Firsthand Technology Opportunities Fund

Firsthand Technology Opportunities Fund

Average Annual Total Returns vs. Indices
As of March 31, 2020
Period Firsthand Technology
Opportunities Fund
NASDAQ Composite Index S&P 500 Index
Since inception (9/30/99) 3.04% 6.19% 5.49%
10-Year 13.99% 13.76% 10.51%
5-Year 13.23% 10.76% 6.71%
3-Year 16.16% 10.45% 5.09%
1-Year -12.26% 0.78% -6.99%
Q1 '20 (not annualized) -12.24% 13.91% -19.60%
Monthly Performance Update
As of May 31, 2020
Period Firsthand Technology
Opportunities Fund
Since inception (9/30/99) 4.26%
10-Year 16.85%
5-Year 17.90%
3-Year 22.84%
1-Year 16.45%
1-Month 14.81%

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 March 31, 2020

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.

Q1 '20 Contributors to Performance

The largest positive contributor to the Fund’s performance in Q1 was the hedging strategy implemented by the portfolio manager in the month of March. By purchasing put options on the QQQ and SPY exchange-traded funds, the Fund was able to realize substantial gains upon the exercise of the options as the market fell.

Enphase Energy (ENPH) was another significant positive contributor during the quarter, with its stock rising nearly 24% in Q1, despite the choppy market brought about by the COVID-19 crisis. We sold most of our Enphase position near its all-time high in early March, at a price per share that was more than double the price at the start of the year.

Cloud-based cybersecurity firm Zscalar (ZS) was a third positive contributor to the Fund’s performance in Q1. The company’s stock rallied during the quarter as the COVID-19-driven work-from-home trend led analysts to predict increasing demand for the Zscalar’s core services.

Q1 '20 Detractors from Performance

The biggest hits to the performance of the portfolio came from some of our largest holdings. The Fund’s largest holding, Roku (ROKU), suffered along with the broad market in Q1, falling nearly 35% during the quarter, despite reporting record revenues for Q4’19 that beat analyst’s expectations.

Another negative contributor to the Fund’s performance during the quarter was Nutanix (NTNX); its stock plunged almost 50% during Q1. The stock began its slide after the company issued disappointing guidance for its fiscal third quarter.

Domo (DOMO) was a third significant detractor from performance during the quarter. The company reported better than expected financial results in early March, but its stock was caught up in the COVID-19-driven market sell off and finished the quarter down more than 50%.

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 3/31/20: ENPH (0.88% of TEFQX), ZS (3.31% of TEFQX), ROKU (11.40% of TEFQX), NTNX (3.86% of TEFQX), DOMO (1.08% 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.