U.S. Small-Cap Growth Fund

Fund Overview

  • Stock selection driven by proprietary fundamental research
  • Long-only portfolio of 80 – 100 growth stocks
  • Benchmarked to the Russell 2000 Growth Index®

Investment Approach

We believe the US small-cap equity market is inefficient. For over two decades, Hood River has employed a process that utilizes rigorous proprietary, fundamental analysis that attempts to identify an information gap between our earnings estimates and Wall Street estimates.

  • Find the best businesses from those growing at 15%+ with market caps of $5 billion or less.
  • Build and corroborate our estimates by talking to management, customers, suppliers.
  • Identify potential research gaps by comparing our estimates to Street expectations.
  • Ensure we pay the right price by evaluating historical, peer, and industry valuations.

Overall Morningstar Rating™

Institutional share class out of 576 small growth funds in the small growth category as of 10/31/22. Derived from weighted average of the performance figures associated with its 3-,5- and 10-year Morningstar Rating metrics, based on risk adjusted returns.

Morningstar Small Growth Peer Ranking

10/31/22 (based on total returns)

10/31/22 (based on total returns)

1 Year

3 Years

5 Years

10 Years

HRSMX Percentile Ranking %

30%

1 Year

3%

3 Years

7%

5 Years

4%

10 Years

# of Funds in Peer Group

603

1 Year

576

3 Years

521

5 Years

393

10 Years

Institutional Shares

Investor Shares

Retirement Shares

Ticker Symbol

HRSMX*

Institutional Shares

HRSRX**

Investor Shares

HRSIX***

Retirement Shares

Inception Date

1/02/03

Institutional Shares

7/07/15

Investor Shares

3/03/17

Retirement Shares

Gross Expense Ratio

0.90%

Institutional Shares

0.90%

Investor Shares

0.90%

Retirement Shares

Net Expense Ratio (fiscal YTD)

1.09%

Institutional Shares

1.26%

Investor Shares

0.99%

Retirement Shares

Minimum Purchase

$25,000

Institutional Shares

$1,000

Investor Shares

No minimum

Retirement Shares

Investor Shares are subject to a Rule 12b-1 Fee of up to 0.25%. The current fee rate of 0.17% will remain in place at least through October 31, 2023. Investors will pay the net expense ratio listed above.

Average Annual Total Returns

Fund Performance — as of 9/30/22

1 Year

3 Years

5 Years

10 Years

Since Inception (Annualized)*

HRSMX

-24.18%

1 Year

16.44%

3 Years

11.20%

5 Years

13.80%

10 Years

12.16%

Since Inception (Annualized)*

Russell 2000® Growth Index

-29.27%

1 Year

2.94%

3 Years

3.60%

5 Years

8.81%

10 Years

9.26%

Since Inception (Annualized)*

*HRSMX inception date 1/2/03

Performance quoted represents past performance for the Fund's institutional class shares and there is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Current performance may be higher or lower than the performance data quoted above. Please call 800-497-2960 to obtain current and the most recent month-end performance data.

Performance for periods over one year is annualized.

Sector Diversification

HRSMX vs. Russell 2000® Growth Index
As of 9/30/22

HRSMX

Russell 2000® Growth Index

Communication Services

2.3%

HRSMX

2.4%

Russell 2000® Growth Index

Consumer Discretionary

5.8%

HRSMX

10.8%

Russell 2000® Growth Index

Consumer Staples

3.8%

HRSMX

4.2%

Russell 2000® Growth Index

Energy

3.2%

HRSMX

6.5%

Russell 2000® Growth Index

Financials

8.8%

HRSMX

6.0%

Russell 2000® Growth Index

Healthcare

27.9%

HRSMX

25.3%

Russell 2000® Growth Index

Industrials

21.3%

HRSMX

17.1%

Russell 2000® Growth Index

Information Technology

22.4%

HRSMX

19.5%

Russell 2000® Growth Index

Materials

1.3%

HRSMX

4.3%

Russell 2000® Growth Index

Real Estate

0.0%

HRSMX

2.2%

Russell 2000® Growth Index

Utilities

0.8%

HRSMX

1.8%

Russell 2000® Growth Index

Cash

2.3%

HRSMX

As a percentage of the portfolio. Subject to change at any time.

