Needham Funds Inc.
Needham Funds Inc.
06/09/2024 | Press release | Distributed by Public on 06/09/2024 22:14
Semi Annual Report by Investment Company Form N CSRS
2024-07-05196140_NeedhamGrowthFund_RetailClass_TSRSemiAnnual
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09114
The Needham Funds, Inc.
(Exact name of registrant as specified in charter)
250 Park Avenue, 10th Floor,
New York, NY 10177-1099
(Address of principal executive offices) (Zip code)
Mr. George A. Needham
250 Park Avenue, 10th Floor,
New York, NY 10177-1099
(Name and address of agent for service)
1-800-625-7071
Registrant's telephone number, including area code
Date of fiscal year end: December 31, 2024
Date of reporting period: January 1, 2024-June 30, 2024
Item 1. Reports to Stockholders.
| (a) |
|
Needham Growth Fund
|
||
|
Retail Class| NEEGX
|
||
|
Semi-Annual Shareholder Report | June 30, 2024
|
This semi-annual shareholder reportcontains important information about the Needham Growth Fund for the period of January 1, 2024, to June 30, 2024. You can find additional information about the Fund at www.needhamfunds.com/resources-forms. You can also request this information by contacting us at 1-800-625-7071.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Retail Class
|
$95
|
1.68%
|
HOW DID THE FUND PERFORM OVER THE LAST SIX MONTHS AND WHAT AFFECTED ITS PERFORMANCE?
Performance
For the six-month period ended June 30, 2024, the Needham Growth Fund outperformed its benchmarks, the Russell 3000, the Russell MidCap Growth Index, and the S&P MidCap 400 Total Return Index.
The key factor affecting the Fund's performance was stock selection. The top contributor was Super Micro Computer, Inc. (SMCI). Super Micro manufactures server racks used in data centers and saw strong demand from artificial intelligence (AI) applications. The Fund has owned Super Micro since 2009. None of the detractors was significant relative to the contribution from the contributors.
The Fund had significant inflows and ended June with 15.5% cash.
Investment Themes
The Fund's major investment theme remains the importance of U.S. infrastructure. We are invested in the lesser-known "pick and shovel" providers behind engineering and manufacturing. Our portfolio companies sell into data centers, life sciences labs, semiconductor and other manufacturing plants, roads, airports, airbases, power plants, and more. The U.S. has underinvested in these areas, so there could be long tailwinds.
Four areas present throughout our portfolio are: 1) Semiconductor manufacturing, 2) Data Centers/AI processing, 3) U.S. manufacturing, and 4) Defense technology.
We believe the AI buildout is still in an early stage. Economic returns on AI projects could be substantial for productivity and the economy.
Our investment strategy is to invest in companies investing in new products and services and hold those that are successful. The Fund had trailing twelve-month turnover of 15%.
Macroeconomic Factors
At the start of 2024, the market expected the Federal Reserve to lower interest rates at least once in 2024. In the first half of 2024, the Fed did not lower rates and inflation remained at 3%, above the Fed's 2% target. The delay in rate cuts was a headwind to equities in the second quarter. The market expects one rate cut in September and another in December.
|
Top Contributors
|
|
|
↑
|
Super Micro Computer, Inc.
|
|
↑
|
Nova, Ltd.
|
|
↑
|
Aspen Aerogels, Inc.
|
|
↑
|
FormFactor, Inc.
|
|
↑
|
Parsons Corp.
|
| Needham Growth Fund | PAGE 1 | TSR-SAR-63983V100 |
|
Top Detractors
|
|
|
↓
|
Vicor Corp.
|
|
↓
|
Akamai Technologies, Inc.
|
|
↓
|
Photronics, Inc.
|
|
↓
|
Unisys Corp.
|
|
↓
|
CryoPort, Inc.
|
HOW DID THE FUND PERFORM OVER THE PAST 10 YEARS?*
The $10,000 chart reflects a hypothetical $10,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including 12b-1 fees, management fees and other expenses were deducted.
CUMULATIVE PERFORMANCE
ANNUAL AVERAGE TOTAL RETURN (%)
|
1 Year
|
5 Year
|
10 Year
|
|
|
Retail Class (without sales charge)
|
31.21
|
17.15
|
11.46
|
|
Russell 3000 Total Return
|
23.13
|
14.14
|
12.15
|
|
Russell Midcap Growth Total Return
|
15.05
|
9.93
|
10.51
|
|
S&P MidCap 400 Total Return Index
|
13.57
|
10.27
|
9.14
|
Visit www.needhamfunds.com/resources-formsfor more recent performance information.
| * | The Fund's past performance is not a good predictor of the Fund's future performance. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. |
KEY FUND STATISTICS (as of June 30, 2024)
|
Net Assets
|
$235,401,285
|
|
Number of Holdings
|
68
|
|
Portfolio Turnover
|
11%
|
Visit www.needhamfunds.com/resources-formsfor more recent performance information.
| Needham Growth Fund | PAGE 2 | TSR-SAR-63983V100 |
WHAT DID THE FUND INVEST IN? (as of June 30, 2024)
|
Top Sectors
|
(%) of net assets
|
|
Information Technology
|
51.7%
|
|
Industrials
|
10.6%
|
|
Health Care
|
8.7%
|
|
Materials
|
4.7%
|
|
Consumer Discretionary
|
3.7%
|
|
Communication Services
|
3.5%
|
|
Real Estate
|
0.5%
|
|
Energy
|
0.5%
|
|
Financials
|
0.3%
|
|
Cash & Other
|
15.8%
|
|
Top 10 Issuers
|
(%) of net assets
|
|
Dreyfus Treasury Securities Cash Management
|
15.5%
|
|
Super Micro Computer, Inc.
|
10.7%
|
|
Entegris, Inc.
|
5.4%
|
|
PDF Solutions, Inc.
|
4.4%
|
|
Nova, Ltd.
|
4.3%
|
|
Aspen Aerogels, Inc.
|
4.1%
|
|
Thermo Fisher Scientific, Inc.
|
3.8%
|
|
FormFactor, Inc.
|
2.8%
|
|
Parsons Corp.
|
2.8%
|
|
CarMax, Inc.
|
2.4%
|
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit www.needhamfunds.com/resources-forms
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Needham Investment Management, LLC documents not be householded, please contact Needham Investment Management, LLC at 1-800-625-7071, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Needham Investment Management, LLC or your financial intermediary.
| Needham Growth Fund | PAGE 3 | TSR-SAR-63983V100 |
|
Needham Growth Fund
|
||
|
Institutional Class| NEEIX
|
||
|
Semi-Annual Shareholder Report | June 30, 2024
|
This semi-annual shareholder reportcontains important information about the Needham Growth Fund for the period of January 1, 2024, to June 30, 2024. You can find additional information about the Fund at www.needhamfunds.com/resources-forms. You can also request this information by contacting us at 1-800-625-7071.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Institutional Class
|
$75
|
1.32%
|
HOW DID THE FUND PERFORM OVER THE LAST SIX MONTHS AND WHAT AFFECTED ITS PERFORMANCE?
