Overview

Investment Objective

The Needham Aggressive Growth Fund seeks long-term, tax-efficient capital appreciation by investing primarily investing in the equity securities of public companies with above-average prospective long-term growth rates.

More specifically, the Fund’s investment style is to move early into emerging areas of rapid growth, to stay with the leaders in established growth markets and to exit or short areas and/or companies that the Fund believes can no longer sustain strong, above-average growth profitability.

Strategy
  • Invest in companies with:
    • Strong growth potential
    • Potential for higher operating margins
    • Long-term, sustainable growth
    • Disruptive products or services
  • Invest in companies addressing unmet needs
  • Invest in strong, incentivized management teams
  • Invest in companies that are underfollowed by Wall Street
  • Utilize shorting techniques to dampen volatility
  • Invests in venture-backed, post-IPO opportunities

Portfolio Managers

Fund Statistics

Class I Class R
Ticker Symbols NEAIX NEAGX
Inception Date December 30, 2016 September 4, 2001
Minimum Initial Investment $100,000 $2000/$1000 for IRA
Minimum Subsequent Investment None $100/No Min. for IRA
12b-1 Fees None 25 bps
Redemption Fee None None
Gross Expense Ratio 2.64% 2.65%
Net Expense Ratio* 2.22% 2.63%

*Reflects a contractual agreement by the Fund’s investment adviser to waive its fee and/or reimburse the Fund through May 1, 2018 to the extent the Gross Expense Ratio exceeds 1.95% and 1.40% of the average daily net assets of Retail Class Shares and Institutional Class Shares (Expense Cap). The Expense Cap excludes taxes, interest, brokerage, dividends on short positions, fees and expenses of “acquired funds,” extraordinary items and shareholder redemption fees but includes the management fee.

Proxy Voting Record

Independent Service Providers

Transfer Agent
U.S. Bancorp Fund Services, LLC
Custodian
U.S. Bancorp Fund Services, LLC
Auditor
KPMG, LLP
Legal Counsel
Proskauer, LLP

Performance

Daily Performance as of 11/13/2018

$ NAV $ Change Daily % YTD %
Needham Aggressive Growth Fund - Class I $18.17 $0.18 1.00% -9.95%
Needham Aggressive Growth Fund - Class R $17.94 $0.17 0.96% -10.41%

Quarterly Performance as of 09/30/2018

3rd Quarter YTD 1 Year 3 Years 5 Years 10 Years Since Inception
Needham Aggressive Growth Fund - Class I ** -2.71% 3.75% 0.80% 13.49% 8.32% 11.66% 9.90%
After Taxes on Distributions -2.71% 3.75% -0.35% 11.50% 7.02% 10.82% 9.10%
After Taxes on Distributions & Redemptions -1.60% 2.22% 1.27% 10.26% 6.36% 9.56% 8.29%
Needham Aggressive Growth Fund - Class R -2.85% 3.29% 0.22% 12.85% 7.72% 11.05% 9.29%
After Taxes on Distributions -2.85% 3.29% -0.93% 10.86% 6.42% 10.21% 8.50%
After Taxes on Distributions & Redemptions -1.69% 1.95% 0.93% 9.77% 5.88% 9.03% 7.75%
Russell 2000 Total Return Index † 3.58% 11.51% 15.24% 17.12% 11.07% 11.11% 9.30%
S&P 500 TR †† 7.71% 10.56% 17.91% 17.31% 13.95% 11.97% 7.83%

