What is being described as an "administrative oversight" has tripped up the Lighthouse Capital Opportunity Fund and caused the Securities and Exchange Commission to scrutinize an October proxy that the fund filed and to retain its advisory fees.

In the proxy, the fund's advisor, Lighthouse Capital Management of Houston, asked shareholders to reapprove the fund's advisory contract and allow it to keep the $232,000 in management fees it believed it had been properly earning over the past six years, despite an oversight that caused its investment contract to inadvertently terminate in mid-1999 because of a change in ownership. Until the matter is resolved, the SEC is currently holding the advisor's fees.

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