N-CSRS 1 fp0040122_ncsrs.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-08411

(Investment Company Act file number)

The James Advantage Funds

(Exact name of registrant as specified in charter)

1349 Fairground Road

Xenia, Ohio 45385

(Address of principal executive offices) (Zip code)

Barry R. James

P.O. Box 8

Alpha, Ohio 45301

(Name and address of agent for service)

Registrant’s telephone number, including area code: (937) 426-7640

Date of fiscal year end: June 30

Date of reporting period: July 1, 2018 – December 31, 2018

Item 1. Reports to Stockholders.

(COVER PAGE)

TABLE OF CONTENTS

Shareholder Letter	1
Growth of $10,000 or $50,000 Charts	4
Representation of Schedules of Investments	8
Disclosure of Fund Expenses	9
Schedule of Investments
James Balanced: Golden Rainbow Fund	10
James Small Cap Fund	21
James Mid Cap Fund	24
James Micro Cap Fund	27
James Aggressive Allocation Fund	29
James Long-Short Fund	33
Statements of Assets and Liabilities	36
Statements of Operations	38
Statements of Changes in Net Assets	40
Financial Highlights
James Balanced: Golden Rainbow Fund - Retail Class	47
James Balanced: Golden Rainbow Fund - Institutional Class	48
James Small Cap Fund	49
James Mid Cap Fund	50
James Micro Cap Fund	51
James Aggressive Allocation Fund	52
James Long-Short Fund	53
Notes to Financial Statements	54
Additional Information	63
Privacy Policy	64

Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website at www.jamesfunds.com and you will be notified by mail each time a report is posted and provided with a website link to access the report.

Beginning on January 1, 2019, you may, notwithstanding the availability of shareholder reports online, elect to receive all future shareholder reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Funds, you can call 1-800-995-2637 to let the Funds know you wish to continue receiving paper copies of your shareholder reports.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by enrolling at www.jamesfunds.com.

James Advantage Funds

Shareholder Letter

December 31, 2018 (Unaudited)

LETTER TO THE SHAREHOLDERS OF THE JAMES ADVANTAGE FUNDS

What started out as a very promising year for the markets suddenly changed in the later stages of 2018. Investors were riding a wave of euphoria and many even began to face the Fear of Missing Out. At year end, however, stocks and bonds both had negative returns for the calendar year while the only asset class with a positive return for calendar 2018 was cash.

The Markets Over the Past Six Months

The second half of 2018, in retrospect, looks like two separate time periods for the markets. During July, August and September, the major market indices continued to advance and set new highs. Corporate earnings were growing at a healthy rate and the U.S. economy followed suit, all while unemployment was moving to new lows. Almost as suddenly, we flipped the page of the calendar from September to October and the markets flipped as well. October, November and December were difficult times for stock holders as those old highs were a thing of the past. In the second half of calendar 2018, the Russell 1000^® Index declined 7.43% and the NASDAQ fell by 11.14%. These both pale in comparison to the decline of 17.35% experienced by the Russell 2000^® Index, which is comprised of small capitalization stocks.

While stocks were falling, fixed income investments (bonds) fared a little better in the second half of calendar 2018. Case in point, the Bloomberg Barclays Capital U.S. Intermediate Government/Credit Bond Index posted a positive return of 1.87% over the same timeframe.

Investment Goals and Objectives

The Balanced: Golden Rainbow Fund seeks to provide total return through a combination of growth and income and preservation of capital in declining markets. The Balanced: Golden Rainbow Fund will generally hold positions in common stocks that in aggregate constitute between 35 percent and 55 percent of the net assets. Bonds held in the fund must be rated Baa2 by Moody’s/BBB by Standard & Poor’s (S&P) or higher at the time of purchase. The Balanced: Golden Rainbow Fund may hold municipal bonds, but generally buys them when they are attractively priced compared with taxable bonds.

The Balanced: Golden Rainbow Fund’s benchmark is a blend of 25% Russell 1000^® Index, 25% Russell 2000^® Index and 50% Bloomberg Barclays Capital U.S. Intermediate Government/Credit Bond Index. The benchmark is the same for all share classes of the Balanced: Golden Rainbow Fund. We believe this index to be an appropriate benchmark for the Fund as it provides a true representation from both large, mid and small capitalization stocks as well as a fixed income component. The Aggressive Allocation Fund seeks to provide total return through a combination of growth and income, but preservation of capital in declining markets is a secondary objective. Shareholders should be aware this Fund will likely have a higher level of volatility than the Balanced: Golden Rainbow Fund. The Aggressive Allocation Fund’s benchmark is a blend of 65% Russell 3000^® Index and 35% Bloomberg Barclays U.S. Aggregate Government/Credit Bond Index.

The Small Cap Fund, Mid Cap Fund, Long-Short Fund and Micro Cap Fund each seek to provide long-term capital appreciation. These Funds hold only equity securities and cash/cash equivalents, under most circumstances. The funds have the following benchmarks: the Russell 2000^® Index for the Small Cap Fund, the Russell Midcap^® Index for the Mid Cap Fund, the Russell Microcap^® Index for the Micro Cap Fund and the Russell 3000^® Index for the Long-Short Fund.

Investment Philosophy

James Investment Research, Inc., the James Advantage Funds’ adviser (the “Adviser”), commenced operations in 1972 and became known as a value manager, identifying stocks with good relative valuations, profitability and price momentum. The Adviser’s research, along with much academic research, supports the view value investing tends to outperform growth investing over the longer-run. While some growth stocks may have astronomical returns, many eventually succumb to too much optimism and speculative investing and produce sharply inferior long-term results. The dot-com stocks in 2000 and real estate stocks in 2008 bear this out. James Investment Research, Inc. ranks stocks based on their value characteristics and chooses those ranked highly for inclusion in the James Advantage Funds’ portfolios. The short selection works in the reverse manner, seeking to short securities that are ranked as expensive and show relatively poor earnings.

The Adviser has no soft-dollar arrangements, and does not purchase research from any broker/dealers.

The James Advantage Funds offer several different styles, but they all use the Adviser’s “bargain” or value approach to stock selection. The Aggressive Allocation Fund generally takes on greater risk than the Balanced: Golden Rainbow Fund in terms of allocation to stocks, but still can seek to reduce that risk in anticipation of a major decline in stock prices. Due to potentially higher equity levels, Aggressive Allocation Fund shareholders should generally have higher risk appetites for their mutual fund investments than those in the Balanced: Golden Rainbow Fund.

Semi-Annual Report | December 31, 2018

Shareholder Letter

James Advantage Funds

December 31, 2018 (Unaudited)

The Long-Short Fund may vary its portfolio holdings significantly, including by being 100% long in stocks with no short positions nor bond positions. It may use bonds to diversify the portfolio, but it primarily uses short positions in stocks the Adviser believes to be over-valued. To that extent, the Fund may hold short positions even when the Adviser is positive on the broader stock market.

The Micro Cap Fund and the Small Cap Fund invest in smaller capitalization companies. The Mid Cap, Small Cap and Micro Cap Funds are niche products designed to meet the objectives of investors who want to establish diversified positions in these areas. As these Funds are all-equity products, they are intrinsically riskier than other products holding bonds and we believe shareholder should expect relatively greater volatility in Net Asset Value (NAV) prices and a higher standard deviation of returns. Still, these portfolios hold stocks that are ranked highly by the Adviser’s models and pass a thorough review by the Adviser’s researchers and portfolio managers.

Strategy for Meeting Fund Objectives

The stock market can be a risky place. The Adviser has always held to the belief preservation of capital in down markets is the key to long-term investment success. Hence, the Balanced: Golden Rainbow Fund seeks to preserve capital by constructing a portfolio of both bonds and stocks. Bonds, in general, are uncorrelated with stocks, thus providing asset class diversification as well an income stream. In times when the stock market is strong, some investors may forget these positive characteristics of bonds, but the Balanced: Golden Rainbow Fund has always held a significant position in bonds.

The Small Cap Fund, Mid Cap Fund, Long-Short Fund, and Micro Cap Fund look for stocks the Adviser believes to be undervalued, using its proprietary research to screen a database of over 8,500 stocks. Deterioration in a stock’s fundamental value characteristics can lead the Adviser to trim or sell the position.

Fund Performance

Rising bond yields mean falling bond prices, so a balanced portfolio could see returns hurt when the Federal Reserve is raising interest rates. The Balanced: Golden Rainbow Fund and the Aggressive Allocation Fund both hold significant bond positions. While it is unusual for portfolios of high quality bonds to lose money, they should be expected to post low returns in a rising rate environment. Over the six-month period ended December 31, 2018, the retail shares of the Balanced: Golden Rainbow Fund declined 8.11% and the institutional share class declined 8.03%. The Fund’s benchmark declined 5.27%. The Balanced: Golden Rainbow Fund paid out a regular dividend every quarter. The retail class shares paid 7.33 cents/share in September and 6.95 cents/share in December. The institutional class shares paid 8.98 cents/share in September and 8.38 cents/share in December. In addition, in December the Balanced: Golden Rainbow Fund paid all shareholders a long-term capital gains distribution of $1.819 per share as well as a short-term capital gain of $0.129 per share.

Over the six months ended December 31, 2018, the Small Cap Fund declined 24.17% while its benchmark, the Russell 2000^® Index, fell 17.35%. The Small Cap Fund’s had an annual long-term capital gain payout in December of $1.717 per share and a short-term capital gain payout of $0.419 per share. The Small Cap Fund did not pay an ordinary dividend for the year.

In December, the Mid Cap Fund paid a short-term capital gain of 79.26 cents per share and a long-term capital gain of 34.46 cents per share. Shareholders who held the Mid Cap Fund for the full six months ending December 31, 2018, saw a decline of 22.16%. The Fund’s benchmark, the Russell Midcap^®Index, fell 11.14%.

The Micro Cap Fund declined 19.59% for the six months ended December 31, 2018. Its benchmark, the Russell Microcap^® Index fell 21.49%. The Fund paid a long-term capital gain dividend in December of 90.68 cents per share.

The Long-Short Fund may employ a short-selling strategy, but it may also run other short position-based approaches including a “130/30” position. This means it can maintain 100% net long exposure by investing 130% of its net assets in long positions and 30% of its net assets in short positions. The Long-Short Fund will only use this strategy when its risk indicators favor doing so. At any one time, the Long-Short Fund can have up to 100% of its total assets (including any borrowings) invested in long positions or short positions. The Long-Short Fund declined 12.19% over the six months ended December 31, 2018 compared to a decline of 8.20% in the Russell 3000^®Index. Included in the Fund’s total six-month return is an ordinary dividend of 5.58 cents per share. The Long-Short Fund did not pay a capital gain distribution in 2018.

The Aggressive Allocation Fund is like the Balanced: Golden Rainbow Fund in the sense its strategy requires it to hold both stocks and bonds. However, it is a much more aggressive fund and generally will hold a higher allocation to stocks than the Balanced: Golden Rainbow Fund. Its benchmark is a blend of 65% Russell 3000^® Index and 35% Bloomberg Barclays Capital U.S. Aggregate Government/Credit Bond Index. The Aggressive Allocation Fund paid an ordinary dividend of 8.86 cents per share in December. No capital gain distribution was paid. For the six months ended December 31, 2018, the Aggressive Allocation Fund declined 11.36% while its benchmark blend lost 4.69%.

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James Advantage Funds

Shareholder Letter

December 31, 2018 (Unaudited)

Expectations for the Future

Much of calendar 2018 was very humbling for the James Advantage Funds as value-based investments lagged their growth based brethren. However, we are as committed as ever to the value-based approach which has been shown to be profitable over long periods of time. The inflated large cap growth sector may continue to be under some pressure as the recent pullback in stocks may just be the beginning. We continue to see the “darlings” of the stock market trading at high price multiples, which is an area of concern. The recent correction in the market however might be viewed as somewhat of a blessing to value investors as the pullback in the market may also have created a change in leadership. Investors may have the opportunity to get back to the origins of investing, looking for those stocks with reasonable valuations as well as consistent earnings.

Issues encountered already in 2019 abound; the Government Shut Down, Trade Tariffs with China and Rising Interest Rates are all areas of concern as we start the New Year. Should we see strides in any of those areas, we could see the market react in a favorable manner. It is possible those issues have created a good buying opportunity which could propel the market ahead.

As one of the most famous investors states time and time again “Be fearful when others are greedy and be greedy when others are fearful.” Thank you for your continued support and confidence in the James Advantage Funds.

Brian P. Shepardson Secretary

Brian Shepardson is a registered representative of ALPS Distributors, Inc.

The statements and opinions expressed are those of the author, are as of the date of this report, are subject to change, and may not reflect the writer’s current views. All information is historical and not indicative of future results and subject to change. It should not be assumed that an investment in the securities mentioned will be profitable in the future. This information is not a recommendation to buy or sell.

You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund’s prospectus contains this and other information about the Fund and should be read carefully before investing. You may obtain a current copy of the Fund’s prospectus by calling 1-800-995-2637.

Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Investors may obtain performance information current to the last month-end at www.jamesfunds.com.

NASDAQ is a global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks.

Standard deviation is a measure of the dispersion of a set of data from its mean and is one of the key fundamental risk measures used in the financial services industry.

Credit ratings apply the underlying holdings of the Fund, and not to the Fund itself. Moody’s studies the financial condition of an entity to ascertain its creditworthiness. The credit ratings reflect the rating agency's opinion of the holdings financial condition and histories. The ratings shown are all considered investment grade and are listed by highest to lowest in percentage of what the Fund holds.

Standard & Poor’s provides credit ratings on bonds, countries, and other investments. The S&P rating describes the general creditworthiness of a company, city, or country that issues debt and how likely the debt will be repaid. The rating is a letter grade with AAA being the best and D being the worst.

Diversification does not eliminate the risk of experiencing investment loss.

ALPS Distributors, Inc. 1290 Broadway, Ste. 1100, Denver, CO 80203 (Member FINRA). ALPS is not affiliated with James Investment Research, Inc.

Semi-Annual Report | December 31, 2018

Growth of $10,000 or $50,000 Charts

James Advantage Funds

December 31, 2018 (Unaudited)

Comparison of the Change in Value of a $10,000 Investment in the James Balanced: Golden Rainbow Fund – Retail Class

(GRAPHIC)

James Balanced: Golden Rainbow Fund – Retail Class Average Annual Total Returns

	1 Year	5 Years	10 Years	Since Inception⁽¹⁾
James Balanced: Golden Rainbow – Retail Class	-10.52%	1.01%	5.10%	7.05%
Blended Index⁽²⁾	-3.22%	4.33%	8.05%	7.70%
S&P 500^® Index⁽²⁾	-4.38%	8.49%	13.12%	9.34%
Russell 1000^® Index	-4.78%	8.21%	13.28%	9.51%
Russell 2000^® Index	-11.01%	4.41%	11.97%	9.36%
Bloomberg Barclays Capital U.S. Intermediate Government/Credit Bond Index	0.88%	1.86%	2.90%	5.15%

⁽¹⁾

Inception was July 1, 1991.

⁽²⁾

Effective as of November 1, 2018, the Fund changed its benchmark from the S&P 500^® Index to the Blended Index (25% Russell 1000^®Index; 25% Russell 2000^® Index; 50% Bloomberg Barclays Capital U.S. Intermediate Government/Credit Bond Index). The Fund changed its benchmark because James Investment Research, Inc. believes the new benchmark represents a better comparison against which to measure the Fund’s performance.

The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2018, was 1.00%.

Comparison of the Change in Value of a $50,000 Investment in the James Balanced: Golden Rainbow Fund – Institutional Class

(GRAPHIC)

James Balanced: Golden Rainbow Fund – Institutional Class Average Annual Total Returns

	1 Year	5 Years	Since Inception⁽¹⁾
James Balanced: Golden Rainbow – Institutional Class	-10.32%	1.26%	6.99%
Blended Index⁽²⁾	-3.22%	4.33%	9.73%
S&P 500^® Index⁽²⁾	-4.38%	8.49%	16.26%
Russell 1000^® Index	-4.78%	8.21%	16.37%
Russell 2000^® Index	-11.01%	4.41%	15.71%
Bloomberg Barclays Capital U.S. Intermediate Government/Credit Bond Index	0.88%	1.86%	3.01%

⁽¹⁾

Inception was March 2, 2009.

⁽²⁾

The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2018, was 0.75%.

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. These performance figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Please call 1-800-995-2637 for most recent month-end performance information.

The S&P 500^® Index is an unmanaged index of 500 common stocks chosen for market size, liquidity and industry group representation.

The Russell 1000^® Index is an index of approximately 1,000 of the largest companies in the U.S. equity market. The Russell 1000^® Index is a subset of the Russell 3000^® Index. It represents the top companies by market capitalization.

The Russell 2000^® Index is a widely recognized, unmanaged index comprised of the 2,000 smallest U.S. domiciled publicly-traded common stocks of the Russell 3000^® Index, which represents approximately 8% of the total market capitalization of the Russell 3000^® Index, an unmanaged index of the 3,000 largest U.S. domiciled publicly-traded common stocks by market capitalization.

The Bloomberg Barclays Capital U.S. Intermediate Government/Credit Bond Index measures the performance of U.S. Dollar denominated U.S. Treasuries, government-related and investment grade U.S. corporate securities that have a remaining maturity of greater than one year and less than ten years.

The S&P 500^® Index, Russell 1000^® Index, Russell 2000^® Index, Bloomberg Barclays Capital U.S. Intermediate Government/Credit Bond Index and Blended Index are widely recognized unmanaged indices of security prices and are representative of a broader market and range of securities than is found in the Fund’s portfolio. The Index returns do not reflect the deduction of expenses, which have been deducted from a Fund’s returns. The Index returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. Individuals cannot invest directly in any Index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index.

4	www.jamesfunds.com

James Advantage Funds

Growth of $10,000 or $50,000 Charts

December 31, 2018 (Unaudited)

Comparison of the Change in Value of a $10,000 Investment in the James Small Cap Fund

(GRAPHIC)

James Small Cap Fund

Average Annual Total Returns

1 Year

5 Years

10 Years

Since

Inception⁽¹⁾

James Small Cap Fund

-24.42%

-1.98%

8.53%

6.40%

Russell 2000^® Index

-11.01%

4.41%

11.97%

8.32%

⁽¹⁾

Fund inception was October 2, 1998.

The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2018, was 1.50%.

Comparison of the Change in Value of a $10,000 Investment in the James Mid Cap Fund

(GRAPHIC)

James Mid Cap Fund

Average Annual Total Returns

	1 Year	5 Years	10 Years	Since Inception⁽¹⁾
James Mid Cap Fund	-24.49%	-0.55%	8.30%	3.59%
Russell Midcap^® Index⁽²⁾	-9.06%	6.26%	14.03%	7.69%
S&P MidCap 400^® Value Index⁽²⁾	-11.88%	5.56%	12.82%	7.24%

⁽¹⁾

Fund inception was June 30, 2006.

⁽²⁾

Effective as of November 1, 2018, the Fund changed its benchmark from the S&P MidCap 400^® Value Index to Russell Midcap^® Index. The Fund changed its benchmark because James Investment Research, Inc. believes the new benchmark represents a better comparison against which to measure the Fund’s performance.

