Overview

Investment Objective

The Needham Small Cap Growth Fund seeks long-term capital appreciation by primarily investing in the equity securities of smaller growth companies that the Fund believes are trading at a discount to their underlying value, yet have the potential for superior long-term growth.

The central premise of the Fund’s investment style is growth—more specifically, growth stocks trading at a discount to their underlying value, where a catalyst is in place to eliminate the discount through acceleration of revenues and earnings over a period of twelve months or more.

Strategy
  • Invest in small-cap growth equities (market cap of <$5B)
  • Invest in companies that are emerging as market leaders
  • Invest in strong, incentivized management teams
  • Invest in companies with:
    • Disruptive products and services
    • Coherent, well-thought-out strategy
    • Strong growth potential
  • Sound valuation discipline
  • Invest in venture-backed post IPO opportunities
  • Invest for long-term capital appreciation
  • Utilize shorting techniques to dampen volatility

Portfolio Managers

Fund Statistics

Class I Class R
Ticker Symbols NESIX NESGX
Inception Date December 30, 2016 May 22, 2002
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 1.61% 1.92%
Net Expense Ratio* 1.22% 1.83%

*Reflects a contractual agreement by the Fund’s investment adviser to waive its fee and/or reimburse the Fund through April 29, 2025 to the extent the Gross Expense Ratio exceeds 1.85% and 1.18% 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
RSM US LLP
Legal Counsel
Proskauer, LLP

Performance

Daily Performance as of 11/08/2024

$ NAV $ Change Daily % YTD %
Needham Small Cap Growth Fund - Class I $20.38 -$0.19 -0.92% 17.33%
Needham Small Cap Growth Fund - Class R $19.11 -$0.19 -0.98% 16.67%

Quarterly Performance as of 10/31/2024

3rd Quarter YTD 1 Year 3 Years 5 Years 10 Years Since Inception
Needham Small Cap Growth Fund - Class I ** -7.11% 7.48% 42.96% -8.40% 10.80% 12.26% 11.54%
After Taxes on Distributions 3.53% 13.13% 29.79% -9.29% 9.92% 9.93% 9.82%
After Taxes on Distributions & Redemptions 2.09% 7.77% 17.63% -5.69% 9.54% 9.51% 9.49%
Needham Small Cap Growth Fund - Class R -7.20% 6.96% 42.09% -8.85% 10.17% 11.64% 10.94%
After Taxes on Distributions 3.36% 12.58% 29.04% -9.86% 9.16% 9.25% 9.19%
After Taxes on Distributions & Redemptions 1.99% 7.45% 17.19% -6.04% 8.99% 8.97% 8.93%
Russell 3000 Total Return † 3.52% 19.75% 37.86% 7.64% 14.60% 12.44% 9.78%
Russell 2000 Growth Total Return †† -1.12% 11.72% 36.49% -2.30% 7.92% 8.15% 8.45%

