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 02/28/19

Category: Small-Cap Growth Funds

  Percentile ranking Rank/Funds in category
10 yrs. 90% 68/75
1 yr. 91% 85/93
3 yrs. 98% 90/91
5 yrs. 98% 82/83

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 02/28/19

Fiscal Year End December
Asset Class Putnam Capital Manager
Subaccount Status Open to new investors
Number of issues 79
Turnover (fiscal year end) 138%
Net Assets $26M
Inception Date 05/01/03

Holdings

Top 10 holdings as of 02/28/19

Five Below 3.22%
Wingstop 2.83%
Mercury Systems 2.55%
Realpage 2.47%
Bright Horizons Family Solutions 2.46%
Novanta 2.44%
Heico Corp 2.39%
Trex 2.29%
Merit Medical Systems 2.18%
Grand Canyon Education 2.15%
Top 10 holdings, total: 24.98%

Equity Holdings as of 12/31/18

FIVE BELOW 3.43%
WINGSTOP INC 3.27%
BRIGHT HORIZONS FAMILY SOLUT 2.65%
MERIT MEDICAL SYSTEMS INC 2.62%
MERCURY SYSTEMS INC 2.33%
REALPAGE INC 2.33%
HEICO CORP-CLASS A 2.25%
NOVANTA INC 2.25%
PLANET FITNESS INC - CL A 2.23%
TREX COMPANY INC 2.17%
GRAND CANYON EDUCATION INC 2.14%
EMERGENT BIOSOLUTIONS INC 2.05%
EVERBRIDGE INC 2.01%
CABLE ONE INC 2.00%
HAMILTON LANE INC-CLASS A 1.95%
INTEGRATED DEVICE TECH INC 1.80%
SITEONE LANDSCAPE SUPPLY INC 1.74%
LITTELFUSE INC 1.73%
QUIDEL CORP 1.70%
EVO PAYMENTS INC-CLASS A 1.67%
EVERCORE INC - A 1.61%
RBC BEARINGS INC 1.59%
LIGAND PHARMACEUTICALS 1.56%
ENVESTNET INC 1.55%
LIVE NATION ENTERTAINMENT IN 1.49%
MEDPACE HOLDINGS INC 1.46%
WORLD WRESTLING ENTERTAIN-A 1.45%
FERRO CORP 1.38%
INSULET CORP 1.36%
CONMED CORP 1.31%
KINSALE CAPITAL GROUP INC 1.28%
ORION ENGINEERED CARBONS SA 1.22%
TABULA RASA HEALTHCARE INC 1.22%
ALTERYX INC - CLASS A 1.21%
QAD INC-A 1.20%
PAYLOCITY HOLDING CORP 1.18%
REPLIGEN CORP 1.15%
MGP INGREDIENTS INC 1.13%
FOCUS FINANCIAL PARTNERS-A 1.12%
ENTEGRIS INC 1.08%
PROTO LABS INC 0.98%
SAIA INC 0.98%
TACTILE SYSTEMS TECHNOLOGY I 0.98%
BWX TECHNOLOGIES INC 0.95%
PROS HOLDINGS INC 0.95%
PENUMBRA INC 0.92%
Q2 HOLDINGS INC 0.92%
HEALTHEQUITY INC 0.91%
HARSCO CORP 0.86%
CHEGG INC 0.85%
NATIONAL VISION HOLDINGS INC 0.85%
SAREPTA THERAPEUTICS INC 0.85%
ALBANY INTL CORP-CL A 0.83%
CODEXIS INC 0.83%
BROOKS AUTOMATION INC 0.79%
EXACT SCIENCES CORP 0.77%
TELADOC HEALTH INC 0.76%
J2 GLOBAL INC 0.74%
ACCELERON PHARMA INC 0.73%
CADENCE BANCORP 0.73%
BLACKLINE INC 0.72%
MIMECAST LTD 0.71%
ARRAY BIOPHARMA INC 0.65%
ASCENDIS PHARMA A/S - ADR 0.64%
GLOBAL BLOOD THERAPEUTICS IN 0.60%
LOXO ONCOLOGY INC 0.60%
ANAPLAN INC 0.55%
MIRATI THERAPEUTICS INC 0.55%
AXOGEN INC 0.54%
2U INC 0.53%
VERICEL CORP 0.52%
AMICUS THERAPEUTICS INC 0.47%
ATARA BIOTHERAPEUTICS INC 0.45%
JOHN BEAN TECHNOLOGIES CORP 0.45%
AT HOME GROUP INC 0.43%
YETI HOLDINGS INC 0.40%
AERIE PHARMACEUTICALS INC 0.39%
SUPERNUS PHARMACEUTICALS INC 0.39%

