Hereford Funds-IMVA Opportunity Fund April 2015 Investment Review The Fund was up nicely in April but still lags the S&P 500 Index for the year-to-date period. Transactions during the month included purchases of EPIQ Systems (EPIQ), T. Rowe Price Group (TROW), and an addition to Luminex (LMNX). Epiq Systems provides bankruptcy, class action administration, and electronic discovery services. The company’s business can be considered counter-cyclical to some degree. Epiq has a couple of activist shareholders who have forced the company to closely review its operations and strategic alternatives; when taken together, these firms own over 30% of the outstanding stock in the company. I believe pressure from these shareholders, and the review process, will improve the profitability of the current operations and eventually lead to a sale of the company. Epiq has, in my opinion, a bloated SG&A structure that should be leaner and more performance-based. Compensation expenses would likely be a key area for synergies and/or cost improvements in the event of a change of control. EPIQ pays an attractive dividend and is trading 15% below a previous buy-out offer that the Board dismissed. T. Rowe Price (TROW) is a well-known asset manager. TROW is a leader in actively managed mutual funds and, in general, has an impressive long-term performance record. The company will, I suspect, reverse the recent loss of AUM to ETFs and other passive strategies as the equity market’s choppiness continues. The stock has an attractive yield and ample ability to repurchase stock. I added to Luminex on the last day of the month. LMNX has been in a trading range since its 4th Quarter conference call, and the stock and market weakness gave us a chance to add near the bottom of that range. Management subsequently reported a strong 1st Quarter, and the stock has reacted well. The new CEO seems to be giving investors increased confidence in the stock; he is laying out his plan and strategy and reporting all relevant developments, positive or negative. He seems determined not to over-promise. The stock’s long-term potential will be determined by the success of the launch of Project Aries; that product launch appears to be on schedule (Q4 launch in the U.S.), and could have very good ramifications for the stock price. Sales during the month included a reduction in Anadarko Petroleum and the liquidation of Noble Corporation (NE). Anadarko (APC) has been a good performer lately, and I wanted to reduce the position somewhat, given the popularity of the stock on Wall Street. In my opinion, APC is considered a “safe date” for professional investors looking for liquid energy equity exposure, and, as such, may be reasonably valued. I liquidated Noble (drilling) after a short and unsuccessful holding period. Like all off-shore drillers, Noble is operating in a very challenging environment, and book value has proven to provide little downside protection lately. NE is one of the highest quality off-shore drillers, and I may revisit the position if oil prices retrace their recent gains. Investment Objective The investment objective of the Hereford Funds-IMVA Opportunity Fund is to provide capital appreciation over a multi-year investment horizon by investing primarily in a diversified portfolio of publicly traded equity securities of US-based companies, which hold unique opportunities in the opinion of the Investment Manager. Potential investments comprise small, mid, and large capitalization companies; growth and value companies; and special situations, including non US-based companies, which are listed on a US exchange. The strategy is highly concentrated and appropriate only for risk-tolerant, long-term investors who can accept the potential for materially greater volatility than the broad market indices. The indicative benchmarks are the S&P 1500 and the S&P 500 Indices. Key Information as of April 30, 2015 NAV A Shares: Total Fund Size: $65.56 $1.97 mil $147.60 mil(a) January 31, 2014(b) Strategy Assets: Fund Launch Date: Monthly Performance (%) as of April 30, 2015 Jan-15 Feb-15 Mar-15 Apr-15 Hereford Funds-IMVA Opportunity Fund (8.6) 7.4 0.0 2.3 S&P 1500 Index(d) (2.9) 5.7 (1.3) 0.7 S&P 500 Index(d) (3.0) 5.8 (1.6) 1.0 YTD 0.3 2.1 1.9 Period Performance (%) Since Inception (March 31, 1999 - April 30, 2015) YTD 0.3 2.1 1.9 IMVA Opportunity Portfolio(c) S&P 1500 Index(d) S&P 500 Index(d) 1 yr (31.6) 12.8 13.0 2 yr (8.6) 16.6 16.7 3 yr 2.4 16.7 16.7 4 yr 1.4 13.4 13.6 5 yr 7.4 14.3 14.3 10 yr 9.9 8.6 8.3 Cumulative 137.8 139.9 119.1 Value of a Dollar Past Ten Years (April 1, 2005 - April 30, 2015) IMVA Opportunity Portfolio(c) vs. S&P 1500(d) & S&P 500(d) 450 410 370 Annualized 5.5 5.6 5.0 KEY IMVA Opportunity Portfolio S&P 1500 S&P 500 Start of Hereford FundsIMVA Opportunity Fund 31-Jan-14 330 290 250 210 170 130 90 50 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Hereford Funds-IMVA Opportunity Fund April 2015 Portfolio as of April 30, 2015 Sector Breakdown % Consumer Discretionary 3.9 Consumer Staples 0.0 Energy 14.4 Financials 12.9 Health Care 17.5 Industrials 11.4 Information Technology 21.7 Materials 5.6 Telecommunication Services 0.0 Utilities 0.0 [Cash] 12.6 Total 100.0 Ten Largest Holdings Luminex Corp. 3D Systems Corp. McDermott International, Inc. KVH Industries, Inc. Babcock & Wilcox Co. Stone Energy Anacor Pharmaceuticals, Inc. Intrepid