The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2018, was 1.51%.

Mid, Small and Micro Cap investing involve greater risk not associated with investing in more established companies, such as greater price volatility, business risk, less liquidity and increased competitive threat.

The Mid Cap Fund invests in stocks of mid-cap companies which tend to be more volatile and can be less liquid than stocks of large-cap companies. Diversification does not guarantee a profit or protect against loss. Current and future portfolio holdings are subject to risk.

The S&P MidCap 400^® Value Index is a recognized, unmanaged index of mid cap stocks considered to be value stocks using Standard and Poor’s methodology.

The Russell Midcap^® Index is a market capitalization weighted index comprised of 800 publicly traded U.S. companies with market caps of between $2 and $10 billion. The 800 companies in the Russell Midcap^® Index are the same 800 of the 1,000 companies that comprise Russell 1000^® Index.

The Russell 2000^® Index, S&P MidCap Value 400^® Index and Russell Midcap^® Index are widely recognized unmanaged indices of security prices and are representative of a broader market and range of securities than is found in the Fund’s portfolio. The Index returns do not reflect the deduction of expenses, which have been deducted from a Fund’s returns. The Index returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. Individuals cannot invest directly in any Index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index.

Semi-Annual Report | December 31, 2018

Growth of $10,000 or $50,000 Charts

James Advantage Funds

December 31, 2018 (Unaudited)

Comparison of the Change in Value of a $10,000 Investment in the James Micro Cap Fund

(GRAPHIC)

James Micro Cap Fund

Average Annual Total Returns

1 Year

5 Years

Since

Inception⁽¹⁾

James Micro Cap Fund

-16.56%

2.32%

8.26%

Russell Microcap^® Index

-13.08%

3.08%

10.80%

⁽¹⁾

Fund inception was July 1, 2010.

The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2018, was 1.51%.

Comparison of the Change in Value of a $10,000 Investment in the James Aggressive Allocation Fund

(GRAPHIC)

James Aggressive Allocation Fund

Average Annual Total Returns

	1 Year	Since Inception⁽¹⁾
James Aggressive Allocation Fund	-13.31%	-1.06%
Blended Index⁽²⁾	-3.29%	5.46%
Russell 3000^® Index⁽²⁾	-5.24%	7.00%
Bloomberg Barclays U.S. Aggregate Government/Credit Bond Index	-0.42%	2.12%

⁽¹⁾

Fund inception was July 1, 2015.

⁽²⁾

Effective as of November 1, 2018, the Fund changed its benchmark from the Russell 3000^® Index to the Blended Index (35% Bloomberg Barclays U.S. Aggregate Government/Credit Bond Index, 65% Russell 3000^® Index). The Fund changed its benchmark because James Investment Research, Inc. believes the new benchmark represents a better comparison against which to measure the Fund’s performance.

The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2018, was 1.01%.

The Russell Microcap^® Index measures the performance of the microcap segment of the U.S. equity market. It makes up less than 3% of the U.S. equity market. It includes 1,000 of the smallest securities in the small cap Russell 2000^® Index, plus the next smallest eligible securities by market cap.

The Russell 3000^® Index is a stock market index of U.S. stocks. The index measures the performance of 3,000 publicly held U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

The Bloomberg Barclays U.S. Aggregate Government/Credit Bond Index (an unmanaged index generally representative of dollar denominated U.S. Treasuries, government related and investment grade U.S. corporate securities that have a remaining maturity greater than one year).

The Russell Microcap^® Index, Russell 3000^® Index, Bloomberg Barclays U.S. Aggregate Government/Credit Bond Fund and the Blended Index are widely recognized unmanaged indices of security prices and are representative of a broader market and range of securities than is found in the Fund’s portfolio. The Index returns do not reflect the deduction of expenses, which have been deducted from a Fund’s returns. The Index returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. Individuals cannot invest directly in any Index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index.

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James Advantage Funds

Growth of $10,000 or $50,000 Charts

December 31, 2018 (Unaudited)

Comparison of the Change in Value of a $10,000 Investment in the James Long-Short Fund

(GRAPHIC)

James Long-Short Fund

Average Annual Total Returns

	1 Year	5 Years	Since Inception⁽¹⁾
James Long-Short Fund	-17.06%	-0.23%	3.31%
Russell 3000^® Index⁽²⁾	-5.24%	7.91%	10.75%
S&P 500^® Index⁽²⁾	-4.38%	8.49%	11.14%

⁽¹⁾

Fund inception was May 23, 2011.

⁽²⁾

Effective as of November 1, 2018, the Fund changed its benchmark from the S&P 500^® Index to the Russell 3000^® Index. The Fund changed its benchmark because James Investment Research, Inc. believes the new benchmark represents a better comparison against which to measure the Fund’s performance.

The total annual operating expense ratio as stated in the fee table of the most recent prospectus, dated November 1, 2018, was 1.61%.

Short selling incurs significant additional risk; theoretically, stocks sold short have unlimited upside risk potential. In addition, this strategy depends on the Adviser’s ability to correctly identify undervalued and overvalued stocks, and that the stock markets are reasonable and efficient. Periods of extreme volatility may harm the performance of this product. The Long-Short Fund may have a high portfolio turnover rate. A high portfolio turnover rate can result in increased brokerage commission costs and may expose taxable shareholders to potentially larger current tax liability.

The S&P 500^® Index is an unmanaged index of 500 common stocks chosen for market size, liquidity and industry group representation.

The Russell 3000^® Index is a stock market index of U.S. Stocks. The index measures the performance of 3,000 publicly held U.S companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

The S&P 500^® Index and Russell 3000^® Index are widely recognized unmanaged indices of security prices and are representative of a broader market and range of securities than is found in the Fund’s portfolio. The Index returns do not reflect the deduction of expenses, which have been deducted from a Fund’s returns. The Index returns assume reinvestment of all distributions and do not reflect the deduction of taxes and fees. Individuals cannot invest directly in any Index; however, an individual can invest in exchange traded funds or other investment vehicles that attempt to track the performance of a benchmark index.

Semi-Annual Report | December 31, 2018

Representation of Schedules of Investments

James Advantage Funds

December 31, 2018 (Unaudited)

The illustrations below provide the industry sectors for the James Balanced: Golden Rainbow Fund, James Small Cap Fund, James Mid Cap Fund, James Micro Cap Fund, James Aggressive Allocation Fund and James Long-Short Fund.

James Balanced: Golden Rainbow Fund - Industry Sector Allocation (% of Net Assets)*

(GRAPHIC)

James Mid Cap Fund - Industry Sector Allocation (% of Net Assets)*

(GRAPHIC)

James Aggressive Allocation Fund - Industry Sector Allocation (% of Net Assets)*

(GRAPHIC)

James Small Cap Fund - Industry Sector Allocation (% of Net Assets)*

(GRAPHIC)

James Micro Cap Fund - Industry Sector Allocation (% of Net Assets)*

(GRAPHIC)

James Long-Short Fund - Industry Sector Allocation (% of Net Assets)*

(Cash and Cash Equivalents and Other Assets in Excess of Liabilities not included)

(GRAPHIC)

Holdings are subject to change, and may not reflect the current or future position of the portfolio.

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James Advantage Funds

Disclosure of Fund Expenses

December 31, 2018 (Unaudited)

Example. As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including reinvested dividends or other distributions, and redemption fees; and (2) ongoing costs, including management fees, distribution (12b-1) fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses. The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expense Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes. The second line of the table below provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that expenses shown in the table are meant to highlight and help you compare ongoing costs only. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.

	Net Expense Ratio Annualized December 31, 2018^(a)	Beginning Account Value July 1, 2018	Ending Account Value December 31, 2018	Expense Paid During Period^(b)
James Balanced: Golden Rainbow Fund
Retail Class Actual	1.04%	$1,000.00	$918.90	$5.03
Retail Class Hypothetical (5% return before expenses)	1.04%	$1,000.00	$1,019.96	$5.30
Institutional Class Actual	0.79%	$1,000.00	$919.70	$3.82
Institutional Class Hypothetical (5% return before expenses)	0.79%	$1,000.00	$1,021.22	$4.02
James Small Cap Fund
Actual	1.50%	$1,000.00	$758.30	$6.65
Hypothetical (5% return before expenses)	1.50%	$1,000.00	$1,017.64	$7.63
James Mid Cap Fund
Actual	1.50%	$1,000.00	$778.40	$6.72
Hypothetical (5% return before expenses)	1.50%	$1,000.00	$1,017.64	$7.63
James Micro Cap Fund
Actual	1.50%	$1,000.00	$804.10	$6.82
Hypothetical (5% return before expenses)	1.50%	$1,000.00	$1,017.64	$7.63
James Aggressive Allocation Fund
Actual	0.98%	$1,000.00	$886.40	$4.66
Hypothetical (5% return before expenses)	0.98%	$1,000.00	$1,020.27	$4.99
James Long-Short Fund
Actual	1.56%^(c)	$1,000.00	$877.40	$7.38
Hypothetical (5% return before expenses)	1.56%^(c)	$1,000.00	$1,017.34	$7.93

^(a)

Annualized, based on the Fund's most recent fiscal half year expenses.

^(b)

Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (184), divided by 365.

^(c)

Dividend and interest expense on securities sold short and interest expense totaled 0.06% (annualized) of average net assets for the six months ended December 31, 2018. Total annual operating expense of 1.56% includes the 0.06% of dividend and interest expense.

Semi-Annual Report | December 31, 2018

Schedule of Investments

James Balanced: Golden Rainbow Fund

December 31, 2018 (Unaudited)

Shares or Principal Amount			Value
COMMON STOCKS-39.13%
		Basic Materials-3.21%
	39,220	Alcoa Corp.^*	$	1,042,468
	12,695	Arch Coal, Inc., Class A		1,053,558
	53,670	Avery Dennison Corp.		4,821,176
	25,500	Brady Corp., Class A		1,108,230
	132,280	Celanese Corp.		11,901,232
	41,140	Chemours Co.		1,160,971
	138,210	Cleveland-Cliffs, Inc.^*		1,062,835
	88,270	CNX Resources Corp.^*		1,008,043
	60,900	Commercial Metals Co.		975,618
	33,400	Cooper Tire & Rubber Co.		1,079,822
	28,690	Domtar Corp.		1,007,880
	326,865	Freeport-McMoRan, Inc.		3,369,978
	49,600	Harsco Corp.^*		985,056
	58,060	Huntsman Corp.		1,119,977
	25,610	International Paper Co.		1,033,620
	30,655	Kennametal, Inc.		1,020,198
	50,000	Louisiana-Pacific Corp.		1,111,000
	12,750	LyondellBasell Industries NV, Class A		1,060,290
	34,655	Mosaic Co.		1,012,273
	44,670	National General Holdings Corp.		1,081,461
	44,334	Newmont Mining Corp.		1,536,173
	19,160	Nucor Corp.		992,680
	35,350	Steel Dynamics, Inc.		1,061,914
	55,960	United States Steel Corp.		1,020,710
				42,627,163

		Communications-0.23%
	23,000	CBS Corp., Class B		1,005,560
	48,800	Interpublic Group of Cos., Inc.		1,006,744
	25,500	Liberty Expedia Holdings, Inc., Class A^*		997,305
				3,009,609

		Consumer, Cyclical-7.56%
	57,225	Abercrombie & Fitch Co., Class A		1,147,361
	17,000	Alaska Air Group, Inc.		1,034,450
	19,680	AMC Networks, Inc., Class A^*		1,080,038
	57,370	American Eagle Outfitters, Inc.		1,108,962
	16,160	Asbury Automotive Group, Inc.^*		1,077,226
	26,305	Atlas Air Worldwide Holdings, Inc.^*		1,109,808
	1,300	AutoZone, Inc.^*		1,089,842
	156,460	Best Buy Co., Inc.		8,286,122
	19,900	BJ's Restaurants, Inc.		1,006,343
	58,625	Bloomin' Brands, Inc.		1,048,801
	67,540	BMC Stock Holdings, Inc.^*		1,045,519
	22,205	Brinker International, Inc.		976,576
	73,210	Callaway Golf Co.		1,120,113
	28,100	Cinemark Holdings, Inc.		1,005,980
	15,250	CVS Health Corp.		999,180
	8,535	Deckers Outdoor Corp.^*		1,092,053
	25,000	Delta Air Lines, Inc.		1,247,500
	31,905	Dick's Sporting Goods, Inc.		995,436
	17,400	Dillard's, Inc., Class A		1,049,394
	36,520	DISH Network Corp., Class A^*		911,904

See Notes to Financial Statements.

10	www.jamesfunds.com

James Balanced: Golden Rainbow Fund

Schedule of Investments

December 31, 2018 (Unaudited)

Shares or Principal Amount			Value
		Consumer, Cyclical (continued)
	43,945	DSW, Inc., Class A	$	1,085,441
	51,725	Federal Signal Corp.		1,029,327
	21,770	Foot Locker, Inc.		1,158,164
	42,115	Gap, Inc.		1,084,882
	29,900	General Motors Co.		1,000,155
	35,515	G-III Apparel Group, Ltd.^*		990,513
	65,190	Gray Television, Inc.^*		960,901
	20,930	Group 1 Automotive, Inc.		1,103,430
	31,400	Harley-Davidson, Inc.		1,071,368
	143,224	Hawaiian Holdings, Inc.		3,782,546
	18,260	Herbalife Nutrition, Ltd.^*		1,076,427
	16,995	Kohl's Corp.		1,127,448
	37,500	L Brands, Inc.		962,625
	72,075	Laureate Education, Inc., Class A^*		1,098,423
	14,700	Lithia Motors, Inc., Class A		1,122,051
	34,125	Macy's, Inc.		1,016,243
	30,700	Malibu Boats, Inc., Class A^*		1,068,360
	26,500	McDonald's Corp.		4,705,605
	38,133	MDC Holdings, Inc.		1,071,919
	75,535	Michaels Cos., Inc.^*		1,022,744
	44,155	MSG Networks, Inc., Class A^*		1,040,292
	40,370	Navistar International Corp.^*		1,047,602
	12,710	Nexstar Media Group, Inc., Class A		999,514
	22,265	Nordstrom, Inc.		1,037,772
	26,875	Penske Automotive Group, Inc.		1,083,600
	40,005	PulteGroup, Inc.		1,039,730
	53,495	Qurate Retail, Inc.^*		1,044,222
	10,320	Ralph Lauren Corp.		1,067,707
	32,905	Rush Enterprises, Inc., Class A		1,134,564
	59,005	Sally Beauty Holdings, Inc.^*		1,006,035
	33,245	Signet Jewelers, Ltd.		1,056,194
	39,000	Sinclair Broadcast Group, Inc., Class A		1,027,260
	23,705	SkyWest, Inc.		1,054,161
	18,200	Spirit Airlines, Inc.^*		1,054,144
	71,300	Steelcase, Inc., Class A		1,057,379
	77,685	Tailored Brands, Inc.		1,059,623
	24,170	Target Corp.		1,597,395
	62,900	Taylor Morrison Home Corp., Class A^*		1,000,110
	89,200	TEGNA, Inc.		969,604
	89,535	TRI Pointe Group, Inc.^*		978,618
	12,215	United Continental Holdings, Inc.^*		1,022,762
	31,790	Urban Outfitters, Inc.^*		1,055,428
	38,925	Viacom, Inc., Class B		1,000,373
	14,100	Walgreens Boots Alliance, Inc.		963,453
	147,535	Walmart, Inc.		13,742,885
	35,000	Walt Disney Co.		3,837,750
	9,300	Whirlpool Corp.		993,891
	33,105	Wolverine World Wide, Inc.		1,055,718
				100,998,966

		Consumer, Non-cyclical-6.27%
	12,500	AbbVie, Inc.		1,152,375
	81,935	Anthem, Inc.		21,518,589
	24,670	Archer-Daniels-Midland Co.		1,010,730

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Schedule of Investments

James Balanced: Golden Rainbow Fund

December 31, 2018 (Unaudited)

Shares or Principal Amount			Value
		Consumer, Non-cyclical (continued)
	24,310	Cal-Maine Foods, Inc.	$	1,028,313
	22,600	Cardinal Health, Inc.		1,007,960
	38,420	Cardtronics PLC, Class A^*		998,920
	17,335	FTI Consulting, Inc.^*		1,155,204
	110,375	Gannett Co., Inc.		941,499
	1,600	Graham Holdings Co., Class B		1,024,928
	41,340	H&R Block, Inc.		1,048,796
	8,545	HCA Healthcare, Inc.		1,063,425
	7,845	Helen of Troy, Ltd.^*		1,029,107
	37,600	Herc Holdings, Inc.^*		977,224
	69,000	Hertz Global Holdings, Inc.^*		941,850
	54,900	Horizon Pharma PLC^*		1,072,746
	198,045	Kroger Co.		5,446,238
	56,400	Mallinckrodt PLC^*		891,120
	9,105	Molina Healthcare, Inc.^*		1,058,183
	17,800	Molson Coors Brewing Co., Class B		999,648
	46,770	Navigant Consulting, Inc.		1,124,819
	49,500	Newell Brands, Inc.		920,205
	500,000	Pfizer, Inc.		21,825,000
	22,100	REGENXBIO, Inc.^*		927,095
	64,600	Select Medical Holdings Corp.^*		991,610
	31,600	STAAR Surgical Co.^*		1,008,356
	54,115	Tenet Healthcare Corp.^*		927,531
	46,025	TrueBlue, Inc.^*		1,024,056
	30,200	Tupperware Brands Corp.		953,414
	39,900	Tyson Foods, Inc., Class A		2,130,660
	12,000	UnitedHealth Group, Inc.		2,989,440
	18,400	Universal Corp.		996,360
	9,000	Universal Health Services, Inc., Class B		1,049,040
	33,600	US Foods Holding Corp.^*		1,063,104
	23,200	Weis Markets, Inc.		1,108,496
				83,406,041

		Energy-3.00%
	35,670	Apache Corp.		936,337
	126,900	Archrock Inc		950,481
	58,700	California Resources Corp.^*		1,000,248
	85,950	Carrizo Oil & Gas, Inc.^*		970,375
	487,940	Chesapeake Energy Corp.^*		1,024,674
	31,100	Chevron Corp.		3,383,369
	16,300	Cimarex Energy Co.		1,004,895
	43,780	ConocoPhillips		2,729,683
	31,695	CVR Energy, Inc.		1,092,844
	571,455	Denbury Resources, Inc.^*		977,188
	11,100	EOG Resources, Inc.		968,031
	15,000	Exxon Mobil Corp.		1,022,850
	146,565	Gulfport Energy Corp.^*		960,001
	174,210	Helix Energy Solutions Group, Inc.^*		942,476
	19,910	HollyFrontier Corp.		1,017,799
	119,500	Keane Group, Inc.^*		977,510
	289,615	Laredo Petroleum, Inc.^*		1,048,406
	58,920	Mammoth Energy Services, Inc.		1,059,382
	73,360	Newfield Exploration Co^*		1,075,458
	51,300	Noble Energy, Inc.		962,388

See Notes to Financial Statements.

