Pear Tree Polaris Small Cap Fund

For the Quarter ended December 31, 2022

The Pear Tree Polaris Small Cap Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, the Russell 2000 Total Return Index (the “Index”). The Fund had a return of 13.64% at net asset value compared to 6.23% for the Index.

Market Conditions and Investment Strategies

Markets rallied in the fourth quarter on expectations that the interest rate cycle will slow on moderating inflation data; as a
result, many cyclical sectors performed best. In particular, the Fund’s performance was attributable to double-digit gains in the
Industrials, Energy, Materials, Consumer Discretionary, Information Technology and Consumer Staples sectors. The only detractor
of note was Communication Services.

As the wheels of e-commerce kept rolling, so did long-haul trucking, benefiting Wabash National Corp. The truck trailer company
was able to raise prices to cover inflationary raw material costs. HR management company Barrett Business Services announced
impressive third-quarter earnings, with higher revenues and gross billings on the back of new client wins. Science Applications,
the IT service to the U.S. government, cited strong organic growth as it was awarded new contracts.

The Energy sector performed well in the past 18 months, as oil/gas companies pushed up prices on limited supplies. After a
long drought of underinvestment, oil/gas companies are seeking to replenish production. As a result, equipment and service
companies like NOV Inc. and Dril-Quip Inc. are in high demand.

Perdoceo Education Corp. and Crocs, Inc. led the Consumer Discretionary sector. Investors were quick to snap up shoe and
sportswear retailers on the back of Nike’s upbeat guidance, referencing better inventory controls. Crocs Inc. was one such
beneficiary, as the stock gained more than 50% on the quarter, with booming international and acquisitive (HEYDUDE) sales.
Although enrollment declined at its for-profit universities, Perdoceo protected its profitability; a strong balance sheet should tide
over the company until enrollment picks up in a weaker economy.

Among the half-dozen holdings in absolute negative territory, Regal Rexnord came under pressure after announcing the
acquisition of Altra Industrial Motion. Investors were reticent about the size of the deal and Regal’s integration capabilities.
Kforce Inc. has been a multi-year performer in the portfolio; the stock declined this quarter on concerns about an IT slowdown.
Pacira Biosciences detracted most, as its flagship non-opioid pain therapy, Exparel, lagged sales expectations due to price and
training requirements.

Portfolio Changes

During the quarter, the Fund exited the small last positions held in the Florida insurance market. Exco Technologies, the
automotive components manufacturer, was sold on lower car volumes and higher raw material costs. A number of Consumer
Discretionary stocks were sold in anticipation of sluggish consumer spending. Sally Beauty, the DIY hair color company, reported
disappointing sales, as did Central Garden and Pet, as spending flattened on pet goods. U.S. theater chain, Cinemark Holdings,
noted fewer blockbusters slated to hit the big screen in favor of streaming platforms. There were no new purchases in the
portfolio.

Outlook

The economy is likely to slow in early 2023, as the impact of inflation and higher interest rates collide. However, this offers
opportunity as we expect equity prices become more attractive. High quality companies may be discounted in a volatile market;
we expect to capitalize on any downturn to purchase stocks that will enhance the valuation profile of the Fund and have upside
potential in an eventual economic recovery.