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 10/31/18

Category: Small-Cap Growth Funds

  Percentile ranking Rank/Funds in category
10 yrs. 90% 65/72
1 yr. 98% 92/93
3 yrs. 98% 88/89
5 yrs. 98% 81/82

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 10/31/18

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 79
Turnover (fiscal year end) 157%
Net Assets $24M
Inception Date 05/01/03

Holdings

Top 10 holdings as of 10/31/18

Five Below 3.40%
Wingstop 2.83%
Grand Canyon Education 2.47%
Bright Horizons Family Solutions 2.43%
Merit Medical Systems 2.38%
Realpage 2.28%
John Bean Technologies Corp 2.19%
Mercury Systems 2.05%
Heico Corp 2.04%
Quidel Corp 1.99%
Top 10 holdings, total: 24.06%

Equity Holdings as of 09/30/18

FIVE BELOW 3.36%
WINGSTOP INC 2.68%
REALPAGE INC 2.45%
LIGAND PHARMACEUTICALS 2.43%
TREX COMPANY INC 2.38%
MERIT MEDICAL SYSTEMS INC 2.22%
JOHN BEAN TECHNOLOGIES CORP 2.18%
BRIGHT HORIZONS FAMILY SOLUT 2.16%
MERCURY SYSTEMS INC 2.10%
HEICO CORP 1.95%
GRAND CANYON EDUCATION INC 1.93%
SITEONE LANDSCAPE SUPPLY INC 1.83%
HAMILTON LANE INC-CLASS A 1.80%
EMERGENT BIOSOLUTIONS INC 1.76%
EVERCORE INC - A 1.74%
QUIDEL CORP 1.74%
NOVANTA INC 1.61%
EVERBRIDGE INC 1.59%
FERRO CORP 1.57%
FOCUS FINANCIAL PARTNERS-A 1.56%
CABLE ONE INC 1.54%
ENVESTNET INC 1.54%
LITTELFUSE INC 1.54%
AT HOME GROUP INC 1.44%
INSULET CORP 1.40%
INTEGRATED DEVICE TECH INC 1.34%
QAD INC-A 1.33%
LIVE NATION ENTERTAINMENT IN 1.27%
CONMED CORP 1.21%
PAYLOCITY HOLDING CORP 1.21%
TABULA RASA HEALTHCARE INC 1.20%
ORION ENGINEERED CARBONS SA 1.19%
TACTILE SYSTEMS TECHNOLOGY I 1.17%
HEALTHEQUITY INC 1.11%
KINSALE CAPITAL GROUP INC 1.11%
RINGCENTRAL INC-CLASS A 1.11%
PLANET FITNESS INC - CL A 1.09%
PROTO LABS INC 1.08%
SAIA INC 1.03%
MGP INGREDIENTS INC 1.01%
EVO PAYMENTS INC-CLASS A 1.00%
SAREPTA THERAPEUTICS INC 0.97%
NATIONAL VISION HOLDINGS INC 0.96%
HARSCO CORP 0.95%
ALTERYX INC - CLASS A 0.93%
H AND E EQUIPMENT SERVICES INC 0.93%
REPLIGEN CORP 0.93%
2U INC 0.92%
CADENCE BANCORP 0.87%
Q2 HOLDINGS INC 0.87%
BROOKS AUTOMATION INC 0.86%
BWX TECHNOLOGIES INC 0.85%
PATRICK INDUSTRIES INC 0.84%
BRIGHTVIEW HOLDINGS INC 0.82%
PENUMBRA INC 0.82%
TELADOC HEALTH INC 0.82%
CENTRAL GARDEN AND PET CO-A 0.81%
PROS HOLDINGS INC 0.81%
BLACKLINE INC 0.76%
PROOFPOINT INC 0.76%
EXACT SCIENCES CORP 0.75%
AXOGEN INC 0.74%
SUMMIT MATERIALS INC -CL A 0.73%
ENTEGRIS INC 0.68%
J2 GLOBAL INC 0.68%
MIMECAST LTD 0.68%
ACCELERON PHARMA INC 0.67%
TALEND SA - ADR 0.66%
CHEGG INC 0.65%
CODEXIS INC 0.57%
ASCENDIS PHARMA A/S - ADR 0.55%
ARRAY BIOPHARMA INC 0.54%
SUPERNUS PHARMACEUTICALS INC 0.52%
AERIE PHARMACEUTICALS INC 0.51%
WORLD WRESTLING ENTERTAIN-A 0.51%
MIRATI THERAPEUTICS INC 0.47%
AMICUS THERAPEUTICS INC 0.46%
LOXO ONCOLOGY INC 0.45%
IRONWOOD PHARMACEUTICALS INC 0.41%
GLOBAL BLOOD THERAPEUTICS IN 0.39%
ATARA BIOTHERAPEUTICS INC 0.38%
MEDICINES COMPANY 0.32%
SPARK THERAPEUTICS INC 0.31%
VERICEL CORP 0.31%
SVMK INC 0.14%