12	www.jamesfunds.com

James Balanced: Golden Rainbow Fund

Schedule of Investments

December 31, 2018 (Unaudited)

Shares or Principal Amount			Value
		Energy (continued)
	100,440	NOW, Inc.^*	$	1,169,122
	16,700	Occidental Petroleum Corp.		1,025,046
	65,265	Phillips 66		5,622,580
	168,310	QEP Resources, Inc.^*		947,585
	96,935	Range Resources Corp.		927,668
	42,330	Renewable Energy Group, Inc.^*		1,087,881
	231,305	SRC Energy, Inc.^*		1,087,134
	61,810	Unit Corp^*		882,647
	44,400	Warrior Met Coal, Inc.		1,070,484
	44,000	Whiting Petroleum Corp.^*		998,360
	48,250	World Fuel Services Corp.		1,033,033
				39,955,935

		Financial-5.31%
	24,425	Aaron's, Inc.		1,027,071
	60,000	Aflac, Inc.		2,733,600
	32,200	Air Lease Corp.		972,762
	60,915	Aircastle, Ltd.		1,050,175
	46,050	Ally Financial, Inc.		1,043,493
	37,390	American Equity Investment Life Holding Co.		1,044,677
	28,400	Assured Guaranty, Ltd.		1,087,152
	13,955	Capital One Financial Corp.		1,054,858
	9,875	Cigna Corp.		1,875,396
	25,820	Employers Holdings, Inc.		1,083,665
	31,715	Essent Group, Ltd.^*		1,084,019
	4,800	Everest Re Group, Ltd.		1,045,248
	42,900	Federated Investors, Inc., Class B		1,138,995
	6,180	Goldman Sachs Group, Inc.		1,032,369
	30,900	Hamilton Lane, Inc., Class A		1,143,300
	8,100	Jones Lang LaSalle, Inc.		1,025,460
	149,470	JPMorgan Chase & Co.		14,591,261
	56,365	Kennedy-Wilson Holdings, Inc.		1,024,152
	20,300	Lincoln National Corp.		1,041,593
	31,500	Marcus & Millichap, Inc.^*		1,081,395
	26,270	MetLife, Inc.		1,078,646
	104,245	MGIC Investment Corp.^*		1,090,403
	26,200	Morgan Stanley		1,038,830
	3,600	National Western Life Group, Inc.		1,082,520
	74,030	Nelnet, Inc., Class A		3,874,730
	0.2125	Newmark Group, Inc., Class A		2
	61,950	NMI Holdings, Inc., Class A^*		1,105,808
	50,800	Old Republic International Corp.		1,044,956
	43,480	OneMain Holdings, Inc.^*		1,056,129
	17,290	Progressive Corp.		1,043,106
	65,745	Radian Group, Inc.		1,075,588
	7,900	RenaissanceRe Holdings, Ltd.		1,056,230
	61,795	Santander Consumer U.S.A. Holdings, Inc.		1,086,974
	31,600	State Auto Financial Corp.		1,075,664
	44,800	Synchrony Financial		1,051,008
	54,000	TCF Financial Corp.		1,052,460
	34,560	Triton International, Ltd.		1,073,779
	27,220	Universal Insurance Holdings, Inc.		1,032,182
	236,100	Unum Group		6,936,618
	26,210	Voya Financial, Inc.		1,052,069

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Schedule of Investments

James Balanced: Golden Rainbow Fund

December 31, 2018 (Unaudited)

Shares or Principal Amount			Value
		Financial (continued)
	59,270	Waddell & Reed Financial, Inc., Class A	$	1,071,602
	60,465	Western Union Co.		1,031,533
	10,700	World Acceptance Corp.^*		1,094,182
	26,000	Zions Bancorp NA		1,059,240
				70,344,900

		Industrial-3.63%
	29,900	Aerojet Rocketdyne Holdings, Inc.^*		1,053,377
	24,445	Allison Transmission Holdings, Inc.		1,073,380
	106,640	American Axle & Manufacturing Holdings, Inc.^*		1,183,704
	29,315	ArcBest Corp.		1,004,332
	18,217	Caterpillar, Inc.		2,314,834
	20,095	Clean Harbors, Inc.^*		991,688
	24,030	Comfort Systems USA, Inc.		1,049,630
	8,055	Cummins, Inc.		1,076,470
	75,800	Dana, Inc.		1,033,154
	1	Delphi Technologies PLC		14
	35,700	Electro Scientific Industries, Inc.^*		1,069,572
	22,300	Encore Wire Corp.		1,119,014
	17,400	EnPro Industries, Inc.		1,045,740
	15,600	Expeditors International of Washington, Inc.		1,062,204
	20,520	Generac Holdings, Inc.^*		1,019,844
	29,620	Hub Group, Inc., Class A^*		1,098,013
	5,345	Huntington Ingalls Industries		1,017,207
	17,400	Keysight Technologies, Inc.^*		1,080,192
	75,500	Kratos Defense & Security Solutions, Inc.^*		1,063,795
	11,100	Lear Corp.		1,363,746
	175,890	Magna International, Inc.		7,994,201
	32,020	Matson, Inc.		1,025,280
	64,075	Meritor, Inc.^*		1,083,508
	16,325	Oshkosh Corp.		1,000,886
	7,100	Parker-Hannifin Corp.		1,058,894
	65,000	PGT Innovations, Inc.^*		1,030,250
	14,375	Reliance Steel & Aluminum Co.		1,023,069
	88,940	United Rentals, Inc.^*		9,119,018
	35,300	Werner Enterprises, Inc.		1,042,762
	26,315	Westrock Co.		993,654
	6,495	Zebra Technologies Corp., Class A^*		1,034,199
				48,125,631

		Technology-6.73%
	10,000	Amgen, Inc.		1,946,700
	5,200	Apple, Inc.		820,248
	35,165	ARRIS International PLC^*		1,074,994
	121,835	Arrow Electronics, Inc.^*		8,400,523
	28,735	Avnet, Inc.		1,037,333
	68,060	AVX Corp.		1,037,915
	51,200	Cabot Microelectronics Corp.		4,881,920
	7,000	CACI International, Inc., Class A^*		1,008,210
	75,300	Cisco Systems, Inc.		3,262,749
	217,810	Corning, Inc.		6,580,040
	82,680	Cypress Semiconductor Corp.		1,051,690
	32,830	Diodes, Inc.^*		1,059,096
	17,910	DXC Technology Co.		952,275

See Notes to Financial Statements.

14	www.jamesfunds.com

James Balanced: Golden Rainbow Fund

Schedule of Investments

December 31, 2018 (Unaudited)

Shares or Principal Amount			Value
		Technology (continued)
	35,750	Engility Holdings, Inc.^*	$	1,017,445
	38,500	EVERTEC, Inc.		1,104,950
	52,100	Exelixis, Inc.^*		1,024,807
	15,945	Genomic Health, Inc.^*		1,027,017
	78,135	Hewlett Packard Enterprise Co.		1,032,163
	35,800	HMS Holdings Corp.^*		1,007,054
	50,095	HP, Inc.		1,024,944
	63,900	Innoviva, Inc.^*		1,115,055
	13,130	Integer Holdings Corp.^*		1,001,294
	354,375	Intel Corp.		16,630,819
	15,000	InterDigital, Inc.		996,450
	45,700	Jabil, Inc.		1,132,903
	60,000	KEMET Corp.		1,052,400
	11,680	KLA-Tencor Corp.		1,045,243
	54,140	Kulicke & Soffa Industries, Inc.		1,097,418
	60,150	Liberty TripAdvisor Holdings, Inc., Class A^*		955,784
	104,528	Micron Technology, Inc.^*		3,316,673
	39,750	Microsoft Corp.		4,037,408
	8,810	Motorola Solutions, Inc.		1,013,502
	116,900	Navient Corp.		1,029,889
	43,900	NCR Corp.^*		1,013,212
	60,900	ON Semiconductor Corp.^*		1,005,459
	45,740	Sabre Corp.		989,814
	28,285	Seagate Technology PLC		1,091,518
	42,630	Sykes Enterprises, Inc.^*		1,054,240
	50,460	Symantec Corp.		953,442
	12,800	Tech Data Corp.^*		1,047,168
	16,200	T-Mobile US, Inc.^*		1,030,482
	112,580	TTM Technologies, Inc.^*		1,095,403
	19,955	United States Cellular Corp.^*		1,037,061
	41,400	Vanda Pharmaceuticals, Inc.^*		1,081,782
	57,480	Vishay Intertechnology, Inc.		1,035,215
	22,235	Wesco International, Inc.^*		1,067,280
	49,600	Xerox Corp.		980,096
				89,259,083

		Utilities-3.19%
	71,860	AES Corp.		1,039,096
	22,883	American Electric Power Co., Inc.		1,710,275
	35,738	AT&T, Inc.		1,019,963
	176,850	CenterPoint Energy, Inc.		4,992,475
	65,595	CenturyLink, Inc.		993,764
	62,300	Entergy Corp.		5,362,161
	118,725	Exelon Corp.		5,354,497
	60,378	FirstEnergy Corp.		2,267,194
	47,646	New Jersey Resources Corp.		2,175,993
	110,473	NRG Energy, Inc.		4,374,731
	26,700	OGE Energy Corp.		1,046,373
	23,450	Shenandoah Telecommunications Co.		1,037,663
	23,400	The Southern Co.		1,027,728
	13,290	Southwest Gas Holdings, Inc.		1,016,685
	302,970	Southwestern Energy Co.^*		1,033,128
	31,920	Telephone & Data Systems, Inc.		1,038,677
	19,200	UGI Corp.		1,024,320

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Schedule of Investments

James Balanced: Golden Rainbow Fund

December 31, 2018 (Unaudited)

Shares or Principal Amount			Value
		Utilities (continued)
	102,280	Verizon Communications, Inc.	$	5,750,182
				42,264,905

TOTAL COMMON STOCKS (Cost $480,333,524)				519,992,233

Shares or Principal Amount			Value
EXCHANGE TRADED FUNDS-0.20%
	220,426	iShares^® Gold Trust ETF^*		2,709,036

TOTAL EXCHANGE TRADED FUNDS
(Cost $2,669,651)				2,709,036

Shares or Principal Amount			Value
CORPORATE BONDS -7.67%
		Consumer, Cyclical-0.97%
$	5,000,000	eBay, Inc., 2.600%, 7/15/22		4,833,383
	5,000,000	Home Depot, Inc., 2.700%, 4/1/23		4,947,977
	785,000	McDonald's Corp., 5.700%, 2/1/39		880,214
	2,000,000	Walmart, Inc., 5.250%, 9/1/35		2,306,264
				12,967,838
		Consumer, Non-cyclical-0.37%
	3,000,000	Hershey Co., 4.125%, 12/1/20		3,062,730
	1,950,000	Keurig Dr Pepper, Inc., 2.530%, 11/15/21		1,886,588
				4,949,318
		Energy-1.41%
	3,930,000	Apache Corp., 3.250%, 4/15/22		3,847,093
	10,000,000	Equinor ASA, 2.250%, 11/8/19		9,923,363
	5,050,000	Shell International Finance BV, 2.375%, 8/21/22		4,923,044
				18,693,500
		Financial-1.76%
	8,100,000	Berkshire Hathaway, Inc., 3.750%, 8/15/21		8,275,696
	5,000,000	National Australia Bank, Ltd., 2.500%, 5/22/22		4,852,627
	5,305,000	US Bank NA Cincinnati, 3M US L + 0.32%, 1/24/20^(a)		5,300,772
	5,000,000	Wells Fargo & Co., 2.500%, 3/4/21		4,919,554
				23,348,649
		Industrial-1.08%
	1,000,000	Caterpillar, Inc., 8.250%, 12/15/38		1,493,566
	10,000,000	General Electric Co., 3M US L + 0.80%, 4/15/20^(a)		9,814,012
	1,000,000	General Electric Co., 2.700%, 10/9/22		927,877
	2,000,000	General Electric Co., 6.875%, 1/10/39		2,094,047
				14,329,502
		Technology-2.08%
	3,419,000	Apple, Inc., 1.550%, 2/7/20		3,377,207
	10,000,000	Apple, Inc., 3M US L + 0.20%, 2/7/20^(a)		9,994,860
	5,000,000	Intel Corp., 3.300%, 10/1/21		5,052,172
	5,000,000	Intel Corp., 2.875%, 5/11/24		4,877,542
	3,700,000	Microsoft Corp., 5.200%, 6/1/39		4,353,109
				27,654,890
TOTAL CORPORATE BONDS (Cost $101,638,602)				101,943,697

See Notes to Financial Statements.

16	www.jamesfunds.com

James Balanced: Golden Rainbow Fund

Schedule of Investments

December 31, 2018 (Unaudited)

Shares or Principal Amount			Value
MUNICIPAL BONDS-5.89%
		Georgia-0.65%
$	3,000,000	State of Georgia General Obligation Unlimited Bonds, Series B, Partially Prefunded, 4.500%, 1/1/29^(b)	$	3,005,760
	5,000,000	State of Georgia General Obligation Unlimited Bonds, Series D, 5.000%, 2/1/25		5,582,450
				8,588,210
		Hawaii-0.75%
	9,000,000	City and County of Honolulu General Obligation Unlimited Bonds, Series B, 5.000%, 11/1/25		9,958,410

		Maryland-0.38%
	5,000,000	County of Montgomery General Obligation Unlimited Bonds, Series A, 3.000%, 11/1/29		5,012,250

		Ohio-2.62%
	7,450,000	Beavercreek City School District General Obligation Unlimited Bonds, 3.250%, 12/1/36		7,242,294
	5,000,000	County of Cuyahoga General Obligation Limited (Capital Improvement), Series A, 4.000%, 12/1/37		5,096,750
		Greenville City School District General Obligation Unlimited Bonds (School Improvement):
	5,000,000	5.000%, 1/1/46		5,367,450
	11,000,000	5.500%, 1/1/51		11,814,660
	1,000,000	Ohio State University General Recipients Revenue Bonds, Series C, 4.910%, 6/1/40		1,157,140
	500,000	Springboro Community City School District General Obligation Unlimited Bonds, 5.250%, 12/1/23		564,990
	3,475,000	State of Ohio General Obligation Unlimited Bonds, Series C, 5.000%, 9/1/19		3,548,357
				34,791,641
		Pennsylvania-0.62%
	7,050,000	Commonwealth of Pennsylvania General Obligation Unlimited Bonds, First Series, 5.000%, 9/15/26		8,288,051

		Texas-0.02%
	235,000	Tyler Independent School District General Obligation Unlimited Bonds, Unrefunded 2016, 5.000%, 2/15/34		235,606

		Washington-0.45%
	5,845,000	State of Washington General Obligation Various Purpose Unlimited Bonds, Series D, 5.000%, 2/1/20		6,046,886

		Wisconsin-0.40%
	5,000,000	State of Wisconsin General Obligation Unlimited Bonds, Series C, Prefunded 5/1/21 @ 100, 5.000%, 5/1/25^(b)		5,354,750

TOTAL MUNICIPAL BONDS (Cost $77,928,743)				78,275,804

Shares or Principal Amount			Value
U.S. GOVERNMENT AGENCIES-9.59%
		Federal Agricultural Mortgage Corp.-1.22%
$	10,000,000	3M US L + 0.08%, 1/3/22^(a)		9,983,697
	6,177,000	3.150%, 11/9/27		6,164,158
				16,147,855
		Federal Farm Credit Banks-1.53%
	10,000,000	2.350%, 5/2/24		9,682,480
	5,725,000	2.750%, 11/6/26		5,638,020
	5,000,000	3.420%, 5/27/31		4,985,405
				20,305,905
		Federal Home Loan Banks-4.40%
	11,250,000	1.200%, 5/23/19		11,187,237
	5,000,000	1.600%, 10/22/20		4,910,290
	10,000,000	2.875%, 6/13/25		9,976,720

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Schedule of Investments

James Balanced: Golden Rainbow Fund

December 31, 2018 (Unaudited)

Shares or Principal Amount			Value
		Federal Home Loan Banks (continued)
$	10,000,000	2.620%, 4/28/26	$	9,650,020
	14,000,000	2.000%, 6/30/31^(c)		13,482,672
	5,000,000	4.080%, 5/25/33		5,065,550
	4,200,000	4.200%, 7/11/33		4,200,046
				58,472,535
		Federal Home Loan Mortgage Corp.-1.12%
	5,000,000	2.000%, 8/26/19^(c)		4,987,515
	10,000,000	1.800%, 4/13/20		9,901,370
				14,888,885
		Tennessee Valley Authority-0.95%
	10,000,000	5.250%, 9/15/39		12,569,560

		United States Department of Housing and Urban Development-0.37%
	5,000,000	2.050%, 8/1/19		4,978,530

TOTAL U.S. GOVERNMENT AGENCIES (Cost $129,726,637)				127,363,270

Shares or Principal Amount			Value
MORTGAGE BACKED SECURITIES-2.34%
		Fannie Mae Pool-1.98%
	8,813,781	3.500%, 9/1/33		8,980,452
	18,515,012	2.500%, 1/1/57		17,343,314
				26,323,766
		Fannie Mae REMICS-0.36%
	4,710,819	3.500%, 5/25/47		4,790,693

TOTAL MORTGAGE BACKED SECURITIES (Cost $31,567,581)				31,114,459

Shares or Principal Amount			Value
U.S. TREASURY BONDS & NOTES-22.39%
		U.S. Treasury Bonds-4.90%
$	10,000,000	2.625%, 11/15/20		10,016,600
	35,000,000	2.750%, 2/15/28		35,206,636
	20,000,000	3.000%, 8/15/48		19,939,876
				65,163,112
		U.S. Treasury Notes-12.37%
	50,000,000	2.750%, 2/15/19		50,021,175
	25,000,000	1.125%, 2/28/19		24,949,636
	30,000,000	1.000%, 11/30/19		29,558,203
	60,000,000	2.375%, 4/15/21		59,839,263
				164,368,277
		United States Treasury Inflation Indexed Bonds-5.12%
	39,103,400	0.125%, 1/15/22		37,957,778
	30,540,900	0.625%, 4/15/23		30,035,082
				67,992,860
TOTAL U.S. TREASURY BONDS & NOTES (Cost $297,125,247)				297,524,249

See Notes to Financial Statements.

18	www.jamesfunds.com

James Balanced: Golden Rainbow Fund

Schedule of Investments

December 31, 2018 (Unaudited)

Shares or Principal Amount			Value
FOREIGN BONDS-1.85%
		Australia Government Bond-0.53%
AUD	10,000,000	5.250%, 3/15/19	$	7,089,340

		New Zealand Government Bond-0.76%
NZD	15,000,000	5.000%, 3/15/19		10,134,008

		Singapore Government Bond-0.56%
SGD	10,000,000	2.250%, 6/1/21		7,408,482

TOTAL FOREIGN BONDS (Cost $27,224,326)				24,631,830

Shares or Principal Amount			Value
SHORT TERM INVESTMENTS-12.02%
		Mutual Fund-5.30%
	70,426,938	First American Treasury Obligations Fund, Class Z, 7-Day Yield 2.277%		70,426,938

		U.S. Treasury Bill-6.72%
	90,000,000	United States Treasury Bill, 2.175%, 4/25/2019^(d)		89,305,548

TOTAL SHORT TERM INVESTMENTS (Cost $159,807,063)				159,732,486

TOTAL INVESTMENT SECURITIES-101.08% (Cost $1,308,021,374)				1,343,287,064
OTHER LIABILITIES IN EXCESS OF OTHER ASSETS-(1.08)%				(14,383,630	)
NET ASSETS-100.00%			$	1,328,903,434

For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. Those definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percentage of net assets.