Historical Monthly Returns Since Inception

Select Year:
Class I Class R
Sep 01 - -
Oct 01 1.96% 1.91%
Nov 01 6.57% 6.52%
Dec 01 4.22% 4.17%
Class I Class R
Jan 02 -1.65% -1.69%
Feb 02 -2.40% -2.45%
Mar 02 4.88% 4.83%
Apr 02 -1.55% -1.59%
May 02 -2.11% -2.16%
Jun 02 -7.68% -7.73%
Jul 02 -5.74% -5.78%
Aug 02 -0.80% -0.85%
Sep 02 -5.19% -5.23%
Oct 02 3.88% 3.83%
Nov 02 9.18% 9.13%
Dec 02 -7.48% -7.53%
Class I Class R
Jan 03 -1.60% -1.65%
Feb 03 -2.64% -2.68%
Mar 03 1.77% 1.72%
Apr 03 5.36% 5.31%
May 03 7.34% 7.30%
Jun 03 1.55% 1.50%
Jul 03 5.07% 5.02%
Aug 03 3.05% 3.00%
Sep 03 -0.96% -1.00%
Oct 03 3.54% 3.50%
Nov 03 2.36% 2.31%
Dec 03 0.05% 0.00%
Class I Class R
Jan 04 3.70% 3.65%
Feb 04 0.55% 0.50%
Mar 04 -0.62% -0.67%
Apr 04 -2.64% -2.69%
May 04 0.05% 0.00%
Jun 04 2.03% 1.98%
Jul 04 -6.47% -6.51%
Aug 04 -0.04% -0.09%
Sep 04 1.22% 1.18%
Oct 04 2.29% 2.24%
Nov 04 4.78% 4.73%
Dec 04 7.49% 7.44%
Class I Class R
Jan 05 -4.39% -4.44%
Feb 05 0.21% 0.16%
Mar 05 -0.12% -0.16%
Apr 05 -4.27% -4.32%
May 05 4.98% 4.94%
Jun 05 3.05% 3.00%
Jul 05 5.56% 5.51%
Aug 05 -0.77% -0.82%
Sep 05 3.66% 3.61%
Oct 05 -3.51% -3.56%
Nov 05 4.96% 4.91%
Dec 05 1.23% 1.18%
Class I Class R
Jan 06 5.22% 5.17%
Feb 06 0.74% 0.69%
Mar 06 1.35% 1.31%
Apr 06 0.86% 0.81%
May 06 -4.74% -4.78%
Jun 06 -0.17% -0.21%
Jul 06 -4.35% -4.39%
Aug 06 2.57% 2.52%
Sep 06 2.00% 1.95%
Oct 06 4.16% 4.11%
Nov 06 4.10% 4.05%
Dec 06 0.91% 0.87%
Class I Class R
Jan 07 2.34% 2.29%
Feb 07 -0.38% -0.42%
Mar 07 3.56% 3.52%
Apr 07 2.29% 2.24%
May 07 3.37% 3.32%
Jun 07 1.14% 1.09%
Jul 07 -0.97% -1.02%
Aug 07 1.40% 1.35%
Sep 07 2.58% 2.54%
Oct 07 3.51% 3.46%
Nov 07 -2.90% -2.95%
Dec 07 -0.59% -0.63%
Class I Class R
Jan 08 -9.50% -9.55%
Feb 08 -3.01% -3.05%
Mar 08 -1.49% -1.53%
Apr 08 7.83% 7.78%
May 08 3.54% 3.50%
Jun 08 -10.09% -10.13%
Jul 08 3.31% 3.27%
Aug 08 4.48% 4.43%
Sep 08 -8.44% -8.48%
Oct 08 -13.12% -13.16%
Nov 08 -6.09% -6.13%
Dec 08 4.01% 3.96%
Class I Class R
Jan 09 -7.79% -7.83%
Feb 09 -4.66% -4.71%
Mar 09 6.67% 6.63%
Apr 09 13.95% 13.90%
May 09 2.63% 2.58%
Jun 09 2.66% 2.61%
Jul 09 4.57% 4.52%
Aug 09 1.31% 1.26%
Sep 09 6.64% 6.59%
Oct 09 -4.46% -4.51%
Nov 09 2.46% 2.41%
Dec 09 5.95% 5.90%
Class I Class R
Jan 10 -3.27% -3.31%
