Firsthand Alternative Energy Fund

Firsthand Alternative Energy Fund

Average Annual Total Returns vs. Indices
As of March 31, 2019
Period Firsthand Alternative
Energy Fund
WilderHill Clean Energy Index S&P 500 Index
Since inception (10/29/07) -3.89% -12.19% 7.75%
10-Year 2.15% -2.63% 15.90%
5-Year -3.09% -4.88% 10.90%
3-Year 4.95% 10.82% 13.52%
1-Year -5.33% 7.83% 9.48%
Q1 '19 (not annualized) 15.91% 24.38% 13.65%
Monthly Performance Update
As of May 31, 2019
Period Firsthand Alternative
Energy Fund
Since inception (10/29/07) -3.55%
10-Year -0.02%
5-Year -1.81%
3-Year 8.37%
1-Year -2.63%
1-Month -5.20%


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

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 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 8/31/19.

Growth of a Hypothetical $10,000 Investment

October 29, 2007 through March 31, 2019

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 '19 Contributors to Performance

Cree (CREE) was the largest contributor to the Fund’s performance in the first quarter of 2019. The maker of LEDs and semiconductors delivered a strong financial report in late January that exceeded analysts’ expectations. Cree stock finished Q1 up 33.8%

GW Pharmaceuticals (GWPH) posted strong revenue and earnings results in February, and its stock increased sharply as a result. The company was another strong contributor to the Fund’s performance in Q1, with its stock appreciating 73.1% during the quarter.

A third major contributor to the Fund’s Q1 performance was Power Integrations (POWI), a manufacturer of power semiconductors. Despite reporting Q4 revenues that fell short of the results from the same period a year ago, the company exceeded analysts’ expectations and enjoyed a 15.0% increase in its stock price, after adjusting for a $0.17 per share dividend during the quarter.

Q1 '19 Detractors from Performance

There were few negative performers in the portfolio during the quarter, but the largest detractor from fund performance was Itron (ITRI). The manufacturer of utility meters suffered a stock price decline of 1.4% after reporting Q4 2018 revenues that underperformed analysts’ expectations.

ABB (ABB) was another stock that declined modestly in Q1, finishing the quarter down 0.8% after reporting worse-than-expected revenues and earnings for the fourth quarter of 2018.

Finally, the Fund also suffered from a small decline in the value of its holdings in Ulvac (no U.S. symbol), a Japanese supplier of semiconductor manufacturing equipment. The company reported revenues and earnings for its fiscal second quarter that fell short of the figures from the same period a year ago.

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 3/31/19: CREE (9.0% of ALTEX), GWPH (3.3% of ALTEX), POWI (8.0% of ALTEX), ITRI (5.1% of ALTEX), ABB (2.6% of ALTEX), ULVAC (1.5% of ALTEX). A complete list of portfolio holdings for Firsthand Funds is available on 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.