Capital Opportunities Fund  (PYCOX)

Seeking opportunities in small and midsize companies

Objective

The fund seeks long-term growth of capital.

Strategy and process

  • Smaller companies: Often overlooked by Wall Street analysts, the stocks of smaller companies can represent attractive opportunities.
  • A flexible strategy: A core investment approach enables the fund to invest in both growth and value stocks.
  • Differentiated research: The portfolio managers select stocks in a collaborative effort that emphasizes non-consensus critical thinking.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $16.50
-0.06% | $-0.01
$16.81
10/02/17
$15.49
03/21/17
Historical fund price

Fund facts as of 10/31/17

Total net assets
$311.75M
Turnover (fiscal year end)
167%
Dividend frequency
Annually
Number of holdings
96
Fiscal year-end
April
CUSIP / Fund code
746802354 / 1854
Inception date
10/02/00
Class Y  
Category
Blend
Open to new investors
Ticker
PYCOX

Management team


Co-Director of Equity Research

Co-Director of Equity Research

Portfolio Manager, Analyst

Portfolio Manager, Analyst

Portfolio Manager, Analyst



Performance

  • Total return (%) as of 09/30/17

  • Annual performance as of 09/30/17

Annualized performance 1 yr. 3 yrs. 5 yrs. 10 yrs.
Before sales charge 15.45% 7.12% 11.03% 7.35%
After sales charge N/A N/A N/A N/A
Russell 2500 Index 17.79% 10.60% 13.86% 8.19%

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you sell your shares. To obtain the most recent month-end performance, visit putnam.com. Performance assumes reinvestment of distributions and does not account for taxes. Returns before sales charge do not reflect the current maximum sales charges as indicated below. Had the sales charge been reflected, returns would be lower. Returns at public offering price (after sales charge) for class A and class M shares reflect the current maximum initial sales charges of 5.75% and 3.50% for equity funds and Putnam Absolute Return 500 Fund and 700 Fund, and 4.00% and 3.25% for income funds (1.00% and 0.75% for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund and 300 Fund, and Putnam Short-Term Municipal Income Fund), respectively. Class B share returns reflect the applicable contingent deferred sales charge (CDSC), which is 5% in the first year, declining to 1% in the sixth year, and is eliminated thereafter (except for Putnam Floating Rate Income Fund, Putnam Absolute Return 100 Fund and 300 Fund, and Putnam Short-Term Municipal Income Fund, which is 1% in the first year, declining to 0.5% in the second year, and is eliminated thereafter). Class C shares reflect a 1% CDSC the first year that is eliminated thereafter. Performance for class B, C, M, R, T1, and Y shares prior to their inception is derived from the historical performance of class A shares, adjusted for the applicable sales charge (or CDSC) and, except for class Y shares, the higher operating expenses for such shares (with the exception of Putnam Tax-Free High Yield Fund and Putnam AMT-Free Municipal Fund, which are based on the historical performance of class B shares). Class R5/R6 shares, available to qualified employee-benefit plans only, are sold without an initial sales charge and have no CDSC. Class Y shares are generally only available for corporate and institutional clients and have no initial sales charge. Performance for Class R5/R6 shares before their inception are derived from the historical performance of class Y shares, which have not been adjusted for the lower expenses; had they, returns would have been higher. Class A, M, and T1 shares of Putnam money market funds have no initial sales charge. For a portion of the period, some funds had expenses limitations or had been sold on a limited basis with limited assets and expenses, without which returns would be lower.