Feb 10 4.97% 4.93%
Mar 10 9.05% 9.00%
Apr 10 2.24% 2.19%
May 10 -5.39% -5.43%
Jun 10 -4.94% -4.99%
Jul 10 4.34% 4.30%
Aug 10 -3.69% -3.74%
Sep 10 18.75% 18.70%
Oct 10 3.92% 3.87%
Nov 10 3.14% 3.10%
Dec 10 7.65% 7.60%
Class I Class R
Jan 11 1.68% 1.63%
Feb 11 1.94% 1.89%
Mar 11 1.45% 1.41%
Apr 11 1.60% 1.56%
May 11 -2.03% -2.08%
Jun 11 -2.47% -2.51%
Jul 11 -9.70% -9.74%
Aug 11 -10.05% -10.10%
Sep 11 -9.91% -9.96%
Oct 11 18.09% 18.04%
Nov 11 -2.97% -3.01%
Dec 11 1.30% 1.26%
Class I Class R
Jan 12 10.72% 10.67%
Feb 12 4.78% 4.73%
Mar 12 1.53% 1.49%
Apr 12 -4.70% -4.74%
May 12 -8.87% -8.91%
Jun 12 6.46% 6.41%
Jul 12 -0.40% -0.44%
Aug 12 3.42% 3.38%
Sep 12 1.59% 1.54%
Oct 12 -4.87% -4.92%
Nov 12 2.86% 2.81%
Dec 12 3.34% 3.29%
Class I Class R
Jan 13 3.42% 3.37%
Feb 13 -1.59% -1.63%
Mar 13 1.53% 1.48%
Apr 13 2.84% 2.80%
May 13 9.57% 9.52%
Jun 13 0.04% 0.00%
Jul 13 6.52% 6.47%
Aug 13 -1.56% -1.60%
Sep 13 5.53% 5.48%
Oct 13 -0.80% -0.84%
Nov 13 4.11% 4.06%
Dec 13 2.91% 2.86%
Class I Class R
Jan 14 -0.84% -0.88%
Feb 14 1.47% 1.42%
Mar 14 -3.11% -3.16%
Apr 14 -3.04% -3.08%
May 14 1.59% 1.54%
Jun 14 6.82% 6.77%
Jul 14 -4.31% -4.36%
Aug 14 3.70% 3.65%
Sep 14 -3.83% -3.87%
Oct 14 6.75% 6.70%
Nov 14 0.90% 0.85%
Dec 14 2.22% 2.17%
Class I Class R
Jan 15 -2.42% -2.46%
Feb 15 7.36% 7.31%
Mar 15 -0.81% -0.85%
Apr 15 -2.33% -2.37%
May 15 2.60% 2.56%
Jun 15 -1.06% -1.10%
Jul 15 -2.72% -2.77%
Aug 15 -6.96% -7.01%
Sep 15 -4.48% -4.52%
Oct 15 4.02% 3.97%
Nov 15 1.81% 1.76%
Dec 15 -0.97% -1.01%
Class I Class R
Jan 16 -5.73% -5.78%
Feb 16 1.62% 1.57%
Mar 16 6.89% 6.84%
Apr 16 -2.06% -2.10%
May 16 0.35% 0.31%
Jun 16 1.06% 1.02%
Jul 16 3.98% 3.93%
Aug 16 1.84% 1.79%
Sep 16 3.38% 3.33%
Oct 16 -0.09% -0.14%
Nov 16 9.39% 9.35%
Dec 16 0.95% 0.91%
Class I Class R
Jan 17 -0.49% -0.58%
Feb 17 1.40% 1.35%
Mar 17 0.84% 0.85%
Apr 17 0.93% 0.84%
May 17 -0.17% -0.22%
Jun 17 -1.01% -1.05%
Jul 17 4.42% 4.39%
Aug 17 -1.14% -1.19%
Sep 17 7.45% 7.39%
Oct 17 0.84% 0.76%
Nov 17 0.25% 0.21%
Dec 17 -3.89% -3.92%
Class I Class R
Jan 18 0.56% 0.48%
Feb 18 -1.80% -1.81%
Mar 18 0.65% 0.62%
Apr 18 -2.25% -2.31%
May 18 8.96% 8.94%
Jun 18 0.73% 0.66%
Jul 18 -0.53% -0.57%
Aug 18 2.92% 2.87%
Sep 18 -4.97% -5.02%
Oct 18 -10.30% -10.32%

