NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Small Cap Portfolio (the "Portfolio") is registered under the Investment Company Act of 1940 (the "Act"), as
amended, as an open-end management investment company. The Portfolio was organized on August 6, 1993 as
an unincorporated trust under the laws of New York and commenced operations on October 21, 1993. The
Declaration of Trust permits the Board of Trustees (the "Trustees") to issue beneficial interests in the Portfolio.
B. Security Valuation
The Portfolio's investments listed or traded on the National Stock Exchanges or other domestic or foreign
exchanges are valued based on the closing price of a security traded on that exchange prior to the time when the
Portfolio assets are valued in cases where securities are traded on more than one exchange, the securities valued
on the exchange designated as the primary market by the Trustees. All other portfolio securities for which over-
the-counter market quotations are readily available including circumstances under which it is determined by the
Investment Manager that sale or bid prices are not reflective of a security's market value, portfolio securities are
valued at their fair values as determined in good faith under procedures established by and under the general
supervision of the Trustees. Short-term obligations with remaining maturities of 60 days or less are valued at
amortized cost. Other short-term debt securities are valued on a mark-to-market basis until such time as they
reach a remaining maturity of 60 days, whereupon they will be valued at amortized cost using their value on the
61st day. All other securities and other assets are valued at their fair value as determined in good faith under
procedures established by and under the general supervision of the Trustees.
C. Security Transactions and Investment Income Security transactions are accounted for on a trade date basis.
Dividend income is recorded on the ex-dividend date. Interest income is rec