For Professional Use Only Dover Long / Short Sector Fund June 30, 2009 Not For Use With The Investing Public D OVER F UNDS D OVER F UNDS

For Professional Use Only

Dover Long / Short Sector Fund

June 30, 2009

Not For Use With The Investing Public

DOVER FUNDS

DOVER FUNDS


Introduction

Our long/short investment process analyzes industry-specific data, macro-economic trends, and market fundamentals & technicals to

determine the Fund’s overall net and gross exposure, and populate the portfolio with potentially undervalued and overvalued U.S. industries.

We are a rapidly-growing fund manager with ~$82 million in assets under management.

We place a high degree of importance on capital preservation.

Our investment team maintains a significant portion of their liquid assets in the Fund.

We are a Registered Investment Advisor under the Investment Advisor Act of 1940.

We have a seasoned team of investment professionals:

Douglas R. Cliggott

CIO & Portfolio ManagerDecember 2006

BA, Univ. of MassachusettsMA, The New School

26 Years of Experience

Michael G, Kassab, CFA

Portfolio Manager October 2004

BA, Fairfield UniversityMBA, Columbia Business School

14 Years of Experience


FUND OVERVIEW


Fund Overview

Objective Generate positive absolute returns independent of market conditions Low volatility and correlation to the equity markets Emphasis on capital preservation during down markets Seeks to perform well in harsh and volatile conditions, as well as in calmer,

more investor-friendly environments

InvestmentProcess

We employ a two-tiered investment process that uses: Macro factors, market fundamentals, and technical indicators to determine

the portfolio’s net and gross exposure; and Industry group data and economic statistics to populate the portfolio with a

variety of long and short themes

Targets Investment ideas: 10-15 long industries & 10-15 short industries Net exposure: (10%) – 70% Gross exposure: 50% – 130% Individual security limit: 5% of total assets Net sector exposure limit: 25% of net assets

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Recent market events highlight the need for investment strategies with low systematic risk


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Mutual Fund Structure with Hedge Fund Features

The Dover Long/Short Sector Fund offers:

Absolute return strategy in a highly regulated environment

Low correlation to traditional equities

Significantly reduced volatility relative to broader market indices

Daily redemption option and no investor ‘lock-ups’

Daily investment performance metrics

Low investment fees relative to traditional long/short product

Low investment minimums

Investment in only highly liquid publicly-traded equities

Monthly transparency of investment portfolio


Negative View Positive View

Investment Mode Capital Preservation Disciplined Growth

Net Exposure, % (10%) – 25% 35% – 70%

Gross Exposure, % 50% – 100% 80% – 130%

Market Correlation None Moderately positive

Investment Process

Our investment process begins with a top-down assessment of the U.S. equity markets. We utilize various analytical tools to determine our overall

view of the environment, and adjust the portfolio characteristics accordingly.

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Market Environment


Investment Process (cont.)

Our investment process next examines movements in over 200 industry-level economic indicators to form judgments about the earnings outlook for our universe of 67 U.S. industries (see below). We compare our views with the

market consensus to identify potentially overvalued and undervalued groups.

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1. Financials 1.1 Asset managers1.2 Investment banks1.3 Diversified financials

1.4 Consumer finance1.5 Retail REITs1.6 Office REITs

1.7 Timber REITs1.8 Mortgage banks1.9 Regional banks

1.10 Life insurnace1.11 P&C insurance

2. Technology 2.1 Communications equip.2.2 Computer hardware

2.3 Semiconductors2.4 Sytems software

2.5 Internet software2.6 Data processors

3. Materials 3.1 Chemicals3.2 Gold

3.3 Agricultural chemicals3.4 Steel

4. Industrials 4.1 Defense aerospace4.2 Agricultural equipment4.3 Industrial machinery

4.4 Mining equipment4.5 Commercial aerospace4.6 Railroads

4.7 Truckers4.8 Air freight4.9 Water

4.10 Airlines4.11 Multi-industry

5. Consumer Staples

5.1 Beverages5.2 Food retail

5.3 Drug retail5.4 Hypercenters

5.5 Foods5.6 Tobacco

5.7 Household products5.8 Personal products

6. Consumer Discretionary

6.1 Advertising6.2 Apparel retailing6.3 Autos

6.4 Hotels6.5 Entertainment6.6 Home improvement retail

6.7 Internet retail6.8 Restaurants6.9 Electronincs retail

6.10 Homebuilders6.11 Publishing

7. Health care 7.1 Biotech7.2 Health care equipment

7.3 Pharmaceuticals7.4 Generic pharmaceuticals

7.5 HMOs

8. Telecom 8.1 Telecom services

9. Utilities 9.1 Low nuclear exposure 9.2 High nuclear exposure

10. Energy 10.1 Coal10.2 Drillers

10.3 Equipment & services10.4 Refining & marketing

10.5 Exploration & production10.6 Integrated oils

10.7 Wind power10.8 Solar power


S&P 1500 Industries – Top vs. Bottom Quintile

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We believe U.S. industries offer wide performance dispersions well-suited for a long/short strategy. Since 1999(1), the top quintile of industries in the S&P 1500

Index has outperformed the bottom quintile by an average 61.1%.

