Emerging Opportunity Fund (OSTGX)
Investment Objective
The Fund seeks long-term capital appreciation.
Fund Literature
Investment Strategy
The Fund invests primarily in the common stocks of companies that the Osterweis Capital Management investment team believes may experience rapid revenue and earnings growth. In selecting investments, the investment team seeks to identify high quality companies within emerging industries and market niches with significant revenue and earnings growth potential before they are widely discovered.
Highlights
- Bottom-up stock selection based on rigorous fundamental analysis
- Risk-aware strategy
- Experienced investment team
- Adviser is majority-owned by its employees
Minimum Investments
- $5,000 initial investment for regular accounts
- $1,500 initial investment for IRA or other tax-deferred accounts
- $100 for subsequent investments
Performance
Quarter-End Performance (as of 9/30/18) (%)
| 1 MONTH | QTD | YTD | 1 YEAR | 3 YEAR | 5 YEAR | 7 YEAR | 10 YEAR |
Since Inception (10/1/2012) |
|
|---|---|---|---|---|---|---|---|---|---|
| OSTGX | -3.02% | 11.68% | 34.45% | 40.62% | 20.35% | 15.06% | - | - | 18.77% |
| Russell 2000 Growth Index | -2.34 | 5.52 | 15.76 | 21.06 | 17.98 | 12.14 | - | - | 15.34 |
| OSTGX | Russell 2000 Growth Index | |
| 1 MONTH | -3.02 | -2.34 |
|---|---|---|
| QTD | 11.68 | 5.52 |
| YTD | 34.45 | 15.76 |
| 1 YEAR | 40.62 | 21.06 |
| 3 YEAR | 20.35 | 17.98 |
| 5 YEAR | 15.06 | 12.14 |
| 7 YEAR | - | - |
| 10 YEAR | - | - |
| Since Inception (10/1/2012) |
18.77 | 15.34 |
Gross/Net expense ratio as of 3/31/2018: 1.33% / 1.29%. The Adviser has contractually agreed to waive certain fees through June 30, 2019. The net expense ratio is applicable to investors.
Performance data quoted represent past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be higher or lower than the performance quoted. The Adviser has contractually agreed to waive certain fees through November 30, 2018. Performance prior to December 1, 2016 is that of another investment vehicle (the “Predecessor Fund”) before the commencement of the Fund’s operations. The Predecessor Fund was converted into the Fund on November 30, 2016. The Predecessor Fund’s performance shown includes the deduction of the Predecessor Fund’s actual operating expenses. In addition, the Predecessor Fund’s performance shown has been recalculated using the management fee that applies to the Fund, which has the effect of reducing the Predecessor Fund’s performance. The Predecessor Fund was not a registered mutual fund and so was not subject to the same operating expenses or investment and tax restrictions as the Fund. If it had been, the Predecessor Fund’s performance may have been lower.
Rates of return for periods greater than one year are annualized.
Philosophy
We believe that longer term investors who have the patience and the historical experience to buy and hold may take advantage of a unique opportunity that has been created by the proliferation of short-term trading, especially in small, growing companies, as it often takes a number of years for these investments to realize their potential due to the emerging nature of their industries or niches.
We seek to capitalize on this opportunity by identifying high quality companies within emerging industries and market niches with significant revenue and earnings growth potential before they are widely discovered. We also look for situations where investors are overly skeptical about the company’s future prospects. Our goal is to ultimately benefit from the compound revenue and earnings growth as well as margin expansion of these companies over time at prices below the long term market values of the stock.
Investment Team
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James L. Callinan
Vice President & Portfolio Manager
View BioJames L. Callinan
Vice President & Portfolio Manager
Jim Callinan graduated from Harvard College (B.A. Economics), New York University (M.S. Accounting) and Harvard Business School (M.B.A.). Mr. Callinan holds the Chartered Financial Analyst designation.
Prior to joining Osterweis Capital Management in 2016, Mr. Callinan was the CEO of Callinan Asset Management and Portfolio Manager of the Emerging Growth Partners, LP. Before that, he was Co-Founder & Chief Investment Officer at RS Investments and founded the RS Concentrated Small Cap Growth investment strategy. He also co-founded the RS Growth Group LLC at Robertson Stephens Investment Management in 1996 and managed the RS Emerging Growth Fund from 1996 until 2010.
