Firsthand Alternative Energy Fund
| Average Annual Total Returns vs. Indices | |||
|---|---|---|---|
| As of SEPTEMBER 30, 2023 | |||
| Period | Firsthand Alternative Energy Fund |
WilderHill Clean Energy Index | S&P 500 Index |
| Since inception (10/29/07) | 0.06% | -7.76% | 8.81% |
| 10-Year | 5.57% | 0.50% | 11.91% |
| 5-Year | 9.68% | 5.36% | 9.92% |
| 3-Year | -3.17% | -19.33% | 10.15% |
| 1-Year | -6.16% | -34.17% | 21.62% |
| Q2 '23 (not annualized) | -15.11% | -21.74% | -3.27% |
| Monthly Performance Update | |||
|---|---|---|---|
| As of October 31, 2023 | |||
| Period | Firsthand Alternative Energy Fund |
||
| Since inception (10/29/07) | -0.97% | ||
| 10-Year | 3.41% | ||
| 5-Year | 8.41% | ||
| 3-Year | -9.40% | ||
| 1-Year | -21.02% | ||
| 1-Month | -15.21% | ||
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 2.07%. The Fund's total net operating expenses are 2.00%. 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 4/30/24.
Growth of a Hypothetical $10,000 Investment
October 29, 2007 through September 30, 2023
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.
Q3'23 Contributors to Performance
The largest contributor to the Fund’s performance in Q3 was Aspen Aerogels (ASPN), a supplier of thermal insulation products for industrial and automotive applications. The company’s stock was extremely volatile during the quarter, trading as low as $5.32 per share in August, before closing the quarter at $8.60 per share.
Kratos Defense & Security Solutions (KTOS) was the second most significant positive contributor to fund performance in Q3. In August, the defense contractor announced better-than-expected financial results for its fiscal second quarter ended June 25, 2023, driven by revenue growth of 14.6% over the same period a year ago.
The third largest contributor to fund performance in Q3 was Curaleaf Holdings (CURLF). The cannabis cultivator and distributor enjoyed a 46% gain in its stock during the quarter, despite a sharp sell-off in late September.
Q3 '23 Detractors from Performance
Solar micro inverter company SolarEdge (SEDG) was the largest detractor from the Fund’s performance during the quarter. The company’s stock fell more than 50% during Q3, with the pullback accelerating in early August after SolarEdge announced weaker-than-expected revenue guidance for Q3. The company pointed to higher interest rates and new net metering rules in California as primary headwinds in the U.S. residential market.
ChargePoint Holdings (CHPT) was another significant detractor from fund performance in Q3. Shares of the EV charging infrastructure provider fell to an all-time low at the end of the quarter after its quarterly earnings results for its fiscal second quarter fell short of analysts’ forecasts. The company’s earnings announcement included the disclosure of a plan to reorganize its operations to cut costs, including a 10% reduction in its global workforce.
The third largest detractor from the Fund’s performance in Q3 was Wolfspeed (WOLF), a supplier of silicon carbide and gallium nitride semiconductor products. In August, the company announced earnings that fell short of analysts’ expectations, which precipitated a sharp sell-off in its stock. Wolfspeed stock finished the quarter down 31%.
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 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 9/30/23: ASPN (2.51% of ALTEX), KTOS (3.75% of ALTEX), CURLF (0.38% of ALTEX), SEDG (3.24% of ALTEX), CHPT (2.48% of ALTEX), WOLF (3.17% 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.