Dear Muhlenkamp Fund Shareholder:
In the letter to shareholders in Muhlenkamp Memorandum #112 (October 2014) we let you know that our companies and their stocks have done well for us the past few years and so there will be a long-term distribution in 2014.
The Record Date for the distribution is December 26, 2014 and the Payable and Ex-Dates are December 29, 2014. We won’t have an exact amount until the Payable Date because market prices remain volatile and we may be selling positions right up until that date.
As of December 5, we have realized long-termof $10.00 per , however the distribution could be as high as $14.00 per . You could receive $145-$210 for every thousand dollars in your account.
We’ve been asked why we make adistribution when the Net Value (NAV) for the Fund is flat to down. We think that’s the BEST time to make it. Remember, we are trying to sell our companies after they have gone up, and then use that money to buy stock in companies that haven’t gone up yet (the time to harvest the crop is after it has stopped growing). If we do that well, we should be making distributions and paying taxes AFTER the good years, not during them. It’s a little counterintuitive, but it makes sense when you think about it. Even though the IRS operates on a one-year calendar cycle, the economy and the markets do not; therefore, neither do we.
We try very hard to make you money, and to ensure the taxes you pay are long-termtaxes since those are currently the lowest tax rates available. So we will never apologize for your having to pay long-term tax. Nevertheless, we don’t want you to be surprised with a tax bill; hence this correspondence.
Please call us at 1-877-935-5520 extension 4 if you have any questions on the distribution, or anything else regarding your account(s). We appreciate the confidence you have placed in us and we look forward to hearing from you.
President, Muhlenkamp & Company, Inc.
Record Date: All shareholders of record at close of business on this day are eligible to receive the payment.
Ex-Date: The date on which the per- amount is deducted from the fund’s net value per . The ex- date is generally the business day after the record date.
Payment Date: The fund pays customers their proportional shares on this date. For the Muhlenkamp Fund, the payment date is the same business as the ex-date.
Any tax or legal information provided is merely a summary of our understanding and interpretation of some of the currenttax regulations and is not exhaustive. Investors must consult their tax adviser or legal counsel for advice and information concerning their particular situation. Neither the Fund nor any of its representatives may give legal or tax advice.