Firsthand Alternative Energy Fund
| Average Annual Total Returns vs. Indices | |||
|---|---|---|---|
| As of December 31, 2022 | |||
| Period | Firsthand Alternative Energy Fund |
WilderHill Clean Energy Index | S&P 500 Index |
| Since inception (10/29/07) | 0.63% | -7.69% | 8.38% |
| 10-Year | 12.66% | 7.16% | 12.56% |
| 5-Year | 10.31% | 9.23% | 9.42% |
| 3-Year | 12.57% | 4.54% | 7.66% |
| 1-Year | -18.26% | -46.11% | -18.11% |
| Q4 '22 (not annualized) | 2.33% | -19.93% | 7.56% |
| Monthly Performance Update | |||
|---|---|---|---|
| As of February 28, 2023 | |||
| Period | Firsthand Alternative Energy Fund |
||
| Since inception (10/29/07) | 1.17% | ||
| 10-Year | 11.77% | ||
| 5-Year | 12.29% | ||
| 3-Year | 15.98% | ||
| 1-Year | -4.56% | ||
| 1-Month | -1.08% | ||
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 2.04%. The Fund's total net operating expenses are 1.99%. 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 current expense waiver is in effect until 4/30/23.
Growth of a Hypothetical $10,000 Investment
October 29, 2007 through December 31, 2022
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.
Q4 '22 Contributors to Performance
The largest contributor to the Fund’s performance in Q4 was satellite imaging company Maxar Technologies (MAXR). The company’s stock more than doubled during the quarter, driven by the December announcement that it will be acquired by private equity firm Advent International.
SolarEdge Technologies (SEDG) was another significant contributor to fund performance in Q4. The supplier of microinverter electronics to the solar photovoltaic industry reported Q3 financial results that exceeded analysts’ estimates and triggered price target increases from a number of analysts. Vestas Wind Systems (VWSYF) was the third-largest positive contributor to performance during the quarter.
Q4 '22 Detractors from Performance
The Fund established a new position in Tesla (TSLA) during the quarter, and it was the largest detractor from fund performance in Q4. Shares of the electric vehicle (EV) manufacturer slid after the company reported Q3 revenues that did not meet analysts’ expectations for the quarter.
EV charging infrastructure company EVgo (EVGO) saw its stock fall 43% during Q4, and was the second largest detractor from the Fund’s performance in the fourth quarter. We believe the decline was due in part to Q3 revenues and earnings that came in below Wall Street estimates.
A third major detractor from fund performance in the fourth quarter was residential solar system provider SunPower (SPWR). The company’s stock finished a volatile Q4 down approximately 22%, despite Q3 financial results that exceeded analysts’ expectations.
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 74 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 12/31/22: SEDG (8.93% of ALTEX), VWSYF (3.42% of ALTEX), TSLA (4.86% of ALTEX), EVGO (2.11% of ALTEX), SPWR (4.26% 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 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.