The Needham Aggressive Growth Fund inception date is 9/4/01. Performance data quoted represents past performance and does not guarantee future results. Figures include changes in principal value, reinvested dividends and capital gains distributions. Investment return and principal value will vary, and shares may be worth more or less at redemption than at original purchase. Current performance may be lower or higher than the performance data quoted. Please visit www.needhamfunds.com or call 1-800-625-7071 for the most current month-end performance data.

**Performance for any periods prior to the inception date of Institutional Class Shares are based on the historical performance of the Retail Class Shares adjusted to assume the expenses associated with Institutional Class Shares.

Growth of 10K as of 10/31/2018

NEAIX NEAGX Russell 2000 Total Return Index S&P 500 TR ††
09/04/2001 10000 10000 10000 10000
09/30/2001 9934 9930 8684 9198
10/31/2001 10129 10120 9192 9373
11/30/2001 10794 10780 9903 10092
12/31/2001 11250 11230 10515 10180
01/31/2002 11065 11040 10405 10032
02/28/2002 10799 10770 10120 9838
03/31/2002 11325 11290 10933 10208
04/30/2002 11150 11110 11033 9589
05/31/2002 10914 10870 10543 9519
06/30/2002 10075 10030 10020 8841
07/31/2002 9497 9450 8507 8152
08/31/2002 9421 9370 8485 8205
09/30/2002 8933 8880 7876 7313
10/31/2002 9279 9220 8128 7957
11/30/2002 10130 10062 8854 8425
12/31/2002 9372 9304 8361 7930
01/31/2003 9222 9151 8129 7723
02/28/2003 8978 8905 7884 7607
03/31/2003 9137 9059 7985 7681
04/30/2003 9627 9540 8742 8313
05/31/2003 10334 10236 9681 8751
06/30/2003 10494 10389 9856 8863
07/31/2003 11026 10911 10473 9019
08/31/2003 11362 11239 10953 9195
09/30/2003 11253 11126 10750 9098
10/31/2003 11652 11515 11653 9612
11/30/2003 11927 11781 12067 9697
12/31/2003 11932 11781 12312 10205
01/31/2004 12374 12211 12847 10393
02/29/2004 12441 12273 12962 10537
03/31/2004 12364 12191 13082 10378
04/30/2004 12037 11863 12415 10215
05/31/2004 12043 11863 12613 10355
06/30/2004 12287 12099 13144 10557
07/31/2004 11492 11310 12259 10207
08/31/2004 11487 11300 12196 10249
09/30/2004 11628 11433 12769 10360
10/31/2004 11893 11689 13020 10518
11/30/2004 12461 12242 14149 10943
12/31/2004 13395 13153 14568 11316
01/31/2005 12806 12569 13960 11040
02/28/2005 12833 12590 14197 11272
03/31/2005 12818 12569 13791 11073
04/30/2005 12270 12027 13001 10863
05/31/2005 12882 12621 13852 11208
06/30/2005 13274 12999 14386 11224
07/31/2005 14012 13716 15297 11642
08/31/2005 13904 13603 15014 11535
09/30/2005 14412 14095 15061 11629
10/31/2005 13906 13593 14593 11435
11/30/2005 14596 14261 15302 11868
12/31/2005 14775 14429 15232 11872
01/31/2006 15546 15175 16598 12186