Performance
For the six-month period ended June 30, 2024, the Needham Growth Fund outperformed its benchmarks, the Russell 3000, the Russell MidCap Growth Index, and the S&P MidCap 400 Total Return Index.
The key factor affecting the Fund's performance was stock selection. The top contributor was Super Micro Computer, Inc. (SMCI). Super Micro manufactures server racks used in data centers and saw strong demand from artificial intelligence (AI) applications. The Fund has owned Super Micro since 2009. None of the detractors was significant relative to the contribution from the contributors.
The Fund had significant inflows and ended June with 15.5% cash.
Investment Themes
The Fund's major investment theme remains the importance of U.S. infrastructure. We are invested in the lesser-known "pick and shovel" providers behind engineering and manufacturing. Our portfolio companies sell into data centers, life sciences labs, semiconductor and other manufacturing plants, roads, airports, airbases, power plants, and more. The U.S. has underinvested in these areas, so there could be long tailwinds.
Four areas present throughout our portfolio are: 1) Semiconductor manufacturing, 2) Data Centers/AI processing, 3) U.S. manufacturing, and 4) Defense technology.
We believe the AI buildout is still in an early stage. Economic returns on AI projects could be substantial for productivity and the economy.
Our investment strategy is to invest in companies investing in new products and services and hold those that are successful. The Fund had trailing twelve-month turnover of 15%.
Macroeconomic Factors
At the start of 2024, the market expected the Federal Reserve to lower interest rates at least once in 2024. In the first half of 2024, the Fed did not lower rates and inflation remained at 3%, above the Fed's 2% target. The delay in rate cuts was a headwind to equities in the second quarter. The market expects one rate cut in September and another in December.
|
Top Contributors
|
|
|
↑
|
Super Micro Computer, Inc.
|
|
↑
|
Nova, Ltd.
|
|
↑
|
Aspen Aerogels, Inc.
|
|
↑
|
FormFactor, Inc.
|
|
↑
|
Parsons Corp.
|
| Needham Growth Fund | PAGE 1 | TSR-SAR-63983V407 |
|
Top Detractors
|
|
|
↓
|
Vicor Corp.
|
|
↓
|
Akamai Technologies, Inc.
|
|
↓
|
Photronics, Inc.
|
|
↓
|
Unisys Corp.
|
|
↓
|
CryoPort, Inc.
|
HOW DID THE FUND PERFORM SINCE INCEPTION?*
The $100,000 chart reflects a hypothetical $100,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including management fees and other expenses were deducted.
CUMULATIVE PERFORMANCE
ANNUAL AVERAGE TOTAL RETURN (%)
|
1 Year
|
5 Year
|
Since Inception
(12/30/2016) |
|
|
Institutional Class (without sales charge)
|
31.66
|
17.65
|
14.64
|
|
Russell 3000 Total Return
|
23.13
|
14.14
|
13.82
|
|
Russell Midcap Growth Total Return
|
15.05
|
9.93
|
12.48
|
|
S&P MidCap 400 Total Return Index
|
13.57
|
10.27
|
9.60
|
Visit www.needhamfunds.com/resources-formsfor more recent performance information.
| * | The Fund's past performance is not a good predictor of the Fund's future performance. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. |
KEY FUND STATISTICS (as of June 30, 2024)
|
Net Assets
|
$235,401,285
|
|
Number of Holdings
|
68
|
|
Portfolio Turnover
|
11%
|
Visit www.needhamfunds.com/resources-formsfor more recent performance information.
| Needham Growth Fund | PAGE 2 | TSR-SAR-63983V407 |
WHAT DID THE FUND INVEST IN? (as of June 30, 2024)
|
Top Sectors
|
(%) of net assets
|
|
Information Technology
|
51.7%
|
|
Industrials
|
10.6%
|
|
Health Care
|
8.7%
|
|
Materials
|
4.7%
|
|
Consumer Discretionary
|
3.7%
|
|
Communication Services
|
3.5%
|
|
Real Estate
|
0.5%
|
|
Energy
|
0.5%
|
|
Financials
|
0.3%
|
|
Cash & Other
|
15.8%
|
|
Top 10 Issuers
|
(%) of net assets
|
|
Dreyfus Treasury Securities Cash Management
|
15.5%
|
|
Super Micro Computer, Inc.
|
10.7%
|
|
Entegris, Inc.
|
5.4%
|
|
PDF Solutions, Inc.
|
4.4%
|
|
Nova, Ltd.
|
4.3%
|
|
Aspen Aerogels, Inc.
|
4.1%
|
|
Thermo Fisher Scientific, Inc.
|
3.8%
|
|
FormFactor, Inc.
|
2.8%
|
|
Parsons Corp.
|
2.8%
|
|
CarMax, Inc.
|
2.4%
|
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit www.needhamfunds.com/resources-forms
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Needham Investment Management, LLC documents not be householded, please contact Needham Investment Management, LLC at 1-800-625-7071, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Needham Investment Management, LLC or your financial intermediary.
| Needham Growth Fund | PAGE 3 | TSR-SAR-63983V407 |
|
Needham Aggressive Growth Fund
|
||
|
Retail Class| NEAGX
|
||
|
Semi-Annual Shareholder Report | June 30, 2024
|
This semi-annual shareholder reportcontains important information about the Needham Aggressive Growth Fund for the period of January 1, 2024, to June 30, 2024. You can find additional information about the Fund at www.needhamfunds.com/resources-forms. You can also request this information by contacting us at 1-800-625-7071.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Retail Class
|
$89
|
1.66%
|
HOW DID THE FUND PERFORM OVER THE LAST SIX MONTHS AND WHAT AFFECTED ITS PERFORMANCE?