Source: Bloomberg (1) S&P industries were first introduced in 1999.

90.9%

53.6%

30.6%

1.1%

75.0%

40.3%29.7% 29.4%

34.1%

-13.0%

36.9%

-29.9%

-44.3%

-32.4%-41.6%

10.3%

-2.2%-12.7%

-6.1%

-26.4%

-62.8%

-15.2%

-70%

-50%

-30%

-10%

10%

30%

50%

70%

90%

-13.0%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (YTD) Avg

Top Quintile 90.9% 53.6% 30.6% 1.1% 75.0% 40.3% 29.7% 29.4% 34.1% (13.0%) 36.9% 37.1%

Bottom Quintile (29.9%) (44.3%) (32.4%) (41.6%) 10.3% (2.2%) (12.7%) (6.1%) (26.4%) (62.8%) (15.2%) (23.9%)

Difference 120.8% 97.9% 63.0% 42.7% 64.7% 42.5% 42.4% 35.5% 60.5% 49.8% 52.1% 61.1%

(1999 – Present)


Early 1980’s The Conference Board (NY)

Studied industry-level economic data and the Federal budget.

Late 1980’s Merrill Lynch (NY)

Analyzed macro-economic data, Federal Reserve data, and the U.S. government bond market.

Early 1990’s Merrill Lynch (NY)

Studied the linkages between industry-level economic data and industry group performances within the U.S. equity market with Chuck Clough.

Late 1990’s JPMorgan (NY)

Served as Chief Equity Strategist; built an equity strategy product around the analysis of industry-level economic data and anticipating sell-side earnings estimates.

Early 2000’s Brummer & Partners (NY)

Learned the art of long/short portfolio construction and risk management.

History of Investment Process

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Over his career, Doug Cliggott has built a comprehensive understanding of macro-economic indicators and studied numerous statistical relationships between industry-level economic data and stock price performance.


$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

$1,100,000

DLSIX$985,231

S&P 500$630,737

Historical Performance

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year SinceInception

2009 Dover (DLSIX) 1.45% (2.00%) (2.04%) (3.76%) 1.54% (0.61%) - - - - - - (5.40%) (0.88%)

S&P 500 (8.43%) (10.65%) 8.76% 9.57% 5.59% 0.20% - - - - - - 3.16% (23.90%)

2008 Dover (DLSIX) (0.48%) 2.11% (2.92%) (1.16%) 2.06% 3.46% (1.67%) (0.57%) (0.19%) (1.81%) 1.94% (1.12%) (0.56%) -

S&P 500 (6.00%) (3.25%) (0.43%) 4.87% 1.30% (8.43%) (0.84%) 1.45% (8.91%) (16.79%) (7.18%) 1.06% (37.00%) -

2007 Dover (DLSIX) - - - - - - - - - 0.70%* 2.09% 1.88% 4.73%* -

S&P 500 - - - - - - - - - 1.99%* (4.18%) (0.69%) (2.96%)* -

Source: Bloomberg, Morningstar * For the period beginning 10/22/07

Daily Performance Statistics(Since Inception thru 6/30/09)

Up/Flat Down Total

DLSIX # of Days 248 176 424

% of Total 58.5% 41.5% 100.0%

Avg Return 0.35% (0.50%) 0.00%

Std Deviation - - 0.55%

Up/Flat Down TotalS&P 500 # of Days 216 208 424

% of Total 50.9% 49.1% 100.0%

Avg Return 1.53% (1.76%) (0.08%)

Std Deviation - - 2.36%

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Growth of $1,000,000(Since Inception thru 6/30/09)

Source: BloombergSource: Bloomberg

Performance data quoted represents past performance and is no guarantee of future results. Returns less than one year are not annualized. Current performance may be lower or higher than performance data quoted. Principal value will fluctuate so that shares redeemed may be worth more or less than original cost. For the most recent month end performance, please visit www.doverfunds.com. Shares redeemed or exchanged within 90 days of purchase will be charged a 1.00% fee subject to limited exceptions. Per the prospectus, the Fund’s annual operating expense ratio (gross) for Institutional and Investor Shares is 3.17% and 4.44%, respectively. The Fund’s Adviser contractually agreed to waive a portion of its fees and/or reimburse expenses such that total operating expenses do not exceed 1.25% and 1.75%, respectively, through September 1, 2009. Otherwise, performance shown would have been lower. Performance for other share classes may vary.

