Equity Spectrum Fund  (PYSAX)

Pursuing aggressive growth and mispriced opportunities

Objective

The fund seeks capital appreciation.

Fund price

Yesterday’s close 52-week high 52-week low
Net asset value $38.24
0.08% | $0.03
$41.95
07/25/17
$32.28
11/03/16
Historical fund price

Fund facts as of 09/30/17

Total net assets
$1,175.59M
Turnover (fiscal year end)
11%
Dividend frequency
Annually
Number of holdings
32
Fiscal year end
April
CUSIP / Fund code
74676P169 / 0073
Inception Date
05/18/09
Category
Blend
Open to new investors
Ticker
PYSAX

Management team


Portfolio Manager

Strategy and process

  • Strategic research: The fund can pursue mispriced stocks or those that attract little research coverage, with the potential to outperform market averages.
  • Opportunity set: The fund can hold large positions in high-conviction ideas, but may also short sell securities and maintain a significant cash position.
  • Seasoned manager: Portfolio manager David Glancy has specialized in leveraged companies since 1987, building a successful record over nearly three decades.

Literature


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.
Using and enhancing ESG investment data
ESG data is having investment impact but is still evolving, and stands to benefit from feedback offered by fundamental analysts.

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.

27.97%

Best 5-year annualized return

(for period ending 06/30/14)


7.39%

Worst 5-year annualized return

(for period ending 06/30/16)


15.18%

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. Life (inception: 05/18/09 )
Before sales charge 13.58% 0.50% 9.70% 15.64%
After sales charge 7.05% -1.46% 8.41% 14.82%
S&P 500 Index 18.61% 10.81% 14.22% --

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 -0.99 % -6.68 %
YTD as of 10/16/17 7.45 % 1.27 %

Risk-adjusted performance as of 09/30/17

Alpha (3 yrs.) -10.03
Sharpe ratio (3 yrs.) 0.02
Treynor ratio (3 yrs.) 0.25
Information ratio (3 yrs.) -1.22

Volatility as of 09/30/17

Standard deviation (3 yrs.) 12.83%
Beta 0.97
R-squared 0.57

Capture ratio as of 09/30/17

Up-market (3 yrs.) 71.50
Down-market (3 yrs.) 156.49

Morningstar ratings as of 09/30/17

Mid-Cap Blend Rating Funds in category
Overall (354)
3 yrs. (354)
5 yrs. (321)

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 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

Jazz Pharmaceuticals 19.42%
Dish Network Corp 17.65%
Echostar Corp 16.02%
Staar Surgical 6.29%
Uber Technologies 5.04%
Altisource Portfolio Solutions 4.24%
American Airlines Group 3.97%
Altisource Asset Management Corp 3.39%
Wr Grace 2.84%
United Continental Holdings 2.31%
Top 10 holdings, percent of portfolio 81.17%

Full portfolio holdings as of 06/30/17

DISH NETWORK CORP-A 19.13%
JAZZ PHARMACEUTICALS PLC 19.10%
ECHOSTAR CORP-A 15.50%
STAAR SURGICAL CO 4.98%
UBER TECH INC P/P CV PFD 4.60%
AMERICAN AIRLINES GROUP INC 3.84%
ALTISOURCE PORTFOLIO SOL 3.26%
UNITED CONTINENTAL HOLDINGS 2.61%
W.R. GRACE & CO 2.58%
GENMARK DIAGNOSTICS INC 2.57%
PIONEER NAT RES CO 2.00%
ALTISOURCE ASSET MANAGEMENT 1.92%
ALTISOURCE ASSET MAN P/P 00.0000 CV PFD 1.41%
DELIVERY HERO HOLDIN P/P 1.21%
HC2 HOLDINGS INC 1.09%
CARDIOME PHARMA CORP 1.08%
VANECK VECTORS GOLD MINERS E 0.76%
JOHNSON CONTROLS INTERNATION 0.63%
NORTHROP GRUMMAN CORP 0.56%
SPDR S&P OIL & GAS EXP & PR 0.52%
CHENIERE ENERGY INC 0.38%
MEDICINES COMPANY 0.35%
ALTISOURCE RESIDENTIAL CORP 0.34%
CF INDUSTRIES HOLDINGS INC 0.34%
TRIVAGO NV - ADR 0.32%
ALCOA CORP 0.30%
PENTAIR PLC 0.29%
EQT CORP 0.21%
GLOBAL FASHION GRP P/P 0.13%
FABFURNISH GMBH P/P 0.00%
GLOBAL EAGLE ENTERTAINMENT I 0.00%
NEW BIGFOOT OTHER AS P/P 0.00%
NEW MIDDLE EAST OTHE P/P 0.00%