Performance
For the six-month period ended June 30, 2024, the Needham Aggressive Growth Fund outperformed its benchmarks, the Russell 3000 and the Russell 2000 Growth Index.
The key factor affecting the Fund's performance was stock selection. The top contributor was Super Micro Computer, Inc. (SMCI). Super Micro manufactures server racks used in data centers and saw strong demand from artificial intelligence (AI) applications. The Fund has owned Super Micro since 2009. None of the detractors was significant relative to the contribution from the contributors.
The Fund had significant inflows and ended June with 15.0% cash.
Investment Themes
The Fund's major investment theme remains the importance of U.S. infrastructure. We are invested in the lesser-known "pick and shovel" providers behind engineering and manufacturing. Our portfolio companies sell into data centers, life sciences labs, semiconductor and other manufacturing plants, roads, airports, airbases, power plants, and more. The U.S. has underinvested in these areas, so there could be long tailwinds.
Four areas present throughout our portfolio are: 1) Semiconductor manufacturing, 2) Data Centers/AI processing, 3) U.S. manufacturing, and 4) Defense technology.
We believe the AI buildout is still in an early stage. Economic returns on AI projects could be substantial for productivity and the economy.
Our investment strategy is to invest in companies investing in new products and services and hold those that are successful. The Fund had trailing twelve-month turnover of 8%.
Macroeconomic Factors
At the start of 2024, the market expected the Federal Reserve to lower interest rates at least once in 2024. In the first half of 2024, the Fed did not lower rates and inflation remained at 3%, above the Fed's 2% target. The delay in rate cuts was a headwind to equities in the second quarter. The market expects one rate cut in September and another in December.
|
Top Contributors
|
|
|
↑
|
Super Micro Computer, Inc.
|
|
↑
|
Vital Farms, Inc.
|
|
↑
|
Aspen Aerogels, Inc.
|
|
↑
|
Vertiv Holdings Co.
|
|
↑
|
Nova, Ltd.
|
| Needham Aggressive Growth Fund | PAGE 1 | TSR-SAR-63983V209 |
|
Top Detractors
|
|
|
↓
|
Unisys Corp.
|
|
↓
|
Vicor Corp.
|
|
↓
|
FARO Technologies, Inc.
|
|
↓
|
nLight, Inc.
|
|
↓
|
American Software, Inc.
|
HOW DID THE FUND PERFORM OVER THE PAST 10 YEARS?*
The $10,000 chart reflects a hypothetical $10,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including 12b-1 fees, management fees and other expenses were deducted.
CUMULATIVE PERFORMANCE
ANNUAL AVERAGE TOTAL RETURN (%)
|
1 Year
|
5 Year
|
10 Year
|
|
|
Retail Class (without sales charge)
|
25.73
|
23.24
|
14.24
|
|
Russell 3000 Total Return
|
23.13
|
14.14
|
12.15
|
|
Russell 2000 Growth Total Return
|
9.14
|
6.17
|
7.39
|
Visit www.needhamfunds.com/resources-formsfor more recent performance information.
| * | The Fund's past performance is not a good predictor of the Fund's future performance. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. |
KEY FUND STATISTICS (as of June 30, 2024)
|
Net Assets
|
$801,616,049
|
|
Number of Holdings
|
87
|
|
Portfolio Turnover
|
13%
|
Visit www.needhamfunds.com/resources-formsfor more recent performance information.
| Needham Aggressive Growth Fund | PAGE 2 | TSR-SAR-63983V209 |
WHAT DID THE FUND INVEST IN? (as of June 30, 2024)
|
Top Sectors
|
(%) of net assets
|
|
Information Technology
|
42.5%
|
|
Industrials
|
20.8%
|
|
Materials
|
7.7%
|
|
Consumer Discretionary
|
7.2%
|
|
Consumer Staples
|
4.3%
|
|
Health Care
|
2.3%
|
|
Energy
|
0.7%
|
|
Real Estate
|
0.5%
|
|
Financials
|
0.4%
|
|
Cash & Other
|
13.6%
|
|
Top 10 Issuers
|
(%) of net assets
|
|
Dreyfus Treasury Securities Cash Management
|
15.0%
|
|
Super Micro Computer, Inc.
|
6.9%
|
|
PDF Solutions, Inc.
|
4.0%
|
|
Aspen Aerogels, Inc.
|
3.8%
|
|
Vertiv Holdings Co.
|
2.7%
|
|
Vital Farms, Inc.
|
2.4%
|
|
Vishay Precision Group, Inc.
|
2.1%
|
|
Asure Software, Inc.
|
2.1%
|
|
Vicor Corp.
|
2.1%
|
|
Thermon Group Holdings, Inc.
|
2.1%
|
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit www.needhamfunds.com/resources-forms
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Needham Investment Management, LLC documents not be householded, please contact Needham Investment Management, LLC at 1-800-625-7071, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Needham Investment Management, LLC or your financial intermediary.
| Needham Aggressive Growth Fund | PAGE 3 | TSR-SAR-63983V209 |
|
Needham Aggressive Growth Fund
|
||
|
Institutional Class| NEAIX
|
||
|
Semi-Annual Shareholder Report | June 30, 2024
|
This semi-annual shareholder reportcontains important information about the Needham Aggressive Growth Fund for the period of January 1, 2024, to June 30, 2024. You can find additional information about the Fund at www.needhamfunds.com/resources-forms. You can also request this information by contacting us at 1-800-625-7071.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Institutional Class
|
$64
|
1.18%
|
HOW DID THE FUND PERFORM OVER THE LAST SIX MONTHS AND WHAT AFFECTED ITS PERFORMANCE?
Performance
For the six-month period ended June 30, 2024, the Needham Aggressive Growth Fund outperformed its benchmarks, the Russell 3000 and the Russell 2000 Growth Index.
The key factor affecting the Fund's performance was stock selection. The top contributor was Super Micro Computer, Inc. (SMCI). Super Micro manufactures server racks used in data centers and saw strong demand from artificial intelligence (AI) applications. The Fund has owned Super Micro since 2009. None of the detractors was significant relative to the contribution from the contributors.
The Fund had significant inflows and ended June with 15.0% cash.
Investment Themes
The Fund's major investment theme remains the importance of U.S. infrastructure. We are invested in the lesser-known "pick and shovel" providers behind engineering and manufacturing. Our portfolio companies sell into data centers, life sciences labs, semiconductor and other manufacturing plants, roads, airports, airbases, power plants, and more. The U.S. has underinvested in these areas, so there could be long tailwinds.
