As of September 14, 2018, Putnam VT Capital Opportunities Fund was renamed Putnam VT Small Cap Growth Fund.

Putnam Capital Manager

Putnam Small Cap Growth Subaccount

The subaccount seeks long-term growth of capital.

Fund description

The subaccount invests primarily in small and midsize companies, seeking hidden opportunities in stocks with growth potential that has been relatively unnoticed by investors. The portfolio can own growth and value stocks without a bias toward either style.

Sales story

Seeking opportunities in small and midsize companiesSmaller companies: Often overlooked by Wall Street analysts, the stocks of smaller companies can represent attractive opportunities to firms with strong research capabilities.A flexible strategy: The fund can own growth- or value-style stocks, allowing it to seek opportunities regardless of which style is in favor.Differentiated research: The portfolio managers select stocks in a collaborative effort that emphasizes non-consensus critical thinking.

Management team

Lipper ranking ‡ as of 09/30/19

Category: Small-Cap Growth Funds

  Percentile ranking Rank/Funds in category
10 yrs. 91% 73/80
1 yr. 12% 11/99
3 yrs. 87% 84/96
5 yrs. 95% 91/95

The subaccount invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. 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.

‡ 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 09/30/19

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 80
Turnover (fiscal year end) 138%
Net Assets $26M
Inception Date 05/01/03

Holdings

Top 10 holdings as of 09/30/19

Wingstop 3.41%
Five Below 3.29%
Mercury Systems 3.19%
Bright Horizons Family Solutions 2.98%
Trex 2.56%
Cable One 2.53%
Realpage 2.48%
Heico Corp 2.39%
Novanta 2.38%
Hamilton Lane 2.36%
Top 10 holdings, total: 27.57%

Full Portfolio Holdings as of 09/30/19

WINGSTOP INC SEDOL BYYXHN4 3.41%
FIVE BELOW SEDOL B85KFY9 3.29%
MERCURY SYSTEMS INC SEDOL 2144047 3.19%
BRIGHT HORIZONS FAMILY SOLUT SEDOL B7MJWP2 2.98%
TREX COMPANY INC SEDOL 2483074 2.56%
CABLE ONE INC SEDOL BZ07DS4 2.52%
REALPAGE INC SEDOL B4W2S29 2.48%
HEICO CORP-CLASS A SEDOL 2237561 2.38%
NOVANTA INC SEDOL BD8S5H8 2.38%
HAMILTON LANE INC-CLASS A SEDOL BF0SR29 2.36%
PLANET FITNESS INC - CL A SEDOL BYSFJV8 1.99%
ALBANY INTL CORP-CL A SEDOL 2012757 1.96%
VERRA MOBILITY CORP SEDOL BFXX5X8 1.88%
MEDPACE HOLDINGS INC SEDOL BDCBC61 1.82%
KINSALE CAPITAL GROUP INC SEDOL BD1MGQ3 1.81%
BRINK'S CO/THE SEDOL 2691305 1.80%
GRAND CANYON EDUCATION INC SEDOL B3F1XM1 1.80%
QUIDEL CORP SEDOL 2717591 1.76%
EVERBRIDGE INC SEDOL BYY5ZB4 1.73%
RBC BEARINGS INC SEDOL B0GLYB5 1.73%
ENTEGRIS INC SEDOL 2599700 1.68%
CONMED CORP SEDOL 2216010 1.67%
PAYLOCITY HOLDING CORP SEDOL BKM4N88 1.64%
INSULET CORP SEDOL B1XGNW4 1.61%
EVO PAYMENTS INC-CLASS A SEDOL BG5NSM3 1.56%
EVERCORE INC - A SEDOL B1BHXZ2 1.53%
SITEONE LANDSCAPE SUPPLY INC SEDOL BYQ7X81 1.50%
EMERGENT BIOSOLUTIONS INC SEDOL B1HJLW5 1.49%
LIVE NATION ENTERTAINMENT IN SEDOL B0T7YX2 1.46%
SAIA INC SEDOL 2982399 1.41%
REPLIGEN CORP SEDOL 2731654 1.38%
PALOMAR HOLDINGS INC SEDOL BJYLZK6 1.32%
COLLIERS INTERNATIONAL GROUP SEDOL BYL7SB4 1.24%
ENVESTNET INC SEDOL B474ZK7 1.13%
TERRENO REALTY CORP SEDOL B3N4753 1.10%
INGEVITY CORP SEDOL BD4LHG4 1.07%
AMEDISYS INC SEDOL 2024332 1.05%
CHURCHILL DOWNS INC SEDOL 2194105 1.03%
U.S. PHYSICAL THERAPY INC SEDOL 2911166 1.03%
HAEMONETICS CORP/MASS SEDOL 2401195 1.01%
Q2 HOLDINGS INC SEDOL BKM4KV0 1.00%
SPS COMMERCE INC SEDOL B57VWJ3 1.00%
HARSCO CORP SEDOL 2412700 0.99%
LIVEPERSON INC SEDOL 2577052 0.99%
PROS HOLDINGS INC SEDOL B1YWQK0 0.96%
BOOT BARN HOLDINGS INC SEDOL BRS6600 0.89%
J2 GLOBAL INC SEDOL B75DGJ3 0.86%
QAD INC-A SEDOL B542255 0.85%
ASCENDIS PHARMA A/S - ADR SEDOL BV9G6B8 0.81%
MARCUS CORPORATION SEDOL 2564827 0.81%
BROOKS AUTOMATION INC 0.80%
CHEGG INC SEDOL BG6N6K6 0.74%
LIGAND PHARMACEUTICALS SEDOL 2501578 0.73%
FIVE9 INC SEDOL BKY7X18 0.72%
TABULA RASA HEALTHCARE INC SEDOL BYQBFS7 0.72%
TACTILE SYSTEMS TECHNOLOGY I SEDOL BZB1XF2 0.70%
MIRATI THERAPEUTICS INC SEDOL BBPK0J0 0.68%
PING IDENTITY HOLDING CORP SEDOL BKT6B49 0.67%
MEDICINES COMPANY SEDOL 2616773 0.66%
NOVA MEASURING INSTRUMENTS SEDOL 2577740 0.64%
MIMECAST LTD SEDOL BYT5JK6 0.62%
TELADOC HEALTH INC SEDOL BYQRFY1 0.61%
TANDEM DIABETES CARE INC SEDOL BF3W461 0.60%
GLOBAL BLOOD THERAPEUTICS IN SEDOL BZ05388 0.58%
MERIT MEDICAL SYSTEMS INC SEDOL 2580555 0.58%
CODEXIS INC SEDOL B5LL2C2 0.57%
HEALTHEQUITY INC SEDOL BP8XZL1 0.57%
ACCELERON PHARMA INC SEDOL BDGTXQ8 0.54%
PENUMBRA INC SEDOL BZ0V201 0.53%
PHREESIA INC SEDOL BKF9DQ8 0.51%
VERACYTE INC SEDOL BFTWZY0 0.46%
PLURALSIGHT INC - A SEDOL BFZCT75 0.45%
LUCKIN COFFEE INC - ADR SEDOL BK57TY2 0.45%
DYNATRACE INC SEDOL BJV2RD9 0.44%
VERICEL CORP SEDOL BSBMN89 0.43%
BLUEPRINT MEDICINES CORP SEDOL BWY52P3 0.42%
CSW INDUSTRIALS INC SEDOL BYQD1J6 0.41%
ANTARES PHARMA INC SEDOL 2383163 0.38%
ORCHARD THERAPEUTICS PLC SEDOL BGT3960 0.33%
MESA LABORATORIES INC SEDOL 2553814 0.32%