Non-income producing security.

^(a)

Floating or variable rate security. The reference rate is described below. The rate in effect as of December 31, 2018 is based on the reference rate plus the displayed spread as of the security’s last reset date.

^(b)

Prefunded Issues are bonds which are prerefunded and collateralized by U.S. Treasury securities held in escrow and used to pay principal and interest on tax exempt issues and to retire the bonds in full at the earliest refunding date.

^(c)

Step coupon. Coupon increases periodically based upon a predetermined schedule. Interest rate disclosed is that which is in effect as of December 31, 2018.

^(d)

Rate shown represents the bond equivalent yield to maturity at date of purchase.

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Schedule of Investments

James Balanced: Golden Rainbow Fund

December 31, 2018 (Unaudited)

Investment Abbreviations:

LIBOR - London Interbank Offered Rate

Libor Rates:

3M US L - 3 Month LIBOR as of December 31, 2018 was 2.80%

AUD - Australian Dollar

NZD - New Zealand Dollar

SGD - Singapore Dollar

See Notes to Financial Statements.

20	www.jamesfunds.com

James Small Cap Fund

Schedule of Investments

December 31, 2018 (Unaudited)

Shares			Value
COMMON STOCKS-95.20%
		Basic Materials-10.74%
	24,065	Boise Cascade Co.	$	573,950
	142,325	Cleveland-Cliffs, Inc.^*		1,094,479
	20,400	Louisiana-Pacific Corp.		453,288
	61,510	Mercer International, Inc.		642,164
	13,500	Norbord, Inc.		358,965
	15,900	Orion Engineered Carbons SA		401,952
	31,190	Schnitzer Steel Industries, Inc., Class A		672,145
				4,196,943

		Consumer, Cyclical-21.19%
	14,300	AMC Networks, Inc., Class A^*		784,784
	7,790	Atlas Air Worldwide Holdings, Inc.^*		328,660
	29,600	Bloomin' Brands, Inc.		529,544
	13,400	Brinker International, Inc.		589,332
	1,450	Children's Place, Inc.		130,631
	9,120	Deckers Outdoor Corp.^*		1,166,904
	22,100	DSW, Inc., Class A		545,870
	22,000	Gray Television, Inc.^*		324,280
	6,610	Group 1 Automotive, Inc.		348,479
	6,790	Hawaiian Holdings, Inc.		179,324
	14,600	Insight Enterprises, Inc.^*		594,950
	29,327	MDC Holdings, Inc.		824,382
	18,290	Patrick Industries, Inc.^*		541,567
	12,815	SkyWest, Inc.		569,883
	59,795	Tailored Brands, Inc.		815,604
				8,274,194

		Consumer, Non-cyclical-8.17%
	34,100	Darling Ingredients Inc^*		656,084
	10,000	FTI Consulting, Inc.^*		666,400
	12,205	Magellan Health, Inc.^*		694,342
	27,200	Mallinckrodt PLC^*		429,760
	7,235	Tivity Health, Inc.^*		179,500
	7,100	TriNet Group, Inc.^*		297,845
	24,900	United Natural Foods, Inc.^*		263,691
				3,187,622

		Energy-4.52%
	201,925	Chesapeake Energy Corp.^*		424,042
	127,700	Denbury Resources, Inc.^*		218,367
	68,905	Gulfport Energy Corp.^*		451,328
	93,260	Laredo Petroleum, Inc.^*		337,601
	17,900	Pattern Energy Group, Inc., Class A		333,298
				1,764,636

		Financial-16.51%
	18,600	Aaron's, Inc.		782,130
	29,830	American Equity Investment Life Holding Co.		833,450
	93,370	First BanCorp		802,982
	226,420	Genworth Financial, Inc., Class A^*		1,055,117
	34,100	Ladder Capital Corp., REIT		527,527
	4,515	LGI Homes, Inc.^*		204,168

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Schedule of Investments

James Small Cap Fund

December 31, 2018 (Unaudited)

Shares			Value
		Financial (continued)
	12,595	Piper Jaffray Cos.	$	829,255
	12,200	Stifel Financial Corp.		505,324
	11,000	TPG Specialty Lending, Inc.		198,990
	41,430	Xenia Hotels & Resorts, Inc., REIT		712,596
				6,451,539

		Industrial-12.83%
	37,910	American Axle & Manufacturing Holdings, Inc.^*		420,801
	19,855	Encore Wire Corp.		996,324
	11,200	Generac Holdings, Inc.^*		556,640
	9,990	Greenbrier Cos., Inc.		395,005
	9,600	H&E Equipment Services, Inc.		196,032
	33,455	Meritor, Inc.^*		565,724
	50,175	Milacron Holdings Corp.^*		596,581
	38,750	Modine Manufacturing Co.^*		418,888
	28,700	Owens-Illinois, Inc.^*		494,788
	29,950	Quad/Graphics, Inc.		368,984
				5,009,767

		Technology-15.36%
	19,900	Acorda Therapeutics, Inc.^*		310,042
	42,595	Blucora, Inc.^*		1,134,731
	11,143	Deluxe Corp.		428,337
	7,700	Genomic Health, Inc.^*		495,957
	61,420	Innoviva, Inc.^*		1,071,779
	27,500	KEMET Corp.		482,350
	29,800	Kulicke & Soffa Industries, Inc.		604,046
	20,715	Nova Measuring Instruments, Ltd.^*		471,888
	16,700	Sykes Enterprises, Inc.^*		412,991
	32,100	Vishay Intertechnology, Inc.		578,121
				5,990,242

		Utilities-5.88%
	5,100	IDACORP, Inc.		474,606
	14,600	New Jersey Resources Corp.		666,782
	16,360	PNM Resources, Inc.		672,232
	10,500	Portland General Electric Co.		481,425
				2,295,045

TOTAL COMMON STOCKS (Cost $40,916,839)				37,169,988

See Notes to Financial Statements.

22	www.jamesfunds.com

James Small Cap Fund

Schedule of Investments

December 31, 2018 (Unaudited)

Shares			Value
SHORT TERM INVESTMENTS-7.97%
		Mutual Fund-7.97%
	3,112,411	First American Treasury Obligations Fund, Class Z, 7-Day Yield 2.277%	$	3,112,411

TOTAL SHORT TERM INVESTMENTS (Cost $3,112,411)				3,112,411

TOTAL INVESTMENT SECURITIES-103.17% (Cost $44,029,250)				40,282,399
OTHER LIABILITIES IN EXCESS OF OTHER ASSETS-(3.17)%				(1,238,327	)
NET ASSETS-100.00%			$	39,044,072

Non-income producing security.

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Schedule of Investments

James Mid Cap Fund

December 31, 2018 (Unaudited)

Shares			Value
COMMON STOCKS-96.88%
		Basic Materials-12.03%
	4,610	Advanced Drainage Systems, Inc.	$	111,792
	1,645	Arch Coal, Inc., Class A		136,519
	5,365	Boise Cascade Co.		127,955
	3,190	Cambrex Corp.^*		120,454
	15,225	Cleveland-Cliffs, Inc.^*		117,080
	10,265	CNX Resources Corp.^*		117,226
	3,425	Kennametal, Inc.		113,984
	6,055	Louisiana-Pacific Corp.		134,542
	5,060	Norbord, Inc.		134,545
	4,600	Orion Engineered Carbons SA		116,288
	2,715	Trinseo SA		124,293
	6,350	United States Steel Corp.		115,824
				1,470,502
		Consumer, Cyclical-33.03%
	7,770	Abercrombie & Fitch Co., Class A		155,788
	6,370	American Eagle Outfitters, Inc.		123,132
	2,110	Asbury Automotive Group, Inc.^*		140,653
	3,025	Atlas Air Worldwide Holdings, Inc.^*		127,625
	7,505	Bloomin' Brands, Inc.		134,264
	8,145	BMC Stock Holdings, Inc.^*		126,085
	2,980	Brinker International, Inc.		131,060
	8,015	Callaway Golf Co.		122,630
	4,020	Dick's Sporting Goods, Inc.		125,424
	1,905	Dillard's, Inc., Class A		114,891
	4,790	DSW, Inc., Class A		118,313
	3,185	Foot Locker, Inc.		169,442
	8,865	Gray Television, Inc.^*		130,670
	2,495	Group 1 Automotive, Inc.		131,536
	2,770	Insight Enterprises, Inc.^*		112,878
	5,785	KB Home		110,494
	9,500	Laureate Education, Inc.^*		144,780
	4,630	MDC Holdings, Inc.		130,149
	3,335	Meritage Homes Corp.^*		122,461
	8,960	Michaels Cos., Inc.^*		121,318
	6,135	MSG Networks, Inc., Class A^*		144,541
	4,620	Navistar International Corp.^*		119,889
	1,860	Nexstar Media Group, Inc., Class A		146,270
	2,885	Penske Automotive Group, Inc.		116,323
	3,640	Rush Enterprises, Inc., Class A		125,507
	2,835	SkyWest, Inc.		126,072
	4,090	Toll Brothers, Inc.		134,684
	10,790	TRI Pointe Group, Inc.^*		117,935
	3,945	Tribune Media Co., Class A		179,024
	3,590	Urban Outfitters, Inc.^*		119,188
	3,845	Wolverine World Wide, Inc.		122,617
				4,045,643
		Consumer, Non-cyclical-9.94%
	2,965	Cal-Maine Foods, Inc.		125,420
	4,635	Cardtronics PLC, Class A^*		120,510
	3,165	Edgewell Personal Care Co.^*		118,213
	9,370	Endo International PLC^*		68,401

See Notes to Financial Statements.

24	www.jamesfunds.com

James Mid Cap Fund

Schedule of Investments

December 31, 2018 (Unaudited)

Shares			Value
		Consumer, Non-cyclical (continued)
	2,005	FTI Consulting, Inc.^*	$	133,613
	5,905	H&R Block, Inc.		149,810
	1,190	Helen of Troy, Ltd.^*		156,104
	6,820	Mallinckrodt PLC^*		107,756
	6,375	Tenet Healthcare Corp.^*		109,268
	1,180	United Therapeutics Corp.^*		128,502
				1,217,597
		Energy-8.85%
	10,605	Carrizo Oil & Gas, Inc.^*		119,730
	60,080	Chesapeake Energy Corp.^*		126,168
	68,110	Denbury Resources, Inc.^*		116,468
	16,435	Gulfport Energy Corp.^*		107,649
	33,875	Laredo Petroleum, Inc.^*		122,628
	9,060	Newfield Exploration Co^*		132,820
	3,115	Nextera Energy Partners LP		134,101
	20,345	QEP Resources, Inc.^*		114,542
	7,525	Unit Corp^*		107,457
				1,081,563
		Financial-14.31%
	2,840	Aaron's, Inc.		119,422
	7,115	Aircastle, Ltd.		122,663
	4,125	American Equity Investment Life Holding Co.		115,253
	3,235	Employers Holdings, Inc.		135,773
	3,755	Essent Group, Ltd.^*		128,346
	7,060	Kennedy-Wilson Holdings, Inc.		128,280
	8,755	Ladder Capital Corp., REIT		135,440
	11,570	MGIC Investment Corp.^*		121,022
	6,665	NMI Holdings, Inc., Class A^*		118,970
	5,200	OneMain Holdings, Inc.^*		126,308
	7,415	Radian Group, Inc.		121,309
	3,970	Triton International, Ltd.		123,348
	3,250	Universal Insurance Holdings, Inc.		123,240
	7,235	Waddell & Reed Financial, Inc., Class A		130,809
				1,750,183
		Industrial-7.00%
	10,935	American Axle & Manufacturing Holdings, Inc.^*		121,379
	2,405	Clean Harbors, Inc.^*		118,687
	4,845	Continental Building Products, Inc.^*		123,305
	2,555	Generac Holdings, Inc.^*		126,984
	7,395	KBR, Inc.		112,256
	3,955	Matson, Inc.		126,639
	7,520	Meritor, Inc.^*		127,163
				856,413
		Technology-9.72%
	8,390	Acorda Therapeutics, Inc.^*		130,716
	3,155	Avnet, Inc.		113,896
	7,835	AVX Corp.		119,484
	4,565	Diodes, Inc.^*		147,267
	7,215	KEMET Corp.		126,551

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Schedule of Investments

James Mid Cap Fund

December 31, 2018 (Unaudited)

Shares			Value
		Technology (continued)
	5,960	Kulicke & Soffa Industries, Inc.	$	120,809
	3,015	Lumentum Holdings, Inc.^*		126,660
	3,390	United States Cellular Corp.^*		176,178
	7,045	Vishay Intertechnology, Inc.		126,880
				1,188,441
		Utilities-2.00%
	7,475	Clearway Energy, Inc., Class A		126,477
	34,800	Southwestern Energy Co.^*		118,668
				245,145

TOTAL COMMON STOCKS (Cost $14,763,781)				11,855,487

Shares				Value
SHORT TERM INVESTMENTS-3.26%
		Mutual Fund-3.26%
	398,476	First American Treasury Obligations Fund, Class Z, 7-Day Yield 2.277%		398,476

TOTAL SHORT TERM INVESTMENTS (Cost $398,476)				398,476

TOTAL INVESTMENT SECURITIES-100.14% (Cost $15,162,257)				12,253,963
OTHER LIABILITIES IN EXCESS OF OTHER ASSETS-(0.14)%				(16,904	)
NET ASSETS-100.00%			$	12,237,059

Non-income producing security.

See Notes to Financial Statements.

26	www.jamesfunds.com

James Micro Cap Fund

Schedule of Investments

December 31, 2018 (Unaudited)

Shares			Value
COMMON STOCKS-90.42%
		Basic Materials-5.02%
	96,415	Fortuna Silver Mines, Inc.^*	$	350,951
	85,130	Golden Star Resources, Ltd.^*		268,159
	27,175	Mercer International, Inc.		283,707
	11,125	Schnitzer Steel Industries, Inc., Class A		239,744
				1,142,561

		Consumer, Cyclical-14.45%
	22,480	Century Communities, Inc.^*		388,005
	21,640	China Yuchai International, Ltd.		269,202
	15,736	Flexsteel Industries, Inc.		347,451
	16,185	Haverty Furniture Cos., Inc.		303,954
	5,140	Johnson Outdoors, Inc., Class A		301,924
	22,950	Kimball International, Inc., Class B		325,660
	19,155	M/I Homes, Inc.^*		402,638
	16,296	Patrick Industries, Inc.^*		482,525
	42,730	Tilly's, Inc., Class A		464,048
				3,285,407

		Consumer, Non-cyclical-8.07%
	15,485	Heidrick & Struggles International, Inc.		482,977
	6,562	John B Sanfilippo & Son, Inc.		365,241
	16,710	Kelly Services, Inc., Class A		342,221
	23,795	Lantheus Holdings, Inc.^*		372,392
	25,790	United Natural Foods, Inc.^*		273,116
				1,835,947

		Energy-3.24%
	143,895	Denbury Resources, Inc.^*		246,060
	119,115	W&T Offshore, Inc.^*		490,754
				736,814

		Financial-21.18%
	34,645	Ares Commercial Real Estate Corp., REIT		451,771
	29,405	Enova International, Inc.^*		572,221
	44,430	EZCORP, Inc., Class A^*		343,444
	5,630	Federal Agricultural Mortgage Corp., Class C		340,277
	39,460	iStar, Inc., REIT		361,848
	9,375	LGI Homes, Inc.^*		423,938
	33,295	MoneyGram International, Inc.^*		66,590
	49,515	OFG Bancorp		815,017
	6,540	Piper Jaffray Cos.		430,594
	11,710	SP Plus Corp.^*		345,913
	17,590	Universal Insurance Holdings, Inc.		667,013
				4,818,626

		Industrial-21.19%
	9,875	ArcBest Corp.		338,317
	6,655	Argan, Inc.		251,825
	19,605	CAI International, Inc.^*		455,424
	25,980	Casella Waste Systems, Inc., Class A^*		740,170
	7,800	Encore Wire Corp.		391,404
	27,280	Global Brass & Copper Holdings, Inc.		686,092

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Schedule of Investments

James Micro Cap Fund

December 31, 2018 (Unaudited)

Shares			Value
		Industrial (continued)
	5,410	NACCO Industries, Inc., Class A	$	183,399
	19,750	Quad/Graphics, Inc.		243,320
	23,780	Stoneridge, Inc.^*		586,177
	21,090	Tower International, Inc.		501,942
	20,370	Vectrus, Inc.^*		439,585
				4,817,655

		Technology-17.27%
	38,415	ACCO Brands Corp.		260,454
	16,760	Blucora, Inc.^*		446,486
	1,381	Cabot Microelectronics Corp.		131,678
	8,815	Engility Holdings, Inc.^*		250,875
	14,025	Nova Measuring Instruments, Ltd.^*		319,490
	19,641	Orbotech, Ltd.^*		1,110,502
	42,423	PC Connection, Inc.		1,261,236
	17,090	Ultra Clean Holdings, Inc.^*		144,752
				3,925,473

TOTAL COMMON STOCKS (Cost $19,647,094)				20,562,483

Shares			Value
U.S. TREASURY BONDS & NOTES-8.78%
		U.S. Treasury Notes-8.78%
$	2,000,000	1.125%, 2/28/19		1,995,971

TOTAL U.S. TREASURY BONDS & NOTES (Cost $1,996,388)				1,995,971

Shares			Value
SHORT TERM INVESTMENTS-0.76%
		Mutual Fund-0.76%
	173,868	First American Treasury Obligations Fund, Class Z, 7-Day Yield 2.277%		173,868

TOTAL SHORT TERM INVESTMENTS (Cost $173,868)				173,868

TOTAL INVESTMENT SECURITIES-99.96% (Cost $21,817,350)				22,732,322
OTHER ASSETS IN EXCESS OF LIABILITIES-0.04%				9,249
NET ASSETS-100.00%			$	22,741,571

Non-income producing security.

See Notes to Financial Statements.

