October 2011 Greenspring Fund Dear Fellow Shareholders: The financial markets bruised and battered investors during

the third quarter of 2011, as fear once again dictated many investor decisions. Many of the recent troubles in the financial markets were sparked by turmoil in Europe, much of which originated in Greece. Concerns have grown that Greece may soon be unable to roll over its maturing sovereign debt, unless it receives a bailout from its partners in the European Union. In this ever increasingly interconnected world economy, a default by Greece on its government debt would have repercussions not only in Europe, but worldwide. Large European banks, especially in France and Spain, hold large amounts of Greek debt. Were a disorderly default to occur, significant portions of the capital of these banks could be impaired, leading to ratings downgrades, and possibly restricted access to capital markets a necessary condition for properly functioning banks. With a wounded banking system, the many companies that rely on these banks could have trouble financing their own capital needs. Additionally, investors around the world holding bonds of these weakened European banks could also suffer losses. The solution to this predicament seems to require the more fiscally prudent countries in Europe, principally Germany, to come to the aid of Greece with a bailout plan that would result in shared sacrifices throughout Europe. However, the terms and conditions of such a financial rescue have been the subject of lengthy and passionate debates in many countries throughout Europe. As acrimonious and difficult as it was to negotiate and pass some measures aimed at dealing with the financial crisis in America during 2008/2009, achieving an agreement in Europe could be even more challenging and complex because many different countries, each with their own internal policy disagreements, must try to find common ground.
Performance for the Periods Ended September 30, 2011
Quarter Year to Date 1 Year 3 Years* 5 Years* 10 Years* 15 Years* 20 Years* Since inception on 7/1/83* Expense Ratio** -8.27% -6.79% -2.22% 2.88% 3.11% 6.88% 6.70% 8.40% 9.63% 0.98%

* annualized. **as stated in Prospectus dated 5-1-11. See note on last page of letter. Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-800-366-3863 or visiting the Funds web site. The Fund imposes a 2.00% redemption fee for shares held 60 days or less. Performance data does not reflect the redemption fee. If reflected, total returns would be reduced.

The Funds investment objectives, risks, charges and expenses must be considered carefully before investing. The Prospectus contains this and other information about the Fund, and it may be obtained by calling 1-800-366-3863 or visiting www.greenspringfund.com. Please read the Funds Prospectus carefully before investing.

Uncertainties abound in our domestic economy as well. Concerns about our economys strength, and fears of a double-dip recession, spurred the Federal Reserve to initiate its Operation Twist wherein the Fed will buy longer-term Treasuries in an effort to lower longer-term interest rates. Growing frustration about the lack of substance in Washingtons political rhetoric and skepticism that meaningful progress will be made on the many significant financial challenges facing our country have diminished the willingness of consumers and corporations to spend and invest. Consumers continue to be hamstrung by a stubbornly high unemployment rate and the feeble recovery in the housing market and businesses are holding off from making expansionary investments such as hiring or capital improvements. During this challenging market environment, the Greenspring Funds investments have held up relatively well, although they have been far from unscathed, especially within our equity investments. Investors reacting to fear and uncertainty have sought liquidity by aggressively selling common stocks, whether large or small cap, value or growth oriented. At times, the selling has been indiscriminate and without regard to the underlying value of the companies. Small capitalization stocks suffered considerably more selling pressure during the quarter as evidenced by the 22% decline in the Russell 2000 index compared with the 14% decline in the S&P 500 Index. We have examined, and re-examined, the stocks the Fund holds and feel very strongly that the underlying fundamentals of the companies remain sound. As we have stressed in many past quarterly letters, based on our experiences of investing during many market cycles, we focus intently on companies that have solid balance sheets, strong shareholder-oriented management, and leading industry positions. It is precisely during this type of market environment that the importance of these characteristics can become appreciated. While weakly capitalized companies suffer to a greater degree due to their susceptibility to economic weakness and less receptive capital markets, strongly capitalized companies are able to maintain more flexibility and may actually take advantage of the financial markets upheaval. In fact, several of the companies the Fund owns have initiated common stock dividends during this volatile period! And many of the companies in the portfolio have initiated or increased stock and/or bond repurchase programs in order to take advantage of the volatile market conditions. Far from being victims of the stock market turmoil, these companies have placed themselves in a position to be able to increase the value of their common stocks with actions that, while perhaps not immediately reflected in the stock price, may enable their stocks to move higher than they would otherwise once the markets regain some stability. The bonds in the Funds fixed income portfolio have experienced much less price volatility because they are shorter duration bonds issued by companies with strong finances where our analysis indicates a clear pathway to debt repayment. We are extremely comfortable with the bonds we hold, as we have purposefully avoided the bonds of companies that require frequent access to the capital markets to ensure the necessary financing to run their businesses (as mentioned in many previous quarterly letters). As investors sell securities in all asset classes to create liquidity, the selling pressure may result in temporary price weakness, even in our bonds. However, it is important to remember that the return on a bond is achieved as investors receive their interest payments according to schedule and receive the principal of the bonds at maturity (or in some cases a bonds early redemption or on a date when an investor can put the bond back to the company). If held to maturity (or redemption or put), as the vast majority of our bonds are, the ultimate return realized on a bond is not in any way dependent on the whims and emotions of the financial markets, although the interim market value of a bond may be affected by such sentiment.

