Capital Opportunities Fund  (PCOAX)

Seeking opportunities in small and midsize companies

Objective

The fund seeks long-term growth of capital.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $15.98
-0.06% | $-0.01
$16.30
10/03/17
$13.99
11/03/16
Historical fund price

Fund facts as of 09/30/17

Total net assets
$319.71M
Turnover (fiscal year end)
167%
Dividend frequency
Annually
Number of holdings
95
Fiscal year end
April
CUSIP / Fund code
746802693 / 0054
Inception Date
06/01/98
Category
Blend
Open to new investors
Ticker
PCOAX

Management team


Co-Director of Equity Research

Co-Director of Equity Research

Portfolio Manager, Analyst

Portfolio Manager, Analyst

Portfolio Manager, Analyst

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.

Literature


Longevity and medical costs – education for the great unknowns
Understanding the impact of longevity and medical costs on savings requires education and a proactive approach to saving.
Why a meaningful near-term market correction is unlikely
2017 is a rare year without a stock market correction of at least 5%, but that doesn't make a correction more likely in the fourth quarter.
How the Japan election may influence global interest rates
The Japan election could have consequences for the future leadership of the Bank of Japan and the country's impact on global interest rate trends.

Performance

Consistency of positive performance over five years

Performance represents 5-year returns in rolling quarter-end periods since inception.

Performance shown above does not reflect the effects of any sales charges. Note that returns of 0.00% are counted as positive periods. For complete fund performance, please see below.

26.24%

Best 5-year annualized return

(for period ending 03/31/14)


-5.24%

Worst 5-year annualized return

(for period ending 03/31/09)


8.23%

Average 5-year annualized return


  • 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 15.23% 6.88% 10.76% 7.08%
After sales charge 8.60% 4.79% 9.46% 6.45%
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 09/30/17 4.31 % -1.68 %
YTD as of 10/19/17 5.62 % -0.46 %

Risk-adjusted performance as of 09/30/17

Alpha (3 yrs.) -3.54
Sharpe ratio (3 yrs.) 0.53
Treynor ratio (3 yrs.) 6.74
Information ratio (3 yrs.) -1.17

Volatility as of 09/30/17

Standard deviation (3 yrs.) 12.42%
Beta 0.98
R-squared 0.93

Capture ratio as of 09/30/17

Up-market (3 yrs.) 89.08
Down-market (3 yrs.) 110.04

Lipper rankings as of 09/30/17

Small-Cap Core Funds Percentile ranking Rank/Funds in category
1 yr. 86% 866/1007
3 yrs. 90% 741/831
5 yrs. 87% 612/707
10 yrs. 56% 282/511

Morningstar ratings as of 09/30/17

Small Blend Rating Funds in category
Overall (653)
3 yrs. (653)
5 yrs. (554)
10 yrs. (393)

Distributions

Record/Ex dividend date 12/07/16
Payable date 12/09/16
Income $0.102
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.


Holdings

Top 10 holdings as of 09/30/17

Summit Materials 2.92%
Brunswick Corp/De 2.14%
Radian Group 2.05%
Dxc Technology 1.99%
Rpc Group 1.85%
Hamilton Lane 1.75%
Gaming And Leisure Properties 1.74%
Owens Corning 1.73%
Instructure 1.68%
Easterly Government Properties 1.66%
Top 10 holdings, percent of portfolio 19.51%