Four areas present throughout our portfolio are: 1) Semiconductor manufacturing, 2) Data Centers/AI processing, 3) U.S. manufacturing, and 4) Defense technology.
We believe the AI buildout is still in an early stage. Economic returns on AI projects could be substantial for productivity and the economy.
Our investment strategy is to invest in companies investing in new products and services and hold those that are successful. The Fund had trailing twelve-month turnover of 8%.
Macroeconomic Factors
At the start of 2024, the market expected the Federal Reserve to lower interest rates at least once in 2024. In the first half of 2024, the Fed did not lower rates and inflation remained at 3%, above the Fed's 2% target. The delay in rate cuts was a headwind to equities in the second quarter. The market expects one rate cut in September and another in December.
|
Top Contributors
|
|
|
↑
|
Super Micro Computer, Inc.
|
|
↑
|
Vital Farms, Inc.
|
|
↑
|
Aspen Aerogels, Inc.
|
|
↑
|
Vertiv Holdings Co.
|
|
↑
|
Nova, Ltd.
|
| Needham Aggressive Growth Fund | PAGE 1 | TSR-SAR-63983V506 |
|
Top Detractors
|
|
|
↓
|
Unisys Corp.
|
|
↓
|
Vicor Corp.
|
|
↓
|
FARO Technologies, Inc.
|
|
↓
|
nLight, Inc.
|
|
↓
|
American Software, Inc.
|
HOW DID THE FUND PERFORM SINCE INCEPTION?*
The $100,000 chart reflects a hypothetical $100,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including management fees and other expenses were deducted.
CUMULATIVE PERFORMANCE
ANNUAL AVERAGE TOTAL RETURN (%)
|
1 Year
|
5 Year
|
Since Inception
(12/30/2016) |
|
|
Institutional Class (without sales charge)
|
26.42
|
23.99
|
17.39
|
|
Russell 3000 Total Return
|
23.13
|
14.14
|
13.82
|
|
Russell 2000 Growth Total Return
|
9.14
|
6.17
|
8.14
|
Visit www.needhamfunds.com/resources-formsfor more recent performance information.
| * | The Fund's past performance is not a good predictor of the Fund's future performance. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. |
KEY FUND STATISTICS (as of June 30, 2024)
|
Net Assets
|
$801,616,049
|
|
Number of Holdings
|
87
|
|
Portfolio Turnover
|
13%
|
Visit www.needhamfunds.com/resources-formsfor more recent performance information.
| Needham Aggressive Growth Fund | PAGE 2 | TSR-SAR-63983V506 |
WHAT DID THE FUND INVEST IN? (as of June 30, 2024)
|
Top Sectors
|
(%) of net assets
|
|
Information Technology
|
42.5%
|
|
Industrials
|
20.8%
|
|
Materials
|
7.7%
|
|
Consumer Discretionary
|
7.2%
|
|
Consumer Staples
|
4.3%
|
|
Health Care
|
2.3%
|
|
Energy
|
0.7%
|
|
Real Estate
|
0.5%
|
|
Financials
|
0.4%
|
|
Cash & Other
|
13.6%
|
|
Top 10 Issuers
|
(%) of net assets
|
|
Dreyfus Treasury Securities Cash Management
|
15.0%
|
|
Super Micro Computer, Inc.
|
6.9%
|
|
PDF Solutions, Inc.
|
4.0%
|
|
Aspen Aerogels, Inc.
|
3.8%
|
|
Vertiv Holdings Co.
|
2.7%
|
|
Vital Farms, Inc.
|
2.4%
|
|
Vishay Precision Group, Inc.
|
2.1%
|
|
Asure Software, Inc.
|
2.1%
|
|
Vicor Corp.
|
2.1%
|
|
Thermon Group Holdings, Inc.
|
2.1%
|
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit www.needhamfunds.com/resources-forms
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Needham Investment Management, LLC documents not be householded, please contact Needham Investment Management, LLC at 1-800-625-7071, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Needham Investment Management, LLC or your financial intermediary.
| Needham Aggressive Growth Fund | PAGE 3 | TSR-SAR-63983V506 |
|
Needham Small Cap Growth Fund
|
||
|
Retail Class| NESGX
|
||
|
Semi-Annual Shareholder Report | June 30, 2024
|
This semi-annual shareholder reportcontains important information about the Needham Small Cap Growth Fund for the period of January 1, 2024, to June 30, 2024. You can find additional information about the Fund at www.needhamfunds.com/resources-forms. You can also request this information by contacting us at 1-800-625-7071.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Retail Class
|
$92
|
1.78%
|
HOW DID THE FUND PERFORM OVER THE LAST SIX MONTHS AND WHAT AFFECTED ITS PERFORMANCE?
Performance
For the six-month period ended June 30, 2024, the Needham Small Cap Growth Fund outperformed the Russell 2000 Growth Index and underperformed the broad-based Russell 3000, as larger cap companies outperformed smaller cap stocks.
The key factor affecting the Fund's performance was stock selection. The top contributing stock was Aspen Aerogels, Inc. (ASPN). Aspen Aerogels designs, develops and manufactures aerogel insulation used primarily in the energy infrastructure and building materials markets. It has significant opportunities within the automotive industry as the growth of electric vehicles continues. The ten bottom-performing stocks combined detracted from performance the same amount that Aspen Aerogels contributed to performance.
Investment Themes
Technology remains a long-term strength of the economy, and there are major secular trends that remain in place to support continued growth. Areas of long-term investment that we continue to like are mobile electrification, communications infrastructure, defense, AI, cloud computing, 5G devices and wireless connectivity, software and security, and specialty material manufacturers.
Macroeconomic Factors
The economy continued to digest the impact of higher interest rates. Global economic growth slowed as the impact of the higher cost of capital filtered throughout the economy. Inflation significantly improved, but the headwinds of elevated costs in housing, food, and labor remained a challenge. We anticipate the Federal Reserve will begin to cut interest rates later in the year.
|
Top Contributors
|
|
|
↑
|
Aspen Aerogels, Inc.
|
|
↑
|
MKS Instruments, Inc.
|
|
↑
|
AXT, Inc.
|
|
↑
|
TTM Technologies, Inc.
|
|
↑
|
Pure Storage, Inc.
|
| Needham Small Cap Growth Fund | PAGE 1 | TSR-SAR-63983V308 |
|
Top Detractors
|
|
|
↓
|
Cambium Networks Corp.
|
|
↓
|
Vicor Corp.
|
|
↓
|
ADTRAN Holdings, Inc.
|
|
↓
|
nLight, Inc.
|
|
↓
|
Viasat, Inc.
|
HOW DID THE FUND PERFORM OVER THE PAST 10 YEARS?*
The $10,000 chart reflects a hypothetical $10,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including 12b-1 fees, management fees and other expenses were deducted.
