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Partners III Opportunity Fund (WPOPX)

Fund Facts

  • Ticker
    WPOPX
  • CUSIP
    94904P708
  • Fund
    Inception
    06/01/1983
  • Class
    Inception
    06/01/1983
  • Net
    Assets
    $529 Million
    as of 06/30/2020
  • Dividend
    Frequency
    Semi-annually
  • Portfolio
    Manager(s)
      Andrew Weitz
    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 08/31/2020

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 2.46% 5.83% 3.71% 7.89% 6.68% 10.82% 12.13%
S&P 500® 9.74% 7.19% 21.94% 14.52% 14.46% 15.16% 11.22%
Russell 3000® 9.39% 7.24% 21.44% 13.95% 13.86% 14.94% 10.98%

Growth of a $10,000 Investment Since Inception
as of 08/31/2020

Summary of Returns

Year Partners III Opportunity Fund S&P 500®Relative Results
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 7,030.84% 5,172.35% 1,858.49%
Average Annual Return 12.13% 11.22% 0.91%

Morningstar Ratings™
as of 08/31/2020

Rating / Number of funds in the category

Category 3 YR 5 YR 10 YR Overall Rating
Long-Short Equity     
out of 180
   
out of 135
     
out of 39
    
out of 180
Morningstar Ratings are based on risk–adjusted returns.

Morningstar Rankings™
as of 08/31/2020

Ranking / Number of funds in the category / Percentile Ranking

Category 1 YR 3 YR 5 YR 10 YR
Long-Short Equity 106 / 208
50
35 / 180
21
31 / 135
25
2 / 39
6
Morningstar Rankings are based on total returns.

Fees & Expenses
as of most recent prospectus dated 07/31/2020

Gross Expense Ratio 1.44%
Net Expense Ratio 1.44%
Contractual Expiration Date N/A
Distribution and/or service fee (12b-1) Fees None
Sales Charge None
Redemption Fee None

Volatility Measures
as of 06/30/2020

Versus Russell 3000 3 Year 5 Year10 Year
R-Squared 72.1 70.376.8
Beta 0.78 0.750.82
Alpha -1.77 -3.08-1.41
Upside Capture Ratio 68.7 62.174.8
Downside Capture Ratio 75.0 75.479.4
Standard Deviation 16.0 13.713.1
Sharpe Ratio 0.25 0.220.68

Source: Factset

Portfolio

Asset Allocation
% of Net Assets as of 06/30/2020

Sector Allocation
% of Common Stock as of 06/30/2020

Communication Services 27.5%
Information Technology 26.4%
Financials 24.2%
Consumer Discretionary 8.0%
Health Care 4.1%
Other 4.0%
Materials 3.7%
Industrials 2.1%

Top 10 Holdings
% of Net Assets as of 06/30/2020

Berkshire Hathaway Inc. - Class B 11.5%
Intelligent Systems Corp. 6.4%
Alphabet, Inc. - Class C 6.4%
Liberty Broadband Corp. - Series A & C 5.6%
Markel Corp. 5.6%
Mastercard Inc. - Class A 5.3%
Visa Inc. - Class A 5.1%
Facebook, Inc. - Class A 4.7%
Liberty SiriusXM Group - Series A & C 4.2%
Liberty Global plc - Class C 4.2%
% of Net Assets in Top Holdings 59.0%
View Full Portfolio Holdings as of 06/30/2020

Capitalization
% of Common Stock as of 06/30/2020

> $50 Billion 44.4%
$25 - $50 Billion 5.1%
$10 - $25 Billion 32.4%
$2.5 - $10 Billion 2.9%
< $2.5 Billion 15.2%
Weighted Average Market Cap $263.8 Billion

Portfolio Characteristics
as of 06/30/2020

Number of Companies (Long) 24
Active Share vs. Russell 3000 104.9%
Annual Turnover*
32%
5-Year Avg. Annual Turnover* 34%

*as of most recent Annual Report

Long/Short Information

Effective Long 91%
Effective Short 16%
Effective Net 75%

Morningstar Stock Stylebox
as of 6/30/2020

Value
Blend
Growth
Large
0
21
31
Medium
11
11
13
Small
1
0
12
 

Weight %

  • 50+
  • 25-49
  • 10-24
  • 0-9
  • 50+
  • 25-49
  • 10-24
  • 0-9

Distributions

RECORD DATE EX & PAY DATE Income Capital Gain Short-Term Capital Gain Long-Term Total Distribution Reinvestment NAV
06/16/20 06/17/20 n/a n/a 0.7440 0.7440 14.43
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.  Market risk includes political, regulatory, economic, social and health risks (including the risks presented by the spread of infectious diseases such as the COVID-19 pandemic) which can lead to increased market volatility and negative impacts on local and global financial markets, and the duration and severity of the impact of these risks on markets cannot be reasonably estimated.  

Value Investing Risk
Value investors seek to invest in companies whose stock prices are low in relation to their estimated 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 risk 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 companies tend to have less overall volatility, compared to mid-size and small companies; however, large companies may not be able to attain the high growth rates of successful mid-size or small companies.  In addition, large companies may be less capable of responding to competitive challenges and disruptive changes.

Mid-Size Company Risk
Mid-size companies may be more volatile and less liquid, compared to large companies, due to the mid-size companies› limited product lines, markets, financing sources and management depth.  Also, mid-size companies may be affected to a greater extent by the underperformance of a sector or changing market conditions.

Small Company Risk
Small companies may be more volatile and less liquid, compared to large and mid-size companies, due to the small companies› size, limited product lines, markets, financing sources and management depth.  Also, small companies 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 has sold short increases; the loss of value on a short position is theoretically unlimited.  Also there may be times when the Fund›s lender demands, or market conditions dictate, that the borrowed securities be returned to the lender on short notice, and the Fund may have to borrow the securities from another lender or purchase the securities at an unfavorable price.  In addition, the use of short sales will increase the Fund›s expenses.  And because the Fund invests in both long and short equity positions, the Fund has overall exposure to changes in the value of securities, which far exceeds the value of the Fund›s assets.  This may magnify gains and losses and increase the volatility of the Fund›s returns.

Leverage Risk
The Fund may borrow from banks or brokers and pledge its assets in connection with any borrowing.  If the interest and other expenses on borrowings is greater than the Fund›s returns on the proceeds of the borrowings, then the use of leverage will decrease the overall return to the Fund›s shareholders.

Liquidity Risk
Securities purchased by the Fund that are liquid at the time of purchase may subsequently become illiquid due to, among other things, events relating to the issuer of the securities (e.g., changes to the market's perception of the credit quality of the issuer), market events, economic conditions, investor perceptions or lack of market participants. The Fund may be unable to sell illiquid securities on short notice or only at a price below current value.

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 may carry more risk than other types of investments. Derivatives 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.  The use of some derivatives requires the Fund to segregate liquid assets to cover the Fund›s obligations under the derivative agreements or as required by regulations.

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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