DLSIX$985,231

S&P 500$630,737


-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

-12.00% -9.00% -6.00% -3.00% 0.00% 3.00% 6.00% 9.00% 12.00%

DLSIX

S&

P 5

00

Fund Daily Total Return vs. S&P 500

Top #112/11/08

Dover +1.65%S&P -2.83%

Top #31/3/08

Dover +1.61%S&P 0.00%

Worst #210/10/08

Dover -1.92%S&P -1.17%

Worst #13/20/08

Dover -2.09%S&P +2.39%

Worst #33/18/08

Dover -1.77%S&P +4.24%

Top #29/22/08

Dover +1.64%S&P -3.82%

Daily Returns Since Inception(10/23/07 – 6/30/09)

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Past performance is not indicative of future resultsSource: Bloomberg


27%32%33%

53%50%

53%49%

42%

32%

42%

59% 60%

50% 48%

56%

36% 34%39% 42%

38% 36%

-26%-22%-21%

-46%-41% -39%

-44%-50%

-43%

-36%-40%

-46%

-36%-41% -42%

-28%-30% -31%

-38% -35% -33%

-60%

-40%

-20%

0%

20%

40%

60%

Historical Long &Short Exposure

Month-End Gross and Net Exposure(Since Inception thru 6/30/09)

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13% 12% 10%

-1% -1%-5%

2%

13%

24%

9%2%

14%8%

4%8%

5% 3% 3%12% 10%

1%


INVESTMENT PROCESS


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Investment Process

Analyze Macro

Data

Determine Net & Gross

Exposure

Analyze Industry

Data

Construct Portfolio & Control Risk

Analyze both fundamental macro data and technical indicators to assess overall U.S. equity market environment.

Some of our favorite tools include:

Profit Share of National Income (i.e. corporate profit margins) Public and Private Sector Credit Growth Leading Economic Indicators ISM Manufacturing Surveys U.S. Savings Rate 50-Day, 200-Day, and 400-Day Moving Averages of S&P 500


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Investment Process

Analyze Macro

Data


Exposure

Analyze Industry

Data


Gross Exposure: Ranges from 50% to 130%, and will move inversely with market volatility.

We target 50% or less of S&P 500 daily volatility.

Maximum leverage will be 130% of capital and will only happen in very low volatility market environment.

Net Exposure: Ranges from (10%) to 70% depending on our view of the equity markets.

In a positive market environment, will typically range from 35% to 70%.

In a negative market environment, will typically range from (10%) to 25%.


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Investment Process

Analyze Macro

Data


Exposure

Analyze Industry

Data


Examine movements in 200+ industry-level economic indicators to form judgments about the earnings outlook for 67 U.S. industries.

Monitor sell-side analysts’ earnings estimates & implied growth rates for our universe of U.S. Industries.

Compare our views with the market consensus views to determine whether each industry is potentially overvalued or undervalued by the U.S. equity markets.

Select the 10-15 most attractively-priced industries as the ’long ideas’ and the 10-15 most excessively-priced industries as ’short ideas’.


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Our Primary Industry Tools

Revenue Indicators

• Orders/Shipments/Backlogs/Inventories• Personal consumption expenditures• Retail sales• Purchasing manager surveys• Industry surveys• Industrial production (volume)• CPI (pricing)• PPI (pricing)• PCE (Personal Consumption Expenditure)

deflators (pricing)• Commodity prices• Loan growth• Credit growth• Housing sales/prices• Mortgage applications

Cost Indicators

• Employment• Employment costs• Commodity prices• Producer prices• Credit costs

Other Indicators

• Exchange rates• Interest rates• Capacity and operating rates• Consumer confidence• Valuations & implied growth rates• Consensus earnings expectations


Revenue Indicators:

• PPI – Pharmaceuticals (y/y)• PCE Non-durable goods/durable goods (y/y)• PCE drugs (y/y)

Cost Indicators:

• Pharmaceutical industry employment (y/y)• US$/Euro exchange rate

Valuation Indicators:

• Expected earnings growth• Implied earnings growth rate• Dividend yield

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An Industry Example: Pharmaceuticals

By analyzing economic data, we can form judgments about the pharmaceutical industry’s revenue growth, cost environment, and overall

earnings picture. We compare our view against what appears to be currently priced into the marketplace to determine if there may be a potential long/short

opportunity.


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Investment Process

For each long and short idea/industry, we select either a basket of representative stocks or an exchange-traded fund (”ETF”).

Each idea/industry will generally represent 2% to 5% of net assets, depending on our targeted net and gross exposure (i.e. the size of each long basket increases when our targeted gross and net exposure increases).

No individual stock will represent more than 5% of total assets.

No economic sector will represent more than 25% of net assets.

We continually review each long and short industry and compare our modified judgments against the consensus market view.