CUMULATIVE PERFORMANCE
ANNUAL AVERAGE TOTAL RETURN (%)
|
1 Year
|
5 Year
|
10 Year
|
|
|
Retail Class (without sales charge)
|
11.99
|
12.79
|
11.82
|
|
Russell 3000 Total Return
|
23.13
|
14.14
|
12.15
|
|
Russell 2000 Growth Total Return
|
9.14
|
6.17
|
7.39
|
Visit www.needhamfunds.com/resources-formsfor more recent performance information.
| * | The Fund's past performance is not a good predictor of the Fund's future performance. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. |
KEY FUND STATISTICS (as of June 30, 2024)
|
Net Assets
|
$165,695,958
|
|
Number of Holdings
|
54
|
|
Portfolio Turnover
|
13%
|
Visit www.needhamfunds.com/resources-formsfor more recent performance information.
| Needham Small Cap Growth Fund | PAGE 2 | TSR-SAR-63983V308 |
WHAT DID THE FUND INVEST IN? (as of June 30, 2024)
|
Top Sectors
|
(%) of net assets
|
|
Information Technology
|
70.5%
|
|
Industrials
|
9.6%
|
|
Materials
|
7.1%
|
|
Health Care
|
2.2%
|
|
Consumer Discretionary
|
1.1%
|
|
Energy
|
0.5%
|
|
Cash & Other
|
9.0%
|
|
Top 10 Issuers
|
(%) of net assets
|
|
Dreyfus Treasury Securities Cash Management
|
8.9%
|
|
Aspen Aerogels, Inc.
|
7.1%
|
|
Zuora, Inc.
|
4.6%
|
|
TTM Technologies, Inc.
|
4.4%
|
|
Harmonic, Inc.
|
4.3%
|
|
Calix, Inc.
|
3.7%
|
|
PDF Solutions, Inc.
|
3.7%
|
|
Vicor Corp.
|
3.7%
|
|
nLight, Inc.
|
3.7%
|
|
Lumentum Holdings, Inc.
|
3.1%
|
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit www.needhamfunds.com/resources-forms
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Needham Investment Management, LLC documents not be householded, please contact Needham Investment Management, LLC at 1-800-625-7071, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Needham Investment Management, LLC or your financial intermediary.
| Needham Small Cap Growth Fund | PAGE 3 | TSR-SAR-63983V308 |
|
Needham Small Cap Growth Fund
|
||
|
Institutional Class| NESIX
|
||
|
Semi-Annual Shareholder Report | June 30, 2024
|
This semi-annual shareholder reportcontains important information about the Needham Small Cap Growth Fund for the period of January 1, 2024, to June 30, 2024. You can find additional information about the Fund at www.needhamfunds.com/resources-forms. You can also request this information by contacting us at 1-800-625-7071.
This report describes changes to the Fund that occurred during the reporting period.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
|
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Institutional Class
|
$61
|
1.18%
|
HOW DID THE FUND PERFORM OVER THE LAST SIX MONTHS AND WHAT AFFECTED ITS PERFORMANCE?
Performance
For the six-month period ended June 30, 2024, the Needham Small Cap Growth Fund outperformed the Russell 2000 Growth Index and underperformed the broad-based Russell 3000, as larger cap companies outperformed smaller cap stocks.
The key factor affecting the Fund's performance was stock selection. The top contributing stock was Aspen Aerogels, Inc. (ASPN). Aspen Aerogels designs, develops and manufactures aerogel insulation used primarily in the energy infrastructure and building materials markets. It has significant opportunities within the automotive industry as the growth of electric vehicles continues. The ten bottom-performing stocks combined detracted from performance the same amount that Aspen Aerogels contributed to performance.
Investment Themes
Technology remains a long-term strength of the economy, and there are major secular trends that remain in place to support continued growth. Areas of long-term investment that we continue to like are mobile electrification, communications infrastructure, defense, AI, cloud computing, 5G devices and wireless connectivity, software and security, and specialty material manufacturers.
Macroeconomic Factors
The economy continued to digest the impact of higher interest rates. Global economic growth slowed as the impact of the higher cost of capital filtered throughout the economy. Inflation significantly improved, but the headwinds of elevated costs in housing, food, and labor remained a challenge. We anticipate the Federal Reserve will begin to cut interest rates later in the year.
|
Top Contributors
|
|
|
↑
|
Aspen Aerogels, Inc.
|
|
↑
|
MKS Instruments, Inc.
|
|
↑
|
AXT, Inc.
|
|
↑
|
TTM Technologies, Inc.
|
|
↑
|
Pure Storage, Inc.
|
| Needham Small Cap Growth Fund | PAGE 1 | TSR-SAR-63983V605 |
|
Top Detractors
|
|
|
↓
|
Cambium Networks Corp.
|
|
↓
|
Vicor Corp.
|
|
↓
|
ADTRAN Holdings, Inc.
|
|
↓
|
nLight, Inc.
|
|
↓
|
Viasat, Inc.
|
HOW DID THE FUND PERFORM SINCE INCEPTION?*
The $100,000 chart reflects a hypothetical $100,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including management fees and other expenses were deducted.