02/28/2006 15660 15280 16552 12219
03/31/2006 15872 15480 17355 12371
04/30/2006 16009 15606 17352 12537
05/31/2006 15250 14860 16378 12176
06/30/2006 15225 14828 16483 12193
07/31/2006 14563 14177 15947 12268
08/31/2006 14936 14534 16419 12560
09/30/2006 15235 14818 16555 12884
10/31/2006 15869 15427 17509 13304
11/30/2006 16519 16052 17969 13557
12/31/2006 16670 16191 18029 13747
01/31/2007 17060 16563 18331 13955
02/28/2007 16996 16493 18186 13682
03/31/2007 17601 17073 18380 13835
04/30/2007 18004 17456 18710 14447
05/31/2007 18611 18036 19477 14952
06/30/2007 18823 18233 19192 14703
07/31/2007 18640 18047 17879 14247
08/31/2007 18900 18291 18284 14461
09/30/2007 19388 18755 18598 15002
10/31/2007 20069 19404 19132 15240
11/30/2007 19486 18833 17758 14603
12/31/2007 19372 18713 17747 14502
01/31/2008 17531 16927 16537 13632
02/29/2008 17004 16411 15924 13189
03/31/2008 16751 16159 15991 13132
04/30/2008 18062 17416 16660 13772
05/31/2008 18702 18025 17425 13950
06/30/2008 16815 16199 16084 12774
07/31/2008 17373 16728 16679 12667
08/31/2008 18151 17469 17282 12850
09/30/2008 16618 15987 15905 11705
10/31/2008 14438 13883 12596 9739
11/30/2008 13559 13032 11106 9040
12/31/2008 14102 13548 11751 9137
01/31/2009 13004 12487 10444 8366
02/28/2009 12397 11899 9175 7476
03/31/2009 13225 12688 9994 8130
04/30/2009 15069 14451 11539 8909
05/31/2009 15465 14824 11886 9407
06/30/2009 15876 15211 12061 9426
07/31/2009 16602 15899 13223 10138
08/31/2009 16819 16100 13602 10504
09/30/2009 17935 17160 14386 10896
10/31/2009 17135 16386 13410 10694
11/30/2009 17556 16781 13830 11336
12/31/2009 18600 17772 14944 11554
01/31/2010 17993 17183 14394 11139
02/28/2010 18888 18030 15042 11484
03/31/2010 20596 19652 16266 12177
04/30/2010 21057 20083 17187 12369
05/31/2010 19923 18992 15883 11381
06/30/2010 18938 18044 14652 10786
07/31/2010 19760 18820 15659 11541
08/31/2010 19031 18116 14500 11020
09/30/2010 22599 21504 16306 12004
10/31/2010 23485 22337 16974 12461
11/30/2010 24223 23028 17562 12462
12/31/2010 26075 24777 18957 13295
01/31/2011 26513 25182 18908 13610
02/28/2011 27027 25659 19945 14076
03/31/2011 27420 26020 20462 14082
04/30/2011 27859 26425 21002 14499
05/31/2011 27292 25876 20608 14335
06/30/2011 26618 25225 20133 14096
07/31/2011 24037 22768 19405 13809
08/31/2011 21620 20469 17717 13059
09/30/2011 19477 18431 15731 12141
10/31/2011 23000 21756 18112 13468
11/30/2011 22318 21101 18046 13438
12/31/2011 22608 21366 18165 13576
01/31/2012 25033 23647 19449 14184
02/29/2012 26229 24765 19914 14797
03/31/2012 26631 25133 20424 15284
04/30/2012 25379 23941 20109 15189
05/31/2012 23129 21807 18778 14276
06/30/2012 24622 23205 19715 14864
07/31/2012 24524 23102 19442 15070