Prior top 10 holdings

Top 10 holdings as of 09/30/17
Jazz Pharmaceuticals
Dish Network Corp
Echostar Corp
Staar Surgical
Uber Technologies
Altisource Portfolio Solutions
American Airlines Group
Altisource Asset Management Corp
Wr Grace
United Continental Holdings
Holdings represent 81.17% of portfolio
Top 10 holdings as of 08/31/17
Jazz Pharmaceuticals
Dish Network Corp
Echostar Corp
Staar Surgical
Uber Technologies
American Airlines Group
Altisource Portfolio Solutions
Altisource Asset Management Corp
Wr Grace
United Continental Holdings
Holdings represent 81.94% of portfolio
Top 10 holdings as of 07/31/17
Dish Network Corp
Jazz Pharmaceuticals
Echostar Corp
Staar Surgical
Uber Technologies
Altisource Portfolio Solutions
American Airlines Group
Altisource Asset Management Corp
Genmark Diagnostics
Wr Grace
Holdings represent 79.78% of portfolio
Top 10 holdings as of 06/30/17
Dish Network Corp
Jazz Pharmaceuticals
Echostar Corp
Staar Surgical
Uber Technologies
American Airlines Group
Altisource Asset Management Corp
Altisource Portfolio Solutions
United Continental Holdings
Wr Grace
Holdings represent 78.93% of portfolio

Portfolio composition as of 09/30/17

Common stock 88.12%
Convertible preferred stock 6.58%
Cash and net other assets 5.30%

Equity statistics as of 09/30/17

Median market cap $5.13B
Weighted average market cap $11.00B
Price to book 4.36
Price to earnings 24.36

Fund characteristics will vary over time.

Due to rounding, percentages may not equal 100%.

Consider these risks before investing: The value of stocks in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions and factors related to a specific issuer, industry or sector. These and other factors may also lead to increased volatility and reduced liquidity in the fund's portfolio holdings. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. These risks are generally greater for small and midsize companies. The fund will be more susceptible to these risks than other funds because it may concentrate its investments in a limited number of issuers and currently focuses its investments in particular sectors. Because the fund currently invests significantly in the communications services and health-care sectors, the fund may perform poorly as a result of adverse developments affecting those companies or sectors. The fund may focus its investments in other sectors in the future, in which case it would be exposed to risks relating to those sectors. The value of international investments traded in foreign currencies may be adversely impacted by fluctuations in exchange rates. International investments, particularly investments in emerging markets, may carry risks associated with potentially less stable economies or governments (such as the risk of seizure by a foreign government, the imposition of currency or other restrictions, or high levels of inflation or deflation), and may be or become illiquid. The fund's investments in leveraged companies and the fund's "non-diversified" status, which means the fund may invest a greater percentage of its assets in fewer issuers than a "diversified" fund, and the fund's use of short selling can increase the risks of investing in the fund. You can lose money by investing in the fund.

Top Industry Sectors as of 09/30/17

Health care 28.92%
Consumer discretionary 22.86%
Information technology 17.84%
Industrials 8.91%
Real estate 8.05%
Cash and net other assets 5.30%
Materials 4.85%
Energy 3.27%

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 Y
Total expense ratio 0.31% 1.06% 1.06% 0.81% 0.56% 0.06%
What you pay 0.31% 1.06% 1.06% 0.81% 0.56% 0.06%

Sales charge

Investment Breakpoint Class A Class B Class C Class M Class R 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 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 S&P 500 Index is an unmanaged index of common stock performance. You cannot invest directly in an index.

Consider these risks before investing: The value of stocks in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions and factors related to a specific issuer, industry or sector. These and other factors may also lead to increased volatility and reduced liquidity in the fund's portfolio holdings. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. These risks are generally greater for small and midsize companies. The fund will be more susceptible to these risks than other funds because it may concentrate its investments in a limited number of issuers and currently focuses its investments in particular sectors. Because the fund currently invests significantly in the communications services and health-care sectors, the fund may perform poorly as a result of adverse developments affecting those companies or sectors. The fund may focus its investments in other sectors in the future, in which case it would be exposed to risks relating to those sectors. The value of international investments traded in foreign currencies may be adversely impacted by fluctuations in exchange rates. International investments, particularly investments in emerging markets, may carry risks associated with potentially less stable economies or governments (such as the risk of seizure by a foreign government, the imposition of currency or other restrictions, or high levels of inflation or deflation), and may be or become illiquid. The fund's investments in leveraged companies and the fund's "non-diversified" status, which means the fund may invest a greater percentage of its assets in fewer issuers than a "diversified" fund, and the fund's use of short selling can increase the risks of investing in the fund. You can lose money by investing in the fund.