CUMULATIVE PERFORMANCE
ANNUAL AVERAGE TOTAL RETURN (%)
|
1 Year
|
5 Year
|
Since Inception
(12/30/2016) |
|
|
Institutional Class (without sales charge)
|
12.64
|
13.44
|
13.64
|
|
Russell 3000 Total Return
|
23.13
|
14.14
|
13.82
|
|
Russell 2000 Growth Total Return
|
9.14
|
6.17
|
8.14
|
Visit www.needhamfunds.com/resources-formsfor more recent performance information.
| * | The Fund's past performance is not a good predictor of the Fund's future performance. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. |
KEY FUND STATISTICS (as of June 30, 2024)
|
Net Assets
|
$165,695,958
|
|
Number of Holdings
|
54
|
|
Portfolio Turnover
|
13%
|
Visit www.needhamfunds.com/resources-formsfor more recent performance information.
| Needham Small Cap Growth Fund | PAGE 2 | TSR-SAR-63983V605 |
WHAT DID THE FUND INVEST IN? (as of June 30, 2024)
|
Top Sectors
|
(%) of net assets
|
|
Information Technology
|
70.5%
|
|
Industrials
|
9.6%
|
|
Materials
|
7.1%
|
|
Health Care
|
2.2%
|
|
Consumer Discretionary
|
1.1%
|
|
Energy
|
0.5%
|
|
Cash & Other
|
9.0%
|
|
Top 10 Issuers
|
(%) of net assets
|
|
Dreyfus Treasury Securities Cash Management
|
8.9%
|
|
Aspen Aerogels, Inc.
|
7.1%
|
|
Zuora, Inc.
|
4.6%
|
|
TTM Technologies, Inc.
|
4.4%
|
|
Harmonic, Inc.
|
4.3%
|
|
Calix, Inc.
|
3.7%
|
|
PDF Solutions, Inc.
|
3.7%
|
|
Vicor Corp.
|
3.7%
|
|
nLight, Inc.
|
3.7%
|
|
Lumentum Holdings, Inc.
|
3.1%
|
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit www.needhamfunds.com/resources-forms
HOUSEHOLDING
To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Needham Investment Management, LLC documents not be householded, please contact Needham Investment Management, LLC at 1-800-625-7071, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Needham Investment Management, LLC or your financial intermediary.
| Needham Small Cap Growth Fund | PAGE 3 | TSR-SAR-63983V605 |
| (b) | Not applicable for this Registrant |
Item 2. Code of Ethics.
Not applicable for semi-annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).
Item 6. Investments.
| (a) | Schedule of Investments is included within the financial statements filed under Item 7 of this Form. |
| (b) | Not Applicable. |
Item 7. Financial Statements and Financial Highlights for Open-End Investment Companies.
| (a) |
Needham Growth Fund
Needham Aggressive Growth Fund
Needham Small Cap Growth Fund
Core Financial Statements
June 30, 2024
TABLE OF CONTENTS
|
Page
|
|||
|
Schedules of Investments
|
|||
|
Needham Growth Fund
|
1
|
||
|
Needham Aggressive Growth Fund
|
3
|
||
|
Needham Small Cap Growth Fund
|
6
|
||
|
Statements of Assets and Liabilities
|
8
|
||
|
Statements of Operations
|
9
|
||
|
Statements of Changes in Net Assets
|
|||
|
Needham Growth Fund
|
10
|
||
|
Needham Aggressive Growth Fund
|
11
|
||
|
Needham Small Cap Growth Fund
|
12
|
||
|
Financial Highlights
|
|||
|
Needham Growth Fund
|
13
|
||
|
Needham Aggressive Growth Fund
|
15
|
||
|
Needham Small Cap Growth Fund
|
17
|
||
|
Notes to Financial Statements
|
19
|
||
|
Supplementary Information
|
26
|
||
TABLE OF CONTENTS
Needham Growth Fund
Schedule of Investments
as of June 30, 2024 (Unaudited)
|
Shares
|
Value
|
|||||
|
COMMON STOCKS - 83.7%
|
||||||
|
Aerospace & Defense - 0.9%
|
||||||
|
Huntington Ingalls Industries, Inc.
|
7,500
|
$ 1,847,475
|
||||
|
RTX Corp.
|
2,000
|
200,780
|
||||
|
2,048,255
|
||||||
|
Biotechnology - 0.4%
|
||||||
|
G1 Therapeutics, Inc.(a)
|
35,000
|
79,800
|
||||
|
Gilead Sciences, Inc.
|
14,000
|
960,540
|
||||
|
1,040,340
|
||||||
|
Chemicals - 4.5%
|
||||||
|
Aspen Aerogels, Inc.(a)
|
400,000
|
9,540,000
|
||||
|
DuPont de Nemours, Inc.
|
12,500
|
1,006,125
|
||||
|
10,546,125
|
||||||
|
Commercial Services & Supplies - 1.2%
|
||||||
|
Clean Harbors, Inc.(a)
|
12,250
|
2,770,338
|
||||
|
Communications Equipment - 1.2%
|
||||||
|
ADTRAN Holdings, Inc.
|
145,000
|
762,700
|
||||
|
Cambium Networks Corp.(a)
|
77,850
|
217,201
|
||||
|
KVH Industries, Inc.(a)(b)
|
389,300
|
1,810,245
|
||||
|
ViaSat, Inc.(a)(b)
|
7,500
|
95,250
|
||||
|
2,885,396
|
||||||
|
Construction & Engineering - 0.9%
|
||||||
|
Centuri Holdings, Inc.(a)
|
55,000
|
1,071,400
|
||||
|
MDU Resources Group, Inc.
|
40,000
|
1,004,000
|
||||
|
2,075,400
|
||||||
|
Construction Materials - 0.2%
|
||||||
|
CRH PLC (Ireland)(a)
|
7,000
|
524,860
|
||||
|
Diversified Consumer Services - 0.7%
|
||||||
|
Bright Horizons Family Solutions, Inc.(a)
|
14,000
|
1,541,120
|
||||
|
Electrical Equipment - 4.4%
|
||||||
|
Hammond Power Solutions, Inc. (Canada)
|
30,000
|
2,444,867
|
||||
|
nVent Electric PLC (Ireland)
|
35,000
|
2,681,350
|
||||
|
Vertiv Holdings Co. - Class A
|
13,000
|
1,125,410
|
||||
|
Vicor Corp.(a)
|
125,000
|
4,145,000
|
||||
|
10,396,627
|
||||||
|
Electronic Equipment, Instruments & Components - 4.7%
|
||||||
|
Cognex Corp.
|
37,000
|
1,730,120
|
||||
|
Coherent Corp.(a)
|
28,000
|
2,028,880
|
||||
|
Corning, Inc.
|
41,500
|
1,612,275
|
||||
|
nLight, Inc.(a)
|
135,000
|
1,475,550
|
||||
|
TTM Technologies, Inc.(a)
|
52,500
|
1,020,075
|
||||
|
Vishay Intertechnology, Inc.
