Freedom Capital Fund Commentaries

FCF Commentaries

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Freedom Capital Fund Commentaries

Freedom Management Corporation commentary as of June 30, 2008
Over, the first 6 months of this year, including reinvestment of capital distributions the shares of the Freedom Capital Fund, Ltd. were down 16.92% compared to a negative 11.91% return for the S&P 500 index. After two dividend distributions during the semester of .10 cents per share each the Fund's units decreased going from $15.679 in December 31, 2007 to $13.026 on June 30, 2008. During the total life since inception which is nine years and six months, the Freedom Capital Fund (FCF) had a compounded net return of 2.82% per year versus 3.04% for the S&P 500 index.

During the first semester of 2008 the Fund made no new investments. Total divestitures during this period were executed in: Technitrol Inc., Honda Motor Corp., Citigroup, Dell Inc, Woori Finance, Whirlpool Corp., Utstarcom, Inc., Washington Mutual, W Holding, US Bancorp, Take Two Interactive, Symantec Corp., Startek Inc., Sonic Automotive Inc., Sanmina SCI Corp., Rehabcare Group Inc., Popular Inc., Pfizer Inc., Pegasystems Inc., On Assignment Inc., Nomura Holdings, Newtek Business Service, NVR Inc., NEC Corp, Microsoft Corp., Mass Financial Corp., MGIC Invetment, L-3 Communications, Krispy Kreme Doughnut, Kenneth Cole Products, Jones Apparel Group, and Bank of Ireland.

The Fund closed the semester with a diversified portfolio represented in 55 equity positions. No one position accounted for more than 3.40% of the gross portfolio value. Approximately 66.80% of the portfolio was invested in companies registered in the United States, 21.9% in those of other industrialized nations and the remaining 11.3% was in equities of companies from emerging market countries. As of June 30, 2008 the Fund was fully invested with no free cash in its accounts.

For the remainder of this year in the U.S. Freedom Management Corporation, the Management Company of the Fund, continues to expect favorable short term market trends. If this does in fact occur, the management company expects to take the unusual step of selling a substantial proportion of the equity portfolio as markets rise. The reason for this is that the Management Company believes and forecasts that beginning 12 to 24 months from now many major markets and economies will be heading into a severe recession or possibly a depression, presenting a very difficult environment for equities in general. The Fund's administrators believe these conditions may last several years. Once markets have given up enough ground the Management Company hopes to take advantage of these lower market levels acquiring for the Fund selected equities at important discounts. Beyond this extraordinary circumstance the Management Company will continue for the most part with its philosophy of buying and holding positions in its portfolio for long periods of time.

As previously mentioned the Fund paid a dividend of .10 cents per share and per quarter on March 31, 2008 and June 30, 2008.

Please always keep in mind that past performance does not guarantee future results