INFLUENCES on FUND PERFORMANCE As one would expect during such a quarter, the Funds bond investments performed significantly better than the Funds equities. The securities that had the largest impact on the Funds performance during the quarter were common stock investments in Harmonic Inc., PartnerRe Ltd., Rosetta Resources, ON Semiconductor and Prestige Brands, all of which registered drops in value. Harmonic Inc. Harmonic sells niche, market dominant products that help content and service providers in the production and transmission of broadcast and on-demand video and other services. While the stock has struggled recently as investors lost faith in managements optimistic expectations for 2011, we strongly believe in the long-term opportunity for the Company. As we mentioned in last quarters letter, in mid-July Harmonic announced second quarter results that disappointed investors. Major domestic % of cable companies had reduced Net Greenspring Fund order levels for video Assets Top 10 Holdings as of processing equipment due in 9/30/11 part to the poor performance Charter Communications 13.50% 11/30/16 Corporate Bonds 4.3% of the industrys first major FTI Consulting, Inc. 3.9% attempts at live video Hanesbrands, Inc. 3.769% 12/15/14 Corporate Bonds 3.9% broadcasts over small screen Lucent Technologies Convertible Bonds 2.875% 6/15/25 3.8% devices such as smartphones Plains Exploration and Production 7.75% 6/15/15 Corp. Bonds 3.5% and iPads. As cable PartnerRe Ltd. 3.5% Cisco Systems, Inc. 3.3% companies revise their CA, Inc. 3.2% strategy for next-generation Gulfmark Offshore, Inc. 7.75% 7/15/14 Corporate Bonds 2.9% video delivery, we expect PPL Corp. 2.9% Harmonic products to play a valuable role. During this period of uncertainty, the Company has continued to generate positive free cash flow, is debt free, carries more than $1 per share in cash on its balance sheet, and appears well positioned to benefit from the evolution of video delivery. PartnerRe Ltd. PartnerRe Ltd. provides primary insurance companies with multi-line reinsurance to transfer risk above specified limits. The Company has used organic growth and acquisitions to diversify both geographically and by business line, allowing for more consistent returns on equity over time. The stock has suffered recently, however, as a result of the losses the Company incurred due to several major disasters in 2011, including the Australian floods, the New Zealand earthquake, the Japanese earthquake and tsunami, and tornadoes and flooding in the U.S. In addition, the United States Federal Reserves effort to keep interest rates low has reduced the amount of interest income PartnerRe earns on its vast investment portfolio. These events have reduced the Companys near-term earnings. However, we continue to like the long-term dynamics of PartnerRe due to their well-capitalized balance sheet, superior risk management processes, and the potential for an increase in industry pricing following this years capital erosion, as the reinsurance industry seeks to recover its substantial losses of the past year. After PartnerRes stock price declined in reaction to these issues, we added to the Funds long-term holdings, as we believe these issues are adequately factored into the stock price.

