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 companies: Often overlooked by Wall Street analysts, the stocks of small companies can represent attractive opportunities to firms with strong research capabilities.A value strategy: The fund focuses on finding small companies whose stocks are priced below their long-term potential, and where there may be a catalyst for positive change.Rigorous research: The portfolio managers and a team of senior research analysts offer the collaboration of a boutique with the extensive resources of a large, global firm.

Management team

Lipper ranking ‡ as of 07/31/19

Category: Small-Cap Value Funds

  Percentile ranking Rank/Funds in category
10 yrs. 48% 18/37
1 yr. 79% 32/40
3 yrs. 59% 24/40
5 yrs. 58% 23/39

Risk Characteristics as of 07/31/19

Alpha (%) -1.68
Beta 1.01
R squared 0.95
Standard deviation (3 yrs.) 17.49

The fund invests all or a portion of its assets in small to midsize companies. Such investments increase the risk of greater price fluctuations. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

‡ 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 117
Turnover (fiscal year end) 561%
Net Assets $113M
Inception Date 04/30/99

Holdings

Top 10 holdings as of 07/31/19

Premier 1.50%
Cedar Fair Lp 1.44%
Mesa Air Group 1.37%
Allete 1.35%
William Lyon Homes 1.33%
Synnex Corp 1.29%
Federal Signal Corp 1.28%
Scorpio Tankers 1.24%
Brookdale Senior Living 1.21%
First Horizon National Corp 1.18%
Top 10 holdings, total: 13.19%

Full Portfolio Holdings as of 06/30/19

PREMIER INC-CLASS A 1.55%
SCORPIO TANKERS INC 1.51%
VERMILION ENERGY INC 1.44%
CEDAR FAIR LP 1.38%
TRONOX HOLDINGS PLC- A 1.35%
WILLIAM LYON HOMES-CL A 1.32%
SYNNEX CORP 1.29%
JABIL INC 1.26%
ALLETE INC 1.23%
MESA AIR GROUP INC 1.22%
BROOKDALE SENIOR LIVING INC 1.16%
PERFICIENT INC 1.15%
VECTRUS INC 1.14%
STERLING BANCORP/DE 1.14%
ZAGG INC 1.13%
ARGO GROUP INTERNATIONAL 1.13%
PORTLAND GENERAL ELECTRIC CO 1.13%
LADDER CAPITAL CORP-REIT 1.11%
UNITIL CORP 1.11%
FEDERAL SIGNAL CORP 1.10%
QTS REALTY TRUST INC-CL A 1.09%
WESCO INTERNATIONAL INC 1.09%
MADISON SQUARE GARDEN CO- A 1.09%
J2 GLOBAL INC 1.09%
CHEMICAL FINANCIAL CORP 1.08%
SP PLUS CORP 1.08%
CACI INTERNATIONAL INC -CL A 1.08%
FIRST HORIZON NATIONAL CORP 1.08%
SYNOVUS FINANCIAL CORP 1.07%
HERMAN MILLER INC 1.05%
HANCOCK WHITNEY CORP 1.04%
PARSONS CORP 1.04%
HERITAGE INSURANCE HOLDINGS 1.02%
COLUMBIA PROPERTY TRUST INC 1.02%
GRANITE POINT MORTGAGE TRUST 1.02%
SPIRIT REALTY CAPITAL INC 1.02%
IBERIABANK CORP 1.00%
REXNORD CORP 1.00%
PROPETRO HOLDING CORP 0.98%
WILLSCOT CORP 0.98%
MAGELLAN HEALTH INC 0.97%
PAR PACIFIC HOLDINGS INC 0.97%
BIG LOTS INC 0.96%
MAGNOLIA OIL & GAS CORP - A 0.96%
UNIVEST FINANCIAL CORP 0.94%
DINE BRANDS GLOBAL INC 0.94%
GAMING AND LEISURE PROPERTIE 0.92%
WALKER & DUNLOP INC 0.91%
WESTERN ALLIANCE BANCORP 0.91%
BOISE CASCADE CO 0.89%
MYR GROUP INC/DELAWARE 0.88%
IMAX CORP 0.88%
OMNOVA SOLUTIONS INC 0.88%
WINTRUST FINANCIAL CORP 0.86%
CHATHAM LODGING TRUST 0.86%
DONNELLEY FINANCIAL SOLUTION 0.85%
ENCANA CORP 0.84%
NETGEAR INC 0.84%
JETBLUE AIRWAYS CORP 0.84%
VERSO CORP - A 0.84%
CLARUS CORP 0.83%
HEIDRICK & STRUGGLES INTL 0.82%
TRIPLEPOINT VENTURE GROWTH B 0.82%
ARCH COAL INC - A 0.82%
CHEESECAKE FACTORY INC/THE 0.82%
LUMENTUM HOLDINGS INC 0.82%
COHU INC 0.82%
STERLING CONSTRUCTION CO 0.80%
COOPER TIRE & RUBBER 0.80%
APOGEE ENTERPRISES INC 0.79%
PREFERRED BANK/LOS ANGELES 0.79%
PHOTRONICS INC 0.79%
HOMESTREET INC 0.79%
FIRST MERCHANTS CORP 0.78%
TPG SPECIALTY LENDING INC 0.76%
AMERIS BANCORP 0.76%
COLUMBUS MCKINNON CORP/NY 0.76%
SHOE CARNIVAL INC 0.74%
MEET GROUP INC/THE 0.73%
EAGLE MATERIALS INC 0.72%
QUANEX BUILDING PRODUCTS 0.72%
OLIN CORP 0.72%
BLOOMIN' BRANDS INC 0.70%
PALOMAR HOLDINGS INC 0.70%
CONNECTONE BANCORP INC 0.69%
ATLANTIC UNION BANKSHARES CO 0.69%
MAYVILLE ENGINEERING CO INC 0.68%
PAPA JOHN S INTL 0.67%
FRANKLIN FINANCIAL NETWORK 0.66%
OFG BANCORP 0.65%
SHENANDOAH TELECOMMUNICATION 0.65%
CAPITOL INVESTMENT CORP IV-A 0.64%
BAIN CAPITAL SPECIALTY FINAN 0.63%
CECO ENVIRONMENTAL CORP 0.63%
INVESTORS BANCORP INC 0.63%
ACADIA HEALTHCARE CO INC 0.63%
ARES CAPITAL CORP 0.59%
HERCULES CAPITAL INC 0.58%
QUAD GRAPHICS INC 0.56%
RANGE RESOURCES CORP 0.51%
CARS.COM INC 0.51%
NEWMARK GROUP INC-CLASS A 0.50%
LIONS GATE ENTERTAINMENT-A 0.49%
CRAFT BREW ALLIANCE INC 0.48%
MASTERCRAFT BOAT HOLDINGS IN 0.48%
CONSOLIDATED WATER CO-ORD SH 0.48%
SELECT ENERGY SERVICES INC-A 0.46%
OCEANFIRST FINANCIAL CORP 0.42%
AMERICAN EAGLE OUTFITTERS 0.41%
CAMDEN NATIONAL CORP 0.40%
SAIA INC 0.40%
RLJ LODGING TRUST 0.40%
FIRST DEFIANCE FINL CORP 0.36%
STORE CAPITAL CORP 0.33%
MANITEX INTERNATIONAL INC 0.30%
COASTAL FINANCIAL CORP/WA 0.17%
BEL FUSE INC-CL B 0.15%
CAPITOL INVESTMENT CO-CW25 0.03%
ADVANSIX INC 0.02%
BANCTEC INC-144A CONTINGENT VALUE RIGHTS 0.00%
FERROGLOBE REPRESENTATION & 0.00%