Potash, Inc. Murphy Oil Corp. Montpelier RE Holdings, Ltd. Total % 7.7 6.7 6.3 5.4 5.0 4.6 4.5 4.1 4.1 3.7 Since Inception (March 31, 1999 - March 31, 2015) Risk Statistics(e) Volatility Sharpe Ratio Information Ratio Tracking Error Beta Alpha IMVA Opportunity Fund 28.38 0.17 (listed below benchmark) (listed below benchmark) (listed below benchmark) (listed below benchmark) S&P 1500 17.18 0.20 0.07 18.67 1.27 1.97 S&P 500 16.99 0.16 0.11 18.84 1.28 2.74 52.2 Fund Details Bloomberg: ISIN: Reuters: Sedol: Valoren: WKN: HFIMVOALX* LU1022309220 N/A BJ625V8 23467814 A1XCJ3 * Share Class A Investors: Dealing day: Dividends: Investment Manager: Management Company: Custodian: Legal Advisers: Auditor: Open to Non-U.S. investors only Daily None (income accumulated within the fund) Investment Management of Virginia, LLC, 919 E. Main Street, Suite 1600, Richmond, VA, 23219, USA BSI Fund Management S.A., 44F rue de la Vallée, L-2661 Luxembourg BSI Europe S.A., 122 rue Adolphe Fischer, L-1521 Luxembourg Elvinger, Hoss & Prussen, 2 Place Winston Churchill, L-1340 Luxembourg Deloitte Audit S.à.r.l. Annual Management Charge Minimum Investment Share Class A(f) Share Class A 1.25% $100,000 initial; $10,000 subsequent Order Transmission / Information Original Applications to: UBS Fund Services Attn: Transfer Agent 33a, avenue J.F. Kennedy L-1855 Luxembourg Subsequent Applications only via Facsimile: UBS Fund Services Attn: Transfer Agent Fax: (+352) 4410106417 Tel: (+352) 4410106404 Email: [email protected] (a) This figure refers to the approximate total assets invested in the reference strategy as of 30/4/15. The figure includes $1.97 million in assets (Hereford Funds-IMVA Opportunity Fund), $136.62 million in assets managed directly by Investment Management of Virginia, LLC ("IMVA" or "the Investment Manager"), and $9.01 million in assets managed by other firms based upon models provided by the Investment Manager. The $136.62 million managed directly by IMVA comprise those accounts in the Opportunity Portfolio composite (see www.imva.net), as well as "Special" Opportunity Portfolio accounts, which are excluded from the composite for reasons/variances, including but not limited to these: they have different weightings; client restrictions have been imposed; they are wrap accounts; they do not own all Opportunity Portfolio positions; or they own additional positions. Model assets have been excluded from the definition of the firm for GIPS purposes. (b) The Hereford Funds-IMVA Opportunity Fund was funded on 31/1/14. The first trades were executed on 3/2/14. (c) Data and graph depict IMVA Opportunity Portfolio composite returns through January of 2014 and Hereford Funds-IMVA Opportunity Fund Class A thereafter (net basis). Historical net performance of the IMVA Opportunity Portfolio composite (the Reference Strategy) reflects modeled fees and expenses typical of Hereford Funds-IMVA Opportunity Fund Class A (1.25% fee + 0.25% expense). Fund follows substantially the same parameters as the Reference Strategy, although the Fund has a 10% constraint for individual positions and a 40% limit for the top five names (IMVA's Opportunity Portfolio has no such constraints). Performance presentation is incomplete without accompanying footnotes as shown at www.imva.net. (d) Total return including dividends. (e) Source: eVestment Analytics – All numbers are presented gross of fees and expenses. (f) Share Class A is tax transparent in Germany and has been granted Reporting Status by HMRC as of 31 January 2014. This document is for information purposes and internal use only. It is neither an advice nor a recommendation to enter into any investment. Investment suitability must be determined individually for each investor, and the financial instruments described above may not be suitable for all investors. This information does not provide any accounting, legal, regulatory, or tax advice. Please consult your own professional advisers in order to evaluate and judge the matters referred to herein. An investment should be made only on the basis of the prospectus, the annual, and any subsequent semi-annual-reports of HEREFORD FUNDS (the "Fund"), a société d'investissement à capital variable, established in Luxembourg and registered under Part I of Luxembourg law of 20 December, approved by the Commission de Surveillance du Secteur Financier (CSSF). These can be obtained from [the Fund, 44F, rue de la Vallée, L2661 Luxembourg or from BSI Fund Management S.A., 44F, rue de la Vallée, L-2661 Luxembourg and any distributor or intermediary appointed by the Fund]. No warranty is given, in whole or in part, regarding performance of the Fund. There is no guarantee that its investment objectives will be achieved. Potential investors shall be aware that the value of investments can fall as well as rise and that they may not get back the full amount invested. Past performance is no guide to future performance. The information provided in this document may be subject to change without any warning or prior notice and should be read in conjunction with the most recent publication of the prospectus of the Fund. Whilst great care is taken to ensure that information contained herein is accurate, no responsibility can be accepted for any errors, mistakes, or omission or for future returns. 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