|
145,000
|
3,233,500
|
||||
|
11,100,400
|
||||||
|
Shares
|
Value
|
|||||
|
Health Care Equipment & Supplies - 2.5%
|
||||||
|
Becton Dickinson & Co.
|
18,250
|
$ 4,265,208
|
||||
|
Medtronic PLC (Ireland)
|
20,000
|
1,574,200
|
||||
|
5,839,408
|
||||||
|
Health Care Providers & Services - 1.1%
|
||||||
|
Labcorp Holdings, Inc.
|
8,800
|
1,790,888
|
||||
|
Quest Diagnostics, Inc.
|
5,500
|
752,840
|
||||
|
2,543,728
|
||||||
|
Industrial Conglomerates - 0.2%
|
||||||
|
Honeywell International, Inc.
|
2,500
|
533,850
|
||||
|
Insurance - 0.3%
|
||||||
|
Markel Group, Inc.(a)
|
500
|
787,830
|
||||
|
Interactive Media & Services - 0.4%
|
||||||
|
Alphabet, Inc. - Class A
|
5,000
|
910,750
|
||||
|
IT Services - 2.8%
|
||||||
|
Akamai Technologies, Inc.(a)
|
55,000
|
4,954,400
|
||||
|
Unisys Corp.(a)
|
425,000
|
1,755,250
|
||||
|
6,709,650
|
||||||
|
Life Sciences Tools & Services - 4.7%
|
||||||
|
Bruker Corp.
|
20,000
|
1,276,200
|
||||
|
CryoPort, Inc.(a)
|
50,000
|
345,500
|
||||
|
Fortrea Holdings, Inc.(a)
|
22,500
|
525,150
|
||||
|
Thermo Fisher Scientific, Inc.
|
16,250
|
8,986,250
|
||||
|
11,133,100
|
||||||
|
Media - 3.1%
|
||||||
|
Comcast Corp. - Class A
|
70,000
|
2,741,200
|
||||
|
The Trade Desk, Inc. - Class A(a)
|
47,000
|
4,590,490
|
||||
|
7,331,690
|
||||||
|
Oil, Gas & Consumable Fuels - 0.5%
|
||||||
|
Chevron Corp.
|
5,000
|
782,100
|
||||
|
Navigator Holdings, Ltd. (Marshall Islands)
|
20,000
|
349,200
|
||||
|
1,131,300
|
||||||
|
Professional Services - 2.8%
|
||||||
|
Parsons Corp.(a)
|
82,000
|
6,708,420
|
||||
|
Semiconductors & Semiconductor Equipment - 29.0%(c)
|
||||||
|
Analog Devices, Inc.
|
10,000
|
2,282,600
|
||||
|
Applied Materials, Inc.
|
9,000
|
2,123,910
|
||||
|
ASML Holding NV (Netherlands)
|
2,250
|
2,301,142
|
||||
|
AXT, Inc.(a)
|
200,000
|
676,000
|
||||
|
Entegris, Inc.
|
94,500
|
12,795,300
|
||||
|
FormFactor, Inc.(a)
|
111,000
|
6,718,830
|
||||
|
Lam Research Corp.
|
2,500
|
2,662,125
|
||||
|
Marvell Technology, Inc.
|
40,500
|
2,830,950
|
||||
|
MKS Instruments, Inc.
|
22,000
|
2,872,760
|
||||
|
Nova, Ltd. (Israel)(a)
|
43,500
|
10,202,055
|
||||
|
PDF Solutions, Inc.(a)(b)
|
285,000
|
10,368,300
|
||||
See accompanying notes to financial statements.
|
1
|
TABLE OF CONTENTS
Needham Growth Fund
Schedule of Investments
as of June 30, 2024 (Unaudited)(Continued)
|
Shares
|
Value
|
|||||
|
COMMON STOCKS - (Continued)
|
||||||
|
Semiconductors & Semiconductor Equipment - (Continued)
|
||||||
|
Photronics, Inc.(a)
|
158,500
|
$3,910,195
|
||||
|
SiTime Corp.(a)
|
12,500
|
1,554,750
|
||||
|
Teradyne, Inc.
|
17,500
|
2,595,075
|
||||
|
Veeco Instruments, Inc.(a)
|
93,500
|
4,367,385
|
||||
|
68,261,377
|
||||||
|
Software - 2.2%
|
||||||
|
Altair Engineering, Inc. - Class A(a)
|
39,000
|
3,825,120
|
||||
|
Klaviyo, Inc. - Class A(a)
|
50,000
|
1,244,500
|
||||
|
5,069,620
|
||||||
|
Specialty Retail - 2.4%
|
||||||
|
CarMax, Inc.(a)
|
78,500
|
5,757,190
|
||||
|
Technology Hardware, Storage & Peripherals - 11.8%
|
||||||
|
Apple, Inc.
|
6,750
|
1,421,685
|
||||
|
Hewlett Packard Enterprise Co.
|
51,500
|
1,090,255
|
||||
|
Super Micro Computer, Inc.(a)(b)
|
30,750
|
25,195,012
|
||||
|
27,706,952
|
||||||
|
Textiles, Apparel & Luxury Goods - 0.6%
|
||||||
|
Carter's, Inc.
|
22,750
|
1,409,818
|
||||
|
Trading Companies & Distributors - 0.2%
|
||||||
|
Air Lease Corp.
|
7,500
|
356,475
|
||||
|
TOTAL COMMON STOCKS
(Cost $77,443,769)
|
197,120,019
|
|||||
|
REAL ESTATE INVESTMENT TRUSTS - 0.5%
|
||||||
|
Equinix, Inc.
|
1,500
|
1,134,900
|
||||
|
TOTAL REAL ESTATE INVESTMENT TRUSTS
(Cost $1,151,184)
|
1,134,900
|
|||||
|
Shares
|
Value
|
|||||
|
SHORT-TERM INVESTMENTS - 15.5%
|
||||||
|
Money Market Funds - 15.5%
|
||||||
|
Dreyfus Treasury Securities Cash Management - Class Institutional, 5.18%(d)
|
36,385,415
|
$36,385,415
|
||||
|
TOTAL SHORT-TERM INVESTMENTS
(Cost $36,385,415)
|
36,385,415
|
|||||
|
TOTAL INVESTMENTS - 99.7% (Cost $114,980,368)
|
$234,640,334
|
|||||
|
Other Assets in Excess of
Liabilities - 0.3%
|
760,951
|
|||||
|
TOTAL NET ASSETS - 100.0%
|
$235,401,285
|
|||||
Percentages are stated as a percent of net assets.
