Investment Objective
Nicholas Liberty Fund, Inc. pursues growth of capital by investing in approximately twenty to thirty companies the manager believes will outperform the market over time. The portfolio may include large, mid-sized or small companies, and the manager may take substantial positions in a single company.

Investment Policies & Considerations
Nicholas Liberty Fund, Inc. pursues growth of capital by investing in approximately twenty to thirty companies the manager believes will outperform the market over time. The portfolio may include large, mid-sized or small companies, and the manager may take substantial positions in a single company.

• Quality of management
• Free-cash-flow and growth of free-cash-flow
• Free-cash-flow yield
• Balance sheet strength and the company's ability to self-sustain its growth
• Earnings before interest, taxes, depreciation and amortization ("EBITDA")
• Enterprise value relative to EBITDA
• Earnings growth
• Operating history

The performance of the Fund is measured against the Standard & Poor’s 500 Index; however, the fund does not mirror the index by holding similar industry and sector allocations. Therefore, the Fund’s performance may be significantly different from the performance of the S&P 500, especially over short periods of time. However, the manager believes that focusing on a concentrated portfolio of stocks will lead to outperformance over the long-term.

The Nicholas Liberty Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund.  Therefore, the Fund is more exposed to individual stock volatility than a diversified fund.

The Fund may invest in smaller companies, which involve additional risks such as limited liquidity and greater volatility.

Mutual fund investing involves risk: loss of principal is possible.

The S&P 500 Index is a broad based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general.

Free cash flow is generally defined as cash flow from operating activities minus total capital expenditures. It may be specifically defined as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) less Capital Expenditures and Interest Expense.

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