Full portfolio holdings as of 06/30/17

BRUNSWICK CORP 2.33%
SUMMIT MATERIALS INC -CL A 2.31%
DXC TECHNOLOGY CO 2.02%
RADIAN GROUP INC 1.91%
GAMING AND LEISURE PROPERTIE 1.89%
GOODYEAR TIRE & RUBBER CO 1.86%
HAMILTON LANE INC-CLASS A 1.85%
COLONY NORTHSTAR INC-CLASS A 1.83%
JAZZ PHARMACEUTICALS PLC 1.82%
EASTERLY GOVERNMENT PROPERTI 1.80%
J. JILL INC 1.75%
NEW YORK REIT INC 1.68%
EAST WEST BANCORP INC 1.64%
DIEBOLD NIXDORF INC 1.55%
INVESTMENT TECHNOLOGY GROUP 1.54%
INSTRUCTURE INC 1.50%
PEOPLES BANCORP INC 1.49%
RPC GROUP PLC 1.47%
ASSURED GUARANTY LTD 1.42%
EVERBRIDGE INC 1.42%
SBA COMMUNICATIONS CORP 1.41%
W.R. GRACE & CO 1.40%
QORVO INC 1.39%
OWENS CORNING 1.34%
POPULAR INC 1.31%
INDUSTRIAL SELECT SECT SPDR 1.30%
UMPQUA HOLDINGS CORP 1.30%
ECHOSTAR CORP-A 1.27%
WYNDHAM WORLDWIDE CORP 1.25%
REALPAGE INC 1.23%
J2 GLOBAL INC 1.22%
PACIRA PHARMACEUTICALS INC 1.22%
STERICYCLE INC 1.22%
ACLARIS THERAPEUTICS INC 1.21%
CLOVIS ONCOLOGY INC 1.21%
KAPSTONE PAPER AND PACKAGING 1.20%
PROOFPOINT INC 1.20%
SELECT MEDICAL HOLDINGS CORP 1.20%
TERADYNE INC 1.16%
FIRST REPUBLIC BANK/CA 1.14%
EDGEWELL PERSONAL CARE CO 1.11%
EMPLOYERS HOLDINGS INC 1.10%
SANDERSON FARMS INC 1.07%
SEALED AIR CORP 1.06%
DAVE & BUSTER'S ENTERTAINMEN 1.03%
NOMAD FOODS LTD 1.03%
SERVICE CORP INTERNATIONAL 1.03%
ASTEC INDUSTRIES INC 0.99%
HAWAIIAN HOLDINGS INC 0.99%
ALLETE INC 0.92%
BURLINGTON STORES INC 0.90%
COMMERCIAL METALS CO 0.89%
H AND E EQUIPMENT SERVICES INC 0.88%
ONE GAS INC 0.86%
RIGHTMOVE PLC 0.85%
CAVIUM INC 0.78%
POWERSHARES S&P SC INDUSTRIA 0.78%
BALL CORP 0.77%
PACWEST BANCORP 0.74%
ORION ENGINEERED CARBONS SA 0.70%
PARSLEY ENERGY INC-CLASS A 0.70%
KANSAS CITY SOUTHERN 0.68%
JELD-WEN HOLDING INC 0.65%
FINISH LINE/THE - CL A 0.64%
LIVE NATION ENTERTAINMENT IN 0.64%
SS&C TECHNOLOGIES HOLDINGS 0.64%
COTY INC-CL A 0.63%
GRAPHIC PACKAGING HOLDING CO 0.63%
MONDI PLC 0.63%
BIOVERATIV INC 0.61%
BIO-RAD LABORATORIES-A 0.60%
NEUROCRINE BIOSCIENCES INC 0.60%
PENUMBRA INC 0.60%
ARRAY BIOPHARMA INC 0.59%
ENDO INTERNATIONAL PLC 0.59%
MALIBU BOATS INC - A 0.59%
MEDICINES COMPANY 0.59%
SEVEN GENERATIONS ENERGY - A 0.59%
WESCO INTERNATIONAL INC 0.58%
GENMARK DIAGNOSTICS INC 0.57%
NUVISTA ENERGY LTD 0.57%
OGE ENERGY CORP 0.57%
ENCANA CORP 0.55%
DEL TACO RESTAURANTS INC 0.54%
DICKS SPORTING 0.53%
TEXAS CAPITAL BANCSHARES INC 0.52%
QEP RESOURCES INC 0.46%
WIX.COM LTD 0.42%
BOOZ ALLEN HAMILTON HOLDINGS 0.35%
PATTERSON-UTI ENERGY INC 0.35%
HANNON ARMSTRONG SUSTAINABLE 0.31%
ZAYO GROUP HOLDINGS INC 0.31%
SELECT ENERGY SERVICES INC-A 0.30%
NEXTERA ENERGY PARTNERS LP 0.27%
OCEANEERING INTL INC 0.25%
RICE ENERGY INC 0.22%
CALIFORNIA WATER SERVICE GRP 0.20%
POUND STERLING CALL ACCOUNT 0.16%
CANADIAN DOLLAR ACCOUNT 0.07%
SEE 20180119 C 50.00BCBP 0.02%
RUSSELL 2000 MINI SEP17 RTAU7 0.00%
S&P MID 400 EMINI SEP17 FAU7 0.00%
S&P500 EMINI FUT SEP17 ESU7 0.00%
SEE 20180119 C 55.00BCBP -0.01%

Prior top 10 holdings

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
Top 10 holdings as of 06/30/17
Brunswick Corp/De
Summit Materials
Dxc Technology
Radian Group
Gaming And Leisure Properties
Goodyear Tire Rubber The
Hamilton Lane
Colony Northstar
Jazz Pharmaceuticals
Easterly Government Properties
Holdings represent 19.62% of portfolio

Portfolio composition as of 09/30/17

Common stock 97.04%
Cash and net other assets 2.96%

Equity statistics as of 09/30/17

Median market cap $4.28B
Weighted average market cap $5.39B
Price to book 2.57
Price to earnings 25.15

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 09/30/17

Information technology 15.92%
Financials 15.53%
Consumer discretionary 13.53%
Health care 11.98%
Materials 10.94%
Industrials 9.34%
Real estate 8.37%
Energy 4.50%
Consumer staples 3.63%
 
Other
6.26%
Utilities 3.31%
Cash and net other assets 2.95%

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

Investment Breakpoint Class A Class B Class C Class M Class R Class R5 Class R6 Class Y
$0-$49,999 5.75% 0.00% 0.00% 3.50% -- -- -- --
$50,000-$99,999 4.50% 0.00% 0.00% 2.50% -- -- -- --
$100,000-$249,999 3.50% -- 0.00% 1.50% -- -- -- --
$250,000-$499,999 2.50% -- 0.00% 1.00% -- -- -- --
$500,000-$999,999 2.00% -- 0.00% 1.00% -- -- -- --
$1M-$4M 0.00% -- -- -- -- -- -- --
$4M-$50M 0.00% -- -- -- -- -- -- --
$50M+ 0.00% -- -- -- -- -- -- --

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% -- -- -- -- --

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.