Historical Monthly Returns Since Inception

Select Year:
Class I Class R
May 02 -0.49% -0.50%
Jun 02 -6.79% -6.83%
Jul 02 -6.43% -6.47%
Aug 02 -3.76% -3.81%
Sep 02 -9.07% -9.11%
Oct 02 14.56% 14.51%
Nov 02 29.08% 29.03%
Dec 02 -7.28% -7.32%
Class I Class R
Jan 03 0.63% 0.58%
Feb 03 -5.42% -5.46%
Mar 03 -2.18% -2.23%
Apr 03 10.72% 10.67%
May 03 17.47% 17.42%
Jun 03 3.71% 3.67%
Jul 03 8.13% 8.08%
Aug 03 4.17% 4.13%
Sep 03 3.12% 3.08%
Oct 03 7.01% 6.96%
Nov 03 4.32% 4.28%
Dec 03 0.16% 0.12%
Class I Class R
Jan 04 5.33% 5.28%
Feb 04 -0.63% -0.68%
Mar 04 -2.17% -2.21%
Apr 04 -3.61% -3.66%
May 04 4.63% 4.58%
Jun 04 3.91% 3.86%
Jul 04 -10.39% -10.43%
Aug 04 -2.87% -2.91%
Sep 04 3.43% 3.38%
Oct 04 2.39% 2.35%
Nov 04 5.35% 5.30%
Dec 04 6.48% 6.43%
Class I Class R
Jan 05 -6.27% -6.31%
Feb 05 2.69% 2.65%
Mar 05 -2.76% -2.81%
Apr 05 -5.90% -5.95%
May 05 9.69% 9.64%
Jun 05 0.94% 0.90%
Jul 05 6.04% 5.99%
Aug 05 -3.36% -3.40%
Sep 05 1.72% 1.68%
Oct 05 -1.66% -1.71%
Nov 05 2.85% 2.80%
Dec 05 -0.25% -0.29%
Class I Class R
Jan 06 5.84% 5.79%
Feb 06 1.98% 1.94%
Mar 06 2.92% 2.88%
Apr 06 -0.64% -0.69%
May 06 -4.20% -4.25%
Jun 06 -2.01% -2.05%
Jul 06 -1.60% -1.64%
Aug 06 2.58% 2.53%
Sep 06 1.17% 1.12%
Oct 06 2.38% 2.33%
Nov 06 -0.45% -0.49%
Dec 06 1.18% 1.13%
Class I Class R
Jan 07 1.37% 1.33%
Feb 07 2.32% 2.27%
Mar 07 -1.57% -1.62%
Apr 07 0.94% 0.89%
May 07 2.35% 2.31%
Jun 07 0.24% 0.20%
Jul 07 -4.85% -4.90%
Aug 07 0.32% 0.28%
Sep 07 1.09% 1.04%
Oct 07 1.08% 1.03%
Nov 07 -3.32% -3.36%
Dec 07 -1.18% -1.22%
Class I Class R
Jan 08 -4.30% -4.34%
Feb 08 0.14% 0.09%
Mar 08 -1.62% -1.67%
Apr 08 3.43% 3.39%
May 08 5.60% 5.55%
Jun 08 -5.82% -5.86%
Jul 08 0.32% 0.27%
Aug 08 4.16% 4.11%
Sep 08 -8.12% -8.16%
Oct 08 -17.53% -17.57%
Nov 08 -2.41% -2.45%
Dec 08 2.74% 2.70%
Class I Class R
Jan 09 -6.26% -6.31%
Feb 09 -3.61% -3.65%
Mar 09 7.47% 7.42%
Apr 09 9.26% 9.21%
May 09 6.50% 6.45%
Jun 09 4.13% 4.08%
Jul 09 3.29% 3.25%
Aug 09 0.37% 0.33%
Sep 09 8.80% 8.76%
Oct 09 -6.42% -6.46%
Nov 09 2.73% 2.68%
Dec 09 11.24% 11.19%
Class I Class R
Jan 10 -4.05% -4.10%
Feb 10 5.97% 5.93%
Mar 10 8.67% 8.62%
Apr 10 3.42% 3.38%
May 10 -5.43% -5.47%
Jun 10 -4.28% -4.32%
Jul 10 3.75% 3.70%
Aug 10 -3.53% -3.57%
Sep 10 15.59% 15.54%
Oct 10 3.96% 3.91%
Nov 10 2.71% 2.66%
Dec 10 7.70% 7.65%
Class I Class R
Jan 11 0.82% 0.77%
Feb 11 2.00% 1.96%
Mar 11 1.96% 1.92%
Apr 11 3.00% 2.96%
May 11 -3.42% -3.46%
Jun 11 -3.61% -3.65%
Jul 11 -6.90% -6.95%
Aug 11 -10.82% -10.86%
Sep 11 -7.99% -8.04%
Oct 11 12.93% 12.88%
Nov 11 -2.35% -2.40%
Dec 11 -0.40% -0.44%
Class I Class R
Jan 12 12.48% 12.43%
Feb 12 4.07% 4.03%
Mar 12 1.18% 1.14%
Apr 12 -5.59% -5.63%
May 12 -5.76% -5.81%
Jun 12 5.79% 5.74%
Jul 12 -2.19% -2.24%
Aug 12 0.78% 0.74%
Sep 12 1.75% 1.70%
Oct 12 -8.57% -8.61%
Nov 12 3.97% 3.93%
Dec 12 2.65% 2.60%
Class I Class R
Jan 13 3.07% 3.03%
Feb 13 0.04% 0.00%
Mar 13 0.05% 0.00%
Apr 13 -0.67% -0.71%
May 13 5.33% 5.28%
Jun 13 2.93% 2.89%
Jul 13 6.03% 5.98%
Aug 13 -0.72% -0.77%
Sep 13 4.89% 4.85%
Oct 13 1.05% 1.00%
Nov 13 1.04% 0.99%
Dec 13 2.67% 2.63%
Class I Class R
Jan 14 -1.75% -1.79%
Feb 14 2.84% 2.80%
Mar 14 -2.68% -2.72%
Apr 14 -3.47% -3.52%
May 14 -0.36% -0.41%
Jun 14 4.38% 4.34%
Jul 14 -3.79% -3.83%
Aug 14 3.36% 3.31%
Sep 14 -3.03% -3.07%
Oct 14 3.76% 3.71%
Nov 14 -1.18% -1.23%
Dec 14 3.82% 3.78%
Class I Class R
Jan 15 -3.24% -3.28%
Feb 15 10.15% 10.11%
Mar 15 0.18% 0.13%
Apr 15 -3.30% -3.35%
May 15 1.29% 1.25%
Jun 15 -0.98% -1.03%
Jul 15 -6.45% -6.50%
Aug 15 -6.02% -6.06%
Sep 15 -6.72% -6.77%
Oct 15 4.94% 4.89%
Nov 15 4.14% 4.09%
Dec 15 -1.38% -1.43%
Class I Class R
Jan 16 -3.82% -3.86%
Feb 16 6.23% 6.19%
Mar 16 5.32% 5.28%
Apr 16 -1.68% -1.72%
May 16 1.87% 1.83%
Jun 16 0.87% 0.82%
Jul 16 5.24% 5.19%
Aug 16 3.01% 2.96%
Sep 16 3.74% 3.70%
Oct 16 -1.41% -1.45%
Nov 16 10.20% 10.15%
Dec 16 -0.67% -0.72%
Class I Class R
Jan 17 0.79% 0.72%
Feb 17 -0.52% -0.52%
Mar 17 1.37% 1.31%
Apr 17 0.39% 0.32%
May 17 1.48% 1.48%
Jun 17 3.61% 3.55%
Jul 17 1.96% 1.90%
Aug 17 -1.56% -1.62%
Sep 17 5.66% 5.62%
Oct 17 0.35% 0.35%
Nov 17 5.46% 5.36%
Dec 17 -6.58% -6.61%
Class I Class R
Jan 18 1.52% 1.47%
Feb 18 -1.69% -1.70%
Mar 18 0.89% 0.83%
Apr 18 -2.02% -2.03%
May 18 6.36% 6.28%
Jun 18 0.18% 0.12%
Jul 18 -0.90% -0.91%
Aug 18 7.43% 7.37%
Sep 18 1.59% 1.54%
Oct 18 -8.14% -8.16%
Nov 18 1.84% 1.72%
Dec 18 -10.28% -10.34%
Class I Class R
Jan 19 15.35% 15.32%
Feb 19 4.28% 4.27%
Mar 19 -3.17% -3.22%
Apr 19 7.51% 7.42%
May 19 -2.60% -2.65%
Jun 19 6.07% 6.03%
Jul 19 0.61% 0.56%
Aug 19 -2.02% -2.11%
Sep 19 4.74% 4.76%
Oct 19 7.15% 7.09%
Nov 19 3.50% 3.39%
Dec 19 4.85% 4.83%
Class I Class R
Jan 20 0.28% 0.17%
Feb 20 -4.78% -4.82%
Mar 20 -10.85% -10.85%
Apr 20 21.45% 21.40%
May 20 4.31% 4.19%
Jun 20 6.50% 6.50%
Jul 20 9.06% 8.99%
Aug 20 0.71% 0.64%
Sep 20 0.13% 0.09%
Oct 20 0.22% 0.14%
Nov 20 22.13% 22.05%
Dec 20 11.56% 11.54%
Class I Class R
Jan 21 8.48% 8.41%
Feb 21 3.74% 3.65%
Mar 21 -4.37% -4.42%
Apr 21 1.26% 1.23%
May 21 4.58% 4.49%
Jun 21 5.47% 5.42%
Jul 21 0.66% 0.62%
Aug 21 -0.40% -0.48%
Sep 21 -3.77% -3.81%
Oct 21 0.10% 0.03%
Nov 21 -4.87% -4.90%
Dec 21 1.21% 1.13%
Class I Class R
Jan 22 -9.54% -9.62%
Feb 22 -1.82% -1.86%
Mar 22 -0.23% -0.29%
Apr 22 -16.24% -16.24%
May 22 -3.05% -3.14%
Jun 22 -8.91% -8.95%
Jul 22 7.28% 7.19%
Aug 22 2.16% 2.09%
Sep 22 -11.10% -11.16%
Oct 22 5.92% 5.91%
Nov 22 4.38% 4.37%
Dec 22 -0.61% -0.77%
Class I Class R
Jan 23 12.86% 12.84%
Feb 23 -2.32% -2.34%
Mar 23 -4.15% -4.22%
Apr 23 -14.65% -14.67%
May 23 10.74% 10.60%
Jun 23 2.81% 3.17%
Jul 23 3.92% 3.83%
Aug 23 -10.97% -10.94%
Sep 23 -2.89% -2.99%
Oct 23 -13.74% -13.72%
Nov 23 14.09% 14.03%
Dec 23 16.58% 16.50%
Class I Class R
Jan 24 -8.41% -8.49%
Feb 24 10.31% 10.27%
Mar 24 2.56% 2.54%
Apr 24 -8.11% -8.20%
May 24 18.86% 18.83%
Jun 24 -3.46% -3.52%
Jul 24 5.90% 5.83%
Aug 24 -2.04% -2.07%
Sep 24 -0.20% -0.27%

The Needham Small Cap Growth Fund inception date is 5/22/02. 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.

The source of the data for each of the Russell 2000 Index and the Russell 3000 Index (together, the “Indexes”) is the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”).  © LSE Group 2024.  All rights in the Indexes vest in the relevant LSE Group company which owns the Index.  The Indexes are calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner.  Neither the LSE Group nor its licensors accept any liability for any errors or omissions in the Indexes; no party may rely on the Index returns shown; and the LSE Group makes no claim, prediction, warranty or representation about the Fund or the suitability of the Indexes with respect to the Fund.  No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent.  The LSE Group is not connected to the Fund and does not promote, sponsor or endorse the Fund or the content of this prospectus.

**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.

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Growth of 10K as of 10/31/2024

NESIX NESGX Russell 3000 Total Return Russell 2000 Growth Total Return ††
05/22/2002 10000 10000 10000 10000
05/31/2002 9951 9950 9844 9822
06/30/2002 9276 9270 9136 8990
07/31/2002 8679 8670 8409 7608
08/31/2002 8353 8340 8449 7604
09/30/2002 7595 7580 7561 7055
10/31/2002 8701 8680 8164 7412
11/30/2002 11231 11200 8658 8147
12/31/2002 10414 10380 8168 7585
01/31/2003 10479 10440 7968 7379
02/28/2003 9911 9870 7837 7182
03/31/2003 9695 9650 7920 7291
04/30/2003 10734 10680 8566 7981
05/31/2003 12609 12540 9083 8880
06/30/2003 13077 13000 9206 9051
07/31/2003 14140 14050 9417 9736
08/31/2003 14730 14630 9626 10259
09/30/2003 15190 15080 9521 9999
10/31/2003 16254 16130 10097 10863
11/30/2003 16957 16820 10237 11217
12/31/2003 16985 16840 10705 11267
01/31/2004 17891 17730 10928 11859
02/29/2004 17777 17610 11075 11840
03/31/2004 17392 17220 10944 11896
04/30/2004 16763 16590 10718 11299
05/31/2004 17539 17350 10873 11523
06/30/2004 18224 18020 11089 11907
07/31/2004 16330 16140 10670 10838
08/31/2004 15862 15670 10714 10605
09/30/2004 16406 16200 10879 11191
10/31/2004 16798 16580 11057 11463
11/30/2004 17696 17459 11571 12432
12/31/2004 18843 18582 11984 12879
01/31/2005 17662 17409 11665 12299
02/28/2005 18137 17870 11921 12467
03/31/2005 17636 17369 11720 12000
04/30/2005 16595 16336 11465 11236
05/31/2005 18203 17910 11899 12028
06/30/2005 18374 18071 11983 12417
07/31/2005 19484 19154 12474 13285
08/31/2005 18829 18502 12355 13098
09/30/2005 19154 18813 12463 13202
10/31/2005 18836 18492 12230 12714
11/30/2005 19373 19011 12706 13434
12/31/2005 19325 18955 12717 13414
01/31/2006 20454 20053 13142 14708
02/28/2006 20858 20441 13165 14629
03/31/2006 21468 21029 13393 15340
04/30/2006 21330 20885 13538 15296
05/31/2006 20433 19998 13105 14219
06/30/2006 20023 19587 13128 14228
07/31/2006 19703 19266 13116 13489
08/31/2006 20211 19754 13436 13884
09/30/2006 20447 19975 13737 13978
10/31/2006 20933 20441 14232 14884
11/30/2006 20839 20341 14541 15240
12/31/2006 21084 20571 14716 15204
01/31/2007 21374 20844 14996 15487
02/28/2007 21869 21318 14750 15438
03/31/2007 21525 20973 14903 15580
04/30/2007 21727 21160 15499 15989
05/31/2007 22238 21648 16063 16717
06/30/2007 22292 21691 15763 16622
07/31/2007 21210 20628 15225 15759
08/31/2007 21279 20686 15444 16155
09/30/2007 21510 20901 16007 16625
10/31/2007 21742 21117 16300 17373
11/30/2007 21020 20407 15566 16173
12/31/2007 20773 20157 15472 16275
01/31/2008 19880 19283 14534 14782
02/29/2008 19907 19300 14083 14270
03/31/2008 19584 18979 13999 14187
04/30/2008 20257 19622 14700 14916
05/31/2008 21390 20711 15001 15761
06/30/2008 20146 19497 13763 14822
07/31/2008 20210 19550 13653 15166
08/31/2008 21050 20354 13865 15543
09/30/2008 19342 18693 12561 13786
10/31/2008 15950 15408 10334 10794
11/30/2008 15567 15031 9518 9488
12/31/2008 15994 15437 9700 10003
01/31/2009 14992 14463 8886 9242
02/28/2009 14452 13936 7955 8285
03/31/2009 15531 14970 8652 9028
04/30/2009 16970 16350 9562 10387
05/31/2009 18073 17404 10073 10789
06/30/2009 18818 18114 10107 11139
07/31/2009 19438 18703 10894 12003
08/31/2009 19510 18763 11283 12120
09/30/2009 21228 20406 11756 12916
10/31/2009 19866 19088 11453 12018
11/30/2009 20407 19600 12104 12390
12/31/2009 22701 21793 12449 13450
01/31/2010 21781 20899 12000 12849
02/28/2010 23082 22138 12407 13409
03/31/2010 25083 24048 13189 14475
04/30/2010 25942 24860 13474 15082
05/31/2010 24534 23499 12409 14085
06/30/2010 23484 22484 11696 13140
07/31/2010 24365 23316 12508 14009
08/31/2010 23506 22484 11919 12988
09/30/2010 27169 25977 13044 14826
10/31/2010 28244 26993 13554 15464
11/30/2010 29009 27711 13632 16138
12/31/2010 31243 29832 14556 17363
01/31/2011 31499 30063 14874 17266
02/28/2011 32129 30651 15416 18281
03/31/2011 32759 31238 15485 18967
04/30/2011 33743 32162 15946 19650
05/31/2011 32590 31049 15764 19267
06/30/2011 31414 29916 15481 18855
07/31/2011 29246 27837 15127 18116
08/31/2011 26081 24814 14219 16564
09/30/2011 23996 22820 13116 14660
10/31/2011 27099 25759 14625 16985
11/30/2011 26461 25141 14586 16896
12/31/2011 26356 25030 14706 16858
01/31/2012 29645 28142 15448 18119
02/29/2012 30853 29276 16101 18716
03/31/2012 31219 29610 16598 19096
04/30/2012 29474 27942 16489 18782
05/31/2012 27775 26320 15470 17444
06/30/2012 29383 27831 16076 18344
07/31/2012 28739 27209 16235 18024
08/31/2012 28964 27409 16640 18671
09/30/2012 29470 27876 17077 19231
10/31/2012 26945 25475 16783 18633
11/30/2012 28015 26475 16913 18776
12/31/2012 28757 27164 17120 19317
01/31/2013 29641 27987 18059 20588
02/28/2013 29653 27987 18299 20807
03/31/2013 29667 27987 19016 21869
04/30/2013 29468 27787 19327 21726
05/31/2013 31038 29254 19783 22828
06/30/2013 31948 30099 19526 22686
07/31/2013 33875 31899 20596 24402
08/31/2013 33631 31655 20021 23925
09/30/2013 35276 33188 20766 25590
10/31/2013 35646 33522 21648 26057
11/30/2013 36017 33855 22276 27127
12/31/2013 36979 34745 22864 27682
01/31/2014 36334 34122 22141 27204
02/28/2014 37367 35078 23192 28519
03/31/2014 36365 34122 23315 27816
04/30/2014 35102 32922 23343 26388
05/31/2014 34975 32788 23853 26642
06/30/2014 36509 34211 24451 28296
07/31/2014 35126 32899 23968 26582
08/31/2014 36305 33989 24974 28064
09/30/2014 35205 32944 24453 26561
10/31/2014 36527 34167 25126 28209
11/30/2014 36095 33747 25735 28391
12/31/2014 37475 35022 25735 29233
01/31/2015 36262 33872 25019 28566
02/28/2015 39944 37297 26467 30621
03/31/2015 40016 37347 26198 31171
04/30/2015 38695 36097 26317 30254
05/31/2015 39195 36547 26681 31366
06/30/2015 38810 36172 26234 31787
07/31/2015 36306 33822 26673 31917
08/31/2015 34121 31772 25063 29498
09/30/2015 31827 29623 24332 27635
10/31/2015 33400 31072 26254 29203
11/30/2015 34783 32344 26400 30273
12/31/2015 34302 31883 25858 28829
01/31/2016 32994 30653 24399 25705
02/29/2016 35049 32550 24391 25524
03/31/2016 36915 34267 26108 27479
04/30/2016 36296 33677 26270 27753
05/31/2016 36975 34292 26740 28501
06/30/2016 37296 34574 26795 28370
07/31/2016 39249 36368 27859 30225
08/31/2016 40429 37445 27930 30546
09/30/2016 41941 38829 27974 30986
10/31/2016 41351 38265 27368 29060
11/30/2016 45569 42150 28593 31660
12/31/2016 45263 41849 29151 32092
01/31/2017 45619 42150 29700 32613
02/28/2017 45382 41931 30804 33413
03/31/2017 46005 42480 30825 33808
04/30/2017 46183 42617 31152 34431
05/31/2017 46866 43248 31471 34118
06/30/2017 48558 44785 31755 35292
07/31/2017 49507 45636 32354 35593
08/31/2017 48736 44895 32416 35551
09/30/2017 51496 47419 33207 37487
10/31/2017 51674 47584 33931 38068
11/30/2017 54495 50134 34961 39161
12/31/2017 50912 46819 35311 39206
01/31/2018 51687 47506 37172 40734
02/28/2018 50815 46700 35802 39574
03/31/2018 51267 47088 35083 40107
04/30/2018 50234 46132 35217 40146
05/31/2018 53430 49029 36211 42674
06/30/2018 53527 49088 36448 43008
07/31/2018 53043 48641 37657 43747
08/31/2018 56981 52224 38980 46471
09/30/2018 57885 53030 39044 45383
10/31/2018 53172 48700 36169 39641
11/30/2018 54148 49537 36894 40261
12/31/2018 48582 44415 33460 35556
01/31/2019 56041 51221 36332 39663
02/28/2019 58438 53406 37610 42224
03/31/2019 56583 51686 38159 41653
04/30/2019 60834 55519 39683 42921
05/31/2019 59249 54051 37115 39737
06/30/2019 62844 57310 39722 42797
07/31/2019 63230 57632 40312 43215
08/31/2019 61955 56415 39490 41351
09/30/2019 64892 59101 40183 41011
10/31/2019 69530 63292 41048 42178
11/30/2019 71966 65439 42609 44661
12/31/2019 75453 68598 43839 45684
01/31/2020 75663 68715 43791 45181
02/29/2020 72050 65400 40206 41919
03/31/2020 64236 58303 34677 33914
04/30/2020 78016 70782 39269 38965
05/31/2020 81377 73746 41369 42647
06/30/2020 86670 78543 42315 44286
07/31/2020 94526 85602 44718 45808
08/31/2020 95199 86148 47958 48495
09/30/2020 95325 86226 46211 47456
10/31/2020 95535 86343 45214 47816
11/30/2020 116680 105379 50714 56248
12/31/2020 130166 117543 52996 61506
01/31/2021 141208 127430 52760 64471
02/28/2021 146485 132077 54409 66600
03/31/2021 140085 126245 56360 64504
04/30/2021 141844 127794 59265 65911
05/31/2021 148342 133535 59535 64028
06/30/2021 156453 140779 61003 67031
07/31/2021 157479 141644 62035 64590
08/31/2021 156844 140961 63804 65764
09/30/2021 150932 135585 60941 63242
10/31/2021 151078 135630 65063 66203
11/30/2021 143717 128985 64072 62970
12/31/2021 145451 130448 66595 63249
01/31/2022 131576 117904 62677 54772
02/28/2022 129184 115710 61098 55011
03/31/2022 128885 115372 63080 55262
04/30/2022 107952 96641 57419 48482
05/31/2022 104663 93603 57342 47567
06/30/2022 95333 85221 52545 44622
07/31/2022 102270 91353 57475 49618
08/31/2022 104483 93265 55330 49152
09/30/2022 92881 82859 50199 44730
10/31/2022 98383 87753 54316 48976
11/30/2022 102695 91584 57151 49773
12/31/2022 102073 90881 53804 46578
01/31/2023 115198 102549 57510 51212
02/28/2023 112523 100145 56166 50657
03/31/2023 107858 95923 57668 49407
04/30/2023 92059 81851 58282 48833
05/31/2023 101949 90529 58509 48842
06/30/2023 104810 93402 62504 52891
07/31/2023 108915 96978 64745 55364
08/31/2023 96972 86366 63495 52482
09/30/2023 94173 83786 60470 49020
10/31/2023 81235 72294 58867 45240
11/30/2023 92681 82438 64357 49358
12/31/2023 108044 96040 67770 55269
01/31/2024 98963 87890 68521 53497
02/29/2024 109164 96920 72231 57842
03/31/2024 111963 99382 74560 59459
04/30/2024 102882 91232 71280 54881
05/31/2024 122289 108412 74647 57820
06/30/2024 118059 104601 76958 57724
07/31/2024 125025 110698 78389 62449
08/31/2024 122475 108412 80095 61758
09/30/2024 122226 108119 81752 62578
10/31/2024 116131 102724 81152 61748
NESIX $116,131
NESGX $102,724
Russell 3000 Total Return $81,152
Russell 2000 Growth Total Return †† $61,748

