NOTES TO FINANCIAL STATEMENTS
The Caldwell & Orkin Market Opportunity Fund (the "Fund") is the only active investment portfolio of The
Caldwell & Orkin Funds, Inc., an open-end, diversified management investment company registered under the
Investment Company Act of 1940, as amended. The Fund's objectives are to provide long-term capital growth
with a short-term focus on capital preservation through investment selection and asset allocation. The Fund seeks
to outperform the stock market over the long-term, as measured by indices such as the S&P 500 with Income.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Securities are stated at the closing price on the date at which the net asset value is being determined. If the date of
determination is not a trading date, the securities are valued as of the last trading date proceeding the date of
determination. Short-term investments having a maturity of 60 days or less at the time of the purchase are stated
at amortized cost, which approximates market value.
SECURITIES TRANSACTIONS AND RELATED INVESTMENT INCOME:
Securities transactions are accounted for on the trade date plus one day. Dividend income is recorded on the ex-
dividend date and interest income is recorded as earned. Realized gains and losses from investment transactions
are determined using the specific identification method.
The Fund maintains cash available for the settlement of securities transactions and capital shares reacquired.
Available cash is invested daily in money market instruments.
As a qualified investment company under Subchapter M of the Internal Revenue Code, the Fund is not subject to
income taxes to the extent that it distributes all of its taxable income. It is the Fund's policy to meet the
requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of
its taxable income to its shareholders.
During the six months ended October 31, 2000 there was an adjustment made t