28	www.jamesfunds.com

James Aggressive Allocation Fund

Schedule of Investments

December 31, 2018 (Unaudited)

Shares or Principal Amount			Value
COMMON STOCKS-72.84%
		Basic Materials-9.55%
	1,000	Celanese Corp.	$	89,970
	11,000	Cleveland-Cliffs, Inc.^*		84,590
	10,000	Freeport-McMoRan, Inc.		103,100
	6,000	Harsco Corp.^*		119,160
	2,375	International Paper Co.		95,855
	3,500	Louisiana-Pacific Corp.		77,770
	1,525	Newmont Mining Corp.		52,841
	2,250	Nucor Corp.		116,573
	4,000	Orion Engineered Carbons SA		101,120
	3,775	Randgold Resources, Ltd., ADR, ADR		51,113
	2,750	Steel Dynamics, Inc.		82,610
				974,702

		Consumer, Cyclical-11.43%
	1,750	Asbury Automotive Group, Inc.^*		116,655
	1,500	Best Buy Co., Inc.		79,440
	5,000	Bloomin' Brands, Inc.		89,450
	1,000	Deckers Outdoor Corp.^*		127,950
	3,000	General Motors Co.		100,350
	1,700	Kohl's Corp.		112,778
	3,000	Lennar Corp., Class A		117,450
	3,025	Macy's, Inc.		90,085
	2,250	SkyWest, Inc.		100,058
	4,000	Viacom, Inc., Class B		102,800
	1,400	Walmart, Inc.		130,410
				1,167,426

		Consumer, Non-cyclical-7.26%
	375	Anthem, Inc.		98,486
	1,400	Helen of Troy, Ltd.^*		183,652
	300	Humana, Inc.		85,944
	6,000	Kroger Co.		165,000
	1,350	Merck & Co., Inc.		103,154
	425	UnitedHealth Group, Inc.		105,876
				742,112

		Energy-5.13%
	2,000	BP PLC, Sponsored ADR		75,840
	2,700	ConocoPhillips		168,345
	2,000	HollyFrontier Corp.		102,240
	1,200	Phillips 66		103,380
	1,000	Valero Energy Corp.		74,970
				524,775

		Financial-10.08%
	2,200	Aflac, Inc.		100,232
	1,400	Allstate Corp.		115,682
	1,500	American Financial Group, Inc.		135,795
	2,000	JPMorgan Chase & Co.		195,240
	10,000	KeyCorp		147,800
	6,150	Ladder Capital Corp., REIT		95,140
	8,500	Regions Financial Corp.		113,730

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Schedule of Investments

James Aggressive Allocation Fund

December 31, 2018 (Unaudited)

Shares or Principal Amount			Value
		Financial (continued)
	1,700	Torchmark Corp.	$	126,701
				1,030,320

		Industrial-7.80%
	1,167	Arcosa, Inc.^*		32,305
	8,000	Dana, Inc.		109,040
	1,200	Deere & Co.		179,004
	500	FedEx Corp.		80,665
	1,750	Greenbrier Cos., Inc.		69,195
	4,950	H&E Equipment Services, Inc.		101,079
	4,500	TriMas Corp.^*		122,805
	1,000	United Rentals, Inc.^*		102,530
				796,623

		Technology-15.97%
	675	Amgen, Inc.		131,402
	700	Apple, Inc.		110,418
	3,000	Avnet, Inc.		108,300
	500	Broadcom, Inc.		127,140
	1,500	Cabot Microelectronics Corp.		143,025
	3,200	Cisco Systems, Inc.		138,656
	7,125	Innoviva, Inc.^*		124,331
	3,100	Intel Corp.		145,483
	5,000	KEMET Corp.		87,700
	400	Lockheed Martin Corp.		104,736
	4,000	Micron Technology, Inc.^*		126,920
	1,100	Motorola Solutions, Inc.		126,544
	200	Northrop Grumman Corp.		48,980
	6,000	Vishay Intertechnology, Inc.		108,060
				1,631,695

		Utilities-5.62%
	8,475	AES Corp.		122,548
	3,000	AT&T, Inc.		85,620
	2,750	Exelon Corp.		124,025
	3,650	NRG Energy, Inc.		144,540
	1,750	Verizon Communications, Inc.		98,385
				575,118

TOTAL COMMON STOCKS (Cost $7,489,566)				7,442,771

Shares or Principal Amount			Value
EXCHANGE TRADED FUNDS-0.87%
	5,000	Global X MSCI Colombia ETF		38,950
	1,400	iShares^® MSCI Peru ETF		49,700

TOTAL EXCHANGE TRADED FUNDS (Cost $107,336)				88,650

See Notes to Financial Statements.

30	www.jamesfunds.com

James Aggressive Allocation Fund

Schedule of Investments

December 31, 2018 (Unaudited)

Shares or Principal Amount			Value
CORPORATE BONDS-2.08%
		Consumer, Cyclical-0.65%
$	67,000	Walt Disney Co., 0.875%, 7/12/19	$	66,269

		Financial-0.49%
	50,000	PNC Bank NA, 1.950%, 3/4/19		49,913

		Industrial-0.45%
	50,000	General Electric Co., 2.700%, 10/9/22		46,394

		Technology-0.49%
	50,000	Microsoft Corp., 1.850%, 2/6/20		49,631

TOTAL CORPORATE BONDS (Cost $217,040)				212,207

Shares or Principal Amount			Value
U.S. TREASURY BONDS & NOTES-22.61%
		U.S. Treasury Bonds-5.10%
$	550,000	2.750%, 11/15/47		521,347

		U.S. Treasury Notes-15.07%
	850,000	1.125%, 2/28/19		848,287
	300,000	1.625%, 6/30/19		298,641
	400,000	1.375%, 9/15/20		392,386
				1,539,314
		United States Treasury Inflation Indexed Bonds-2.44%
	252,441	0.625%, 7/15/21		249,691

TOTAL U.S. TREASURY BONDS & NOTES (Cost $2,305,712)				2,310,352

Shares or Principal Amount			Value
SHORT TERM INVESTMENTS-2.06%
		Mutual Fund-1.57%
	160,896	First American Government Obligations Fund , Class Z, 7-Day Yield 2.249%		160,896

		U.S. Treasury Bill-0.49%
	25,000	United States Treasury Bill, 2.347%, 4/25/2019^(a)		24,807
	25,000	United States Treasury Bill, 2.207%, 1/10/2019^(a)		24,988
				49,795
TOTAL SHORT TERM INVESTMENTS (Cost $210,694)				210,691

TOTAL INVESTMENT SECURITIES-100.46% (Cost $10,330,348)				10,264,671
OTHER LIABILITIES IN EXCESS OF OTHER ASSETS-(0.46)%				(46,571	)
NET ASSETS-100.00%			$	10,218,100

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Schedule of Investments

James Aggressive Allocation Fund

December 31, 2018 (Unaudited)

Non-income producing security.

^(a)

Rate shown represents the bond equivalent yield to maturity at date of purchase.

See Notes to Financial Statements.

32	www.jamesfunds.com

James Long-Short Fund

Schedule of Investments

December 31, 2018 (Unaudited)

Shares			Value
COMMON STOCKS-89.13%
		Basic Materials-7.35%
	6,330	Avery Dennison Corp.	$	568,624
	7,800	Celanese Corp.^(a)		701,766
				1,270,390

		Consumer, Cyclical-11.36%
	2,870	Best Buy Co., Inc.		151,995
	9,610	Bloomin' Brands, Inc.		171,923
	4,285	CVS Health Corp.^(a)		280,721
	3,400	Delta Air Lines, Inc.		169,660
	4,970	General Motors Co.		166,246
	6,930	Southwest Airlines Co.^(a)		322,106
	3,510	Target Corp.		231,976
	5,900	Viacom, Inc., Class B		151,630
	3,380	Walmart, Inc.		314,847
				1,961,104

		Consumer, Non-cyclical-13.89%
	700	Anthem, Inc.		183,841
	3,890	Grand Canyon Education, Inc.^*		373,985
	16,930	Kroger Co.		465,575
	2,430	ManpowerGroup, Inc.		157,464
	2,600	Merck & Co., Inc.		198,666
	13,545	Pfizer, Inc.^(a)		591,239
	1,720	UnitedHealth Group, Inc.^(a)		428,486
				2,399,256

		Energy-3.73%
	60,825	Chesapeake Energy Corp.^*		127,732
	4,970	HollyFrontier Corp.		254,066
	3,050	Phillips 66		262,758
				644,556

		Financial-19.38%
	8,240	Aaron's, Inc.		346,492
	6,900	Aflac, Inc.		314,364
	2,200	Allstate Corp.		181,786
	2,200	Capital One Financial Corp.		166,298
	14,790	Chimera Investment Corp., REIT		263,558
	9,750	Fifth Third Bancorp		229,417
	8,140	JPMorgan Chase & Co.^(a)		794,627
	15,690	Regions Financial Corp.		209,932
	5,750	Travelers Cos., Inc.^(a)		688,563
	5,120	Unum Group		150,426
				3,345,463

		Industrial-9.97%
	4,130	BorgWarner, Inc.		143,476
	7,030	Dana, Inc.		95,819
	4,500	Deere & Co.		671,265
	1,300	FedEx Corp.		209,729
	9,560	Owens-Illinois, Inc.^*		164,814

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Schedule of Investments

James Long-Short Fund

December 31, 2018 (Unaudited)

Shares				Value
		Industrial (continued)
	4,260	United Rentals, Inc.^*	$	436,778
				1,721,881

		Technology-16.81%
	1,000	Amgen, Inc.		194,670
	1,785	Apple, Inc.		281,566
	9,870	Cisco Systems, Inc.		427,667
	6,625	Deluxe Corp.^(a)		254,665
	5,650	Intel Corp.		265,155
	700	Lockheed Martin Corp.		183,288
	11,490	Micron Technology, Inc.^*		364,578
	1,800	Microsoft Corp.		182,826
	3,560	Motorola Solutions, Inc.		409,542
	1,380	Northrop Grumman Corp.^(a)		337,962
				2,901,919

		Utilities-6.64%
	2,590	American Electric Power Co., Inc.^(a)		193,577
	3,500	Edison International^(a)		198,695
	4,400	Exelon Corp.		198,440
	5,985	NRG Energy, Inc.		237,006
	7,785	PNM Resources, Inc.^(a)		319,886
				1,147,604

TOTAL COMMON STOCKS (Cost $13,366,786)				15,392,173

Shares				Value
SHORT TERM INVESTMENTS-11.41%
		Mutual Fund-11.41%
	1,971,533	First American Treasury Obligations Fund, Class Z, 7-Day Yield 2.277%		1,971,533

TOTAL SHORT TERM INVESTMENTS (Cost $1,971,533)				1,971,533

TOTAL INVESTMENT SECURITIES-100.54% (Cost $15,338,319)				17,363,706
SECURITIES SOLD SHORT-(8.94)% (Proceeds $1,701,683)				(1,543,494	)
OTHER ASSETS IN EXCESS OF LIABILITIES-8.40%				1,449,937	^(b)
NET ASSETS-100.00%			$	17,270,149

Shares				Value
SCHEDULE OF SECURITIES SOLD SHORT
COMMON STOCKS-(8.94)%
			Basic Materials-(0.73)%
	(4,100	)	Southern Copper Corp.	$	(126,157	)

			Communications-(0.76)%
	(4,200	)	Zillow Group, Inc., Class A		(132,006	)

See Notes to Financial Statements.

34	www.jamesfunds.com

James Long-Short Fund

Schedule of Investments

December 31, 2018 (Unaudited)

Shares					Value
			Consumer, Cyclical-(2.98)%
	(6,000	)	Liberty Global PLC, Class A	$	(128,040)
	(12,900	)	Mattel, Inc.		(128,871)
	(7,300	)	Melco Resorts & Entertainment, Ltd.		(128,626)
	(1,300	)	Wynn Resorts, Ltd.		(128,583)
					(514,120)

			Financial-(0.72)%
	(15,300	)	Deutsche Bank AG		(124,695)

			Industrial-(1.40)%
	(200	)	Mettler-Toledo International, Inc.		(113,116)
	(1,300	)	Vulcan Materials Co.		(128,440)
					(241,556)

			Technology-(2.35)%
	(2,200	)	Incyte Corp.		(139,898)
	(1,400	)	Sage Therapeutics, Inc.		(134,106)
	(1,200	)	Sarepta Therapeutics, Inc.		(130,956)
					(404,960)

TOTAL COMMON STOCKS SOLD SHORT (Proceeds $1,701,683)					(1,543,494)

TOTAL SECURITIES SOLD SHORT-(8.94)% (Proceeds $1,701,683)				$	(1,543,494)

Non-income producing security.

^(a)

Security position is either entirely or partially held in a segregated account as collateral for securities sold short, aggregating a total security position market value of $3,729,191.

^(b)

Includes cash which is being held as collateral for securities sold short in the amount of $673,754.

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Statements of Assets and Liabilities

James Advantage Funds

December 31, 2018 (Unaudited)

	James Balanced: Golden Rainbow Fund		James Small Cap Fund			James Mid Cap Fund			James Micro Cap Fund		James Aggressive Allocation Fund			James Long-Short Fund
ASSETS:

Investment securities:
At cost	$	1,308,021,374	$	44,029,250		$	15,162,257		$	21,817,350	$	10,330,348		$	15,338,319
At value	$	1,343,287,064	$	40,282,399		$	12,253,963		$	22,732,322	$	10,264,671		$	17,363,706
Deposits with brokers for securities sold short		–		–			–			–		–			673,754
Dividends and interest receivable		4,898,552		57,554			11,360			37,558		20,165			27,076
Receivable for securities sold		134,269		279,763			1,280			8,281		–			776,728
Receivable for capital shares sold		341,658		35,274			100			–		7,480			100
Other assets		57,304		–			–			–		–			–
Total Assets		1,348,718,847		40,654,990			12,266,703			22,778,161		10,292,316			18,841,364

LIABILITIES:

Payable for securities sold short (proceeds $–, $–, $–, $–, $– and $1,701,683, respectively)		–		–			–			–		–			1,543,494
Payable for capital shares redeemed		14,583,832		49,232			13,487			7,156		65,631			5,317
Payable for securities purchased		3,867,882		1,509,165			–			–		–			–
Accrued expenses:
Management fees		860,064		43,681			13,437			29,427		8,581			18,637
12b-1 distribution and service fees		207,944		8,829			2,714			–		–			3,762
Trustee fees		650		11			6			6		4			5
Other payables		295,041		–			–			–		–			–
Total Liabilities		19,815,413		1,610,918			29,644			36,589		74,216			1,571,215
Net Assets	$	1,328,903,434	$	39,044,072		$	12,237,059		$	22,741,572	$	10,218,100		$	17,270,149

NET ASSETS CONSIST OF:

Paid-in capital	$	1,275,621,768	$	41,239,200		$	15,590,249		$	21,675,230	$	10,659,429		$	14,981,554
Total Distributable Earnings		53,281,666		(2,195,128	)		(3,353,190	)		1,066,341		(441,329	)		2,288,595
Net Assets	$	1,328,903,434	$	39,044,072		$	12,237,059		$	22,741,571	$	10,218,100		$	17,270,149

See Notes to Financial Statements.

36	www.jamesfunds.com

James Advantage Funds

Statements of Assets and Liabilities

December 31, 2018 (Unaudited)

	James Balanced: Golden Rainbow Fund		James Small Cap Fund		James Mid Cap Fund		James Micro Cap Fund		James Aggressive Allocation Fund		James Long-Short Fund
PRICING OF RETAIL CLASS SHARES:

Net assets	$	926,363,198		N/A		N/A		N/A		N/A		N/A
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par)		47,784,230		N/A		N/A		N/A		N/A		N/A
Net assets value, offering price and redemption price per share	$	19.39		N/A		N/A		N/A		N/A		N/A

PRICING OF INSTITUTIONAL CLASS SHARES:

Net assets	$	402,540,236		N/A		N/A		N/A		N/A		N/A
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par)		21,027,177		N/A		N/A		N/A		N/A		N/A
Net assets value, offering price and redemption price per share	$	19.14		N/A		N/A		N/A		N/A		N/A

PRICING OF SHARES

Net assets		N/A	$	39,044,072	$	12,237,059	$	22,741,571	$	10,218,100	$	17,270,149
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par)		N/A		1,870,744		1,623,249		1,683,757		1,092,196		1,365,929
Net assets value, offering price and redemption price per share		N/A	$	20.87	$	7.54	$	13.51	$	9.36	$	12.64

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Statements of Operations

James Advantage Funds

For the Six Months Ended December 31, 2018 (Unaudited)

	James Balanced: Golden Rainbow Fund			James Small Cap Fund			James Mid Cap Fund			James Micro Cap Fund			James Aggressive Allocation Fund			James Long-Short Fund
INVESTMENT INCOME:
Dividends (Net of withholding taxes of $47,327, $1,468, $2,371, $2,462, $300 and $705, respectively)	$	8,580,453		$	397,288		$	115,676		$	192,652		$	83,314		$	207,539
Interest		12,477,148			–			–			1,492			30,388			–
Total Investment Income		21,057,601			397,288			115,676			194,144			113,702			207,539
EXPENSES:
Management fees		6,668,293			324,535			92,655			204,838			53,941			121,863
12b-1 distribution and service fees - Retail Class		1,571,360			–			–			–			–			–
12b-1 distribution and service fees		–			65,411			18,667			–			–			24,551
Broker fees and charges on securities sold short		–			–			–			–			–			5,277
Administration fee		415,465			–			–			–			–			–
Transfer agent fee		131,222			–			–			–			–			–
Custodian fees		96,843			–			–			–			–			–
Professional fees		96,521			–			–			–			–			–
Trustee fees		101,832			2,598			713			1,316			507			919
Registration fees		32,353			–			–			–			–			–
Shareholder report printing and mailing		82,434			–			–			–			–			–
Other expenses		53,469			–			–			–			–			–
Total Expenses		9,249,792			392,544			112,035			206,154			54,448			152,610
Net Investment Income/(Loss)		11,807,809			4,744			3,641			(12,010	)		59,254			54,929
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from:
Investments		38,794,035			214,158			(24,085	)		486,994			(302,136	)		465,903
Securities sold short		–			–			–			–			–			(4,718	)
Foreign currency transactions		(20,913	)		(118	)		15			–			(6	)		–
Total realized gain/(loss)		38,773,122			214,040			(24,070	)		486,994			(302,142	)		461,185
Net change in unrealized depreciation on investments		(188,021,687	)		(13,310,937	)		(3,506,822	)		(6,147,817	)		(1,065,574	)		(2,984,655	)
Net change in unrealized appreciation on securities sold short		–			–			–			–			–			67,088
Net change in unrealized appreciation on foreign currency translation		7,938			–			–			–			–			–
Total change in unrealized appreciation/(depreciation)		(188,013,749	)		(13,310,937	)		(3,506,822	)		(6,147,817	)		(1,065,574	)		(2,917,567	)
Net Realized and Unrealized Loss on Investments		(149,240,627	)		(13,096,897	)		(3,530,892	)		(5,660,823	)		(1,367,716	)		(2,456,382	)
Net Decrease in Net Assets Resulting from Operations	$	(137,432,818	)	$	(13,092,153	)	$	(3,527,251	)	$	(5,672,833	)	$	(1,308,462	)	$	(2,401,453	)

See Notes to Financial Statements.

