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

Fund Facts

Ticker OSTGX
CUSIP 74316P744
Inception Date 10/1/2012
Load None
12b-1 Fees None
Redemption Fee None
Net Assets
(as of 6/30/19)
$109 million
One Year Turnover (as of 3/31/19) 215%
Net Expense Ratio
(as of 3/31/19)
1.13%
Gross Expense Ratio
(as of 3/31/19)
1.25%
Active Share (as of 3/31/19) Active Share is a measure of the percentage of holdings in a portfolio that differ from those of the benchmark. It is calculated by taking the sum of the absolute value of the differences of the weight of each holding in the portfolio versus the weight of each holding in the benchmark and dividing by two. Where the benchmark is the Russell 2000 Growth, the iShares Russell 2000 Growth ETF is used as a proxy. 94%
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Performance

Quarter-End Performance (as of 6/30/19)
(%)

  1 MONTH QTD YTD 1 YEAR 3 YEAR 5 YEAR 7 YEAR 10 YEAR Since Inception
(10/1/2012)
OSTGX 7.47% 9.78% 31.09% 10.67% 23.54% 14.21% - - 16.37%
Russell 2000 Growth Index 7.70 2.75 20.36 -0.49 14.69 8.63 - - 12.55
OSTGX Russell 2000 Growth Index
1 MONTH 7.47 7.70
QTD 9.78 2.75
YTD 31.09 20.36
1 YEAR 10.67 -0.49
3 YEAR 23.54 14.69
5 YEAR 14.21 8.63
7 YEAR - -
10 YEAR - -
Since Inception
(10/1/2012)
16.37 12.55

Gross/Net expense ratio as of 3/31/2019: 1.25% / 1.13%. The Adviser has lowered the expense cap to 1.10% and contractually agreed to waive certain fees through June 30, 2021. 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.

Monthly Performance

Philosophy

Our investment philosophy is based on two primary tenets:

- Rapid and sustainable revenue growth is the largest determinant of stock returns.

- A concentrated portfolio, with valuation sensitivity, is the best way to generate long-term outperformance.

Our objective is to invest in a high conviction portfolio of emerging, innovative companies with the potential for significant revenue growth before they are widely discovered. We believe the best way to identify such firms is to use bottom up, fundamental analysis to find companies that are well-positioned to capitalize on meaningful secular growth trends.

At the same time, valuation discipline is a critical component of our approach. We look for opportunities with at least 100% potential upside over our investment horizon. We find there are three situations that create particularly attractive entry points: misunderstanding by investors, temporary missteps by the company, and/or market corrections.

Investment Team

Account Access

Email Update

The Adviser has contractually agreed to waive certain fees through June 30, 2021.

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. 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.

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