Notes to Financial Statements
December 31, 2000
ICAP Funds, Inc. ("ICAP") was incorporated on November 1, 1994 under the laws of the State of Maryland
and is registered as an open-end management investment company under the Investment Company Act of 1940.
ICAP is comprised of four portfolios, the Discretionary Equity Portfolio, the Equity Portfolio, the Select Equity
Portfolio and the Euro Select Equity Portfolio (the "Portfolios"), the first two of which are diversified portfolios
and the last two of which are non-diversified portfolios. Institutional Capital Corporation is the investment adviser
(the "Adviser") to the Portfolios. The Discretionary Equity and Equity Portfolios commenced operations after the
close of business on December 31, 1994 and the Select Equity and Euro Select Equity Portfolios commenced
operations after the close of business on December 31, 1997.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by ICAP in the preparation of
its financial statements. These policies are in conformity with accounting principles generally accepted in the
United States of America.
a) Investment Valuation - Common stocks and other equity-type securities are valued at the last sales price on a
recognized U.S. or foreign securities exchange or Nasdaq on which such securities are primarily traded;
however, securities traded on a recognized U.S. or foreign securities exchange or Nasdaq for which there were
no transactions on a given day or securities not listed on an exchange or Nasdaq are valued at the most recent
bid prices. Debt securities are valued by a pricing service that utilizes techniques to determine values for normal
institutional-sized trading units of debt securities without regard to the existence of sale or bid prices when such
values are believed to more accurately reflect the fair value of such securities; otherwise, actual sale or bid prices
are used. Any securities for which market quotati