38	www.jamesfunds.com

Page Intentionally Left Blank

Statements of Changes in Net Assets

James Balanced: Golden Rainbow Fund

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018
FROM OPERATIONS:

Net investment income	$	11,807,809		$	32,974,101
Net realized gain		38,773,122			218,615,569
Net change in unrealized depreciation		(188,013,749	)		(178,863,620	)
Net increase/(decrease) in net assets resulting from operations		(137,432,818	)		72,726,050

DISTRIBUTIONS TO SHAREHOLDERS:

Retail Class Shares:
From distributable earnings⁽¹⁾		(98,349,481	)		(139,197,486	)
Institutional Class Shares:
From distributable earnings⁽²⁾		(49,793,588	)		(84,473,998	)
Decrease in net assets from distributions to shareholders		(148,143,069	)		(223,671,484	)

CAPITAL SHARE TRANSACTIONS:

Retail Class Shares:
Proceeds from shares sold		20,737,258			130,840,615
Net asset value of shares issued in reinvestment of distributions to shareholders		95,493,984			135,381,667
Payments for shares redeemed, net of redemption fees		(516,193,517	)		(820,705,338	)
Net Decrease in net assets from Retail Class capital share transactions		(399,962,275	)		(554,483,056	)

Institutional Class Shares:
Proceeds from shares sold		37,239,871			149,242,321
Net asset value of shares issued in reinvestment of distributions to shareholders		40,854,039			66,623,349
Payments for shares redeemed		(414,337,665	)		(543,632,020	)
Net Decrease in net assets from Institutional Class capital share transactions		(336,243,755	)		(327,766,350	)
Total Decrease in Net Assets		(1,021,781,917	)		(1,033,194,840	)

NET ASSETS:

Beginning of period		2,350,685,351			3,383,880,191
End of period	$	1,328,903,434		$	2,350,685,351	⁽³⁾

See Notes to Financial Statements.

40	www.jamesfunds.com

James Balanced: Golden Rainbow Fund

Statements of Changes in Net Assets

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018
SUMMARY OF CAPITAL SHARE ACTIVITY:

Retail Class Shares:
Shares sold		907,341			5,371,862
Shares issued in reinvestment of distributions to shareholders		4,767,954			5,645,079
Shares redeemed		(22,836,119	)		(33,682,073	)
Net Decrease in shares outstanding		(17,160,824	)		(22,665,132	)
Shares outstanding, beginning of period		64,945,054			87,610,186
Shares outstanding, end of period		47,784,230			64,945,054

Institutional Class Shares:
Shares sold		1,674,130			6,192,447
Shares issued in reinvestment of distributions to shareholders		2,059,793			2,808,316
Shares redeemed		(18,974,489	)		(22,647,178	)
Net Decrease in shares outstanding		(15,240,566	)		(13,646,415	)
Shares outstanding, beginning of period		36,267,743			49,914,158
Shares outstanding, end of period		21,027,177			36,267,743

⁽¹⁾

For the year ended June 30, 2018, total distributions from distributable earnings consisted of distributions from net investment income of $19,616,842 and net realized gains of $119,580,644.

⁽²⁾

For the year ended June 30, 2018, total distributions from distributable earnings consisted of distributions from net investment income of $13,990,021 and net realized gains of $70,483,977.

⁽³⁾

For the year ended June 30, 2018, net assets included accumulated net investment income of $472,531.

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Statements of Changes in Net Assets

James Small Cap Fund

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018
FROM OPERATIONS:

Net investment income/(loss)	$	4,744		$	(202,634	)
Net realized gain		214,040			10,754,578
Net change in unrealized depreciation		(13,310,937	)		(3,552,340	)
Net increase/(decrease) in net assets resulting from operations		(13,092,153	)		6,999,604

DISTRIBUTIONS TO SHAREHOLDERS:

From distributable earnings⁽¹⁾		(3,818,168	)		(13,592,161	)
Decrease in net assets from distributions to shareholders		(3,818,168	)		(13,592,161	)

CAPITAL SHARE TRANSACTIONS:

Proceeds from shares sold		1,359,533			3,339,992
Net asset value of shares issued in reinvestment of distributions to shareholders		3,744,085			12,971,014
Payments for shares redeemed		(7,416,306	)		(19,054,254	)
Net Decrease in net assets from capital share transactions		(2,312,688	)		(2,743,248	)
Total Decrease in Net Assets		(19,223,009	)		(9,335,805	)

NET ASSETS:

Beginning of period		58,267,081			67,602,886
End of period	$	39,044,072		$	58,267,081	⁽²⁾

SUMMARY OF CAPITAL SHARE ACTIVITY:

Shares sold		49,599			102,092
Shares issued in reinvestment of distributions to shareholders		166,182			436,403
Shares redeemed		(278,699	)		(595,417	)
Net Decrease in shares outstanding		(62,918	)		(56,922	)
Shares outstanding, beginning of period		1,933,662			1,990,584
Shares outstanding, end of period		1,870,744			1,933,662

⁽¹⁾

For the year ended June 30, 2018, total distributions from distributable earnings consisted of distributions from net investment income of $407,489 and net realized gains of $13,184,672.

⁽²⁾

For the year ended June 30, 2018, net assets included accumulated net investment income of $–.

See Notes to Financial Statements.

42	www.jamesfunds.com

James Mid Cap Fund

Statements of Changes in Net Assets

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018
FROM OPERATIONS:

Net investment income/(loss)	$	3,641		$	(26,249	)
Net realized gain/(loss)		(24,070	)		1,384,201
Net change in unrealized depreciation		(3,506,822	)		(327,869	)
Net increase/(decrease) in net assets resulting from operations		(3,527,251	)		1,030,083

DISTRIBUTIONS TO SHAREHOLDERS:

From distributable earnings⁽¹⁾		(1,653,088	)		(3,578,926	)
Decrease in net assets from distributions to shareholders		(1,653,088	)		(3,578,926	)

CAPITAL SHARE TRANSACTIONS:

Proceeds from shares sold		1,018,452			2,066,829
Net asset value of shares issued in reinvestment of distributions to shareholders		1,650,774			3,550,103
Payments for shares redeemed		(720,097	)		(2,459,168	)
Net Increase in net assets from capital share transactions		1,949,129			3,157,764
Total Increase/(Decrease) in Net Assets		(3,231,210	)		608,921

NET ASSETS:

Beginning of period		15,468,269			14,859,348
End of period	$	12,237,059		$	15,468,269	⁽²⁾

SUMMARY OF CAPITAL SHARE ACTIVITY:

Shares sold		99,171			163,932
Shares issued in reinvestment of distributions to shareholders		202,798			315,748
Shares redeemed		(79,617	)		(204,577	)
Net Increase in shares outstanding		222,352			275,103
Shares outstanding, beginning of period		1,400,897			1,125,794
Shares outstanding, end of period		1,623,249			1,400,897

⁽¹⁾

For the year ended June 30, 2018, total distributions from distributable earnings consisted of distributions from net investment income of $55,290 and net realized gains of $3,523,636.

⁽²⁾

For the year ended June 30, 2018, net assets included accumulated net investment income of $–.

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Statements of Changes in Net Assets

James Micro Cap Fund

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018
FROM OPERATIONS:

Net investment loss	$	(12,010	)	$	(62,762	)
Net realized gain		486,994			1,040,424
Net change in unrealized appreciation/(depreciation)		(6,147,817	)		1,984,895
Net increase/(decrease) in net assets resulting from operations		(5,672,833	)		2,962,557

DISTRIBUTIONS TO SHAREHOLDERS:

From distributable earnings⁽¹⁾		(1,453,635	)		(2,200,350	)
Decrease in net assets from distributions to shareholders		(1,453,635	)		(2,200,350	)

CAPITAL SHARE TRANSACTIONS:

Proceeds from shares sold		960,486			2,389,041
Net asset value of shares issued in reinvestment of distributions to shareholders		1,446,514			2,177,624
Payments for shares redeemed, net of redemption fees		(1,343,658	)		(8,332,906	)
Net Increase/(Decrease) in net assets from capital share transactions		1,063,342			(3,766,241	)
Total Decrease in Net Assets		(6,063,126	)		(3,004,034	)

NET ASSETS:

Beginning of period		28,804,697			31,808,731
End of period	$	22,741,571		$	28,804,697	⁽²⁾

SUMMARY OF CAPITAL SHARE ACTIVITY:

Shares sold		56,099			136,672
Shares issued in reinvestment of distributions to shareholders		102,372			126,190
Shares redeemed		(86,088	)		(493,438	)
Net Increase/(Decrease) in shares outstanding		72,383			(230,576	)
Shares outstanding, beginning of period		1,611,373			1,841,949
Shares outstanding, end of period		1,683,756			1,611,373

⁽¹⁾

For the year ended June 30, 2018, total distributions from distributable earnings consisted of distributions from net investment income of $97,620 and net realized gains of $2,102,730.

⁽²⁾

For the year ended June 30, 2018, net assets included accumulated net investment loss of $(35,512).

See Notes to Financial Statements.

44	www.jamesfunds.com

James Aggressive Allocation Fund

Statements of Changes in Net Assets

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018
FROM OPERATIONS:

Net investment income	$	59,254		$	93,703
Net realized gain/(loss)		(302,142	)		394,823
Net change in unrealized appreciation/(depreciation)		(1,065,574	)		217,184
Net increase/(decrease) in net assets resulting from operations		(1,308,462	)		705,710

DISTRIBUTIONS TO SHAREHOLDERS:

From distributable earnings⁽¹⁾		(96,369	)		(75,908	)
Decrease in net assets from distributions to shareholders		(96,369	)		(75,908	)

CAPITAL SHARE TRANSACTIONS:

Proceeds from shares sold		857,674			1,739,939
Net asset value of shares issued in reinvestment of distributions to shareholders		96,255			75,908
Payments for shares redeemed		(320,270	)		(1,410,496	)
Net Increase in net assets from capital share transactions		633,659			405,351
Total Increase/(Decrease) in Net Assets		(771,172	)		1,035,153

NET ASSETS:

Beginning of period		10,989,272			9,954,119
End of period	$	10,218,100		$	10,989,272	⁽²⁾

SUMMARY OF CAPITAL SHARE ACTIVITY:

Shares sold		81,766			160,956
Shares issued in reinvestment of distributions to shareholders		10,350			6,932
Shares redeemed		(30,570	)		(133,033	)
Net Increase in shares outstanding		61,546			34,855
Shares outstanding, beginning of period		1,030,650			995,795
Shares outstanding, end of period		1,092,196			1,030,650

⁽¹⁾

For the year ended June 30, 2018, total distributions from distributable earnings consisted of distributions from net investment income of $75,908 and net realized gains of $-.

⁽²⁾

For the year ended June 30, 2018, net assets included accumulated net investment income of $40,605.

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Statements of Changes in Net Assets

James Long-Short Fund

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018
FROM OPERATIONS:

Net investment income	$	54,929		$	49,616
Net realized gain		461,185			562,679
Net change in unrealized depreciation		(2,917,567	)		(327,633	)
Net increase/(decrease) in net assets resulting from operations		(2,401,453	)		284,662

DISTRIBUTIONS TO SHAREHOLDERS:

From distributable earnings⁽¹⁾		(75,854	)		(64,997	)
Decrease in net assets from distributions to shareholders		(75,854	)		(64,997	)

CAPITAL SHARE TRANSACTIONS:

Proceeds from shares sold		366,826			1,566,816
Net asset value of shares issued in reinvestment of distributions to shareholders		75,790			64,533
Payments for shares redeemed		(680,746	)		(3,324,551	)
Net Decrease in net assets from capital share transactions		(238,130	)		(1,693,202	)
Total Decrease in Net Assets		(2,715,437	)		(1,473,537	)

NET ASSETS:

Beginning of period		19,985,586			21,459,123
End of period	$	17,270,149		$	19,985,586	⁽²⁾

SUMMARY OF CAPITAL SHARE ACTIVITY:

Shares sold		26,168			105,469
Shares issued in reinvestment of distributions to shareholders		6,034			4,190
Shares redeemed		(47,374	)		(226,680	)
Net Decrease in shares outstanding		(15,172	)		(117,021	)
Shares outstanding, beginning of period		1,381,101			1,498,122
Shares outstanding, end of period		1,365,929			1,381,101

⁽¹⁾

For the year ended June 30, 2018, total distributions from distributable earnings consisted of distributions from net investment income of $64,997 and net realized gains of $-.

⁽²⁾

For the year ended June 30, 2018, net assets included accumulated net investment income of $-.

See Notes to Financial Statements.

46	www.jamesfunds.com

James Balanced: Golden Rainbow Fund – Retail Class

Financial Highlights

For a share outstanding throughout the years or period indicated.

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018			For the Year Ended June 30, 2017			For the Year Ended June 30, 2016			For the Year Ended June 30, 2015			For the Year Ended June 30, 2014
Net asset value - beginning of year	$	23.32		$	24.70		$	24.14		$	24.96		$	25.28		$	22.55
Income/(Loss) from investment operations:
Net investment income^(a)		0.13			0.26			0.25			0.25			0.22			0.24
Net realized and unrealized gain/(loss)		(1.97	)		0.24			0.68			(0.41	)		0.49			2.96
Total from investment operations		(1.84	)		0.50			0.93			(0.16	)		0.71			3.20

Less distributions:
From net investment income		(0.14	)		(0.27	)		(0.28	)		(0.23	)		(0.18	)		(0.24	)
From net realized gain on investments		(1.95	)		(1.61	)		(0.09	)		(0.43	)		(0.85	)		(0.23	)
Total distributions		(2.09	)		(1.88	)		(0.37	)		(0.66	)		(1.03	)		(0.47	)
Paid-in capital from redemption fees		–			–			0.00	^(b)		–			–			–
Net asset value at end of year	$	19.39		$	23.32		$	24.70		$	24.14		$	24.96		$	25.28

Total return		(8.11	)%^(c)		1.87	%		3.92	%		(0.64	)%		2.90	%		14.32	%

Net assets, end of year (in thousands)	$	926,363		$	1,514,451		$	2,163,786		$	2,892,809		$	2,973,350		$	2,493,030

Ratios/Supplemental Data:
Ratio of net expenses to average net assets		1.04	%^(d)		0.99	%		0.96	%		0.96	%		0.97	%		1.00	%
Ratio of net investment income to average net assets		1.13	%^(d)		1.05	%		1.02	%		1.03	%		0.87	%		0.99	%
Portfolio turnover rate		32	%^(c)		75	%		46	%		46	%		43	%		32	%

^(a)

Calculated using the average shares method.

^(b)

Amount rounds to less than $0.005 per share.

^(c)

Not Annualized.

^(d)

Annualized.

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Financial Highlights James Balanced: Golden Rainbow Fund – Institutional Class

For a share outstanding throughout the years or period indicated.

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018			For the Year Ended June 30, 2017			For the Year Ended June 30, 2016			For the Year Ended June 30, 2015			For the Year Ended June 30, 2014
Net asset value - beginning of year	$	23.06		$	24.44		$	23.89		$	24.72		$	25.05		$	22.35
Income/(Loss) from investment operations:
Net investment income^(a)		0.16			0.31			0.31			0.31			0.28			0.29
Net realized and unrealized gain/(loss)		(1.96	)		0.25			0.68			(0.42	)		0.50			2.94
Total from investment operations		(1.80	)		0.56			0.99			(0.11	)		0.78			3.23

Less distributions:
From net investment income		(0.17	)		(0.33	)		(0.35	)		(0.29	)		(0.26	)		(0.30	)
From net realized gain on investments		(1.95	)		(1.61	)		(0.09	)		(0.43	)		(0.85	)		(0.23	)
Total distributions		(2.12	)		(1.94	)		(0.44	)		(0.72	)		(1.11	)		(0.53	)
Paid-in capital from redemption fees		–			–			0.00	^(b)		–			–			–
Net asset value at end of year	$	19.14		$	23.06		$	24.44		$	23.89		$	24.72		$	25.05

Total return		(8.03	)%^(c)		2.16	%		4.19	%		(0.43	)%		3.20	%		14.59	%

Net assets, end of year (in thousands)	$	402,540		$	836,234		$	1,220,095		$	1,512,751		$	1,277,641		$	805,973

Ratios/Supplemental Data:
Ratio of net expenses to average net assets		0.79	%^(d)		0.74	%		0.71	%		0.71	%		0.73	%		0.75	%
Ratio of net investment income to average net assets		1.37	%^(d)		1.30	%		1.27	%		1.28	%		1.11	%		1.24	%
Portfolio turnover rate		32	%^(c)		75	%		46	%		46	%		43	%		32	%

^(a)

Calculated using the average shares method.

^(b)

Amount rounds to less than $0.005 per share.

^(c)

Not Annualized.

^(d)

Annualized.

See Notes to Financial Statements.

48	www.jamesfunds.com

James Small Cap Fund

Financial Highlights

For a share outstanding throughout the years or period indicated.

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018			For the Year Ended June 30, 2017			For the Year Ended June 30, 2016			For the Year Ended June 30, 2015			For the Year Ended June 30, 2014
Net asset value - beginning of year	$	30.13		$	33.96		$	30.64		$	33.47		$	33.88		$	28.66
Income/(Loss) from investment operations:
Net investment income/(loss)^(a)		0.00	^(b)		(0.10	)		0.21			0.17			0.01			(0.00	)^(c)
Net realized and unrealized gain/(loss)		(7.12	)		3.82			3.28			(1.64	)		(0.42	)		6.12
Total from investment operations		(7.12	)		3.72			3.49			(1.47	)		(0.41	)		6.12

Less distributions:
From net investment income		–			(0.19	)		(0.17	)		(0.12	)		–			(0.90	)
From net realized gain on investments		(2.14	)		(7.36	)		–			(1.24	)		–			–
Total distributions		(2.14	)		(7.55	)		(0.17	)		(1.36	)		–			(0.90	)
Net asset value at end of year	$	20.87		$	30.13		$	33.96		$	30.64		$	33.47		$	33.88

Total return		(24.17	)%^(d)		11.41	%		11.36	%		(4.62	)%		(1.21	)%		21.46	%

Net assets, end of year (in thousands)	$	39,044		$	58,267		$	67,603		$	84,226		$	125,145		$	163,537

Ratios/Supplemental Data:
Ratio of net expenses to average net assets		1.50	%^(e)		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Ratio of net investment income/(loss) to average net assets		0.02	%^(e)		(0.32	)%		0.62	%		0.55	%		0.04	%		(0.00	)%^(f)
Portfolio turnover rate		36	%^(d)		124	%		129	%		57	%		76	%		62	%

^(a)

Calculated using the average shares method.

^(b)

Amount rounds to less than $0.005 per share.

^(c)

Amount rounds to less than ($0.005) per share.

^(d)

Not Annualized.

^(e)

Annualized.

^(f)

Amount rounds to less than (0.005%).

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Financial Highlights

James Mid Cap Fund

For a share outstanding throughout the years or period indicated.