Performance snapshot

  Before sales charge After sales charge
1 mt. as of 10/31/17 -1.14 % -
YTD as of 11/22/17 5.91 % -

Risk-adjusted performance as of 10/31/17

Alpha (3 yrs.) -4.13
Sharpe ratio (3 yrs.) 0.40
Treynor ratio (3 yrs.) 5.07
Information ratio (3 yrs.) -1.25

Volatility as of 10/31/17

Standard deviation (3 yrs.) 12.29%
Beta 0.98
R-squared 0.92

Capture ratio as of 10/31/17

Up-market (3 yrs.) 85.24
Down-market (3 yrs.) 109.27

Lipper rankings as of 10/31/17

Small-Cap Core Funds Percentile ranking Rank/Funds in category
1 yr. 90% 913/1020
3 yrs. 91% 757/839
5 yrs. 88% 627/715
10 yrs. 50% 253/511

Morningstar ratings as of 10/31/17

Small Blend Rating Funds in category
Overall (655)
3 yrs. (655)
5 yrs. (559)
10 yrs. (394)

Distributions

Record/Ex dividend date 12/07/16
Payable date 12/09/16
Income $0.139
Extra income $0.0
Short-term cap. gain $0.0
Long-term cap. gain $0.99

Lipper rankings are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Lipper. Past performance is not indicative of future results.

The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

The up-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen. The ratio is calculated by dividing the manager’s returns by the returns of the index during the up-market, and multiplying that factor by 100. The down-market capture ratio is used to evaluate how well an investment manager performed relative to an index during periods when that index has dropped. The ratio is calculated by dividing the manager’s returns by the returns of the index during the down-market and multiplying that factor by 100.


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Holdings

Top 10 holdings as of 10/31/17

Summit Materials 2.94%
Radian Group 2.36%
Dxc Technology 2.17%
Brunswick Corp/De 1.99%
Owens Corning 1.90%
Gaming And Leisure Properties 1.76%
Hamilton Lane 1.71%
Easterly Government Properties 1.66%
Investment Technology Group 1.64%
Ball Corp 1.62%
Top 10 holdings, percent of portfolio 19.75%

