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Partners III Opportunity Fund (WPOPX)

NAV
$14.19
as of 04/09/2020
1 Day Change
$0.14 /(1.00%)
as of 04/09/2020
YTD Return
-11.42%
as of 04/09/2020
Morningstar Rating™
Overall as of 03/31/2020
    
out of 192 funds
Based on risk-adjusted returns

Fund Facts

  • Ticker
    WPOPX
  • CUSIP
    94904P708
  • Fund
    Inception
    06/01/1983
  • Class
    Inception
    06/01/1983
  • Net
    Assets
    $676 Million
    as of 12/31/2019
  • Dividend
    Frequency
    Semi-annually
  • Morningstar
    Category
    Long-Short Equity
  • Portfolio
    Manager(s)
      Wallace Weitz, CFA

Investment Approach

The Partners III Opportunity Fund is a no load, concentrated, long/short fund with the flexibility to invest in companies of all sizes. The investment objective of the Fund is capital appreciation.

Strategy and Process

Long-biased, flexible portfolio

A core portfolio with multi-cap high-conviction, long-equity holdings and short positions used in a variety of ways.

We routinely use short positions to hedge against specific company, sector or market risks. Opportunistically, we may use shorts “offensively” with the expectation a security will decline in value, or as part of relatively complex investments such as convergence trades or merger arbitrage.

Value driven, private-buyer mindset

The value of a business is a function of the cash flows it will generate over time.

We think about and value a business like a private buyer and look to buy shares at a discount to our calculation of intrinsic value.

Portfolio Manager tenure

The fund has been managed since its 1983 inception by founder and co-CIO Wally Weitz, one of the longest-tenured managers in the fund’s Morningstar™ category.

Performance

Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.

Historical Returns
as of 03/31/2020

Cumulative Returns

Average Annual Total Returns

YTD 1 MO 1 YR 3 YR 5 YR10 YR Since Fund
Inception
6/1/1983
Partners III Opportunity Fund -16.17% -13.41% -5.83% 2.24% 1.22% 7.72% 11.66%
S&P 500® -19.60% -12.35% -6.98% 5.10% 6.73% 10.53% 10.42%
Russell 3000® -20.90% -13.75% -9.13% 4.00% 5.77% 10.15% 10.14%
Russell 3000® Value -27.32% -17.58% -18.02% -2.67% 1.62% 7.47% 10.02%

Growth of a $10,000 Investment Since Inception
as of 03/31/2020

Summary of Returns

Year Partners III Opportunity Fund S&P 500®Relative Results
2020 (03/31/2020) -16.17% -19.60% 3.43%
2019 34.22% 31.49% 2.73%
2018 -5.21% -4.38% -0.83%
2017 5.45% 21.83% -16.38%
2016 6.28% 11.96% -5.68%
2015 -7.23% 1.38% -8.61%
2014 4.54% 13.69% -9.15%
2013 32.81% 32.39% 0.42%
2012 12.91% 16.00% -3.09%
2011 5.56% 2.11% 3.45%
2010 33.03% 15.06% 17.97%
2009 42.05% 26.46% 15.59%
2008 -34.45% -37.00% 2.55%
2007 -12.86% 5.49% -18.35%
2006 20.39% 15.79% 4.60%
2005 -0.69% 4.91% -5.60%
2004 22.11% 10.88% 11.23%
2003 42.64% 28.68% 13.96%
2002 -16.12% -22.10% 5.98%
2001 6.63% -11.89% 18.52%
2000 32.40% -9.10% 41.50%
1999 10.56% 21.04% -10.48%
1998 10.88% 28.58% -17.70%
1997 37.07% 33.36% 3.71%
1996 25.02% 22.96% 2.06%
1995 43.33% 37.58% 5.75%
1994 -11.13% 1.32% -12.45%
1993 32.29% 10.08% 22.21%
1992 13.53% 7.62% 5.91%
1991 23.19% 30.47% -7.28%
1990 -5.47% -3.10% -2.37%
1989 19.36% 31.69% -12.33%
1988 19.48% 16.61% 2.87%
1987 -1.38% 5.10% -6.48%
1986 8.45% 18.60% -10.15%
1985 38.55% 31.60% 6.95%
1984 11.20% 6.10% 5.10%
1983 (06/01/1983) 8.60% 4.15% 4.45%
Swipe/scroll vertically for full history

Since Inception Returns

Since Fund Inception (6/1/1983) Partners III Opportunity Fund S&P 500®Relative Results
Cumulative Return 5,734.19% 3,763.78% 1,970.41%
Average Annual Return 11.66% 10.42% 1.24%

Morningstar Ratings™
as of 03/31/2020

Rating / Number of funds in the category

Category 3 YR 5 YR 10 YR Overall Rating
Long-Short Equity    
out of 192
   
out of 148
     
out of 42
    
out of 192
Morningstar Ratings are based on risk–adjusted returns.