Full Portfolio Holdings as of 12/31/18

FIVE BELOW 3.43%
WINGSTOP INC 3.27%
BRIGHT HORIZONS FAMILY SOLUT 2.65%
MERIT MEDICAL SYSTEMS INC 2.62%
MERCURY SYSTEMS INC 2.33%
REALPAGE INC 2.33%
HEICO CORP-CLASS A 2.25%
NOVANTA INC 2.25%
PLANET FITNESS INC - CL A 2.23%
TREX COMPANY INC 2.17%
GRAND CANYON EDUCATION INC 2.14%
EMERGENT BIOSOLUTIONS INC 2.05%
EVERBRIDGE INC 2.01%
CABLE ONE INC 2.00%
HAMILTON LANE INC-CLASS A 1.95%
INTEGRATED DEVICE TECH INC 1.80%
SITEONE LANDSCAPE SUPPLY INC 1.74%
LITTELFUSE INC 1.73%
QUIDEL CORP 1.70%
EVO PAYMENTS INC-CLASS A 1.67%
EVERCORE INC - A 1.61%
RBC BEARINGS INC 1.59%
LIGAND PHARMACEUTICALS 1.56%
ENVESTNET INC 1.55%
LIVE NATION ENTERTAINMENT IN 1.49%
MEDPACE HOLDINGS INC 1.46%
WORLD WRESTLING ENTERTAIN-A 1.45%
FERRO CORP 1.38%
INSULET CORP 1.36%
CONMED CORP 1.31%
KINSALE CAPITAL GROUP INC 1.28%
ORION ENGINEERED CARBONS SA 1.22%
TABULA RASA HEALTHCARE INC 1.22%
ALTERYX INC - CLASS A 1.21%
QAD INC-A 1.20%
PAYLOCITY HOLDING CORP 1.18%
REPLIGEN CORP 1.15%
MGP INGREDIENTS INC 1.13%
FOCUS FINANCIAL PARTNERS-A 1.12%
ENTEGRIS INC 1.08%
PROTO LABS INC 0.98%
SAIA INC 0.98%
TACTILE SYSTEMS TECHNOLOGY I 0.98%
BWX TECHNOLOGIES INC 0.95%
PROS HOLDINGS INC 0.95%
PENUMBRA INC 0.92%
Q2 HOLDINGS INC 0.92%
HEALTHEQUITY INC 0.91%
HARSCO CORP 0.86%
CHEGG INC 0.85%
NATIONAL VISION HOLDINGS INC 0.85%
SAREPTA THERAPEUTICS INC 0.85%
ALBANY INTL CORP-CL A 0.83%
CODEXIS INC 0.83%
BROOKS AUTOMATION INC 0.79%
EXACT SCIENCES CORP 0.77%
TELADOC HEALTH INC 0.76%
J2 GLOBAL INC 0.74%
ACCELERON PHARMA INC 0.73%
CADENCE BANCORP 0.73%
BLACKLINE INC 0.72%
MIMECAST LTD 0.71%
ARRAY BIOPHARMA INC 0.65%
ASCENDIS PHARMA A/S - ADR 0.64%
GLOBAL BLOOD THERAPEUTICS IN 0.60%
LOXO ONCOLOGY INC 0.60%
ANAPLAN INC 0.55%
MIRATI THERAPEUTICS INC 0.55%
AXOGEN INC 0.54%
2U INC 0.53%
VERICEL CORP 0.52%
AMICUS THERAPEUTICS INC 0.47%
ATARA BIOTHERAPEUTICS INC 0.45%
JOHN BEAN TECHNOLOGIES CORP 0.45%
AT HOME GROUP INC 0.43%
YETI HOLDINGS INC 0.40%
AERIE PHARMACEUTICALS INC 0.39%
SUPERNUS PHARMACEUTICALS INC 0.39%

Prior top 10 holdings

Top 10 holdings as of 02/28/19
1: Five Below 3.22%
2: Wingstop 2.83%
3: Mercury Systems 2.55%
4: Realpage 2.47%
5: Bright Horizons Family Solutions 2.46%
6: Novanta 2.44%
7: Heico Corp 2.39%
8: Trex 2.29%
9: Merit Medical Systems 2.18%
10: Grand Canyon Education 2.15%
Holdings represent 24.98% of portfolio
Top 10 holdings as of 01/31/19
1: Five Below 3.75%
2: Wingstop 3.02%
3: Mercury Systems 2.54%
4: Bright Horizons Family Solutions 2.49%
5: Realpage 2.43%
6: Merit Medical Systems 2.39%
7: Trex 2.30%
8: Heico Corp 2.26%
9: Novanta 2.24%
10: Planet Fitness 2.18%
Holdings represent 25.60% of portfolio
Top 10 holdings as of 12/31/18
1: Five Below 3.43%
2: Wingstop 3.27%
3: Bright Horizons Family Solutions 2.65%
4: Merit Medical Systems 2.62%
5: Mercury Systems 2.33%
6: Realpage 2.33%
7: Heico Corp 2.25%
8: Novanta 2.25%
9: Planet Fitness 2.23%
10: Trex 2.17%
Holdings represent 25.53% of portfolio
Top 10 holdings as of 11/30/18
1: Five Below 3.13%
2: Wingstop 2.97%
3: Merit Medical Systems 2.63%
4: Bright Horizons Family Solutions 2.57%
5: Grand Canyon Education 2.42%
6: Mercury Systems 2.27%
7: Emergent Biosolutions 2.25%
8: Realpage 2.22%
9: Heico Corp 2.09%
10: Trex 2.07%
Holdings represent 24.62% of portfolio

Portfolio Composition as of 02/28/19

Common stock 96.89%
Cash and net other assets 3.11%

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 02/28/19

Information technology 25.98%
Health care 25.29%
Consumer discretionary 15.15%
Industrials 14.72%
Financials 7.06%
Communication services 4.86%
Cash and net other assets 3.11%
Materials 2.47%
Consumer staples 1.36%