Full Portfolio Holdings as of 09/30/18

FIVE BELOW 3.36%
WINGSTOP INC 2.68%
REALPAGE INC 2.45%
LIGAND PHARMACEUTICALS 2.43%
TREX COMPANY INC 2.38%
MERIT MEDICAL SYSTEMS INC 2.22%
JOHN BEAN TECHNOLOGIES CORP 2.18%
BRIGHT HORIZONS FAMILY SOLUT 2.16%
MERCURY SYSTEMS INC 2.10%
HEICO CORP 1.95%
GRAND CANYON EDUCATION INC 1.93%
SITEONE LANDSCAPE SUPPLY INC 1.83%
HAMILTON LANE INC-CLASS A 1.80%
EMERGENT BIOSOLUTIONS INC 1.76%
EVERCORE INC - A 1.74%
QUIDEL CORP 1.74%
NOVANTA INC 1.61%
EVERBRIDGE INC 1.59%
FERRO CORP 1.57%
FOCUS FINANCIAL PARTNERS-A 1.56%
CABLE ONE INC 1.54%
ENVESTNET INC 1.54%
LITTELFUSE INC 1.54%
AT HOME GROUP INC 1.44%
INSULET CORP 1.40%
INTEGRATED DEVICE TECH INC 1.34%
QAD INC-A 1.33%
LIVE NATION ENTERTAINMENT IN 1.27%
CONMED CORP 1.21%
PAYLOCITY HOLDING CORP 1.21%
TABULA RASA HEALTHCARE INC 1.20%
ORION ENGINEERED CARBONS SA 1.19%
TACTILE SYSTEMS TECHNOLOGY I 1.17%
HEALTHEQUITY INC 1.11%
KINSALE CAPITAL GROUP INC 1.11%
RINGCENTRAL INC-CLASS A 1.11%
PLANET FITNESS INC - CL A 1.09%
PROTO LABS INC 1.08%
SAIA INC 1.03%
MGP INGREDIENTS INC 1.01%
EVO PAYMENTS INC-CLASS A 1.00%
SAREPTA THERAPEUTICS INC 0.97%
NATIONAL VISION HOLDINGS INC 0.96%
HARSCO CORP 0.95%
ALTERYX INC - CLASS A 0.93%
H AND E EQUIPMENT SERVICES INC 0.93%
REPLIGEN CORP 0.93%
2U INC 0.92%
CADENCE BANCORP 0.87%
Q2 HOLDINGS INC 0.87%
BROOKS AUTOMATION INC 0.86%
BWX TECHNOLOGIES INC 0.85%
PATRICK INDUSTRIES INC 0.84%
BRIGHTVIEW HOLDINGS INC 0.82%
PENUMBRA INC 0.82%
TELADOC HEALTH INC 0.82%
CENTRAL GARDEN AND PET CO-A 0.81%
PROS HOLDINGS INC 0.81%
BLACKLINE INC 0.76%
PROOFPOINT INC 0.76%
EXACT SCIENCES CORP 0.75%
AXOGEN INC 0.74%
SUMMIT MATERIALS INC -CL A 0.73%
ENTEGRIS INC 0.68%
J2 GLOBAL INC 0.68%
MIMECAST LTD 0.68%
ACCELERON PHARMA INC 0.67%
TALEND SA - ADR 0.66%
CHEGG INC 0.65%
CODEXIS INC 0.57%
ASCENDIS PHARMA A/S - ADR 0.55%
ARRAY BIOPHARMA INC 0.54%
SUPERNUS PHARMACEUTICALS INC 0.52%
AERIE PHARMACEUTICALS INC 0.51%
WORLD WRESTLING ENTERTAIN-A 0.51%
MIRATI THERAPEUTICS INC 0.47%
AMICUS THERAPEUTICS INC 0.46%
LOXO ONCOLOGY INC 0.45%
IRONWOOD PHARMACEUTICALS INC 0.41%
GLOBAL BLOOD THERAPEUTICS IN 0.39%
ATARA BIOTHERAPEUTICS INC 0.38%
MEDICINES COMPANY 0.32%
SPARK THERAPEUTICS INC 0.31%
VERICEL CORP 0.31%
SVMK INC 0.14%

Prior top 10 holdings

Top 10 holdings as of 10/31/18
1: Five Below 3.40%
2: Wingstop 2.83%
3: Grand Canyon Education 2.47%
4: Bright Horizons Family Solutions 2.43%
5: Merit Medical Systems 2.38%
6: Realpage 2.28%
7: John Bean Technologies Corp 2.19%
8: Mercury Systems 2.05%
9: Heico Corp 2.04%
10: Quidel Corp 1.99%
Holdings represent 24.06% of portfolio
Top 10 holdings as of 09/30/18
1: Five Below 3.36%
2: Wingstop 2.68%
3: Realpage 2.45%
4: Ligand Pharmaceuticals 2.43%
5: Trex 2.38%
6: Merit Medical Systems 2.22%
7: John Bean Technologies Corp 2.18%
8: Bright Horizons Family Solutions 2.16%
9: Mercury Systems 2.10%
10: Heico Corp 1.95%
Holdings represent 23.91% of portfolio
Top 10 holdings as of 08/31/18
1: Godaddy 2.43%
2: Costar Group 2.28%
3: Summit Materials 2.23%
4: Burlington Stores 2.17%
5: Talend 2.10%
6: Everbridge 2.10%
7: Discovery 2.05%
8: John Bean Technologies Corp 2.04%
9: Radian Group 1.97%
10: Orion Engineered Carbons 1.97%
Holdings represent 21.34% of portfolio
Top 10 holdings as of 07/31/18
1: Summit Materials 2.49%
2: Godaddy 2.26%
3: Costar Group 2.21%
4: Talend 2.08%
5: Burlington Stores 2.03%
6: Discovery 2.02%
7: John Bean Technologies Corp 1.97%
8: Orion Engineered Carbons 1.92%
9: Radian Group 1.91%
10: Investment Technology Group 1.77%
Holdings represent 20.66% of portfolio

Portfolio Composition as of 10/31/18

Common stock 96.20%
Cash and net other assets 3.80%

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 10/31/18

Health care 26.86%
Information technology 22.52%
Consumer discretionary 16.12%
Industrials 15.14%
Financials 6.95%
Communication services 4.14%
Cash and net other assets 3.80%
Materials 2.43%
Consumer staples 2.04%