Oak Value Fund - Investment Adviser’s Review – Third Quarter 2007

Last quarter we dedicated a significant portion of our commentary to the notion of risk and the emotion of “fear.” In a short period of time, Mr. Market has become increasingly focused on this fear. The discipline that defines us requires that we be fearful when others are greedy and greedy when others are fearful. For long-term, disciplined investors interested in owning high quality companies and willing to purchase such at attractive valuations, opportunities abound.