SMALL CAP GROWTH®

Profile

Investment Process

Team Continuity

Portfolio Characteristics

Philosophy

Top 10 Holdings

Robert B. Mersky, CFA, 45 YearsPaul von Kuster, CFA, 39 YearsDaniel J. Hagen, CFA, 29 YearsWilliam A. Grierson, CFA, 21 YearsJames P. Ross, CFA, 24 Years

• Disciplined investment process consistently executed since 1976

• Seasoned team of 5 portfolio managers with an average of 32 years of experience

• Limited institutional client base

• Assets under management $559 million

5-Year earnings growth (forward) ..20%

P/E (forward 12) ............................... 13x

Weighted Avg. Cap. ($M) ............... 1,785

Median Cap. ($M) ............................ 1,273

P/B ...................................................... 2.8x

ROE ................................................ 15.9%

Dividend Yield ............................... 0.82%

Turnover (1-Year) ..............................69%

Stocks in portfolio.............................. 121

Hanesbrands

SS&C Technologies

OSI Systems

On Assignment

Cirrus Logic

Cadence Design Systems

Evercore Partners

Ryman Hospitality

Vocera Communications

Omnicell

Rediscovery companies offer near-term earnings acceleration due to factors such as a change in management, an improved competitive position, a new product cycle or a cyclical upturn. We also look for companies that are takeover candidates. Rediscovery companies must provide a minimum of 40% EPS growth over the next twelve months, or sell at a 40% discount to a company’s takeover price.

benefitting from DISCOVERY and REDISCOVERY

combinedyears of

experience

158

Information Gap \ in•for•ma•tion gap \ n.: a disconnect between stock price and fundamentals. Information gaps occur most frequently and are most attractive in small, rapidly growing companies.

Fourth Quarter 2012

Significant Appreciation Potential, Downside Protection

Illustration of an INFORMATION GAP

Discovery Phase:For companies in the early stages of their investment cycle, we look for superior growth prospects (long-term EPS growth of at least 20%).

Rediscovery Phase:

We identify INFORMATION GAPS in Discovery and Rediscovery Phase Companies.

23% 20%

16x

22x

Long-term growth Estimated 3- to 5-year EPS growth

Price/Earnings Forward 12-months' estimated EPS

Peregrine vs. Russell 2000® Growth

Historical average as of December 31, 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

©2013 Peregrine Capital Management

Peregrine Small Cap Growth

consumer 13%

healthcare 17%

industrials 20%

information technology 26%

financial 13%

energy 6%

materials 5%

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 - 12/31/12)

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.

Fourth 1 3 5 10 Quarter Year Years Years Years

Peregrine Small Cap Growth 1.0 17.3 16.2 5.5 10.8 14.5

Peregrine Net of Fees 0.7 16.1 15.0 4.5 9.7 13.4

Russell 2000® Growth 0.4 14.6 12.8 3.5 9.8 NA

Annualized Returns as of 12/31/12Since Inception

1/1/1976