08/31/2012 25363 23882 20091 15410
09/30/2012 25766 24250 20751 15808
10/31/2012 24511 23058 20300 15516
11/30/2012 25211 23706 20408 15606
12/31/2012 26053 24487 21135 15748
01/31/2013 26942 25311 22458 16564
02/28/2013 26515 24899 22706 16789
03/31/2013 26919 25267 23754 17418
04/30/2013 27684 25974 23667 17754
05/31/2013 30335 28447 24613 18169
06/30/2013 30348 28447 24487 17925
07/31/2013 32327 30288 26201 18838
08/31/2013 31823 29802 25369 18292
09/30/2013 33584 31437 26987 18866
10/31/2013 33316 31171 27666 19733
11/30/2013 34685 32438 28774 20334
12/31/2013 35693 33365 29340 20849
01/31/2014 35395 33071 28528 20128
02/28/2014 35914 33542 29872 21049
03/31/2014 34796 32482 29669 21226
04/30/2014 33738 31481 28518 21383
05/31/2014 34275 31967 28747 21885
06/30/2014 36612 34131 30276 22337
07/31/2014 35033 32644 28444 22029
08/31/2014 36330 33837 29854 22910
09/30/2014 34939 32526 28048 22589
10/31/2014 37296 34705 29897 23140
11/30/2014 37631 35001 29924 23763
12/31/2014 38465 35760 30776 23703
01/31/2015 37535 34879 29787 22991
02/28/2015 40296 37429 31555 24313
03/31/2015 39972 37111 32105 23928
04/30/2015 39042 36230 31286 24158
05/31/2015 40058 37156 32000 24468
06/30/2015 39634 36746 32240 23995
07/31/2015 38556 35729 31865 24497
08/31/2015 35870 33225 29863 23019
09/30/2015 34264 31722 28397 22450
10/31/2015 35641 32982 29997 24343
11/30/2015 36286 33564 30973 24416
12/31/2015 35936 33224 29418 24031
01/31/2016 33875 31305 26831 22838
02/29/2016 34423 31798 26830 22807
03/31/2016 36793 33972 28971 24355
04/30/2016 36037 33258 29426 24449
05/31/2016 36164 33360 30089 24888
06/30/2016 36548 33700 30070 24953
07/31/2016 38003 35025 31865 25873
08/31/2016 38703 35653 32429 25909
09/30/2016 40011 36842 32790 25914
10/31/2016 39974 36791 31231 25441
11/30/2016 43729 40231 34714 26383
12/31/2016 44145 40595 35686 26905
01/31/2017 43927 40358 35827 27415
02/28/2017 44541 40904 36519 28504
03/31/2017 44918 41250 36566 28537
04/30/2017 45334 41596 36967 28830
05/31/2017 45254 41505 36215 29236
06/30/2017 44799 41068 37467 29418
07/31/2017 46779 42871 37746 30023
08/31/2017 46245 42361 37265 30115
09/30/2017 49691 45494 39591 30736
10/31/2017 50107 45840 39928 31454
11/30/2017 50234 45937 41079 32418
12/31/2017 48279 44139 40913 32779
01/31/2018 48549 44349 41983 34655
02/28/2018 47675 43545 40357 33378
03/31/2018 47987 43813 40879 32530
04/30/2018 46906 42799 41232 32655
05/31/2018 51107 46626 43735 33441
06/30/2018 51482 46932 44049 33647
07/31/2018 51211 46664 44816 34899
08/31/2018 52709 48003 46748 36036
09/30/2018 50088 45593 45624 36241
10/31/2018 44930 40886 40668 33764
NEAIX $44,930
NEAGX $40,886
Russell 2000 Total Return Index $40,668
S&P 500 TR †† $33,764

