Firsthand Alternative Energy Fund

Firsthand Alternative Energy Fund

Average Annual Total Returns vs. Indices
As of June 30, 2022
Period Firsthand Alternative
Energy Fund
WilderHill Clean Energy Index S&P 500 Index
Since inception (10/29/07) 0.02% -6.19% 8.52%
10-Year 10.08% 8.09% 12.96%
5-Year 10.06% 16.75% 11.31%
3-Year 10.96% 15.88% 10.60%
1-Year -31.13% -50.72% -10.62%
Q2 '22 (not annualized) -24.01% -30.13% -16.10%

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 2.04%. 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 4/30/22.

Growth of a Hypothetical $10,000 Investment

October 29, 2007 through June 30, 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.

Q1 '22 Contributors to Performance

Solar microinverter supplier SolarEdge Technologies (SEDG) was the largest positive contributor to the Fund’s performance during Q1. Despite SolarEdge underperforming analysts’ estimates for Q4 earnings, the company’s stock rose nearly 15% during the quarter as surging oil prices stoked demand for solar stocks.

Satellite specialist Maxar Technologies (MAXR) was the second largest contributor to fund performance during the quarter. The company reported Q4 revenues that approximately equaled those from the year-ago quarter and swung to a net profit from a loss a year ago. More importantly perhaps, the company gained significant media exposure from its satellite images of Russian troop movements and the war in Ukraine.

EVgo (EVGO) was another significant contributor to fund performance during Q1. The company operates one of the largest public fast charging networks for electric vehicles in the U.S. EVgo announced partnerships with automotive manufacturers Subaru and Toyota during the quarter, and others with retailers including Meijer, Save Mart, and Wawa.

Q1 '22 Detractors from Performance

The greatest detractor from fund performance during the quarter was Aspen Aerogels (ASPN), a supplier of insulation materials to the energy, building, and automotive industries. The company’s stock slumped in January following the late December announcement of the termination of its supply arrangement with BASF Polyurethanes. Later, the company reported Q4 financial results that fell short of analysts’ expectations.

Smart meter supplier Itron (ITRI) was another major detractor from the Fund’s performance during Q1. During the quarter, the company announced earnings for its fiscal fourth quarter that exceeded expectations, but revenues came in lower than expected. Itron’s stock was down approximately 23% for Q1.

We established a new position in Astra Space (ASTR) in mid-March. Unfortunately, during the short period from the day we bought shares until the end of the quarter, the share price declined more than 15%, leading it to become the third largest detractor from the Fund’s performance in Q1.

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 3/31/22: SEDG (13.47% of ALTEX), MAXR (4.71% of ALTEX), EVGO (4.61% of ALTEX), ASPN (7.20% of ALTEX), ITRI (1.75% of ALTEX), ASTR (2.30% 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.