Full portfolio holdings as of 09/30/17

SUMMIT MATERIALS INC -CL A 2.92%
BRUNSWICK CORP 2.14%
RADIAN GROUP INC 2.05%
DXC TECHNOLOGY CO 1.99%
RPC GROUP PLC 1.85%
GAMING AND LEISURE PROPERTIE 1.74%
OWENS CORNING 1.73%
INSTRUCTURE INC 1.68%
HAMILTON LANE INC-CLASS A 1.67%
EASTERLY GOVERNMENT PROPERTI 1.66%
GOODYEAR TIRE & RUBBER CO 1.66%
CLOVIS ONCOLOGY INC 1.65%
EVERBRIDGE INC 1.54%
COLONY NORTHSTAR INC-CLASS A 1.53%
BALL CORP 1.52%
INVESTMENT TECHNOLOGY GROUP 1.50%
J. JILL INC 1.46%
ANGI HOMESERVICES INC- A 1.45%
NEW YORK REIT INC 1.43%
SANDERSON FARMS INC 1.40%
PEOPLES BANCORP INC 1.37%
REALPAGE INC 1.37%
ECHOSTAR CORP-A 1.36%
W.R. GRACE & CO 1.36%
JELD-WEN HOLDING INC 1.32%
ORION ENGINEERED CARBONS SA 1.31%
L3 TECHNOLOGIES INC 1.30%
EAST WEST BANCORP INC 1.27%
GODADDY INC - CLASS A 1.26%
WYNDHAM WORLDWIDE CORP 1.23%
EDGEWELL PERSONAL CARE CO 1.21%
SBA COMMUNICATIONS CORP 1.21%
ALLETE INC 1.15%
ASTEC INDUSTRIES INC 1.15%
JAZZ PHARMACEUTICALS PLC 1.14%
MEDICINES COMPANY 1.14%
ACLARIS THERAPEUTICS INC 1.12%
EMPLOYERS HOLDINGS INC 1.11%
FIRST REPUBLIC BANK/CA 1.11%
ALCOA CORP 1.10%
TERADYNE INC 1.10%
MALIBU BOATS INC - A 1.08%
UMPQUA HOLDINGS CORP 1.08%
CSRA INC 1.07%
J2 GLOBAL INC 1.06%
QORVO INC 1.04%
SELECT MEDICAL HOLDINGS CORP 1.04%
CAVIUM INC 1.03%
SIMPLY GOOD FOODS CO/THE 1.02%
SERVICE CORP INTERNATIONAL 0.99%
ONE GAS INC 0.97%
H AND E EQUIPMENT SERVICES INC 0.90%
ASSURED GUARANTY LTD 0.88%
DSW INC-CLASS A 0.88%
GRAPHIC PACKAGING HOLDING CO 0.88%
OSHKOSH CORP 0.88%
BURLINGTON STORES INC 0.87%
WP CAREY INC 0.80%
RIGHTMOVE PLC 0.78%
LIVE NATION ENTERTAINMENT IN 0.75%
PACWEST BANCORP 0.75%
ALNYLAM PHARMACEUTICALS INC 0.72%
OGE ENERGY CORP 0.72%
ENCANA CORP 0.70%
KANSAS CITY SOUTHERN 0.69%
POWERSHARES S&P SC INDUSTRIA 0.68%
DAVE & BUSTER'S ENTERTAINMEN 0.67%
SMITH (A.O.) CORP 0.67%
MULESOFT INC -A 0.65%
OLD NATIONAL BANCORP 0.65%
PUMA BIOTECHNOLOGY INC 0.65%
MBIA INC 0.63%
PARSLEY ENERGY INC-CLASS A 0.63%
ARRAY BIOPHARMA INC 0.62%
PACIRA PHARMACEUTICALS INC 0.60%
PENUMBRA INC 0.60%
BIO-RAD LABORATORIES-A 0.58%
GENMARK DIAGNOSTICS INC 0.58%
PROTHENA CORP PLC 0.58%
BIOVERATIV INC 0.56%
NUVISTA ENERGY LTD 0.56%
SEVEN GENERATIONS ENERGY - A 0.56%
TEXAS CAPITAL BANCSHARES INC 0.54%
POPULAR INC 0.48%
SELECT ENERGY SERVICES INC-A 0.40%
PATTERSON-UTI ENERGY INC 0.39%
RADIUS HEALTH INC 0.39%
HANNON ARMSTRONG SUSTAINABLE 0.36%
TARGA RESOURCES CORP 0.36%
WPX ENERGY INC 0.35%
DICKS SPORTING 0.34%
OCEANEERING INTL INC 0.30%
RICE ENERGY INC 0.25%
NRG ENERGY INC 0.24%
CALIFORNIA WATER SERVICE GRP 0.23%
EMIN RUSSELL 2000 DEC17 RTYZ7 0.02%
SEE 20180119 C 50.00BCBP 0.01%
S&P MID 400 EMINI DEC17 FAZ7 0.00%
S&P500 EMINI FUT DEC17 ESZ7 0.00%
SEE 20180119 C 55.00BCBP 0.00%

Prior top 10 holdings

Top 10 holdings as of 10/31/17
Summit Materials
Radian Group
Dxc Technology
Brunswick Corp/De
Owens Corning
Gaming And Leisure Properties
Hamilton Lane
Easterly Government Properties
Investment Technology Group
Ball Corp
Holdings represent 19.75% of portfolio
Top 10 holdings as of 09/30/17
Summit Materials
Brunswick Corp/De
Radian Group
Dxc Technology
Rpc Group
Hamilton Lane
Gaming And Leisure Properties
Owens Corning
Instructure
Easterly Government Properties
Holdings represent 19.51% of portfolio
Top 10 holdings as of 08/31/17
Summit Materials
Brunswick Corp/De
Dxc Technology
Radian Group
Gaming And Leisure Properties
Rpc Group
Jazz Pharmaceuticals
Owens Corning
Hamilton Lane
Easterly Government Properties
Holdings represent 19.38% of portfolio
Top 10 holdings as of 07/31/17
Summit Materials
Brunswick Corp/De
Dxc Technology
Radian Group
Colony Northstar
Gaming And Leisure Properties
Jazz Pharmaceuticals
Rpc Group
J. Jill
Easterly Government Properties
Holdings represent 19.96% of portfolio

