Investing Strategy

Foxby Corp.’s investment objective is total return. The Fund may seek to achieve this objective from growth of capital and from income in any security type and in any industry sector, although there is no limitation on the percentage or amount of the Fund’s assets which may be invested for growth of capital or income. Accordingly, at any time the investment emphasis may be placed solely or primarily on growth of capital or solely or primarily on income.

The Fund’s strategy is normally to seek companies with growing operations showing superior returns on assets with moderate debt, generating free cash flow, and trading at reasonable valuations. Generally, the Fund purchases and holds securities of profitable, conservatively valued companies and sells investments that appear to have appreciated to levels reflecting full or over-valuation.

The Fund invests in securities of issuers that Midas Management Corporation, the Fund’s investment manager, considers to have attractive fundamental and technical attributes for potential total return. In evaluating investments, the Fund’s investment manager typically considers financial strength, profitability, growth potential, yield, and risks, in view of market valuation and relative strength, as well as other considerations, to select the Fund’s specific portfolio securities. The Fund exercises a flexible strategy in the selection of securities, and is not limited by the issuer’s location, size, or market capitalization.

The Fund may invest in equity and fixed income securities of new and seasoned U.S. and foreign issuers, including securities convertible into common stock, debt securities, futures, options, derivatives, and other instruments. In seeking to enhance returns, the Fund may employ leverage. The Fund may, from time to time, make temporary investments for defensive purposes that are inconsistent with the Fund’s principal investment strategies in attempting to respond to adverse market, economic, political, or other conditions.