The chart illustrates the performance of a hypothetical $10,000 investment made in the Fund since the fund’s inception. Assumes reinvestment of dividends and capital gains, but does not reflect the effect of redemption fees. This chart does not imply any future performance.

† The Russell 2000 is a broad unmanaged index comprised of the smallest 2,000 companies in the Russell 3000 Index.

†† The S&P 500 and the S&P 400 indices are broad unmanaged measures of the U.S. stock market.

Distributions as of 11/9/2018

Class I & Class R shares
Record Date 11/8/18
Ex Date 11/9/18
Pay Date 11/9/18
Long-Term Capital Gains ($/Share) $2.79289 per share
Short-Term Capital Gains ($/Share) $0.00 per share
Ordinary Income ($/Share) $0.00 per share

Portfolio

Portfolio Characteristics as of 6/30/18

Inception Date
September 4, 2001
Net Assets
$59MM
Number of Holdings
60
12-month Trailing Turnover
7%
Morningstar Category
Small Growth
Lipper Classification
Small-Cap Growth

Top Ten Holdings as of 9/30/18

% Of Net Assets
KVH Industries, Inc. 8.71%
Apple, Inc. 8.43%
Entegris, Inc. 8.18%
GSE Systems, Inc. 7.26%
PDF Solutions, Inc. 5.97%
% Of Net Assets
Vicor Corp. 4.65%
FormFactor, Inc. 4.21%
Akamai Technologies, Inc. 3.69%
MKS Instruments, Inc. 3.32%
Super Micro Computer, Inc. 3.28%
Total 57.70%

Market Capitalization Exposure as of 9/30/18

> $8 billion 21.30
$2 – 8 billion 17.40
$250 million – $2 billion 41.05
< $250 million 20.26

Sector Weightings as of 9/30/18 *

Industry Long Short Total 1 2
Automobiles 0.0 (0.3) (0.3)
Biotechnology 0.1 0.0 0.1
Building Products 0.3 0.0 0.3
Commercial Services & Supplies 0.8 0.0 0.8
Communications Equipment 10.8 (4.2) 6.6
Consumer Finance 0.0 (3.3) (3.3)
Diversified Manufacturing 2.6 0.0 2.6
Electrical Equipment/Electronic Equipment, Instruments & Components 9.2 0.0 9.2
Energy Equipment & Services 1.1 0.0 1.1
Entertainment 0.8 0.0 0.8
Health Care Equipment & Supplies 3.8 0.0 3.8
Health Care Technology 1.4 0.0 1.4
Household Durables/Household Products 3.5 0.0 3.5
Insurance 0.4 (0.4) 0.0
IT Services 4.0 0.0 4.0
Media 0.4 0.0 0.4
Professional Services 3.0 0.0 3.0
Real Estate Investment Trusts (REITs) 1.7 0.0 1.7
Real Estate Management & Development 0.1 0.0 0.1
Semiconductors & Semiconductor Equipment 29.0 0.0 29.0
Software 17.1 0.0 17.1
Specialty Retail 3.0 0.0 3.0
Technology Hardware, Storage & Peripherals 13.8 0.0 13.8
Trading Companies & Distributors 0.1 0.0 0.1
Money Market Fund 1.2 0.0 1.2
TOTAL 108.2 (8.2) 100.0

*Current portfolio holdings may not be indicative of future portfolio holdings.

1 Percentage of total investments includes all stocks, plus cash minus all short positions.

2 Total represents the difference between the long exposure and the short exposure, which produces the net exposure.

Risk/Reward Metrics as of 9/30/18*

Fund Russell 2000
Average Annual Return 9.29 9.30
Active Share 114.4 0.00
Alpha 1.20 0.00
Beta 0.79 1.00
Maximum Drawdown -38.68 -52.89
Downside Capture Ratio 82.86 100.00
Standard Deviation 16.39 16.36
R-Squared 79.13 100.00
Sharpe Ratio 0.49 0.49

*Risk/Reward metrics based on the Fund’s institutional share class. Metrics are since inception of the Fund, 9/4/01 to 9/30/18.

Active Share is as of 9/30/18. Active Share: Represents the proportion of portfolio holdings that differ from those in the benchmark index.

Alpha: A statistic that measures the difference between the Fund’s actual returns and its benchmark, given its level of risk as measured by beta. The difference is expressed as an annual percentage.

Beta: A statistic that measures the volatility of the fund, as compared to that of the overall market.

Maximum Drawdown: Measures the largest single drop from peak to trough in the value of a portfolio (before a new peak is achieved).

Downside Capture Ratio: Measures a fund’s performance versus a benchmark during periods where the benchmark had a negative return.

Standard Deviation: A statistical measure of portfolio risk used to measure variability of total return around an average, over a specified period of time. The greater the standard deviation over the period, the wider the variability or range of returns and hence, the greater the fund’s volatility.

R-Squared: Measures the percentage of a fund’s returns that can be explained by the returns of the benchmark. Sharpe Ratio: The

Sharpe ratio is calculated by subtracting the risk-free rate, such as that of the 10-year U.S. Treasury bond from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns.