Firsthand Alternative Energy Fund

Firsthand Alternative Energy Fund

Average Annual Total Returns vs. Indices
As of March 31, 2018
Period Firsthand Alternative
Energy Fund
WilderHill Clean Energy Index S&P 500 Index
Since inception (10/29/07) -3.75% -13.90% 7.59%
10-Year -3.73% -12.18% 9.48%
5-Year 11.43% 3.61% 13.27%
3-Year -0.31% -3.15% 10.76%
1-Year 17.83% 26.37% 13.98%
Q1 '18 (not annualized) -0.30% -1.49% -0.76%
Monthly Performance Update
As of May 31, 2018
Period Firsthand Alternative
Energy Fund
Since inception (10/29/07) -3.63%
10-Year -4.21%
5-Year 6.08%
3-Year -0.16%
1-Year 10.58%
1-Month 1.51%

Datasheet

The Fund's performance information assumes reinvestment of all dividends and includes all Fund expenses, but does not reflect the impact of taxes. Performance data quoted represent past performance, which is not a guarantee of future results, and current performance may be lower or higher than the performance quoted. Both the return from and the principal value of an investment in the Fund will fluctuate so that any investor's shares, when redeemed, may be worth more or less than their original cost. To obtain performance as of the most recent month-end, please contact Firsthand Funds by calling 1.888.884.2675 or go to www.firsthandfunds.com.

The Fund's total gross operating expenses are 2.14%. The Fund's total net operating expenses are 1.98%. Under the Investment Advisory Agreement, the Investment Adviser has agreed to reduce its fees and/or make expense reimbursements so that the Fund's total annual operating expenses (excluding independent trustees' compensation, brokerage and commission expenses, short sale expenses, litigation costs and any extraordinary and non-recurring expenses) are limited to 1.98% of the Fund's average daily net assets up to $200 million, 1.93% of such assets from $200 million to $500 million, 1.88% of such assets from $500 million to $1 billion, and 1.83% of such assets in excess of $1 billion. The Investment Adviser has also agreed to donate a portion of its management fees collected, amounting to 0.20% of the Fund's average daily net assets, to various non-profit organizations as elected by Fund shareholders. The current expense waiver is in effect until 8/31/18.

Growth of a Hypothetical $10,000 Investment

October 29, 2007 through March 31, 2018

Chart represents the growth of a hypothetical $10,000 investment from Firsthand Alternative Energy Fund inception date until the end of the quarter indicated. Firsthand Alternative Energy Fund performance assumes reinvestment of all dividends and includes all Fund expenses but does not reflect the impact of taxes.

Q1 '18 Contributors to Performance

SolarEdge (SEDG) was the top contributor to Fund performance during the first quarter. The solar inverter company reported better-than-expected revenue and earnings for Q4, with revenue up 70% year over year. SolarEdge also offered strong Q1 guidance and finished Q1 up 40.08%.

LED maker Cree (CREE) was another strong contributor, with shares up 8.54%. The company's fiscal Q2 showed slightly worse-than-expected earnings on better-than-expected revenue. Capacity improvements helped revenue at the company's Wolfspeed subsidary grow 30% year over year.

First Solar (FSLR) reported a Q4 loss on lower module and system sales, with net sales below management's guidance. However, the losses were smaller than expected and the company issued strong full-year guidance. Shares of First Solar finished the first quarter up 5.12%.

Q1 '18 Detractors from Performance

The top detractor from Fund performance for the quarter was Power Integrations (POWI), which reported slightly higher-than-expected earnings on revenue that fell short of the consensus estimate. The company also issued weaker-than-expected guidance for Q1, which helped shares decline 6.85%.

Tesla (TSLA) shares slid 14.52% in Q1 as the electric car maker continues to burn cash as it tries to meet its Model 3 production goals. Q4 results beat analyst expectations with lower-than-expected losses and slightly higher revenue than anticipated. Tesla is warning that capital outlays will be higher in 2018 compared with 2017 as it ramps up capacity at its Nevada and Fremont plants.

LCD maker Corning (GLW) reported an earnings and revenue beat for Q4 2017, but finished the first quarter down 12.33%. The company saw strong shipments in Q4 of its Gorilla Glass, which is increasingly used in smartphones. Corning incurred a significant loss in Q4 thanks in large part to a $1.8 billion adjustment resulting from the Tax Cuts and Jobs Act of 2017, which was signed into law in late December.

Firsthand Alternative Energy Fund is subject to greater risk than more diversified funds because of its investments in fewer securities and because of its concentration of investments in the alternative energy and energy technology sectors. Specific risks associated with these investments could cause the Fund's share price to fluctuate dramatically. The Fund's investments in small-cap companies present greater risk than investments in larger companies. The Fund invests in several industries within the alternative energy and energy technology sectors and the relative weightings of these industries in the Fund's portfolio may change at any time. Equity investing involves risks, including the potential loss of the principal amount invested.

The Standard & Poor's 500 Index (S&P 500) represents an unmanaged, broad-based basket of stocks and is typically used as a benchmark for overall market performance. The WilderHill Clean Energy Index is a market-weighted index of 53 companies in the cleaner fuel, energy conversion, energy storage, greener utilities, power delivery and conservation, and renewable energy harvesting sectors. The indices' performance figures assume the reinvestment of all dividends (except where noted), but do not reflect the impact of taxes. Additionally, because an investor cannot invest in an index directly, indices' performance figures do not reflect the expenses associated with the management of an actual mutual fund portfolio.

As of 3/31/18: CREE (5.58% of ALTEX), FSLR (8.59% of ALTEX), GLW (3.11% of ALTEX), POWI (6.85% of ALTEX), SEDG (10.00% of ALTEX), TSLA (2.76% of ALTEX). A complete list of portfolio holdings for Firsthand Funds is available on www.firsthandfunds.com and is updated 45 days after the end of the every calendar quarter. The portfolio holdings discussed are subject to change.

The information provided should not be considered a recommendation to purchase or sell a particular security and there is no assurance that, as of the date of publication, the securities purchased remain in a Fund's portfolio or that securities sold have not been repurchased. Also, you should note that the securities discussed, even if they have been purchased by a Fund, do not represent a Fund's entire portfolio and, in the aggregate, may represent only a small percentage of that Fund's holdings. There can be no assurance that any Firsthand Funds will buy, sell, or hold any particular security after the date referred to in the discussion.