Portfolio is periodically rebalanced to keep position sizes within targeted ranges.

Analyze Macro

Data


Exposure

Analyze Industry

Data



Disclaimer

An investment in any Dover strategy may only be made on the basis of a prospectus. There can be no assurance that the investment objective of any strategy will be met or that their investment program will be successful.

Past performance or experience is no guarantee of future results. The Funds’ investment program is speculative and entails risks. The information contained herein is for discussion purposes only and is not to be relied upon as advice or interpreted as a recommendation. The information herein reflects prevailing conditions and Dover Investment Management LLC’s (the Funds’ Investment Manager) judgment as of the date of this presentation, all of which are subject to change.

You should carefully consider the Dover Long / Short Sector Fund’s investment objectives, risks, fees and expenses before investing. Such information is available in the Fund’s prospectus, which may be obtained by visiting the Fund’s website at www.doverfunds.com. Please read the prospectus carefully before investing.

Foreside Fund Services, LLC, distributor.

The Fund is subject to several risks, any of which could cause an investor to lose money. The Fund may participate in leverage transactions, to include selling securities short which create the risk of magnified capital losses. Under certain market conditions, short sales can create can increase the volatility, and decrease the liquidity of certain securities or positions and may lower the Fund’s return or result in a loss. The Fund may also invest in stocks of small and midcap companies, which present greater risks than lager companies due to the limited product lines, markets, and financial or managerial resources. In addition, if the Fund’s portfolio is overweighted in a sector, any negative development affecting that sector will have a greater impact on the Fund than a fund that is not overweighted in that sector. In the event the Fund invests in Exchange Traded Funds (ETFs), the lack of liquidity in an ETF could result in more volatility than the underlying portfolio and will subject the Fund to the vehicles’ expenses. Please see the prospectus for details regarding risk.

The S&P 1500 Index combines three leading indices – S&P 500, S&P MidCap 400, and S&P SmallCap 600 and provides an index with the familiar characteristics of the S&P 500 but with broader market exposure. One cannot invest directly in an index.


APPENDIX


Share Classes: Institutional (DLSIX), Investor (DLSAX)

Minimum Investments:$1,000,000 Institutional$5,000 Investor

Management Fee: 1.00%

Net Expense Ratios(1): 1.25% Institutional1.75% Investor

Gross Expense Ratios: 3.17% Institutional4.44% Investor

Legal: K&L Gates, LLP

Administrator: Atlantic Fund Administration, LLC

Auditor: Briggs, Bunting & Dougherty, LLP

Distributor: Foreside Fund Services, LLC

For additional information please refer to the Prospectus.

(1) Based on a fee reduction or reimbursement agreement through 9/1/09, the Adviser has agreed to reduce Fund expenses to the extent that total annual fund operating expenses exceed the listed net expense ratios (excluding taxes, interest, portfolio transaction expenses, Acquired Fund Fee and Expenses, dividend expenses on short sales and extraordinary expenses). The contractual waivers and expense reimbursements may be changed or eliminated with the consent of the Board of Trustees at any time.

Fund Details


Portfolio Management Bios

Douglas R. Cliggott

Chief Investment Officer / Portfolio Manager

Mr. Cliggott has 26 years of experience as a portfolio manager, strategist, and economist, including six years as J.P. Morgan’s Chief Equity Strategist, six years on Merrill Lynch’s economics and investment strategy team, and five years in Brummer & Partners’ hedge fund group. Over his career, Doug successfully steered investors through both bull and bear markets and was voted onto Institutional Investor’s All-Star Research Team in 2001.

Mr. Cliggott holds a B.A. in Economics from the University of Massachusetts and an M.A. in Economics from The New School. Mr. Cliggott serves on the Board of Governors of the New School for Social Research and is a Trustee and member of the Investment Committee of the University of Massachusetts Foundation.

Michael G. Kassab, CFAPortfolio Manager

Mr. Kassab has 14 years of investment management and corporate finance experience. He rejoined Dover in 2007, after helping develop the firm from 2004-2006. Prior experience includes several years as an equity analyst at Gabelli Asset Management and Jefferies Asset Management, where Michael developed in-depth investment knowledge of the consumer, industrial, and financial services sectors. Mr. Kassab began his career in public and corporate accounting.

Mr. Kassab holds an M.B.A. from Columbia Business School and a B.S. in Accounting & Economics from Fairfield University. Michael is both a CFA charterholder and a Certified Public Accountant.


Dover Investment Management LLC140 Greenwich AvenueGreenwich, CT 06830Tel: (203) 769-4100

www.doverfunds.com

Contact Information

Documents

For Professional Use Only Dover Long / Short Sector Fund June 30, 2009 Not For Use With The Investing Public D OVER F UNDS D OVER F UNDS