Morningstar Rankings™
as of 03/31/2020

Ranking / Number of funds in the category / Percentile Ranking

Category 1 YR 3 YR 5 YR 10 YR
Long-Short Equity 89 / 229
39
65 / 192
30
63 / 148
42
2 / 42
6
Morningstar Rankings are based on total returns.

Fees & Expenses
as of most recent prospectus dated 07/31/2019

Gross Expense Ratio 1.56%
Net Expense Ratio 1.56%
Contractual Expiration Date N/A
Distribution and/or service fee (12b-1) Fees None
Sales Charge None
Redemption Fee None

Volatility Measures
as of 12/31/2019

Versus Russell 3000 3 Year 5 Year10 Year
R-Squared 58.7 63.673.2
Beta 0.83 0.800.84
Alpha -1.23 -2.810.24
Upside Capture Ratio 70.3 63.677.6
Downside Capture Ratio 74.8 79.975.2
Standard Deviation 13.2 12.212.5
Sharpe Ratio 0.66 0.380.86

Source: Factset

Portfolio

Asset Allocation
% of Net Assets as of 12/31/2019

Sector Allocation
% of Common Stock as of 12/31/2019

Information Technology 33.5%
Communication Services 26.8%
Financials 22.4%
Consumer Discretionary 6.2%
Health Care 3.2%
Other 3.1%
Materials 2.6%
Industrials 2.2%

Top 10 Holdings
% of Net Assets as of 12/31/2019

Intelligent Systems Corp. 11.1%
Berkshire Hathaway Inc. - Class B 11.1%
Liberty Broadband Corp. - Series A & C 5.6%
Liberty Global plc - Class C* 5.5%
Alphabet, Inc. - Class C 5.3%
Mastercard Inc. - Class A 5.3%
Visa Inc. - Class A 5.3%
Markel Corp. 5.1%
Liberty SiriusXM Group - Series A & C 4.5%
Facebook, Inc. - Class A 3.6%
% of Net Assets in Top Holdings 62.4%
View Full Portfolio Holdings as of 12/31/2019

Capitalization
% of Common Stock as of 12/31/2019

> $50 Billion 40.3%
$10 - $50 Billion 27.0%
$2.5 - $10 Billion 15.6%
< $2.5 Billion 17.1%
Weighted Average Market Cap $204.4 Billion

Portfolio Characteristics
as of 12/31/2019

Number of Companies (Long) 27
Active Share vs. Russell 3000 109.5%
Annual Turnover*
38%
5-Year Avg. Annual Turnover* 37%

*as of most recent Annual Report

Long/Short Information

Effective Long 97%
Effective Short 19%
Effective Net 78%

Distributions

RECORD DATE EX & PAY DATE Income Capital Gain Short-Term Capital Gain Long-Term Total Distribution Reinvestment NAV
12/16/19 12/17/19 n/a n/a 0.8500 0.8500 15.98
06/17/19 06/18/19 n/a n/a 0.1933 0.1933 15.27
12/26/18 12/27/18 n/a n/a 0.1015 0.1015 12.59
06/26/18 06/27/18 n/a n/a 0.9159 0.9159 13.90
12/26/17 12/27/17 n/a n/a 0.1730 0.1730 14.42
06/27/17 06/28/17 n/a n/a 0.4984 0.4984 14.64
12/27/16 12/28/16 n/a n/a n/a n/a n/a
06/27/16 06/28/16 n/a n/a 0.1936 0.1936 13.34
12/28/15 12/29/15 n/a n/a 0.5312 0.5312 13.63
06/25/15 06/26/15 n/a n/a 1.3136 1.3136 15.71
12/26/14 12/29/14 n/a n/a 0.2285 0.2285 16.70
06/25/14 06/26/14 n/a n/a 0.2719 0.2719 16.62
12/26/13 12/27/13 n/a n/a 0.2934 0.2934 16.28
06/26/13 06/27/13 n/a n/a 0.0795 0.0795 14.88
12/26/12 12/27/12 n/a n/a 0.7326 0.7326 12.57
06/27/12 06/28/12 n/a n/a 0.1858 0.1858 12.16
06/27/11 06/28/11 n/a n/a 0.3000 0.3000 12.08
06/26/08 06/27/08 0.0111 n/a n/a 0.0111 8.04
12/27/07 12/28/07 0.0800 n/a 0.2673 0.3473 9.39
06/27/07 06/28/07 0.0197 n/a 0.1683 0.1880 11.56
12/27/06 12/28/06 0.0700 n/a 0.4124 0.4824 11.41
06/28/06 06/29/06 0.0176 n/a 0.1358 0.1534 10.23

