Firsthand Technology Opportunities Fund

Firsthand Technology Opportunities Fund

Average Annual Total Returns vs. Indices
As of June 30, 2023
Period Firsthand Technology
Opportunities Fund
NASDAQ Composite Index S&P 500 Index
Since inception (9/30/99) 1.57% 8.06% 7.39%
10-Year 9.00% 16.21% 12.86%
5-Year -4.98% 13.93% 12.31%
3-Year -16.71% 11.94% 14.60%
1-Year -13.53% 26.14% 19.59%
Q2 '23 (not annualized) -5.84% 13.05% 8.74%
Monthly Performance Update
As of July 31, 2023
Period Firsthand Technology
Opportunities Fund
Since inception (9/30/99) 2.15%
10-Year 9.26%
5-Year -1.95%
3-Year -16.29%
1-Year -7.14%
1-Month 14.74%


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 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 4/30/24.

Growth of a Hypothetical $10,000 Investment

September 30, 1999 through June 30, 2023

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.

Q2'23 Contributors to Performance

Payment management software company BILL Holdings (BILL) was the largest contributor to the Fund’s performance in Q2. In its third fiscal quarter ended March 31, 2023, the company reported 63% revenue growth, as compared to the prior quarter a year ago. BILL Holdings’ stock finished Q2 up 44% for the quarter.

MongoDB (MDB) was the second largest contributor to fund performance during the quarter. The company’s stock (up 76% in Q2) jumped in early June after the database-as-a-service company announced fiscal Q2 revenues and earnings that beat analysts’ expectations.

The third largest contributor to the Fund’s performance in Q2 was Palo Alto Networks (PANW), a provider of cyber security software. The company raised its revenue and earnings guidance for fiscal year 2023 in May and was added to the S&P 500 Index in June.

Q2'23 Detractors from Performance

The largest detractor from fund performance in Q2 was digital education platform provider Chegg (CHGG). In early May, the company announced financial results that bested analysts’ forecasts. At the same time, however, Chegg announced that “…since March we saw a significant spike in student interest in ChatGPT. We now believe it’s having an impact on our new customer growth rate.” Chegg shares fell sharply on that news, and closed Q2 down approximately 46% for the quarter.

Revasum (ASX: RVS) was the second largest detractor from the Fund’s performance during the quarter. The supplier of semiconductor manufacturing tools saw its stock drop 38% in Q2 after announcing that Q1 revenues were up only modestly when compared with the same quarter a year earlier.

Digital operations management software company PagerDuty (PD) experienced a sharp sell-off in its stock in early June and was down 36% in Q2. Despite surpassing analysts’ estimates for revenue and earnings for its fiscal first quarter, the company issued softer than expected revenue guidance for fiscal 2023 as software buyers have become more cautious.

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 6/30/23: BILL (4.38% of TEFQX), MDB (2.57% of TEFQX), PANW (4.79% of TEFQX), CHGG (2.88% of TEFQX), RVS.AX (3.30% of TEFQX), PD (3.37% of TEFQX). 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.