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018			For the Year Ended June 30, 2017			For the Year Ended June 30, 2016			For the Year Ended June 30, 2015			For the Year Ended June 30, 2014
Net asset value - beginning of year	$	11.04		$	13.20		$	13.56		$	14.86		$	16.42		$	12.97
Income/(Loss) from investment operations:
Net investment income/(loss)^(a)		0.00	^(b)		(0.02	)		0.05			0.08			(0.02	)		0.01
Net realized and unrealized gain/(loss)		(2.36	)		1.03			1.29			(0.42	)		(0.15	)		3.87
Total from investment operations		(2.36	)		1.01			1.34			(0.34	)		(0.17	)		3.88

Less distributions:
From net investment income		–			(0.04	)		(0.02	)		(0.05	)		(0.01	)		(0.04	)
From net realized gain on investments		(1.14	)		(3.13	)		(1.68	)		(0.91	)		(1.38	)		(0.39	)
Total distributions		(1.14	)		(3.17	)		(1.70	)		(0.96	)		(1.39	)		(0.43	)
Net asset value at end of year	$	7.54		$	11.04		$	13.20		$	13.56		$	14.86		$	16.42

Total return		(22.16	)%^(c)		7.27	%		10.50	%		(2.46	)%		(0.86	)%		30.34	%

Net assets, end of year (in thousands)	$	12,237		$	15,468		$	14,859		$	14,326		$	21,190		$	18,631

Ratios/Supplemental Data:
Ratio of net expenses to average net assets		1.50	%^(d)		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Ratio of net investment income/(loss) to average net assets		0.05	%^(d)		(0.17	)%		0.35	%		0.54	%		(0.13	)%		0.05	%
Portfolio turnover rate		82	%^(c)		191	%		150	%		47	%		50	%		31	%

^(a)

Calculated using the average shares method.

^(b)

Amount rounds to less than $0.005 per share.

^(c)

Not Annualized.

^(d)

Annualized.

See Notes to Financial Statements.

50	www.jamesfunds.com

James Micro Cap Fund

Financial Highlights

For a share outstanding throughout the years or period indicated.

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018			For the Year Ended June 30, 2017			For the Year Ended June 30, 2016			For the Year Ended June 30, 2015			For the Year Ended June 30, 2014
Net asset value - beginning of year	$	17.88		$	17.27		$	15.03		$	15.11		$	17.40		$	13.96
Income/(Loss) from investment operations:
Net investment income/(loss)^(a)		(0.01	)		(0.04	)		0.04			(0.04	)		0.06			(0.05	)
Net realized and unrealized gain/(loss)		(3.45	)		1.99			2.20			(0.06	)		1.12			3.50
Total from investment operations		(3.46	)		1.95			2.24			(0.10	)		1.18			3.45

Less distributions:
From net investment income		–			(0.06	)		–			(0.01	)		(0.02	)		(0.01	)
From net realized gain on investments		(0.91	)		(1.29	)		–			–			(3.45	)		–
Total distributions		(0.91	)		(1.35	)		–			(0.01	)		(3.47	)		(0.01	)
Paid-in capital from redemption fees		0.00	^(b)		0.01			0.00	^(b)		0.03			0.00	^(b)		0.00	^(b)
Net asset value at end of year	$	13.51		$	17.88		$	17.27		$	15.03		$	15.11		$	17.40

Total return		(19.59	)%^(c)		11.62	%		14.90	%		(0.44	)%		7.95	%		24.75	%

Net assets, end of year (in thousands)	$	22,742		$	28,805		$	31,809		$	26,515		$	24,026		$	16,256

Ratios/Supplemental Data:
Ratio of net expenses to average net assets		1.50	%^(d)		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Ratio of net investment income/(loss) to average net assets		(0.09	)%^(d)		(0.22	)%		0.23	%		(0.24	)%		0.38	%		(0.31	)%
Portfolio turnover rate		24	%^(c)		37	%		97	%		44	%		52	%		96	%

^(a)

Calculated using the average shares method.

^(b)

Amount rounds to less than $0.005 per share.

^(c)

Not Annualized.

^(d)

Annualized.

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Financial Highlights

James Aggressive Allocation Fund

For a share outstanding throughout the years or period indicated.

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018			For the Year Ended June 30, 2017			For the Year Ended June 30, 2016^(a)
Net asset value - beginning of year	$	10.66		$	10.00		$	9.47		$	10.00
Income/(Loss) from investment operations:
Net investment income^(b)		0.06			0.10			0.09			0.07
Net realized and unrealized gain/(loss)		(1.27	)		0.64			0.53			(0.57	)
Total from investment operations		(1.21	)		0.74			0.62			(0.50	)

Less distributions:
From net investment income		(0.09	)		(0.08	)		(0.09	)		(0.03	)
Total distributions		(0.09	)		(0.08	)		(0.09	)		(0.03	)
Net asset value at end of year	$	9.36		$	10.66		$	10.00		$	9.47

Total return		(11.36	)%^(c)		7.36	%		6.54	%		(4.98	)%

Net assets, end of year (in thousands)	$	10,218		$	10,989		$	9,954		$	7,172

Ratios/Supplemental Data:
Ratio of net expenses to average net assets		0.98	%^(d)		0.98	%		0.98	%		0.98	%
Ratio of net investment income to average net assets		1.07	%^(d)		0.90	%		0.95	%		0.81	%
Portfolio turnover rate		42	%^(c)		219	%		198	%		218	%

^(a)

Fund commenced operations on July 1, 2015.

^(b)

Calculated using the average shares method.

^(c)

Not Annualized.

^(d)

Annualized.

See Notes to Financial Statements.

52	www.jamesfunds.com

James Long-Short Fund

Financial Highlights

For a share outstanding throughout the years or period indicated.

	For the Six Months Ended December 31, 2018 (Unaudited)			For the Year Ended June 30, 2018			For the Year Ended June 30, 2017			For the Year Ended June 30, 2016			For the Year Ended June 30, 2015			For the Year Ended June 30, 2014
Net asset value - beginning of year	$	14.47		$	14.32		$	12.98		$	13.24		$	13.80		$	11.70
Income/(Loss) from investment operations:
Net investment income/(loss)^(a)		0.04			0.03			0.05			(0.09	)		(0.13	)		(0.06	)
Net realized and unrealized gain/(loss)		(1.81	)		0.17			1.29			(0.17	)		(0.43	)		2.16
Total from investment operations		(1.77	)		0.20			1.34			(0.26	)		(0.56	)		2.10

Less distributions:
From net investment income		(0.06	)		(0.05	)		–			–			–			–
Total distributions		(0.06	)		(0.05	)		–			–			–			–
Net asset value at end of year	$	12.64		$	14.47		$	14.32		$	12.98		$	13.24		$	13.80

Total return		(12.26	)%^(b)		1.35	%		10.32	%		(1.96	)%		(4.06	)%		17.95	%

Net assets, end of year (in thousands)	$	17,270		$	19,986		$	21,459		$	24,705		$	33,890		$	23,446

Ratios/Supplemental Data:
Ratio of net expenses to average net assets^(c)		1.56	%^(d)		1.59	%		1.56	%		2.50	%		2.70	%		2.57	%
Ratio of net investment income/(loss) to average net assets		0.56	%^(d)		0.23	%		0.40	%		(0.70	)%		(0.92	)%		(0.44	)%
Portfolio turnover rate		25	%^(b)		21	%		38	%		49	%		117	%		171	%

^(a)

Calculated using the average shares method.

^(b)

Not Annualized.

^(c)

Dividend and interest expense on securities sold short totaled 0.06%, 0.09%, 0.06%, 1.00%, 1.20% and 1.07% of average net assets for the six months ended December 31, 2018 and the years ended June 30, 2018, June 30, 2017, June 30, 2016, June 30, 2015 and June 30, 2014, respectively.

^(d)

Annualized.

See Notes to Financial Statements.

Semi-Annual Report | December 31, 2018

Notes to Financial Statements

James Advantage Funds

December 31, 2018 (Unaudited)

1. ORGANIZATION

James Advantage Funds (the “Trust”) is an open-end management investment company that was organized as an Ohio business trust on August 29, 1997. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). James Balanced: Golden Rainbow Fund, James Small Cap Fund, James Mid Cap Fund, James Micro Cap Fund, James Aggressive Allocation Fund, and James Long-Short Fund are each a diversified series of the Trust (individually a “Fund,” collectively the “Funds”). Each class of James Balanced: Golden Rainbow Fund represents an interest in the same portfolio of investments and has the same rights, but differs primarily in distribution fees and shareholder features. The Retail Class shares are subject to distribution (12b-1) fees but have a lower minimum investment requirement and offer certain shareholder services not available to Institutional Class shareholders. The Institutional Class shares are not subject to distribution (12b-1) fees and are available only through investment advisers and bank trust departments that have made arrangements for shares of all of their clients investing in the Fund to be held in an omnibus account (as well as other investors that are approved by management of the Trust).

James Balanced: Golden Rainbow Fund seeks to provide total return through a combination of growth and income and preservation of capital in declining markets. The James Balanced: Golden Rainbow Fund seeks to achieve its objective by investing primarily in common stocks and/or debt securities that the Fund’s adviser, James Investment Research, Inc. (“James” or the “Adviser”), believes are undervalued.

James Small Cap Fund seeks to provide long-term capital appreciation. The James Small Cap Fund seeks to achieve its objective by investing primarily in common stocks of small capitalization companies. The Adviser defines small capitalization as those companies with market capitalizations at the time of purchase no larger than the stocks in the James Small Cap Fund’s benchmark, the Russell 2000^® Index. As of December 31, 2018, the stock with the maximum capitalization in the Russell 2000^® Index had a capitalization of $6.25 billion.

James Mid Cap Fund seeks to provide long-term capital appreciation. The James Mid Cap Fund seeks to achieve its objective by investing primarily in common stocks of mid capitalization companies. The Adviser defines mid capitalization companies as those with market capitalizations at the time of purchase that fall within the range of the Russell Midcap^® Index. As of December 31, 2018, the stock with the maximum capitalization in the Russell Midcap^® Index had a capitalization of $35.62 billion.

James Micro Cap Fund seeks to provide long-term capital appreciation. The James Micro Cap Fund seeks to achieve its objective by investing primarily in common stocks of micro capitalization companies. Micro capitalization companies are defined as those companies with market capitalizations at the time of purchase no larger than the stocks in the Russell Microcap^® Index, including exchange traded funds (“ETFs”) that invest primarily in such securities. As of December 31, 2018, the stock with the maximum capitalization in the Russell Microcap^® Index had a capitalization of $2.18 billion.

James Aggressive Allocation Fund seeks to provide total return through a combination of growth and income. Preservation of capital in declining markets is a secondary objective. The James Aggressive Allocation Fund will generally run equity allocations of 60% or higher and, therefore, could be more volatile than a more conservative fund that holds a smaller percentage of its assets in stocks. Due to its aggressive nature, the James Aggressive Allocation Fund will generally have a turnover ratio much higher than the James Balanced: Golden Rainbow Fund.

James Long-Short Fund seeks to provide long-term capital appreciation. The James Long-Short Fund seeks to achieve its objective by investing primarily in foreign and domestic equity securities that the Adviser believes are undervalued and more likely to appreciate, and by selling short equity securities that the Adviser believes are overvalued and more likely to depreciate. The James Long-Short Fund also may take long positions in domestic and foreign fixed income securities that the Adviser believes are more likely to appreciate in the interest rate and spread environment anticipated by the Adviser, and short positions in fixed income securities that the Adviser believes are more likely to depreciate in the interest rate and spread environment anticipated by the Adviser. The James Long-Short Fund seeks to achieve positive returns on both the long positions and short positions that it takes in various securities.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the Funds in preparation of their financial statements, in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Funds are considered an investment company for financial reporting purposes under GAAP.

Share Valuation

The net asset value per share of each Fund, other than the James Balanced: Golden Rainbow Fund, is calculated daily by dividing the total value of the Fund’s assets, less liabilities, by the number of shares outstanding. The net asset value per share of each class of shares of the James Balanced: Golden Rainbow Fund is calculated daily by dividing the total value of the Fund’s assets attributable to that class, less liabilities attributable to that class, by the number of outstanding shares of that class. The offering price and redemption price per share is equal to the net asset value per share, except that shares of the James Micro Cap Fund are subject to a redemption fee of 2% if redeemed within 180 days of purchase. Redemption fees received by the James Micro Cap Fund were $1,255 and $19,044 for the six months ended December 31, 2018 and the year ended June 30, 2018, respectively. The redemption fee is reflected in the “Payment for shares redeemed, net of redemption fees” in the Statements of Changes in Net Assets.

54	www.jamesfunds.com

James Advantage Funds

Notes to Financial Statements

December 31, 2018 (Unaudited)

Securities Valuation

Securities are valued at fair value. The Funds’ portfolio securities, including short positions, are valued as of the close of the New York Stock Exchange (“NYSE”) (generally, 4:00 p.m., Eastern time) on each day that the NYSE is open for business. Equity securities that are traded on any exchange, including closed-end funds and exchange-traded funds, are valued at the last quoted sale price on the exchange or market in which such securities are principally traded. Lacking a last sale price, a security is valued at its last bid price except when, in James’ opinion, the last bid price does not accurately reflect the current value of the security. Securities that are traded on the NASDAQ^® over-the-counter market are valued at their NASDAQ^® Official Closing Price (“NOCP”) for all NASDAQ^® National Market (“NNM”) and NASDAQ^® Capital Market^® securities. When market quotations are not readily available, if an event occurs after the close of the trading market (but before the time as of which a Fund calculates its net asset value) that materially affects a security’s value, when James determines that the market quotation does not accurately reflect the current value or when a non-144A restricted security is being valued, that security will be valued at its fair value as determined in good faith in conformity with guidelines adopted by and subject to review of the Board of Trustees (the “Board”). Corporate bonds, U.S. government agencies, U.S. Treasury bonds & notes, foreign, and municipal bonds are generally valued at the mean between the closing bid and asked prices provided by an independent pricing service. The pricing services generally use market models that consider trade data, yields, spreads, quotations from dealers and active market makers, credit worthiness, market information of comparable securities, and other relevant security specific information. Asset backed/commercial mortgage backed securities are generally valued at the mean between the closing bid and asked prices provided by an independent pricing service. The pricing service generally uses models that consider trade data, prepayment, and default projections, benchmark yield and spread data and estimated cash flows of each tranche of the issuer. If the Adviser decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities or when prices are not readily available from a pricing service, those securities will be priced at fair value as determined in good faith by the Adviser. Shares of open-end investment companies are valued at net asset value.

For valuation purposes, quotations of foreign securities in a foreign currency are converted to U.S. dollar equivalents at the time of pricing the Funds. The values of foreign portfolio securities are generally based upon market quotations which, depending upon the exchange or market, may be last sale price, last bid price or the average of the last bid and asked prices as of, in each case, the close of the appropriate exchange or another designated time.

In accordance with the Trust’s good faith pricing guidelines, James is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable as described above. There is no single standard for determining fair value, since fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of an issue of securities being valued by the Adviser would appear to be the amount that the owner might reasonably expect to receive for them upon their current sale. Methods which are in accordance with this principle may, for example, be based on (i) a multiple of earnings, (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers), or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods.

Various inputs are used in determining the value of the Funds’ investments. These inputs are summarized in the three broad levels listed below:

Level 1 -

Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that a Fund has the ability to access at the measurement date;

Level 2 -

Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; or

Level 3 -

Significant unobservable prices or inputs (including a Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Semi-Annual Report | December 31, 2018

Notes to Financial Statements

James Advantage Funds

December 31, 2018 (Unaudited)

The following is a summary of the inputs used to value the Funds’ investments as of December 31, 2018:

James Balanced: Golden Rainbow Fund
	Valuation Inputs
Investments in Securities at Value^*	Level 1		Level 2		Level 3		Total
Common Stocks	$	519,992,233	$	–	$	–	$	519,992,233
Exchange Traded Funds		2,709,036		–		–		2,709,036
Corporate Bonds		–		101,943,697		–		101,943,697
Municipal Bonds		–		78,275,804		–		78,275,804
U.S. Government Agencies		–		127,363,270		–		127,363,270
Mortgage Backed Securities		–		31,114,459		–		31,114,459
U.S. Treasury Bonds & Notes		297,524,249		–		–		297,524,249
Foreign Bonds		–		24,631,830		–		24,631,830
Short Term Investments		159,732,486		–		–		159,732,486
Total	$	979,958,004	$	363,329,060	$	–	$	1,343,287,064

James Small Cap Fund
	Valuation Inputs
Investments in Securities at Value^*	Level 1		Level 2		Level 3		Total
Common Stocks	$	37,169,988	$	–	$	–	$	37,169,988
Short Term Investments		3,112,411		–		–		3,112,411
Total	$	40,282,399	$	–	$	–	$	40,282,399

James Mid Cap Fund
	Valuation Inputs
Investments in Securities at Value^*	Level 1		Level 2		Level 3		Total
Common Stocks	$	11,855,487	$	–	$	–	$	11,855,487
Short Term Investments		398,476		–		–		398,476
Total	$	12,253,963	$	–	$	–	$	12,253,963

James Micro Cap Fund
	Valuation Inputs
Investments in Securities at Value^*	Level 1		Level 2		Level 3		Total
Common Stocks	$	20,562,483	$	–	$	–	$	20,562,483
U.S. Treasury Bonds & Notes		1,995,971		–		–		1,995,971
Short Term Investments		173,868		–		–		173,868
Total	$	22,732,322	$	–	$	–	$	22,732,322

James Aggressive Allocation Fund
	Valuation Inputs
Investments in Securities at Value^*	Level 1		Level 2		Level 3		Total
Common Stocks	$	7,442,771	$	–	$	–	$	7,442,771
Exchange Traded Funds		88,650		–		–		88,650
Corporate Bonds		–		212,207		–		212,207
U.S. Treasury Bonds & Notes		2,310,352		–		–		2,310,352
Short Term Investments		210,691		–		–		210,691
Total	$	10,052,464	$	212,207	$	–	$	10,264,671

56	www.jamesfunds.com

James Advantage Funds

Notes to Financial Statements

December 31, 2018 (Unaudited)

James Long-Short Fund
	Valuation Inputs
Investments in Securities at Value^*		Level 1		Level 2		Level 3		Total
Common Stocks	$	15,392,173	$	–	$	–	$	15,392,173
Short Term Investments		1,971,533		–		–		1,971,533
Total	$	17,363,706	$	–	$	–	$	17,363,706

	Valuation Inputs
Other Financial Instruments^*	Level 1			Level 2		Level 3		Total
Liabilities
Securities Sold Short
Common Stocks	$	(1,543,494	)	$	–	$	–	$	(1,543,494	)
TOTAL	$	(1,543,494	)	$	–	$	–	$	(1,543,494	)

For detailed descriptions of sector and industry, see the accompanying Schedule of Investments.

Investment Transactions

Investment transactions are recorded on a trade date basis. Gains and losses are determined using the specific identification method, which liquidates all losses first, before any gains. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. Any securities so purchased are subject to market fluctuation during this period. The Funds will instruct its custodian to segregate assets in a separate account with a current value at least equal to the amount of its when-issued and delayed delivery purchase commitments. As of December 31, 2018, the Funds did not hold when-issued securities or delayed delivery purchase commitments.

Withholding taxes on foreign dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates.

Foreign Currency Translation

The market value of investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the current exchange rate, provided by WM Reuters, at the close of each business day. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars based at the exchange rate on the date of the transaction.

Reported net realized foreign exchange gains or losses arise from sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized and between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from the changes in the value of assets and liabilities including investments in securities at the reporting period, resulting from changes in the exchange rate. The portion of realized and unrealized gains or losses on investments due fluctuations in foreign currency exchange rates is not separately disclosed and is included in realized and unrealized gains or losses on investments, when applicable.

