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OLD WESTBURY FUNDS, INC.

LARGE CAP EQUITY FUND

INVESTMENT ADVISERS REPORT (Unaudited)

The total return of the Old Westbury Large Cap Equity Fund (the Fund) for the fiscal year ended October 31, 2007 was 15.36%. In

comparison, the S&P 500 Index1 (Index) was up 14.56%.

The most significant contributor to the Funds outperformance was our stock selection within the financial sector (15.58% of the Fund

as of October 31, 2007). Our research led us away from large commercial and investment banks that have been hardest hit by the subprime

mortgage crisis. Instead, we emphasized insurance and capital market companies, which played out well for us. In particular, we had positions

in Prudential Financial (3.78%), based on our expectation for improving returns on equity, Charles Schwab (1.54%), based on our view that its

fundamentals were improving, and Bank of New York Mellon (3.59%), based on our belief that Wall Street was underestimating the cross-

selling opportunities and synergies generated by the merger2.

Our stock selection within the materials sector (2.17%) also added to returns. We owned Monsanto (2.17%), an agricultural biotech

company, which rallied during the year following improvements in the companys earnings.

Detracting from our returns was our stock selection within the information technology sector (18.90%). Despite strong returns for

several of our holdings, including Cisco (4.07%), Hewlett-Packard (3.47%), and Intel (2.76%), we underperformed the Index in this sector

partially because of weakness in Motorola (2.42%). Our position in Amgen (sold) within the healthcare sector (17.98%) was also a significant

detractor from returns.

At fiscal year-end, the Fund is overweight the healthcare sector, as we are finding particularly attractive investment opportunities among

drug companies. We are underweight the financial sector given our view that the fallout from the subprime crisis is not yet behind us.

1 The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad

domestic economy through changes in the aggregate market value of the 500 stocks representing all major industries. Investments cannot

be made directly in an index. Securities indices assume reinvestment of all distributions and interest payments and do not take into

account fees or taxes.

2 The composition of the Large Cap Equity Funds portfolio is subject to change.

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