Firsthand Alternative Energy Fund

Firsthand Alternative Energy Fund

Average Annual Total Returns vs. Indices
As of March 31, 2020
Period Firsthand Alternative
Energy Fund
WilderHill Clean Energy Index S&P 500 Index
Since inception (10/29/07) -4.02% -11.18% 6.48%
10-Year -2.55% -5.05% 10.51%
5-Year -2.39% -0.18% 6.71%
3-Year 1.77% 11.28% 5.09%
1-Year -5.52% 1.21% -6.99%
Q1 '20 (not annualized) -22.11% -20.94% -19.60%
Monthly Performance Update
As of May 31, 2020
Period Firsthand Alternative
Energy Fund
Since inception (10/29/07) -2.06%
10-Year 1.78%
5-Year 2.53%
3-Year 7.98%
1-Year 16.92%
1-Month 10.20%

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 2.15%. 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 current expense waiver is in effect until 8/31/20.

Growth of a Hypothetical $10,000 Investment

October 29, 2007 through March 31, 2020

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 '20 Contributors to Performance

Only two stocks in the Fund’s portfolio posted gains in Q1. The largest positive contributor was Enphase Energy (ENPH). The company’s stock rose nearly 24% in Q1, despite the choppy market brought about by the COVID-19 crisis. In mid-February, the solar inverter company posted revenues and earnings for Q4 2019 that surpassed analysts’ expectations.

Orion Energy Systems (OESX) was the other positive contributor to the Fund’s performance during the quarter. The LED lighting company posted revenue growth of 110% for its fiscal third quarter of 2020 and the stock finished the quarter up approximately 10%, despite a significant pull-back alongside the broad market in March.

Q1 '20 Detractors from Performance

Itron (ITRI) was the largest detractor from the Fund’s performance during the quarter. Following a lackluster earnings report in February, analysts cut their profit forecasts for the company, and the downward slide in the company’s stock steepened as COVID-19’s effect on the markets intensified in March.

Leading U.S. solar system manufacturer First Solar (FSLR) was another significant detractor from the Fund’s performance in Q1. The company’s stock sold off sharply after a surprise quarterly loss was announced in late February. First Solar also disappointed analysts with 2020 revenue guidance that fell below 2019 results. While the stock recovered modestly in late March, it finished the quarter down 35%.

SolarEdge Technologies (SEDG) stock rose 31% during the first two months of the year, after the company reported revenues and earnings in February that beat analysts’ consensus estimates. However, the stock succumbed to general concerns surrounding the COVID-19 outbreak and finishing the quarter down nearly 14%.

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 3/31/20: ENPH (3.58% of ALTEX), OESX (1.15% of ALTEX), ITRI (6.90% of ALTEX), FSLR (4.00% of ALTEX), SEDG (12.72% 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.