Putnam Capital Manager

Putnam Small Cap Value Subaccount

The subaccount seeks capital appreciation.

Fund description

The subaccount pursues its objective of long-term capital appreciation by investing in stocks of small companies that are undergoing positive changes. In accordance with its value strategy, it seeks holdings that have below-average price/earnings ratios and that are priced below their long-term business value. The subaccount's focus on low valuation helps to manage the risk associated with investing in small companies.

Sales story

Pursuing capital appreciation through undervalued small companiesSmall companiesOften overlooked by Wall Street analysts, the stocks of small companies can be attractive opportunities.Active value strategyThe strategy seeks undervalued companies with improving fundamentals or catalysts that may unlock potential.Rigorous researchThe portfolio manager collaborates with strategy and sector analysts, combining the benefits of a focused boutique with the extensive resources of a global firm.

Management team

Lipper ranking ‡ as of 05/31/22

Category: Small-Cap Value Funds

  Percentile ranking Rank/Funds in category
10 yrs. 19% 4/21
1 yr. 22% 5/22
3 yrs. 23% 5/21
5 yrs. 46% 10/21

Risk Characteristics as of 05/31/22

Alpha (%) 2.53
Beta 1.12
R squared 0.97
Standard deviation (3 yrs.) 27.95

‡ Lipper is an industry research firm whose rankings are based on total return performance, vary over time, and do not reflect the effects of sales charges. Past performance is not indicative of future results.

Quick facts as of 05/31/22

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 103
Turnover (fiscal year end) 92%
Net Assets $130M
Inception Date 04/30/99

Holdings

Sm Energy 2.05%
Magnolia Oil Gas Corp 1.75%
Cnx Resources Corp 1.60%
Scorpio Tankers 1.53%
Universal Technical Institute 1.43%
Option Care Health 1.40%
Newpark Resources 1.35%
Icf International 1.30%
Lantheus Holdings 1.29%
Mrc Global 1.29%
Top 10 holdings, total: 15.01%


Top 10 holdings as of 05/31/22
1: Sm Energy 2.05%
2: Magnolia Oil Gas Corp 1.75%
3: Cnx Resources Corp 1.60%
4: Scorpio Tankers 1.53%
5: Universal Technical Institute 1.43%
6: Option Care Health 1.40%
7: Newpark Resources 1.35%
8: Icf International 1.30%
9: Lantheus Holdings 1.29%
10: Mrc Global 1.29%
Holdings represent 15.01% of portfolio
Top 10 holdings as of 04/30/22
1: Sm Energy 1.84%
2: Magnolia Oil Gas Corp 1.73%
3: Hackett Group The 1.55%
4: Universal Technical Institute 1.53%
5: Cnx Resources Corp 1.50%
6: Option Care Health 1.41%
7: Major Drilling 1.40%
8: Lantheus Holdings 1.39%
9: Mrc Global 1.36%
10: Brookdale Senior Living 1.33%
Holdings represent 15.04% of portfolio
Top 10 holdings as of 03/31/22
1: Sm Energy 1.87%
2: Magnolia Oil Gas Corp 1.62%
3: Hackett Group The 1.50%
4: Limelight Networks 1.48%
5: Major Drilling 1.45%
6: Cnx Resources Corp 1.40%
7: Brookdale Senior Living 1.40%
8: Mrc Global 1.35%
9: Universal Technical Institute 1.25%
10: Option Care Health 1.24%
Holdings represent 14.56% of portfolio
Top 10 holdings as of 02/28/22
1: Sm Energy 1.85%
2: Magnolia Oil Gas Corp 1.69%
3: Brookdale Senior Living 1.42%
4: Hackett Group The 1.40%
5: Lantheus Holdings 1.30%
6: Newpark Resources 1.29%
7: Universal Technical Institute 1.27%
8: Sterling Construction 1.22%
9: Cnx Resources Corp 1.20%
10: Walker Dunlop 1.19%
Holdings represent 13.83% of portfolio


Portfolio Composition as of 05/31/22

Common stock 98.97%
Cash and net other assets 1.03%

Consider these risks before investing: Investments in small and/or midsize companies increase the risk of greater price fluctuations. Value stocks may fail to rebound, and the market may not favor value-style investing. The value of investments in the fund’s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general economic, political, or financial market conditions; investor sentiment and market perceptions; government actions; geopolitical events or changes; and factors related to a specific issuer, geography, industry, or sector. These and other factors may lead to increased volatility and reduced liquidity in the fund’s portfolio holdings. These risks are generally greater for small and midsize companies. From time to time, the fund may invest a significant portion of its assets in companies in one or more related industries or sectors, which would make the fund more vulnerable to adverse developments affecting those industries or sectors. Our investment techniques, analyses, and judgments may not produce the outcome we intend. The investments we select for the fund may not perform as well as other securities that we do not select for the fund. We, or the fund’s other service providers, may experience disruptions or operating errors that could have a negative effect on the fund. You can lose money by investing in the fund. Variable annuities are long-term investments designed for retirement purposes. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.

Top Industry Sectors as of 05/31/22

Financials 25.65%
Industrials 20.98%
Energy 10.12%
Consumer discretionary 8.82%
Information technology 8.44%
Health care 7.43%
Materials 6.65%
Real estate 6.44%
Utilities 1.99%
 
Other
3.48%
Consumer staples 1.68%
Cash and net other assets 1.03%
Communication services 0.77%