Literature

Fact Sheet Commentary Summary Prospectus
Annual Report Semi-Annual Report Prospectus SAI XBRL*

Risks

An investment in the Fund involves certain risks, including, among others, the following:

Market Risk
As with any mutual fund, investment return and principal value will fluctuate, depending on general market conditions and other factors, and it is possible to lose money by investing.

Value Investing Risk
Value investors seek to invest in companies whose stock prices are low in relation to their real worth or future prospects. Undervalued securities are, by definition, out of favor with investors, and there is no way to predict when, if ever, the securities may return to favor.

Concentration Risk
The chance that the Fund’s performance may be hurt disproportionately by the poor performance of relatively few stocks. The Fund tends to invest a high percentage of assets in its largest holdings.

Large Company Risk
Large-capitalization securities tend to have less overall volatility than those issued by smaller capitalization companies, however, large-capitalization securities may underperform securities of smaller capitalization companies during periods when such stocks are in favor.

Mid-Size Company Risk
Mid-capitalization securities may be more vulnerable to adverse developments than those of larger companies due to such companies’ limited product lines, markets, financing sources, and management depth. Mid-capitalization securities may be affected to a greater extent by the underperformance of a sector or changing market conditions.

Small Company Risk
Small-capitalization securities may be more volatile and less liquid due to the companies’ size, limited product lines, markets, financing sources, and management depth. Small-capitalization securities may be affected to a greater extent by the underperformance of a sector or changing market conditions.

Non-U.S. Securities Risk
The Fund may invest in securities issued by non-U.S. issuers, which securities may be denominated in U.S. dollars or foreign currencies. Investments in non-U.S. securities may involve additional risks including exchange rate fluctuation, political or economic instability, the imposition of exchange controls, expropriation, limited disclosure and illiquid markets.

Investments in Exchange Traded Funds
ETFs incur certain expenses not incurred by their applicable index, as such, the Fund will incur additional expenses as a result of investing in an ETF. ETFs that are based on a specific index may not be able to replicate and maintain exactly the composition and relative weightings of securities in the applicable index.

Short Sales Risk
The Fund sells securities that it has borrowed but does not own (“short sales”), which is a speculative technique. The Fund will suffer a loss when the price of a security that it holds long decreases or the price of a security that it has sold short increases. Losses on short sales arise from increases in the value of the security sold short, and therefore are theoretically unlimited. Because the Fund invests in both long and short equity positions, the Fund has overall exposure to changes in value of equity securities that is far greater than its net asset value. This may magnify gains and losses and increase the volatility of the Fund's returns. In addition, the use of short sales will increase the Fund's expenses.

Leverage Risk
The Fund may borrow from banks or brokers and pledge its assets in connection with any borrowing. If the interest expense on borrowings is greater than the income and increase in value of the securities purchased with the proceeds of the borrowings, then the use of leverage will decrease the return to the Fund’s shareholders. The use of leverage also tends to magnify the volatility of the Fund’s returns.

Derivatives Risk
Derivatives are instruments, such as futures and forward contracts, whose value is derived from that of other assets, rates or indices. The use of derivatives for non-hedging purposes may be considered to carry more risk than other types of investments. Derivative instruments are subject to a number of risks including counterparty, liquidity, interest rate, market, credit and management risks, and the risk of improper valuation. Changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index, and in some cases the Fund could lose more than the principal amount invested.

Failure to Meet Investment Objective
There can be no assurance that the Fund will meet its investment objective.

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

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