Firsthand Technology Opportunities Fund

Firsthand Technology Opportunities Fund

Average Annual Total Returns vs. Indices
As of December 31, 2019
Period Firsthand Technology
Opportunities Fund
NASDAQ Composite Index S&P 500 Index
Since inception (9/30/99) 3.74% 7.06% 6.70%
10-Year 16.14% 16.14% 13.54%
5-Year 18.16% 15.00% 11.68%
3-Year 27.73% 19.89% 15.25%
1-Year 28.51% 36.74% 31.48%
Q4 '19 (not annualized) 7.45% 12.49% 9.06%
Monthly Performance Update
As of January 31, 2020
Period Firsthand Technology
Opportunities Fund
Since inception (9/30/99) 3.93%
10-Year 17.25%
5-Year 18.97%
3-Year 26.81%
1-Year 14.06%
1-Month 4.11%

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 1.86%. The Fund's total net operating expenses are 1.85%. Under the Investment Advisory Agreements, the Investment Adviser has agreed to reduce its fees and/or make expense reimbursements so that the Fund's total operating expenses (excluding independent trustees' compensation, brokerage and commission expenses, litigation costs and any extraordinary and non-recurring expenses) are limited to 1.85% of the Fund's average daily net assets up to $200 million, 1.80% of such assets from $200 million to $500 million, 1.75% of such assets from $500 million to $1 billion, and 1.70% 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

September 30, 1999 through December 31, 2019

Chart represents the growth of a hypothetical $10,000 investment from Firsthand Technology Opportunities Fund inception date until the end of the quarter indicated. Firsthand Technology Opportunities Fund performance assumes reinvestment of all dividends and includes all Firsthand Technology Opportunities Fund expenses but does not reflect the impact of taxes.

Q4 '19 Contributors to Performance

For the fourth consecutive quarter, Roku (ROKU) was the largest contributor to the Fund’s performance in Q4. Although the video streaming company’s stock stumbled in November after its Q3 earnings report and outlook disappointed investors, Roku shares remain near all-time highs and finished the quarter up nearly 32%.

Online education tool provider Chegg (CHGG) enjoyed a rebound in its stock in Q4 following a decline of 22% in Q3. Chegg stock was buoyed in early November by strong financial results for Q3 and an improved revenue forecast for the full year 2019. The company added 2.2 million subscribers to Chegg Services, the company’s largest business segment by revenue, during the quarter.

NVIDIA (NVDA) was another strong contributor to the Fund’s performance during the quarter. The company’s stock was hit hard in late 2018 as demand from cryptocurrency miners fell, but NVIDIA stock rebounded in 2019 as demand from gaming and data center customers improved. The semiconductor company closed Q4 with its stock approaching all-time highs at $235 per share.

Q4 '19 Detractors from Performance

Arista Networks (ANET) was the largest detractor from fund performance during Q4, after the networking company issued disappointing financial guidance for the fourth quarter. Certain analysts pointed to slowed spending by Facebook (FB) as the reason behind Arista’s lackluster guidance. The company’s stock finished the quarter near its lows for the year, and down more than 14% for the quarter.

Another negative contributor to the Fund’s performance during the quarter was Twilio (TWLO); its stock slid 10% during Q4. The company’s stock fell sharply in October following Twilio’s announcement of Q4 guidance that fell below analysts’ expectations. Adding insult to injury, the company further revised its guidance downward, attributing the change to a “simple math error.”

The Fund’s third largest detractor from performance during the quarter was Revasum (ASX: RVS). The California-based company, whose shares are listed on the Australian Securities Exchange, warned of lower than expected revenues for the second half of 2019 shortly after the Fund established its position in Revasum in late Q3. The company’s stock fell nearly 50% during the quarter in the wake of the disappointing news.

Firsthand Technology Opportunities 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 certain industries in the technology sector. Specific risks associated with investments in the technology industries (as described in the Fund's Prospectus) 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 technology sector 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 NASDAQ Composite Index (NASDAQ) and the Standard & Poor's 500 Index (S&P 500) each represent an unmanaged, broad-based basket of stocks and are typically used as benchmarks for overall market performance. 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 12/31/19: ROKU (12.56% of TEFQX), CHGG (5.04% of TEFQX), NVDA (3.68% of TEFQX), ANET (5.56% of TEFQX), TWLO (5.38% of TEFQX), RVS.AX (1.27% of TEFQX). 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.