Prior top 10 holdings

Top 10 holdings as of 07/31/19
1: Premier 1.50%
2: Cedar Fair Lp 1.44%
3: Mesa Air Group 1.37%
4: Allete 1.35%
5: William Lyon Homes 1.33%
6: Synnex Corp 1.29%
7: Federal Signal Corp 1.28%
8: Scorpio Tankers 1.24%
9: Brookdale Senior Living 1.21%
10: First Horizon National Corp 1.18%
Holdings represent 13.19% of portfolio
Top 10 holdings as of 06/30/19
1: Premier 1.55%
2: Scorpio Tankers 1.51%
3: Vermilion Energy 1.44%
4: Cedar Fair Lp 1.38%
5: Tronox Holdings 1.35%
6: William Lyon Homes 1.32%
7: Synnex Corp 1.29%
8: Jabil 1.26%
9: Allete 1.23%
10: Mesa Air Group 1.22%
Holdings represent 13.55% of portfolio
Top 10 holdings as of 05/31/19
1: Cedar Fair Lp 1.55%
2: Premier 1.52%
3: Vermilion Energy 1.46%
4: William Lyon Homes 1.41%
5: Scorpio Tankers 1.40%
6: Mesa Air Group 1.32%
7: Caci International 1.24%
8: Sp Plus Corp 1.24%
9: Allete 1.22%
10: Hancock Whitney Corp 1.22%
Holdings represent 13.58% of portfolio
Top 10 holdings as of 04/30/19
1: Vermilion Energy 1.60%
2: Cedar Fair Lp 1.48%
3: Scorpio Tankers 1.48%
4: Tronox Holdings 1.36%
5: Synnex Corp 1.33%
6: Iberiabank Corp 1.27%
7: Hancock Whitney Corp 1.26%
8: Sp Plus Corp 1.25%
9: Premier 1.24%
10: Perficient 1.23%
Holdings represent 13.50% of portfolio

Portfolio Composition as of 07/31/19

Common stock 98.52%
Cash and net other assets 1.48%

Portfolio allocations 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. Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.Although value investing targets stocks believed to be priced too low, there is no guarantee they will appreciate.

Top Industry Sectors as of 07/31/19

Financials 29.63%
Industrials 16.49%
Consumer discretionary 9.58%
Information technology 9.41%
Energy 7.79%
Real estate 7.27%
Materials 5.44%
Communication services 4.58%
Health care 4.20%
 
Other
5.61%
Utilities 4.13%
Cash and net other assets 1.48%