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Dear Fellow Wintergreen Fund Shareholder,

EXCERPT FROM THE 2017 SEMI-ANNUAL REPORT SHAREHOLDER LETTER

Posted August 29, 2017

Wintergreen Fund, Inc. (the "Fund" or "Wintergreen") outpaced the Standard & Poor's 500 Composite Index ("S&P 500") during the first half of 2017. The Fund's performance during the first half of 2017 benefitted from strong returns from long-term holdings Reynolds American, Inc. ("Reynolds"), British American Tobacco plc ("BAT"), and Nestle SA ("Nestle"). Birchcliff Energy, LTD, one of the Fund's best performers in 2016, lagged during the first six months of 2017, along with Provident Financial plc, and Baker Hughes, Inc.

With the changing winds of the stock market, we believe that Wintergreen's value investing approach is a critical strategy for investors today. In addition to identifying companies with strong fundamentals and compelling growth paths at significant discounts, value investing allows investors to hedge a market stressed by securities that have become over weighted and overpriced due to the rise of passive index funds.

Keep your eyes on the stars,
and your feet on the ground.
-Teddy Roosevelt

Since the Fund's inception in 2005, Wintergreen has held significant investments in both BAT and Reynolds. BAT's management team has increased the company's operating margin from the high-20s to mid-30s, doubled free cash flow to well over GBP 3 billion per year, and raised the dividend by a 12% compounded annual growth rate. At the same time, the Reynolds management team used a value formula that consisted of employing pricing power, generating substantial free cash flow, and returning much of that cash to shareholders through increasing dividends and share repurchases. Earlier this year, BAT, which has a global footprint and had long held approximately 42% of Reynolds shares, announced a bid for the remainder of Reynolds, which primarily caters to consumers in the U.S. In addition to corporate due diligence, this deal required both government and shareholder approval before the transaction could occur. We saw significant value in both companies individually, and believed there was considerable future value whether or not the acquisition occurred. After careful consideration, the Fund supported the proposed transaction. We believe it will benefit shareholders of both companies for the long run.

Continue reading the 2017 Semi-Annual Report Shareholder Letter

View a recent listing of the Fund's Top 10 Holdings

David J. Winters, CFA
Portfolio Manager

The views contained in this report are those of the Fund's portfolio manager as of June 30, 2017, and may not reflect his views on the date this report is first published or anytime thereafter. The preceding examples of specific investments are included to illustrate the Fund's investment process and strategy. There can be no assurance that such investments will remain represented in the Fund's portfolios. Holdings and allocations are subject to risks and to change. The views described herein do not constitute investment advice, are not a guarantee of future performance, and are not intended as an offer or solicitation with respect to the purchase or sale of any security.


The Fund is subject to several risks, any of which could cause an investor to lose money. The Fund may purchase risk arbitrage securities (securities of companies involved in a restructuring) or distressed companies. These companies may not be successful in their restructuring and securities of distressed companies are generally more likely to become worthless than securities of more financially stable companies. Smaller companies involve substantial risk as these securities are traditionally more volatile in price than larger company securities. Value risk is that the securities in which the Fund invests may never reach what the Investment Manager believes are their full market values. Securities rated below investment grade, sometimes called junk bonds, involve a greater degree of risk than investment grade bonds in return for higher yield potential. The Fund may be subject to interest rate risk which is the risk that debt securities in the Fund's portfolio will decline in value because of increases in market interest rates. By participating in derivative securities, the Fund may attempt to hedge (protect) against currency risk which is the risk that the value of foreign securities may be affected by changes in currency exchange rates. Derivatives can be volatile and involve various types and degrees of risks, depending upon the characteristics of a particular derivative. International investing involves certain risks and increased volatility not associated with investing solely in the U.S. These risks include currency fluctuations, economic or financial instability, lack of timely or reliable financial information or unfavorable political or legal developments. These risks are magnified in emerging markets. As a result of appreciation of certain of the Fund's portfolio securities and/or a change in the size of the Fund, investments in a particular sector or industry may represent a significant portion of the Fund's overall portfolio. If this occurs, the Fund will be subject to greater potential risk than funds that do not have as much exposure to such sector or industry. Short sale risk is the risk that the Fund will incur an unlimited loss if the price of a security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security.

In light of these risks, the Fund may not be suitable for all investors.

Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. The prospectus and summary prospectus contain this and additional information regarding the Fund. To obtain a prospectus or summary prospectus, please download from this site or call toll-free 1-888-468-6473. The prospectus and summary prospectus should be read carefully before investing. This website is not a solicitation for the Fund outside of the United States.

Foreside Fund Services, LLC, distributor (www.foreside.com)