Top Ten Holdings

Small-Cap Growth Fund (HRSMX) — as of 9/30/22

Holding

Holding %

Industry

Description

Chart Industries

4.79%

Industrials

Designs equipment for low-temperature industrial gas production and storage

Lantheus Holdings

3.98%

Healthcare

Develops, manufactures, and commercializes diagnostic and therapeutic products that assist clinicians in the diagnosis and treatment of heart, cancer, and other diseases worldwide

Celsius Holdings

3.76%

Staples

Develops, markets, distributes and sells functional calorie-burning fitness beverages

Calix, Inc.

3.22%

Technology

Provides cloud and software platforms, and systems and services in the Americas, Europe, the Middle East, Africa, and Asia Pacific

Axonics, Inc.

3.20%

Healthcare

Engages in the development and commercialization of sacral neuromodulation systems, used to treat patients with overactive bladder, fecal incontinence, and urinary retention

Mastec

2.48%

Industrials

Provides infrastructure construction to telecom, wireless, cable, energy and utility companies

Axon Enterprise

2.42%

Industrials

Develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally

ExlService Holdings

2.38%

Technology

Offers business process outsourcing, research and analytics, and consulting services

Option Care Health

2.35%

Healthcare

Offers home and alternate site infusion services in the US

Zoominfo Technologies

2.28%

Communication

Operates cloud-based go-to-market intelligence platform for sales and marketing teams worldwide

We seek to identify and capitalize on research gaps overlooked by the broader market.

Past performance does not guarantee future results.

Information provided with respect to the Fund’s Holdings and Weightings are subject to change at any time and are not a recommendation to buy or sell any security. The Fund discloses its quarterly top ten holdings on its website within 45 business days after the quarter-end. The quarter-end portfolio holdings for the Fund will remain posted on the Fund’s website until the following quarter-end portfolio holdings are posted. The benchmark is the Russell 2000® Growth Index, which is defined as an unmanaged, capitalization weighted index of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. Index returns include dividends and/or interest income and do not reflect fees or expenses. Unlike the Fund, which periodically maintains a cash position, the Russell 2000® Growth Index is fully invested. Investors cannot directly invest in an index.

Hood River Small Cap Growth Fund (Class I) was rated against the following numbers of U.S.-domiciled small growth funds over the following time periods: 576 funds in the last three years, 521 funds in the last five years, 393 funds in the last 10 years. With respect to these Small Growth Funds, Hood River Small Cap Growth Fund received a Morningstar Rating of 5 stars, 5 stars and 5 stars for the three-, five- and 10-year periods, respectively as of October 31, 2022. The Morningstar Rating™ 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.  

Past performance is no guarantee of future results. Ratings reflect fee waivers in effect; in their absence, ratings may have been lower. Rankings are the fund’s total return-percentile rank relative to all funds that have the same category for the same time period. 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.

2022 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.  The Fund does not pay Morningstar for ratings or rankings, but does pay a licensing fee for the use of this data.

The Fund invests in small-cap securities which present a greater risk of loss than large-cap securities, and in growth companies which can be more sensitive to the company’s earnings and more volatile than the stock market in general. The Fund may also invest in foreign securities which are subject to risks including currency fluctuations, economic and political change and differing accounting standards. The Fund may invest in derivatives and initial public offerings (IPOs), which are highly volatile. Additional risk information may be found in the prospectus.

Investors should carefully consider the Fund’s investment objective, risks, charges and expenses before investing. For a prospectus, which contains this and other important information about the Fund, please call 800-497-2960. Please read the prospectus carefully before investing or sending money.

Investments involve risk, principal loss is possible.

The Hood River Funds are distributed by Quasar Distributors, LLC. Hood River Capital is the advisor to the Funds.

Hood River Capital Management LLC serves as the advisor to the Fund.