Short Sales and Segregated Cash

The James Long-Short Fund may actively sell short equity and fixed income securities. Short sales are transactions in which the Fund sells a security it does not own in anticipation of a decline in the market value of that security. To complete such a transaction, the Fund must borrow the security to deliver to the buyer upon the short sale; the Fund is then obligated to replace the security borrowed by purchasing it in the open market at some later date.

The Fund will incur a loss if the market price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund will realize a gain if the security declines in value between those dates. The Fund is required to pay any dividend or interest due on securities sold short. Such dividends and interest are recorded as an expense. The Fund may pay fees or charges on the assets borrowed for securities sold short.

All short sales are collateralized, as required by the Fund’s prime broker. The Fund maintains the collateral in segregated accounts consisting of cash and/or equity securities sufficient to collateralize the market value of the Fund’s short positions.

Investment Income

Dividend income and dividend expense on long securities and securities sold short are recorded on the ex-dividend date. Interest income is determined on the basis of interest accrued, adjusted for amortization of premiums and accretion of discounts on all debt securities. Amortization and accretion is calculated using the effective yield method.

Dividend income includes dividends earned on Real Estate Investment Trusts (“REITs”), which may include a return of capital. As such, important taxation issues may arise, which the Funds account for when information is provided by the issuing REIT.

Semi-Annual Report | December 31, 2018

Notes to Financial Statements

James Advantage Funds

December 31, 2018 (Unaudited)

Due to the actual character of dividends paid by REITs not being available until the end of the calendar year, the net investment income and long-term capital gains of the Funds can be different on the tax return compared to this annual report. Substantial unanticipated levels of return of capital may affect the Funds’ earnings and profits from which distributions are made.

Distributions received from Limited Partnership investments of a Fund are usually recorded as a return of capital and are excluded from available income in the calculation of distributions paid by the Funds. Return of capital is recorded as a reduction to the cost of investments in the Statements of Assets and Liabilities and in the Schedule of Investments.

Dividends and Distributions to Shareholders

Net investment income, if any, is generally declared and distributed to shareholders of each Fund on at least an annual basis. Net realized capital gains from security transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to shareholders of net investment income and net realized capital gains are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.

Allocation of Income and Expense

Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for the James Balanced: Golden Rainbow Fund is allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class-specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. The Advisor pays the expenses of each Fund, except for the James Balanced: Golden Rainbow fund. These expenses exclude the management fees, detailed in Note 4, brokerage fees and commissions, taxes, interest (including dividend expense on securities sold short), fees and expenses of the non-interested person trustees, 12b-1 fees and extraordinary expenses. Expenses not directly billed to a particular Fund are allocated proportionally among all Funds daily in relation to net assets of each Fund or another reasonable measure.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

Federal Income Taxes

The Funds generally intend to distribute all taxable income and capital gains to shareholders, if any, and to otherwise continue to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. Therefore, no federal tax provision is required.

As of and during the six months ended December 31, 2018, the Funds did not have a liability for any unrecognized tax benefits. The Funds file U.S. federal, state, and local tax returns as required. The Funds’ tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return for federal purposes and four years for most state returns. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.

58	www.jamesfunds.com

James Advantage Funds

Notes to Financial Statements

December 31, 2018 (Unaudited)

As of December 31, 2018, the components of distributable earnings on a tax basis were as follows:

	James Balanced: Golden Rainbow Fund			James Small Cap Fund			James Mid Cap Fund			James Micro Cap Fund			James Aggressive Allocation Fund			James Long-Short Fund
Tax cost of portfolio investments	$	1,309,069,710		$	44,029,250		$	15,170,357		$	21,817,350		$	10,333,713		$	15,369,408
Gross unrealized appreciation	$	86,595,839		$	2,449,826		$	177,398		$	3,168,878		$	633,977		$	3,733,415
Gross unrealized depreciation		(52,378,485	)		(6,196,677	)		(3,093,792	)		(2,253,906	)		(703,019	)		(1,580,928)
Net unrealized appreciation (depreciation)		34,217,354			(3,746,851	)		(2,916,394	)		914,972			(69,042	)		2,152,487
Total	$	34,217,354		$	(3,746,851	)	$	(2,916,394	)	$	914,972		$	(69,042	)	$	2,152,487

The difference between the cost of portfolio investments on a tax basis and financial statement cost for the Funds is due primarily to the deferral of wash sale losses and to the differing treatment of certain investments under income tax regulations and GAAP.

The tax character of distributions paid for the year ended June 30, 2018 was as follows:

	James Balanced: Golden Rainbow Fund		James Small Cap Fund		James Mid Cap Fund		James Micro Cap Fund		James Aggressive Allocation Fund		James Long-Short Fund
Ordinary Income	$	33,606,863	$	1,959,939	$	523,039	$	97,622	$	75,908	$	64,997
Long-Term Capital Gains		190,064,621		11,632,222		3,055,887		2,102,728		–		–
Total	$	223,671,484	$	13,592,161	$	3,578,926	$	2,200,350	$	75,908	$	64,997

The tax character of distributions paid for the year ended June 30, 2017 was as follows:

	James Balanced: Golden Rainbow Fund		James Small Cap Fund		James Mid Cap Fund		James Micro Cap Fund		James Aggressive Allocation Fund		James Long-Short Fund
Ordinary Income	$	49,812,849	$	400,002	$	131,210	$	–	$	84,996	$	–
Long-Term Capital Gains		15,722,370		–		1,563,232		–		–		–
Total	$	65,535,219	$	400,002	$	1,694,442	$	–	$	84,996	$	–

Capital Losses

Under the tax code, Capital Losses are carried over to future tax years and will retain their character as either short-term or long-term capital losses. These losses do not include any late year capital losses (losses arising in the period from November 1st through June 30th) that the funds have elected to defer for the current fiscal year. The Funds’ ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

Capital losses carried forward to the next tax year were as follows:

			Short Term				Long Term
James Long-Short Fund			$	303,845			$	–

The Funds elect to defer to the year ending June 30, 2019 capital losses recognized during the period November 1, 2017 through December 30, 2018 in the amount of:

		Amount
James Aggressive Allocation Fund		$	67,259

Semi-Annual Report | December 31, 2018

Notes to Financial Statements

James Advantage Funds

December 31, 2018 (Unaudited)

3. INVESTMENT TRANSACTIONS

Purchases and sales (including maturities) of investments in other long-term U.S. Government obligations for the six months ended December 31, 2018 were as follows:

	Purchases		Sales
James Balanced: Golden Rainbow Fund	$	73,313,178	$	372,030,896
James Micro Cap Fund		1,995,642		–
James Aggressive Allocation Fund		731,944		866,775

Purchases and sales (including maturities) of investments in other long-term securities for the six months ended December 31, 2018 were as follows:

	Purchases		Sales
James Balanced: Golden Rainbow Fund	$	488,011,343	$	1,042,384,180
James Small Cap Fund		18,454,528		25,461,845
James Mid Cap Fund		11,992,553		11,869,741
James Micro Cap Fund		5,591,353		5,803,180
James Aggressive Allocation Fund		4,665,506		3,670,478
James Long-Short Fund		4,342,947		4,466,101

For the six months ended December 31, 2018, the cost of securities purchased to cover short sales and the proceeds from securities sold short were $1,735,645 and $590,638, respectively, for the James Long-Short Fund. As of December 31, 2018, the James Long-Short Fund held securities sold short with a value of $1,543,494. Unrealized appreciation from short sales as of December 31, 2018 were $158,189.

4. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Management Agreement

The Funds retain James to manage the Funds’ investments. The investment decisions for the Funds are made by a committee of James’ personnel, which is primarily responsible for the day-to-day management of each Fund’s portfolio. The Funds pay James on a monthly basis at the annual rate set forth below of the Funds’ average daily net assets.

James Balanced: Golden Rainbow Fund

Average Total Net Assets	Contractual Fee
Up to and including $500 million	0.74%
Over $500 million and including $1 billion	0.70%
Over $1 billion and including $2 billion	0.65%
Over $2 billion	0.60%

James Small Cap Fund

Average Total Net Assets	Contractual Fee
Up to and including $500 million	1.25%
Over $500 million and including $1 billion	1.20%
Over $1 billion and including $2 billion	1.15%
Over $2 billion	1.10%

James Mid Cap Fund

Average Total Net Assets	Contractual Fee
Up to and including $500 million	1.25%
Over $500 million and including $1 billion	1.20%
Over $1 billion and including $2 billion	1.15%
Over $2 billion	1.10%

James Micro Cap Fund

Average Total Net Assets	Contractual Fee
Up to and including $500 million	1.50%
Over $500 million	1.45%

James Aggressive Allocation Fund

Average Total Net Assets	Contractual Fee
Up to and including $500 million	0.98%
Over $500 million and including $1 billion	0.95%
Over $1 billion and including $2 billion	0.90%
Over $2 billion	0.85%

James Long-Short Fund

Average Total Net Assets	Contractual Fee
Up to and including $500 million	1.25%
Over $500 million and including $1 billion	1.20%
Over $1 billion and including $2 billion	1.15%
Over $2 billion	1.10%

Advisory fees for the James Small Cap Fund, James Mid Cap Fund, James Micro Cap Fund, James Aggressive Allocation Fund and James Long-Short Fund are reduced by the fees and expenses of the non-interested trustees incurred by the applicable Fund. Under the investment management agreement, James is responsible for the payment of all operating expenses of the James Small Cap Fund, James Mid Cap Fund, James Micro Cap Fund, James Aggressive Allocation Fund and James Long-Short Fund, except for brokerage fees and commissions, taxes, interest (including dividend expense on securities sold short), fees and expenses of non-interested person trustees, 12b-1 expenses and extraordinary expenses.

60	www.jamesfunds.com

James Advantage Funds

Notes to Financial Statements

December 31, 2018 (Unaudited)

Administrative Services Agreement

ALPS Fund Services, Inc. (“ALPS” or the “Administrator”) serves as administrator to the Funds. ALPS receives a monthly fee paid by James Balanced: Golden Rainbow Fund, for itself, and paid by James for the remaining Funds, subject to a minimum monthly fee. Pursuant to an administrative agreement, ALPS will provide operational services to the Funds including, but not limited to fund accounting and fund administration and generally assist in each Fund’s operations. Administration fees paid by the Funds for the six months ended December 31, 2018 are disclosed in the Statements of Operations.

Transfer Agency and Services Agreement

ALPS, pursuant to a Transfer Agency and Services Agreement with the Trust, serves as transfer agent for the Funds. Under the Transfer Agency and Services Agreement, ALPS receives an annual minimum fee, a fee based upon the number of shareholder accounts and is also reimbursed for out-of-pocket expenses. These fees and reimbursements for out-of-pocket expenses are paid by James Balanced: Golden Rainbow Fund, for itself, and by James for the remaining Funds. Transfer agent fees paid by the Funds for the six months ended December 31, 2018 are disclosed in the Statements of Operations.

Plans of Distribution

The James Balanced: Golden Rainbow Fund (Retail Class), James Small Cap Fund, James Mid Cap Fund and James Long-Short Fund have adopted a plan pursuant to Rule 12b-1 under the 1940 Act (collectively, the “Plans”) under which each Fund may incur expenses related to distribution of its shares and for services provided to shareholders. These expenses are reflected as 12b-1 distribution and service fees on the Statements of Operations. Payments under a Plan are made to James, which uses them to pay distribution and shareholder service expenses on behalf of and as agent of the Fund. The amount payable by each Fund (the Retail Class of the James Balanced: Golden Rainbow Fund), with a Plan, under its Plan is 0.25% of its average daily net assets for the year. The Plans are compensation plans, which means that payments are made to James regardless of 12b-1 expenses actually incurred. Therefore, payments under a Plan may exceed distribution and shareholder service expenses incurred pursuant to the Plan, and James is permitted to retain the excess. It is also possible that 12b-1 expenses paid by James for a period will exceed the payments received by James, in which case James may pay such excess expenses out of its own resources. Payments received by James under the Plans are in addition to the fees paid to James pursuant to the Management Agreements. The Plans require that James act in the Funds’ best interests in expending the payments it receives from the Funds and use payments solely for the purpose of paying distribution and shareholder services expenses on behalf of the Funds. The Funds’ distributor, ALPS Distributors, Inc., validates all payment amounts to be made to brokers that have properly executed dealer agreements with the Funds before James will make such payments.

Trustee Fees

Each Trustee who is not an officer or employee of the Adviser, or any of their affiliates (“Independent Trustees”) receives (1) a quarterly retainer of $7,900, (2) a per meeting fee regularly scheduled meetings of $2,100, (3) an audit committee fee of $1,000 paid to the audit committee chair and $500 to the other Independent Trustees, (4) $210 for any special meeting held outside of a regularly scheduled board meeting, and (5) reimbursement for all reasonable out-of-pocket expenses relating to attendance at meetings. Such fees are presented on the Statements of Operations as Trustee Fees.

5. COMMITMENTS AND CONTINGENCIES

The Funds indemnify the Trust’s officers and trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

6. LINE OF CREDIT

Each Fund has a revolving line of credit agreement with U.S. Bank, N.A. (the “Bank”). Borrowings under these arrangements are secured by investments held in the Funds’ portfolios as notated on the Schedules of Investments and bear interest at the Bank’s prime rate. During the six months ended December 31, 2018, the Funds did not utilize their line of credit. Each Fund’s line of credit agreement expired on July 10, 2018 and was renewed for one year.

The terms of the agreements can be characterized as follows:

Fund	Maximum Balance Available		Interest Rate	Expiration Date
James Balanced: Golden Rainbow Fund	$	50,000,000	Prime Rate*	July 9, 2019
James Small Cap Fund	$	3,500,000	Prime Rate*	July 9, 2019
James Mid Cap Fund	$	750,000	Prime Rate*	July 9, 2019
James Micro Cap Fund	$	1,500,000	Prime Rate*	July 9, 2019
James Aggressive Allocation Fund	$	500,000	Prime Rate*	July 9, 2019
James Long-Short Fund	$	3,000,000	Prime Rate*	July 9, 2019

The rate at which the Bank announces as its prime lending rate.

Semi-Annual Report | December 31, 2018

Notes to Financial Statements

James Advantage Funds

December 31, 2018 (Unaudited)

7. NEW ACCOUNTING PRONOUNCEMENTS

In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update “Premium Amortization on Purchased Callable Debt Securities” which amends the amortization period for a callable debt security held at a premium from the maturity date to the earliest call date. The guidance is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods.

On October 4, 2018, the SEC amended Regulation S-X to require certain financial statement disclosure requirements to conform them to U.S. GAAP for investment companies. Effective November 4, 2018, the Funds adopted disclosure requirement changes for Regulation S-X and these changes are reflected throughout this report. The Funds’ adoption of those amendments, effective with the financial statements prepared as of December 31, 2018, had no effect on the Funds’ net assets or results of operations.

In August 2018, FASB issued Accounting Standards Update (“ASU”) 2018-13, which changes the fair value measurement disclosure requirements of FASB Accounting Standards Codification Topic 820, Fair Value Measurement. The update to Topic 820 includes new, eliminated, and modified disclosure requirements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods. Early adoption is permitted for any eliminated or modified disclosures. Management has chosen to early adopt the eliminated or modified disclosures for the period ended December 31, 2018.

62	www.jamesfunds.com

James Advantage Funds

Additional Information

December 31, 2018 (Unaudited)

PROXY VOTING GUIDELINES

James is responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that James uses in fulfilling this responsibility and information regarding how those proxies were voted during the most recent 12-month period ended June 30 are available without charge upon request by calling toll free 1-800-995-2637. These items are also available on the Securities and Exchange Commission’s (the “Commission”) website at http://www.sec.gov.

QUARTERLY PORTFOLIO DISCLOSURE

James files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q. The complete listing (i) is available on the Commission’s website; (ii) may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; and (iii) will be made available to shareholders upon request by calling 1-800-995-2637. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Semi-Annual Report | December 31, 2018

James Advantage Funds

December 31, 2018 (Unaudited)

Facts

What does James Advantage Funds do with your personal information?

Why?

Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some, but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depends on the product or service that you have with us. This information can include:

●

Social Security number and wire transfer instructions

●

account transactions and transaction history

●

investment experience and purchase history

When you are no longer our customer, we continue to share your information as described in this notice.

How?

All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons James Advantage Funds chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information:	Does James Advantage Funds share information?	Can you limit this sharing?
For our everyday business purposes - such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus.	YES	NO
For our marketing purposes - to offer our products and services to you.	YES	NO
For joint marketing with other financial companies.	NO	We don’t share
For our affiliates’ everyday business purposes - information about your transactions and records.	NO	We don’t share
For our affiliates’ everyday business purposes - information about your credit worthiness.	NO	We don’t share
For our affiliates to market to you	NO	We don’t share
For non-affiliates to market to you	NO	We don’t share

Questions? Call 1-800-99 James

What we do:

How does James Advantage Funds

protect my personal information?

To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.

Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.

How does James Advantage Funds

collect my personal information?

We collect your personal information, for example, when you

● open an account or deposit money

● direct us to buy securities or direct us to sell your securities

● seek advice about your investments

We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.

Why can’t I limit all sharing?

Federal law gives you the right to limit only:

● sharing for affiliates’ everyday business purposes - information about your creditworthiness.

● affiliates from using your information to market to you.

● sharing for nonaffiliates to market to you.

State laws and individual companies may give you additional rights to limit sharing.

Definitions
Affiliates	Companies related by common ownership or control. They can be financial and non-financial companies. ● Our affiliates include financial companies, such as James Investment Research, Inc. and James Capital Alliance.
Non-affiliates	Companies not related by common ownership or control. They can be financial and non-financial companies. ● James Advantage Funds does not share with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ● James Advantage Funds does not jointly market.

64	www.jamesfunds.com

(BACK COVER)

Item 2. Code of Ethics.

Not applicable to this Report.

Item 3. Audit Committee Financial Expert.

Not applicable to this Report.

Item 4. Principal Accountant Fees and Services.

Not applicable to this Report.

Item 5. Audit Committee of Listed Registrants.

Not applicable to the registrant.

Item 6. Investments.

(a)

The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

(b)

Not applicable to the registrant.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the registrant.

Item 10. Submission of Matters to a Vote of Security Holders.

The registrant has not adopted procedures by which shareholders may recommend nominees to the registrant’s board of trustees.

Item 11. Controls and Procedures.

(a)

Based on an evaluation of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended), the registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are effective as of a date within 90 days of the filing date of this report.

(b)

There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the second fiscal quarter of the period covered by this Report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

(a)(1)	Not applicable to this Report.

(a)(2)	Certifications required by Item 13(a)(2) of Form N-CSR are filed herewith as Exhibit 99.CERT.

(a)(3)	Not applicable.

(a)(4)

Not applicable.

(b)	Certifications required by Item 13(b) of Form N-CSR are filed herewith as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) The James Advantage Funds

By (Signature and Title)

/s/ Barry R. James

Barry R. James

President

Date: March 7, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)

/s/ Barry R. James

Barry R. James

President

Date: March 7, 2019

By (Signature and Title)

/s/ Amy K. Broerman

Amy K. Broerman

Chief Financial Officer

Date: March 7, 2019