He began his career at Putnam Investments as an equity research analyst in 1987 and served as portfolio manager for the Putnam OTC Emerging Growth Fund from 1994 to 1996.
Mr. Callinan is a member of the Bay Area Make-A-Wish Foundation Board of Trustees and the Jumpstart Northern California Advisory Board, the Weatherbie Capital Advisory Board, the President’s Committee on Communication for Harvard University and the Friends of Harvard Football Board.
Mr. Callinan is a principal of the firm and a Portfolio Manager for the emerging growth strategy.
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Matthew C. Unger
Analyst
View BioMatthew C. Unger
Analyst
Matt Unger graduated from Trinity University (B.S. Finance, cum laude) and Southern Methodist University, Cox School of Business (M.B.A.). Mr. Unger holds the Chartered Financial Analyst designation.
Prior to joining Osterweis Capital Management in 2016, Mr. Unger worked at Callinan Asset Management as a Research Analyst covering the health care service, medical technology and industrial sectors. Prior to that, he spent three years at RS Investments as a Research Associate covering small cap growth companies in the medical technology and industrial sectors. Before graduate school, Matt worked at Platte River Capital covering the medical device sector from 2008-2010.
Mr. Unger is an Analyst for the emerging growth strategy.
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Dave Sherry
Senior Analyst
View BioDave Sherry
Senior Analyst
Dave Sherry graduated from Princeton University (A.B. in Economics) and from the Anderson School at UCLA (M.B.A). Mr. Sherry holds the Chartered Financial Analyst designation.
Prior to joining Osterweis Capital Management in 2017, Mr. Sherry was a Managing Director at Inflection Partners LLC, where he founded a long/short strategy that focused on the technology sector. Before that, Mr. Sherry held portfolio manager positions at EGM Capital, Partech International and LGT Asset Management. He began his investment career at Franklin Templeton Investments.
Mr. Sherry is a Senior Analyst for the core equity and emerging growth strategies.
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Bryan Wong
Analyst
View BioBryan Wong
Analyst
Bryan Wong graduated from Yale University (B.A. in Political Science and International Studies with distinction) and the University of California Berkeley, Haas School of Business (M.B.A., Investment Management Fellow). Mr. Wong holds the Chartered Financial Analyst designation and is a member of the CFA Society of San Francisco.
Prior to joining Osterweis Capital Management in 2014, Mr. Wong was a member of the investment team managing the endowment of the David and Lucile Packard Foundation. Before that, Mr. Wong was an Analyst from 2005 to 2009 at two long/short hedge funds.
Mr. Wong is an Analyst for the emerging growth strategy.
The Adviser has contractually agreed to waive certain fees through November 30, 2018.
The Osterweis Funds are available by prospectus only. The Funds’ investment objectives, risks, charges and expenses must be considered carefully before investing. The summary and statutory prospectuses contain this and other important information about the Funds. You may obtain a summary or statutory prospectus by calling toll free at (866) 236-0050, or by visiting www.osterweis.com/statpro. Please read the prospectus carefully before investing to ensure the Fund is appropriate for your goals and risk tolerance.
Mutual fund investing involves risk. Principal loss is possible.
The Osterweis Emerging Opportunity Fund may invest in unseasoned companies, which involve additional risks such as abrupt or erratic price movements. The Fund may invest in small and mid-sized companies, which may involve greater volatility than large-sized companies. The Fund may invest in IPOs and unseasoned companies that are in the early stages of their development and may pose more risk compared to more established companies. The Fund may invest in ETFs, which involve risks that do not apply to conventional funds. Higher turnover rates may result in increased transaction costs, which could impact performance. From time to time, the Fund may have concentrated positions in one or more sectors subjecting the Fund to sector emphasis risk including the health care sector, which may be affected by government regulation, restrictions, pricing and other market developments and the technology sector, which tends to be more volatile than the overall market. The Fund may invest in foreign and emerging market securities, which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks may increase for emerging markets.
While the fund is no-load, management fees and other expenses still apply. Please refer to the prospectus for more information.
Osterweis Capital Management is the adviser to the Osterweis Funds, which are distributed by Quasar Distributors, LLC.
