capital Markets, LLC.

© Adirondack Research & Management, Inc., 2006