† The Russell 3000® Index measures the performance of the largest 3,000 US companies representing approximately 96% of the investable US equity market, as of the most recent reconstitution.

†† The Russell 2000® Growth Index measures the performance of the small-cap segment of the U.S.

equity universe. It includes those Russell 2000® companies with higher price-to-value ratios and

higher forecasted growth values.

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 source of the data for each of the Russell 3000 Index and the Russell 2000 Growth Index (together, the “Indexes”) is the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”).  © LSE Group 2024.  All rights in the Indexes vest in the relevant LSE Group company which owns the Index.  The Indexes are calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner.  Neither the LSE Group nor its licensors accept any liability for any errors or omissions in the Indexes; no party may rely on the Index returns shown; and the LSE Group makes no claim, prediction, warranty or representation about the Fund or the suitability of the Indexes with respect to the Fund.  No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent.  The LSE Group is not connected to the Fund and does not promote, sponsor or endorse the Fund or the content of this prospectus.

Distributions - 2023

Class I & Class R Shares
Record Date N/A
Ex Date N/A
Pay Date N/A
Long-Term Capital Gains ($/Share) $0.00000 per share
Short-Term Capital Gains ($/Share) $0.00000 per share
Ordinary Income ($/Share) $0.00 per share

As of November 15th, the Needham Funds have determined there are no required distributions for 2023. 

Portfolio

Portfolio Characteristics as of 9/30/24

Inception Date
May 22, 2002
Net Assets
$168 Million
Number of Holdings
62
12-month Trailing Turnover
72%
Morningstar Category
Small-Cap Growth
Lipper Classification
Small-Cap Core
Active Share vs. Russell 2000
96.7%

Top Ten Holdings as of 9/30/24

% Of Net Assets
Aspen Aerogels, Inc. 7.40%
Calix, Inc. 5.76%
PDF Solutions, Inc. 5.65%
Harmonic, Inc. 5.19%
Vicor Corp. 4.63%
% Of Net Assets
Zuora, Inc. 4.23%
TTM Technologies, Inc. 3.90%
ADTRAN Holdings, Inc. 3.61%
nLight, Inc. 3.56%
Rogers Corp. 3.42%
Total 47.35%

Sector Weightings as of 9/30/24*

Sector1 2 % of Net Investments*
Information Technology 68.3
Industrials 11.7
Cash 8.0
Materials 7.4
Health Care 3.0
Consumer Discretionary 1.0
Energy 0.6

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

1 Percentage of total investments includes all stocks plus cash.

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

Risk/Reward Metrics as of 9/30/24*

3 YR 5 YR Since Inception
Fund Russell 2000 Growth Fund Russell 2000 Growth Fund Russell 2000 Growth
Average Annual Return -7.27 -0.35 12.84 8.82 11.27 8.64
Alpha -5.38 0.00 4.73 0.00 3.79 0.00
Beta 1.10 1.00 1.03 1.00 0.89 1.00
Maximum Drawdown -46.70 -32.60 -48.96 -33.43 -48.96 -52.31
Upside Capture Ratio 121.11 100.00 121.57 100.00 91.09 100.00
Downside Capture Ratio 123.85 100.00 104.71 100.00 84.95 100.00
Standard Deviation 30.37 23.09 29.22 24.09 21.74 20.64
R-Squared 69.38 100.00 71.46 100.00 71.13 100.00
Sharpe Ratio -0.36 -0.17 0.36 0.27 0.45 0.34

*Risk/Reward metrics based on the Fund’s retail share class. The Fund’s inception is 5/22/02. Metrics since inception of the Fund are calculated from 5/31/2002 to 9/30/24. Active Share is as of 9/30/24.

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).

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

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.