SMALL CAP GROWTH®

Profile

Investment Process

Team Continuity

Portfolio Characteristics

Philosophy

Top 10 Holdings

unknown DISCOVERY established overlooked REDISCOVERY

informationgap

informationgap

opportunityfor profit

actual stock price

company'sreal value

SELL

BUY

SELL

BUY

opportunityfor profit

Robert B. Mersky, CFA, 44 YearsPaul von Kuster, CFA, 38 YearsDaniel J. Hagen, CFA, 28 YearsWilliam A. Grierson, CFA, 20 YearsJames P. Ross, CFA, 23 Years

• �Disciplined investment processconsistently executed since 1976

• Seasoned team of 5 portfolio managers with an average of 31 years of experience

• Limited institutional client base

• Assets under management $639 million

5-Year�earnings�growth�(forward)�..21%

P/E�(forward�12)�............................... 15x

Weighted�Avg.�Cap.�($M)�............... 1,789

Median�Cap.�($M)�............................ 1,370

P/B�...................................................... 3.1x

ROE�................................................ 13.2%

Dividend�Yield�............................... 0.47%

Turnover�(1-Year)�..............................77%

Stocks�in�portfolio.............................. 125

Parametric�Technology

OSI�Systems

SS&C�Technologies

Gentex

Hanesbrands

InterXion�Holding

Bankrate

Evercore�Partners

Zoll�Medical

Cadence�Design�Systems

Discovery Phase:For�companies�in�the�early�stages�of �their�investment�cycle,�we�seek�evidence�of �high�growth�prospects�(long-term�EPS�growth�greater�than�20%).��Rapid�earnings�growth�will�attract�the�attention�of �investors�who,�in�turn,�will�bid�up�the�stock�price�to�accumulate�shares.

Rediscovery Phase:�The�majority�of �the�portfolio’s�Rediscovery�companies�have�re-emerged�after�a�period�of �difficulty�and�are�characterized�by�near-term�earnings�acceleration�due�to�factors�such�as�a�change�in�management,�a�new�product�cycle�or�a�cyclical�upturn.�We�also�look�for�companies�that�have�assets�that�are�undervalued.�Rediscovery�companies�must�provide�a�minimum�of �40%�EPS�growth�over�the�next�twelve�months,�or�sell�at�a�40%�discount�to�asset�value.

benefitting from�DISCOVERY�and�REDISCOVERY

combinedyears of

experience

153

“�Our� research� process� uncovers� information� gaps� in� small,�rapidly� growing� or� misunderstood� companies� with� the�potential�for�dramatic�stock�price�appreciation.”

First Quarter 2012

Sector Weights

Above Benchmark Returns, Below Benchmark Volatility

CommitmentPeregrine’s�Client�Service�&��Marketing�professionals�are�dedicated�to�understanding�your�individual�needs,�assuring�customized�client�service�and�developing�a�long-term,�attentive�relationship.

Stefanie M. Adams (612) 343-7660RuthAnn DeFrang (612) 343-7639

800�LaSalle�Avenue�-�Suite�1850Minneapolis,�Minnesota�55402612/343-7600888/343-7600www.peregrine.com

©2012�Peregrine�Capital�Management

Peregrine Small Cap Growth

consumer 17%

healthcare 15%

industrials 17%

information technology 28%

financial 10%

energy 9%

materials 4%

Sector Weights

4%

6%

8%

10%

12%

14%

16%

23% 24% 25% 26% 27%

Ret

urn

Risk

Russell 2000® Growth

Peregrine Small Cap Growth

Dates back to the inception of the benchmark on 1/1/79

Peregrine Small Cap Growth

Russell 2000® Growth

Growth of $10 million since Russell 2000® Growth Index inception (1/1/79 - 3/31/12)

The�net�of �fee�returns�are�adjusted�for�a�1%�management�fee.��Returns�reflect�the�reinvestment�of �dividends�and�interest.�Past�performance�is�no�guarantee�of �future�results.

1 3 5 10 20Year Years Years Years Years

Peregrine Small Cap Growth 3.2 33.5 5.9 7.2 10.2 14.8

Peregrine Net of Fees 2.2 32.2 4.9 6.2 9.1 13.7

Russell 2000® Growth 0.7 28.4 4.2 6.0 6.3 NA

Annualized Returns as of 3/31/12Since Inception

1/1/1976