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 08/31/19

Category: Small-Cap Growth Funds

  Percentile ranking Rank/Funds in category
10 yrs. 90% 69/76
1 yr. 9% 8/95
3 yrs. 79% 73/92
5 yrs. 90% 82/91

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 08/31/19

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 81
Turnover (fiscal year end) 138%
Net Assets $28M
Inception Date 05/01/03

Holdings

Top 10 holdings as of 08/31/19

Wingstop 3.90%
Mercury Systems 3.19%
Bright Horizons Family Solutions 3.05%
Five Below 3.03%
Heico Corp 2.97%
Hamilton Lane 2.50%
Cable One 2.47%
Realpage 2.38%
Everbridge 2.37%
Planet Fitness 2.29%
Top 10 holdings, total: 28.15%

Full Portfolio Holdings as of 06/30/19

WINGSTOP INC 3.65%
FIVE BELOW 2.94%
HEICO CORP-CLASS A 2.82%
BRIGHT HORIZONS FAMILY SOLUT 2.74%
MERCURY SYSTEMS INC 2.59%
NOVANTA INC 2.57%
EVERBRIDGE INC 2.42%
PLANET FITNESS INC - CL A 2.31%
HAMILTON LANE INC-CLASS A 2.29%
CABLE ONE INC 2.21%
REALPAGE INC 2.18%
MERIT MEDICAL SYSTEMS INC 2.14%
GRAND CANYON EDUCATION INC 1.99%
TREX COMPANY INC 1.87%
ALBANY INTL CORP-CL A 1.69%
EVO PAYMENTS INC-CLASS A 1.63%
RBC BEARINGS INC 1.63%
ENVESTNET INC 1.62%
SITEONE LANDSCAPE SUPPLY INC 1.62%
QUIDEL CORP 1.58%
KINSALE CAPITAL GROUP INC 1.57%
INSULET CORP 1.56%
EVERCORE INC - A 1.52%
LIVE NATION ENTERTAINMENT IN 1.52%
PAYLOCITY HOLDING CORP 1.48%
VERRA MOBILITY CORP 1.48%
PROS HOLDINGS INC 1.46%
ALTERYX INC - CLASS A 1.45%
REPLIGEN CORP 1.44%
CONMED CORP 1.34%
MEDPACE HOLDINGS INC 1.31%
EMERGENT BIOSOLUTIONS INC 1.28%
ENTEGRIS INC 1.24%
BOOT BARN HOLDINGS INC 1.12%
Q2 HOLDINGS INC 1.08%
BRINK'S CO/THE 1.08%
MIRATI THERAPEUTICS INC 1.07%
EXACT SCIENCES CORP 1.06%
HARSCO CORP 1.06%
MGP INGREDIENTS INC 1.00%
ARRAY BIOPHARMA INC 0.98%
WORLD WRESTLING ENTERTAIN-A 0.98%
PENUMBRA INC 0.92%
ASCENDIS PHARMA A/S - ADR 0.90%
TACTILE SYSTEMS TECHNOLOGY I 0.89%
LIVEPERSON INC 0.88%
CHEGG INC 0.88%
INGEVITY CORP 0.88%
LITTELFUSE INC 0.88%
SAIA INC 0.87%
QAD INC-A 0.86%
SAREPTA THERAPEUTICS INC 0.84%
LIGAND PHARMACEUTICALS 0.84%
FOCUS FINANCIAL PARTNERS-A 0.84%
BROOKS AUTOMATION INC 0.78%
HEALTHEQUITY INC 0.77%
MIMECAST LTD 0.76%
ANAPLAN INC 0.75%
CODEXIS INC 0.72%
PALOMAR HOLDINGS INC 0.71%
TABULA RASA HEALTHCARE INC 0.66%
FIVE9 INC 0.62%
GLOBAL BLOOD THERAPEUTICS IN 0.59%
J2 GLOBAL INC 0.58%
TELADOC HEALTH INC 0.55%
MARCUS CORPORATION 0.54%
ACCELERON PHARMA INC 0.53%
PLURALSIGHT INC - A 0.51%
TANDEM DIABETES CARE INC 0.50%
VERICEL CORP 0.50%
AMICUS THERAPEUTICS INC 0.47%
VOCERA COMMUNICATIONS INC 0.42%
ORCHARD THERAPEUTICS PLC 0.36%
NOVA MEASURING INSTRUMENTS 0.35%
ANTARES PHARMA INC 0.34%
AERIE PHARMACEUTICALS INC 0.34%
INTERCEPT PHARMACEUTICALS IN 0.29%
COLLIERS INTERNATIONAL GROUP 0.25%
LUCKIN COFFEE INC - ADR 0.20%

Prior top 10 holdings

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
Top 10 holdings as of 05/31/19
1: Five Below 3.47%
2: Wingstop 3.41%
3: Heico Corp 2.95%
4: Mercury Systems 2.78%
5: Bright Horizons Family Solutions 2.74%
6: Planet Fitness 2.68%
7: Novanta 2.40%
8: Realpage 2.37%
9: Everbridge 2.34%
10: Cable One 2.32%
Holdings represent 27.46% of portfolio

Portfolio Composition as of 08/31/19

Common stock 98.54%
Cash and net other assets 1.46%

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 08/31/19

Information technology 24.67%
Health care 23.98%
Consumer discretionary 17.07%
Industrials 16.81%
Financials 8.59%
Communication services 4.68%
Real estate 1.91%
Cash and net other assets 1.46%
Materials 0.83%