Portfolio Manager Nael Fakhry makes his debut on “Market Call,” a segment of the Money Life podcast, where he discusses the team’s methodology behind the Growth & Income Fund and examples of what they consider quality growth stocks.
The Fund seeks long-term total returns and capital preservation.
The Growth & Income Fund invests in both equity and fixed income securities that the Osterweis Capital Management investment team believes can deliver attractive long-term returns and enhanced capital preservation. The Fund also focuses on generating consistent and growing income over time in addition to capital appreciation.
Security selection emphasizes investments that are poised to deliver growth and income over time. The allocation of assets between equity and fixed income securities is a function of the relative opportunity set based on earnings growth, dividend yields, valuations, and fixed income yields.
| Price | $16.16 | Change | $-0.10 |
|---|
| Ticker | OSTVX |
|---|---|
| CUSIP | 74316J771 |
| Inception Date | 8/31/2010 |
| Load | None |
| 12b-1 Fees | None |
| Redemption Fee | None |
|
Net Assets (as of 2/28/25) |
$183 million |
|
Fiscal Year Turnover (as of 3/31/24) |
32% |
|
Gross Expense Ratio (as of 3/31/24) |
0.92% |
We believe a portfolio of quality growth stocks combined with strategically selected bonds can deliver attractive levels of income and growth over time with less volatility.
For equities, we seek to purchase shares in quality growth companies when their growth opportunities are under-appreciated 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’s overall proficiency. Ultimately, we seek companies that can sustainably grow free cash flow per share while earning attractive and/or improving returns on capital.
On the fixed income side, we carefully select investments across high yield, convertibles, and investment grade. The investment team applies an equity-like security selection approach focused on attractively valued, misunderstood/out of favor bonds. We believe that by avoiding the “style box” trap and having the flexibility to invest in multiple classes of bonds, we can emphasize the most attractive sector at any given time. By strategically shifting out of overvalued assets, we strive to minimize potential risk and produce better returns over time.
John Osterweis founded Osterweis Capital Management to serve the portfolio needs of high-net-worth investors, foundations, and endowments. He is currently Chairman of the firm as well as a member of the firm’s Management Committee and a co-lead Portfolio Manager for the core equity, growth & income, and flexible balanced strategies.
After graduating from business school, John 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, John served as Director of Research for two firms and managed equity portfolios for over ten years. In late 1982, John decided to devote himself full time to his portfolio management activities, and in April of 1983 launched Osterweis Capital Management.
John graduated from Bowdoin College (B.A. in Philosophy, cum laude), and Stanford Graduate School of Business (M.B.A. with top honors in Finance).
Outside of his work, John is an active supporter of our community. He 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 also enjoys horseback riding and other outdoor activities.
Carl Kaufman serves in several key roles for the firm. He has managed the Osterweis Strategic Income Fund since its inception and serves as the Managing Director of Fixed Income, as well as a co-lead Portfolio Manager for the Osterweis Growth & Income Fund. Additionally, in his role as Co-President & Co-CEO he oversees key investment matters and is an integral part of the firm’s Management Committee.
He joined Osterweis Capital Management in 2002, after nearly 24 years at Robertson Stephens and Merrill Lynch.
Carl graduated from Harvard University and attended New York University Graduate School of Business Administration.
Outside his professional endeavors, he enjoys playing classical piano and actively contributes to the community as a member of the Board of Trustees for the San Francisco Conservatory of Music, supporting the arts and enhancing the cultural fabric of the SF Bay Area. Additionally, he enjoys playing golf, an activity that continually challenges his patience and precision.
Greg Hermanski, a partner at Osterweis, is a Co-Lead Portfolio Manager for the core equity, growth & income, quality cyclical growth, and flexible balanced strategies. He enjoys working with his team to protect and grow our clients’ wealth. Greg feels that humility and discipline are key to succeeding in this industry and loves the continuous chance to learn as part of his role.
Prior to joining Osterweis in 2002, Greg was a Vice President at Robertson Stephens and Co. where he was in charge of convertible bond research. Prior to that, Greg was a Research Analyst covering convertible, high yield, and distressed securities at Imperial Capital, LLC, and a Valuation Consultant for Price Waterhouse, LLC.
Greg graduated from the University of California, Los Angeles with a B.A. in Business/Economics. Outside of work, he enjoys traveling, mountain biking, running, reading, and learning about history.
Nael Fakhry, a partner at Osterweis, is a Co-Lead Portfolio Manager for the core equity, growth & income, quality cyclical growth, and flexible balanced strategies. He loves the process of researching companies and studying the history of various industries.
Prior to joining Osterweis Capital Management in 2011, Nael worked as an Associate at American Securities, a private equity firm, and as an Analyst in the investment banking division of Morgan Stanley.
Nael graduated from Stanford University with a B.A. in History, Phi Beta Kappa and the University of California Berkeley, Walter A. Haas School of Business with an M.B.A., where he was a C.J. White Scholar. Outside of his professional life, Nael enjoys coaching his kids’ soccer and basketball teams, reading, and running.
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 Growth & Income Fund may invest in small- and mid-capitalization companies, which tend to have limited liquidity and greater price volatility than large-capitalization companies. 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. From time to time, the Fund may have concentrated positions in one or more sectors subjecting the Fund to sector emphasis risk. Investments in preferred securities typically have an inverse relationship with changes in the prevailing interest rate. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
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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