In 2002 the stock market has struggled, as the S&P 500 Index and the Russell 2000 Index both declined dramatically.  Since March of 2002 the Louis Wilson Fund declined approximately 29% compare to 26% for the S&P 500 and approximately 28% for the Russell 2000. The decline was mainly due to our holdings in Worldcom, Atmel Corporation, Tyco International and AOL Time Warner. The Fund has suffered some of the impact of corporate accounting scandals due to our holdings in Worldcom and Tyco. The weak semiconductor industry over the last year has caused the decline in our holdings of Atmel Corporation. However, the Fund saw high gains from our Retail sector holdings of Ethan Allen Interiors and Jones Apparel Group and Renal Care Group for the Healthcare industry.
As of December 2002, the 3-year return for the Louis Wilson Fund was -10.9% compared to approximately -7.5% for the S&P 500 and the Russell 2000. Also as of December of 2002, the 2-year return for the Louis Wilson Fund was – 16.1% compared to -6.6% for the S&P 500 and -9.7% for the Russell 2000. Luis Wilson fund under performed the three major benchmark indices over the last year also.  The fund returned approximately -30.76% while the Russell 2000 returned –20.48%, the S&P 500 returned -22.09%, and the DJIA returned 10%. The negative performance in 2002 did not allow us to reach our long-term return goal for the Fund, currently the GDP rate plus 6%, which equals approximately 7.5%.
For the first three months of 2003, the Wilson fund has achieved -8.12% return compare to the -3.15% of S&P 500 and -4.49% of Russell 2000.  The uncertainty caused by the war in Iraq had negative effect on our performance.  The decline of our portfolio was mainly due to the decline of our holdings in Jones Apparel Group.  The decline in the stock price of Jones Apparel was due to economy-related and company-specific concerns. We are well positioned and we expect as the war ends and the market recovers our holdings to perform well. 
 As a final note, our underperformance over the last couple of years was caused by many factors for which we could not anticipate.  The corporate accounting scandals and the war in Iraq have caused our portfolio to decline substantially.  We have not taken on any additional risks and we continue to invest using well thought of strategy and valuation models that have proven to be successful.