Paradigm Opportunity Fund
- Asset Class
Small-Cap Domestic Equity
- Fund Net Assets
- Inception Date
investment objective—seeks long-term capital appreciation
The Paradigm Opportunity Fund (PFOPX) takes a focused, high-conviction approach to investing in small-cap stocks. The Fund’s management conducts extensive research to identify what we believe to be quality businesses with sustainable, competitive advantages, strong management teams, and high cash flow generation. We attempt to acquire these businesses when they are trading at an unwarranted discount to what we believe is their intrinsic value. Sector weights and position sizes are driven by manager conviction and liquidity.
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
1 The Fund’s expense ratio is from the most recent prospectus. The Advisor has contractually agreed to waive management fees and reimburse expenses to the extent necessary to maintain total annual operating expenses (excluding brokerage fees and commissions, interest and other borrowing expenses, taxes, extraordinary expenses and indirect costs of investing in Acquired Funds) at 1.25% of the Opportunity Fund’s average daily net assets through April 30, 2019. The Fund’s total annual operating expense is 1.51% including management fees and other expenses. Effective May 1, 2017 the Advisor reduced the annual investment management fee for the Opportunity Fund to 1.50% of the average daily net assets of the Fund.
top 10 holdings
growth of $10,000 investment
This chart illustrates an investment of $10,000 in Paradigm Opportunity Fund on January 1, 2005, including reinvestment of dividends and distributions.
As is the case with most investments, you may lose money by investing in the Fund. The Fund invests in companies that appear to be “undervalued” in the marketplace (i.e., trading at prices below the company’s true worth). If the Fund’s perceptions of value are wrong, the securities purchased may not perform as expected, reducing the Fund’s return. The Fund primarily invests in small capitalization companies (less than $2.5 billion). Small capitalization companies can be riskier investments than larger companies.
Investors should consider the investment objectives, risks, charges and expenses of a mutual fund before investing. This report must be preceded or accompanied by a prospectus containing more detail including information on risks, fees, sales charges and expenses. Please contact Paradigm Funds Advisors LLC at 1-800-239-0732. Please read it carefully before you invest or send money. Current performance may be lower or higher than the performance data quoted. You may obtain performance data current to the most recent month-end by calling the transfer agent at 1-877-59-Funds. Investors should consider the investment objectives, risks, and charges and expenses of the Fund carefully before investing.
2 Holdings are subject to change and may not be representative of current or future holdings.
3 Sector allocations are based upon the GICS Classifications and represent a % of the common stock held and is subject to change and may not be representative of current or future holdings.
The Russell 2000® Index is an unmanaged index of small capitalization stocks with lower price-to-book ratios and lower forecasted growth values than the total population of small capitalization stocks whose composition is different from the Fund. An investor cannot invest directly in an index, and index performance does not reflect the deduction of any fees, expenses or taxes. P/E Ratio is the market price per share divided by earnings per share. Price/Book Ratio is the market price per share divided by book value. Standard Deviation shows the degree of variation in the Fund’s returns and can serve as a useful measure of the Fund’s risk. It is measured using monthly observations, but expresses the result on an annualized basis. Market Capture Ratios is a statistical measure of the Fund’s overall performance in up-markets (positive return periods) and down-markets (negative return periods). The market capture ratios are used to evaluate how well an investment performed relative to an index during periods when that index has risen or fallen. The ratio is calculated by dividing the Fund’s returns by the returns of the index during the up-market or the down-market, and multiplying that factor by 100.
Star ratings are based on a Morningstar risk-adjusted return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The overall rating is a weighted average of the 3-, 5-, and 10-year (if applicable) returns. 5 Stars = top 10% of funds in a category; 4 stars = next 22.5% of funds; 3 stars = middle 35%; 2 stars = next 22.5%; 1 star = bottom 10%. A fund must be in existence three years to be rated. Ratings are subject to change monthly. As of 9/30/18, the Paradigm Opportunity Fund had a 4-star rating for the 3-year period (652 funds), and a 4-star rating for the 5-year period (539 funds), and a 3-star rating for the 10-year period (388 funds) and a 4-star rating for the Overall period (652 funds). © 2010 Morningstar, Inc. All Rights Reserved. Morningstar and/or its content providers are the proprietors of this information; do not permit its unauthorized copying or distribution; do not warrant it to be accurate, complete or timely; and are not responsible for damages or losses arising from its use. Percentile Rank in Category is the Fund’s total-return percentile rank relative to all funds that have the same Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1.
Lipper Leader calculations are subject to change monthly and are based on an equal-weighted average of percentile ranks for the category’s metrics over 3-year, 5-year, and 10-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leaders and the next 20% receive a score of 4. A fund or class must be in existence three years to be rated. Both designations reflect the Fund’s ranking relative to its peer group as of 9/30/18, and do not take sales charges into account. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperleaders.com. Lipper Leader Copyright 2002, Reuters, All Rights Reserved. Performance for the Fund reflects fee waivers in effect; in their absence, returns would have been lower, which may have adversely affected the Fund’s Lipper Rankings. The Paradigm Opportunity Fund is in the Lipper equity funds category and received a score of 4 for Total Return for the 3-year period (833 funds), and a score of 4 for the 5-year period (691 funds), and a score of 3 for the 10-year period (500 funds) and a score of 4 for the Overall period (833 funds). For Tax Efficiency, the Fund received a score of 5 for the 3-year period (833 funds), and a score of 5 for the 5-year period (691 funds), and a score of 5 for the 10-year period (500 funds) and a score of 5 for the Overall period (833 funds). Not FDIC-Insured. May Lose Value. No Bank Guarantee.