Portfolio composition as of 10/31/17

Common stock 97.67%
Cash and net other assets 2.33%

Equity statistics as of 10/31/17

Median market cap $4.41B
Weighted average market cap $5.60B
Price to book 2.68
Price to earnings 26.26

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific company or industry. You can lose money by investing in the fund.

Top Industry Sectors as of 10/31/17

Information technology 19.94%
Financials 16.26%
Materials 11.60%
Consumer discretionary 10.29%
Industrials 10.16%
Health care 9.48%
Real estate 8.56%
Energy 4.51%
Consumer staples 3.47%
 
Other
5.73%
Utilities 3.40%
Cash and net other assets 2.33%

The unclassified sector (where applicable) includes exchange traded funds and other securities not able to be classified by sector.

Sectors will vary over time. Represents the equity portion of the portfolio.


Expenses

Expense ratio

Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
Total expense ratio 1.37% 2.12% 2.12% 1.87% 1.62% 1.05% 0.95% 1.12%
What you pay 1.37% 2.12% 2.12% 1.87% 1.62% 1.05% 0.95% 1.12%

Sales charge/Dealer allowance

 Breakpoint Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
$0-$49,999 5.75% / 5.00% 0.00% / 4.00% 0.00% / 1.00% 3.50% / 3.00% -- -- -- --
$50,000-$99,999 4.50% / 3.75% 0.00% / 4.00% 0.00% / 1.00% 2.50% / 2.00% -- -- -- --
$100,000-$249,999 3.50% / 2.75% -- 0.00% / 1.00% 1.50% / 1.00% -- -- -- --
$250,000-$499,999 2.50% / 2.00% -- 0.00% / 1.00% 1.00% / 1.00% -- -- -- --
$500,000-$999,999 2.00% / 1.75% -- 0.00% / 1.00% 1.00% / 1.00% -- -- -- --
$1M-$4M 0.00% / 1.00% -- -- -- -- -- -- --
$4M-$50M 0.00% / 0.50% -- -- -- -- -- -- --
$50M+ 0.00% / 0.25% -- -- -- -- -- -- --

CDSC

  Class A (sales for $1,000,000+) Class B Class C Class M Class R Class R5 Class R6 Class Y
0 to 9 mts. 1.00% 5.00% 1.00% -- -- -- -- --
9 to 12 mts. 0.00% 5.00% 1.00% -- -- -- -- --
2 yrs. -- 4.00% 0.00% -- -- -- -- --
3 yrs. -- 3.00% 0.00% -- -- -- -- --
4 yrs. -- 3.00% 0.00% -- -- -- -- --
5 yrs. -- 2.00% 0.00% -- -- -- -- --
6 yrs. -- 1.00% 0.00% -- -- -- -- --
7+ yrs. -- 0.00% 0.00% -- -- -- -- --

Trail commissions

  Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
  0.25% 0.25% 1.00% 0.65% 0.50% 0.00% 0.00% 0.00%
  NA NA NA NA NA NA NA NA
  NA NA NA NA NA NA NA NA

For sales and trail commission information on purchases over $1 million and participant-directed qualified retirement plans, see a Putnam fund prospectus and the statement of additional information.

The Russell 2500 Index is an unmanaged index of 2,500 small and midsize companies in the Russell 3000 Index. The Russell 2000 Index is an unmanaged list of common stocks that is frequently used as a general performance measure of U.S. stocks of small and/or midsize companies. You cannot invest directly in an index.

Consider these risks before investing: Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific company or industry. You can lose money by investing in the fund.