NOTES TO THE FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Leuthold Funds, Inc. (the "Company") was incorporated on August 30, 1995, as a Maryland Corporation and is
registered as an open-end management investment company under the Investment Company Act of 1940. The
Grizzly Short Fund (the "Fund") is one of three series of the Company. The investment objective of the Fund is
capital appreciation. However, as its principal investment strategy is to sell stocks short, it may be difficult for the
Fund to achieve its goal in rising stock markets. The Fund commenced operations on June 19, 2000.
During the period prior to commencement of Fund operations, the Investment Adviser reimbursed the Fund for
organizational expenses of $18,519.
The following is a summary of significant accounting policies consistently followed by the Fund.
a) Investment Valuation - Common stocks that are listed on a securities exchange are valued at the last quoted
sales price on the day the valuation is made. Price information on listed stocks is taken from the exchange where
the security is primarily traded. Options and securities, which are listed on an exchange but which are not traded
on the valuation date, are valued at the most recent bid prices. Unlisted securities for which market quotations are
readily available are valued at the latest quoted bid price. Debt securities are valued at the latest bid prices
furnished by independent pricing services. Other assets and securities for which no quotations are readily
available are valued at fair value as determined in good faith by the Directors. Short-term instruments (those with
remaining maturities of 60 days or less) are valued at amortized cost, which approximates market.
b) Federal Income Taxes - It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and the Fund intends to distribute investment company net taxable
income and net capital gains to share