strong performance over the next three years - in the beginning of 1996, it had a three-year annualized return of nearly 30%. At the end of June 1996, it was the #1 performer among all equity funds over the previous 10 years, according to Lipper Analytical Services. Meanwhile, the fund's assets under management had increased from about US$8 million in 1993 to US$5 billion in mid-1996. During Pilgrim's peak popularity in 1996, Sheldon Jacobs, the editor in chief of the No-Load Fund Investor, stated, "I have never seen a group that has done so consistently well." The October 1996 Kiplinger's Personal Finance Magazine gave Pilgrim the following review: "Forget Peter Lynch: Gary Pilgrim is the best stock picker of the past five years and the past ten." Unfortunately for many investors who, in response to massive media attention, bought into the fund at this time, late-1996 to early-1999 was a difficult period for PBHG Growth as market trends turned against small growth stocks, even as the economy at large flourished. During this 10-quarter period, the fund struggled to break even, while the S&P 500 returned 95%. As the internet technology boom took off, however, PBHG Growth's performance skyrocketed, returning 93% in 1999. But with the economic downturn which began in early 2000, the fund, true to its volatile nature, began to fall precipitously, losing 34% in 2001 and 30% in 2002. Pilgrim appeared in the 1998 and 2004 editions of Jason Kelly's book The Neatest Little Guide to Stock Market Investing as a "master" investor whose strategy should be studied, though probably not strictly emulated, by individuals seeking success in stock market investing. Quotes "Anyone who sticks with a particular investment approach will be frustrated by the market occasionally. Our history suggests that we're usually in the top quartile or bottom quartile of returns and don't spend much time in the middle." "I'm very confident that as long as I can put together a portfolio of companies growing 40% a year, these stocks can be leaders. In my mind, this is the natural state of affairs." "As growth managers go, we're among the most aggressive because we always look for companies in the early to middle stages of maturity." "I focus on companies that are doing well, not ones that have stumbled, or missed by just a little bit. I like to be in a good mood, and every stinker