Prior top 10 holdings

Top 10 holdings as of 09/30/19
1: Wingstop 3.41%
2: Five Below 3.29%
3: Mercury Systems 3.19%
4: Bright Horizons Family Solutions 2.98%
5: Trex 2.56%
6: Cable One 2.53%
7: Realpage 2.48%
8: Heico Corp 2.39%
9: Novanta 2.38%
10: Hamilton Lane 2.36%
Holdings represent 27.57% of portfolio
Top 10 holdings as of 08/31/19
1: Wingstop 3.90%
2: Mercury Systems 3.19%
3: Bright Horizons Family Solutions 3.05%
4: Five Below 3.03%
5: Heico Corp 2.97%
6: Hamilton Lane 2.50%
7: Cable One 2.47%
8: Realpage 2.38%
9: Everbridge 2.37%
10: Planet Fitness 2.29%
Holdings represent 28.15% of portfolio
Top 10 holdings as of 07/31/19
1: Wingstop 3.58%
2: Mercury Systems 2.91%
3: Heico Corp 2.79%
4: Five Below 2.79%
5: Everbridge 2.69%
6: Bright Horizons Family Solutions 2.69%
7: Planet Fitness 2.43%
8: Hamilton Lane 2.29%
9: Realpage 2.24%
10: Cable One 2.23%
Holdings represent 26.64% of portfolio
Top 10 holdings as of 06/30/19
1: Wingstop 3.65%
2: Five Below 2.94%
3: Heico Corp 2.82%
4: Bright Horizons Family Solutions 2.74%
5: Mercury Systems 2.59%
6: Novanta 2.57%
7: Everbridge 2.42%
8: Planet Fitness 2.31%
9: Hamilton Lane 2.29%
10: Cable One 2.21%
Holdings represent 26.54% of portfolio

Portfolio Composition as of 09/30/19

Common stock 98.81%
Cash and net other assets 1.19%

Portfolio characteristics will vary over time. The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. 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. Growth investing targets companies with above-average earnings that may be subject to price volatility if earnings expectations are not met.

Top Industry Sectors as of 09/30/19

Health care 24.55%
Information technology 22.62%
Industrials 17.95%
Consumer discretionary 16.58%
Financials 8.89%
Communication services 4.80%
Real estate 2.35%
Cash and net other assets 1.19%
Materials 1.07%