Rosetta Resources Rosetta Resources develops oil and natural gas properties in North America with significant acreage positions in South Texas and Greenspring Fund Northwest Montana. During the Portfolio Allocation quarter, Rosetta reported very positive as of September 30, 2011 results from operations for the second quarter. In the South Texas Eagle Ford properties, oil and gas production was higher than expected, costs were well under control and the Company increased its estimated production guidance for the year. Based on continued positive production results from wells in the Eagle Ford, the Company also significantly increased its estimated oil and gas reserves per well. Additionally, in the Montana Southern Alberta Bakken oil fields, the Company reported that all test wells to date have encountered oil and the Company is very optimistic about the potential for this play. Despite this encouraging news, Rosettas stock price declined by over 30% during the quarter, dragged down by the decline in the price of crude oil and natural gas. We continue to hold the stock, as we believe the current price does not adequately reflect the inherent value of Rosettas Eagle Ford production as well as the substantial resource potential of the Companys large acreage holdings in the Alberta Bakken. INVESTMENT STRATEGY With the extreme volatility of the financial markets, we were more active than usual during the quarter, as we sought to be opportunistic and take advantage of the investment opportunities that can be created during times such as these. Maturities or redemptions of bonds within our fixed income portfolio provided added liquidity for the Fund, in addition to bonds that we sold in the open market or put back to companies in conjunction with their repurchase obligations. Additionally, we sold the Funds entire position in the common stocks of Ralcorp Holdings and Tessera Technologies and pared the size of several other common stock investments. Initial purchases were made in the common stocks of First Connecticut Bancorp (small regional thrift), GSI Group (underfollowed manufacturer of laser-based products with a new management team), Solutia Inc. (specialty chemical manufacturer) and Westfield Financial (small regional thrift). Additional purchases of existing common stock holdings were made in several small regional thrifts (Chicopee Bancorp, ESSA Bancorp, Hampden Bancorp, Middleburg Financial, OmniAmerican Bancorp), two oil and gas exploration companies (EOG Resources, Energen Corporation) as well as EMCOR Group, Harmonic Inc., PartnerRe Ltd., and Republic Services. We established new holdings in the following corporate bonds: Complete Production Services 8% December 15, 2016; Elan Finance Corp. 8.875% December 1, 2013; Greenbrier Companies 2.375% May 15, 2026 (first put date in May 2013 and also convertible); and Ticketmaster Entertainment 10.75% August 1, 2016. Aside from the Greenbrier convertible bonds that we will most likely put to the Company in May 2013, all of these bonds have relatively high

coupons and call features that make it very possible that the companies will retire the bonds well prior to the bonds final maturity dates. Looking to the future, we believe that the financial markets may react very positively to a resolution of the Greek debt situation, almost regardless of what shape the resolution takes. One of the most time-tested maxims in the financial markets is that the markets hate uncertainty and theres plenty of uncertainty right now with the situation in Europe as well as with the U.S. economy. If the predicament in Europe is resolved, and market participants become more comfortable with the direction of events there, we believe the financial markets could respond very constructively. In the meantime, we, even more than usual, are focusing on finding stocks and bonds of companies that we believe are in a position not only to withstand the current market turmoil, but also to improve their relative positions in their industries. In addition, many of these companies should be able to take advantage of the current market turmoil by acquiring other companies at bargain prices, repurchasing their own stock, and/or retiring their outstanding debt at discounted prices. While times such as these try the patience of investors, we feel it is important to remain as analytical, objective and non-emotional as possible and study the fundamentals of companies with an eye toward taking advantage of other investors emotions, as opposed to surrendering to the sentiment of the times. Respectfully,

Charles vK. Carlson Portfolio Manager Co-Chief Investment Officer

Michael J. Fusting Co-Chief Investment Officer

**Total Annual Fund Operating Expenses for the Fund will not correlate to the Ratio of Expenses to Average Net Assets shown in the Funds most recent Annual Report and in the Financial Highlights section of this Prospectus, which reflects the operating expenses of the Fund and does not include acquired fund fees and expenses. Mutual fund investing involves risk. Principal loss is possible. Small-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Investments by the Fund in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Opinions expressed are subject to change, are not guaranteed and should not be considered recommendations to buy or sell any security. Fund holdings and/or sector allocations are subject to change at any time and are not recommendations to buy or sell any security. Current and future portfolio holdings are subject to risk. 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. The Russell 2000 Index consists of the smallest 2,000 companies in a group of 3,000 U.S. companies in the Russell 3000 Index, as ranked by market capitalization. You cannot invest directly in an index. Free cash flow measures the cash generating capability of a company by adding certain non-cash charges (e.g. depreciation and amortization) to earnings and subtracting recurring capital expenditures. Duration is a commonly used measure of the potential volatility of the price of a debt security, or the aggregate market value of a portfolio of debt securities, prior to maturity. Securities with a longer duration generally have more volatile prices than securities of comparable quality with a shorter duration. Return on Equity is a measure of a corporations profitability representing average return on equity on the securities in the portfolio, not the actual return on equity on the portfolio. Distributed by Quasar Distributors, LLC