Investment Objective

The Fund seeks long-term total returns.

Investment Strategy

The Osterweis Fund invests primarily in common stocks of Quality Growth companies that the Osterweis Capital Management investment team believes offer superior investment value and opportunity for growth. The team focuses on a select group of companies that it believes have durable competitive advantages, attractive growth prospects, and strong management teams. The Fund seeks to invest in these businesses when they are undervalued or underappreciated by the market.

Highlights

  • Opportunistic, high conviction strategy
  • Bottom-up, fundamental investment process based on discipline and repeatability
  • Experienced portfolio management team that invests alongside shareholders
  • 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

NAV as of 6/24/24

Price $20.88 Change $-0.10

Fund Facts

Ticker OSTFX
CUSIP 742935406
Inception Date 10/1/1993
Load None
12b-1 Fees None
Redemption Fee None
Net Assets
(as of 5/31/24)
$153 million
Fiscal Year Turnover
(as of 3/31/24)
22%
Net Expense Ratio
(as of 3/31/23)
0.97%
Gross Expense Ratio
(as of 3/31/23)
0.97%
Active Share (as of 9/30/23) 82%

Philosophy

We believe a carefully selected portfolio of competitively advantaged businesses purchased at attractive valuations is key to generating attractive long-term investment returns.

We seek to purchase shares in Quality Growth companies when their growth opportunities are underappreciated and not properly discounted in their current market value. We identify Quality Growth companies based on the durability of their competitive advantages, the opportunity for reinvestment to drive future growth, and management proficiency. We believe that business quality, valuation, and capital structure are key variables in supporting a “margin of safety” for an investment idea. In this vein, an ideal potential investment is a Quality Growth company that can be bought at an attractive valuation. If our investment thesis proves out, we have purchased superior growth at a reasonable price. If our thesis is wrong, we still own a quality business and the downside to our investment should be somewhat limited.

Our research process places a strong emphasis on identifying the source of a company’s competitive advantage and underwriting the durability of that competitive advantage. As a result, we focus our research on industry structure to ensure a deep understanding of competitive threats within an industry and growth prospects for each sector. Ultimately, we seek companies that can sustainably grow free cash flow per share while earning attractive and/or improving returns on capital. Governance, management incentives, and corporate culture are also critical focus areas for our research.

Investment Team

John Osterweis

Founder, Chairman & Co-Chief Investment Officer – Core Equity

John Osterweis

John Osterweis

Founder, Chairman & Co-Chief Investment Officer – Core Equity

After graduating from business school, John Osterweis served as a Senior Analyst concentrating on the forest products and paper industry for several regional brokerage firms and later for E.F. Hutton & Company, Inc. In addition to his activities as an analyst, Mr. Osterweis served as Director of Research for two firms and managed equity portfolios for over ten years.

In late 1982, Mr. Osterweis decided to devote himself full time to his portfolio management activities, and in April of 1983 launched Osterweis Capital Management. Mr. Osterweis has served as Director of the Lucas Museum of Narrative Art, Director on the Stanford Alumni Association Executive Board, Trustee of Bowdoin College, Director and Vice Chairman of Mt. Zion Hospital and Medical Center, and President of the Board of Directors for Summer Search Foundation. He currently serves as a Trustee of the San Francisco Ballet Association, Director of the San Francisco Free Clinic, and President Emeritus of the San Francisco Ballet Endowment Foundation, as well as Trustee Emeritus of Summer Search Foundation and of Bowdoin College.

He is a member of the firm’s Management Committee, a principal of the firm, and a co-lead Portfolio Manager for the core equity, growth & income, and flexible balanced strategies.

Mr. Osterweis graduated from Bowdoin College (B.A. in Philosophy, cum laude), and Stanford Graduate School of Business (M.B.A. with top honors in Finance).

Gregory Hermanski

Co-Chief Investment Officer – Core Equity

Gregory Hermanski

Co-Chief Investment Officer – Core Equity

Prior to joining Osterweis Capital Management in 2002, Greg Hermanski was a Vice President at Robertson Stephens and Co. where he was in charge of convertible bond research. Prior to that, Mr. Hermanski was a Research Analyst covering convertible, high yield, and distressed securities at Imperial Capital, LLC, and a Valuation Consultant for Price Waterhouse, LLC.

He is a principal of the firm and Co-Lead Portfolio Manager for the core equity, growth & income, quality cyclical growth, and flexible balanced strategies.

Mr. Hermanski graduated from the University of California, Los Angeles (B.A. in Business/Economics).

Nael Fakhry

Co-Chief Investment Officer – Core Equity

Nael Fakhry

Co-Chief Investment Officer – Core Equity

Prior to joining Osterweis Capital Management in 2011, Nael Fakhry worked as an Associate at American Securities, a private equity firm, and as an Analyst in the investment banking division of Morgan Stanley.

He is a principal of the firm and Co-Lead Portfolio Manager for the core equity, growth & income, quality cyclical growth, and flexible balanced strategies.

Mr. Fakhry graduated from Stanford University (B.A. in History, Phi Beta Kappa) and the University of California Berkeley, Walter A. Haas School of Business (M.B.A., C.J. White Scholar).

Jasmine Shen, CFA

Senior Research Analyst – Core Equity

Jasmine Shen, CFA

Senior Research Analyst – Core Equity

Prior to joining Osterweis Capital Management in 2024, Jasmine Shen was an Investment Analyst on the event-driven team at Farallon Capital. Prior to that, Jasmine was an Investment Research Associate on the quality value equity team at Wellington Management.

She is a Senior Research Analyst for the core equity strategy.

Ms. Shen graduated summa cum laude from Northwestern University (B.A. in Mathematical Methods in the Social Sciences and Economics, with a third major in Statistics, Phi Beta Kappa and with interdisciplinary honors). She holds the CFA designation and is a member of the CFA Society of San Francisco.

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 Fund may invest in medium and smaller sized companies, which involve additional risks such as limited liquidity and greater volatility. 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. The Fund may invest in Master Limited Partnerships, which involve risk related to energy prices, demand and changes in tax code. The Fund may invest in debt securities that are un-rated or rated below investment grade. Lower-rated securities may present an increased possibility of default, price volatility or illiquidity compared to higher-rated securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.

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.