Leuthold Hedged Equity Fund

Performance Note: Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. For performance data current to the most recent month-end, please call Leuthold Funds’ Shareholder Services, toll-free: 1-800-273-6886.

• Lipper Flexible Fund Index, as defined by Lipper Inc., is composed of funds that allocate investments across various asset classes, with a focus on total return.
• S&P 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy based on the changing aggregate market value of these 500 stocks.
• The Lipper Flexible Fund Index and S&P 500 are indexes only and cannot be invested in directly. Fund performance return figures are historical and reflect the change in share price, reinvested distributions, change in net asset value, and capital gains distributions, if any.

Expense Ratio Dislosure:
The annual expense ratio for each share class is capped at 2.20%. Per Prospectus dated 1/31/11, annual gross operating expenses for LHEQX and LHEIX prior to reimbursement were 3.53% and 3.28%, and net operating expenses were 2.24% and 1.99% respectively (excluding acquired fund fees and dividends and interest on short positions and after Adviser reimbursement). The Adviser may recover reimbursements in subsequent years; however this recovery period is limited to three fiscal years, beginning on the date of first recovery.
Please refer to the Prospectus for a more detailed explanation of the expense ratios.

The Leuthold Hedged Equity Fund seeks capital appreciation and income (or “total return”) by establishing long and short positions in common stock and other equity securities.

Investment Objective

The Leuthold Hedged Equity Fund seeks capital appreciation and income (or “total return”) by establishing long and short positions in common stock and other equity securities.
*Note: See Short Selling Risk Disclosure below.

Investment Strategy

The Leuthold Hedged Equity Fund will generally try to maintain equal weightings of gross long exposure and gross short exposure. The Fund may invest in companies of all sizes and industries as well as in “growth” stocks and “value” stocks.

In investing in common stock and other equity securities for the long exposure, the Fund generally utilizes the investment strategy for the Leuthold Select Industries Fund. This strategy reflects our belief that industry group rotation, based on changing economic and market conditions, holds the greatest potential for long-term performance. Our disciplined, unemotional and quantitative investment strategy enables us to generate more complete analyses of this industry group universe, attempting to identify the highest rated stocks within the attractively rated groups.
The Fund may use other quantitative investments strategies, including, but not limited to, the investment strategy of the Leuthold Select Equities Fund and the “Undervalued & Unloved Fund in varying proportions depending on market conditions.

In investing in common stock and other equity securities for short exposure, the Fund generally uses the investment strategy of the Grizzly Short Fund. We use a disciplined, unemotional and quantitative investment approach to select the investments for the Grizzly Short investment strategy. Stocks are chosen from a universe of domestic common stocks (excluding small caps) that have a market capitalization in excess of $1.5 billion and trade, on average, shares having a value of $6 million or more each day. Only those stocks that demonstrate high liquidity are selected for the Fund portfolio. An important determining factor is the stock’s Vulnerability Index, a proprietary formula that attempts to identify those stocks that may be poised to decline in price or underperform the market.

*Note: Short selling carries additional risks which may have a negative effect on performance, including: market risk, short sale risk, rising stock market risk, high portfolio turnover risk, and overvaluation investment approach risk. These risks are explained in more detail in the fund's prospectus. For current prospectus, select link at the top of this page, or call Toll-Free 800-273-6886. Please read the prospectus carefully before you invest.

Share Classes
The Leuthold Hedged Equity Fund offers both a Retail Share Class and an Institutional Share Class.

Risks of Investing
As disclosed in the prospectus, the risks of investing in the Leuthold Hedged Equity Fund include, but are not limited to, market risk, short sale risk, small/medium capitalization risk, high portfolio turnover risk, manager risk, commodities risk, foreign securities risk, emerging markets risk, and quantitative investment approach risk. Please read the prospectus carefully before you invest (1-800-273-6886).

For additional mutual fund strategy specifics, please contact us at 888-200-0409, or email info@leutholdfunds.com.