The Global Industry Classification Standard ("GICS®") was developed by and/or is the exclusive property of MSCI, Inc. ("MSCI") and Standard & Poor's Financial Services LLC ("S&P"). GICS® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bank Global Fund Services.
PLC - Public Limited Company
Industry classifications may be different than those used for compliance monitoring purposes.
|
(a)
|
Non-income producing security.
|
|
(b)
|
All or a portion of security has been pledged as collateral for securities sold short. The total value of assets committed as collateral as of June 30, 2024 is $5,632,150.
|
|
(c)
|
As of June 30, 2024, the Fund had a significant portion of its assets invested in Semiconductors & Semiconductor Equipment.
|
|
(d)
|
The rate shown represents the 7-day effective yield as of June 30, 2024.
|
Allocation of Portfolio Holdings by Country as of June 30, 2024
|
(% of Investments)
|
||||||
|
United States^
|
$ 214,562,659
|
91.4%
|
||||
|
Israel
|
10,202,055
|
4.4
|
||||
|
Ireland
|
4,780,410
|
2.0
|
||||
|
Canada
|
2,444,867
|
1.0
|
||||
|
Netherlands
|
2,301,143
|
1.0
|
||||
|
Marshall Islands
|
349,200
|
0.2
|
||||
|
$234,640,334
|
100.0%
|
|||||
|
^
|
United States allocation includes Short-Term Investment-Money Market Fund of 15.5%.
|
See accompanying notes to financial statements.
|
2
|
TABLE OF CONTENTS
Needham Aggressive Growth Fund
Schedule of Investments
as of June 30, 2024 (Unaudited)
|
Shares
|
Value
|
|||||
|
COMMON STOCKS - 86.0%
|
||||||
|
Aerospace & Defense - 2.2%
|
||||||
|
Astronics Corp.(a)
|
245,000
|
$ 4,907,350
|
||||
|
DroneShield Ltd. (Australia)(a)
|
1,500,000
|
1,721,113
|
||||
|
Electro Optic Systems Holdings Ltd. (Australia)(a)
|
2,750,000
|
2,861,851
|
||||
|
Huntington Ingalls Industries, Inc.
|
32,500
|
8,005,725
|
||||
|
17,496,039
|
||||||
|
Biotechnology - 0.0%(b)
|
||||||
|
G1 Therapeutics, Inc.(a)
|
70,000
|
159,600
|
||||
|
Building Products - 0.4%
|
||||||
|
Alpha Pro Tech, Ltd.(a)(d)
|
602,500
|
3,313,750
|
||||
|
Chemicals - 6.8%
|
||||||
|
Aspen Aerogels, Inc.(a)
|
1,270,000
|
30,289,500
|
||||
|
Core Molding Technologies, Inc.(a)
|
205,000
|
3,267,700
|
||||
|
Ecovyst, Inc.(a)
|
730,000
|
6,548,100
|
||||
|
Mativ Holdings, Inc.
|
430,000
|
7,292,800
|
||||
|
Northern Technologies International Corp.
|
415,000
|
6,872,400
|
||||
|
54,270,500
|
||||||
|
Commercial Services & Supplies - 1.2%
|
||||||
|
ACV Auctions, Inc. - Class A(a)
|
86,500
|
1,578,625
|
||||
|
Clean Harbors, Inc.(a)
|
33,750
|
7,632,562
|
||||
|
9,211,187
|
||||||
|
Communications Equipment - 0.9%
|
||||||
|
ADTRAN Holdings, Inc.
|
310,000
|
1,630,600
|
||||
|
Comtech Telecommunications Corp.(a)
|
1,075,000
|
3,257,250
|
||||
|
KVH Industries, Inc.(a)
|
486,500
|
2,262,225
|
||||
|
7,150,075
|
||||||
|
Construction & Engineering - 2.4%
|
||||||
|
Centuri Holdings, Inc.(a)
|
225,000
|
4,383,000
|
||||
|
Matrix Service Co.(a)
|
1,025,000
|
10,178,250
|
||||
|
MDU Resources Group, Inc.
|
175,000
|
4,392,500
|
||||
|
18,953,750
|
||||||
|
Construction Materials - 0.9%
|
||||||
|
CRH PLC (Ireland)(a)
|
28,000
|
2,099,440
|
||||
|
Smith-Midland Corp.(a)
|
185,000
|
5,122,650
|
||||
|
7,222,090
|
||||||
|
Distributors - 0.2%
|
||||||
|
Educational Development Corp.(a)(d)
|
750,000
|
1,417,500
|
||||
|
Diversified Consumer Services - 2.4%
|
||||||
|
Bright Horizons Family Solutions, Inc.(a)
|
92,500
|
10,182,400
|
||||
|
Lincoln Educational Services Corp.(a)
|
350,000
|
4,151,000
|
||||
|
Universal Technical Institute, Inc.(a)
|
290,000
|
4,561,700
|
||||
|
18,895,100
|
||||||
|
Electrical Equipment - 9.1%
|
||||||
|
Hammond Power Solutions, Inc. (Canada)(a)
|
150,000
|
12,224,334
|
||||
|
Shares
|
Value
|
|||||
|
nVent Electric PLC (Ireland)
|
75,000
|
$ 5,745,750
|
||||
|
Thermon Group Holdings, Inc.(a)
|
535,000
|
16,456,600
|
||||
|
Vertiv Holdings Co. - Class A
|
248,500
|
21,512,645
|
||||
|
Vicor Corp.(a)
|
500,000
|
16,580,000
|
||||
|
72,519,329
|
||||||
|
Electronic Equipment, Instruments & Components - 10.3%
|
||||||
|
Arlo Technologies, Inc.(a)
|
980,000
|
12,779,200
|
||||
|
Blackline Safety Corp. (Canada)(a)
|
600,000
|
1,907,825
|
||||
|
Cognex Corp.
|
145,000
|
6,780,200
|
||||
|
FARO Technologies, Inc.(a)
|
790,000
|
12,640,000
|
||||
|
Luna Innovations, Inc.(a)
|
400,000
|
1,280,000
|
||||
|
nLight, Inc.(a)
|
1,375,000
|
15,028,750
|
||||
|
Vishay Intertechnology, Inc.
|
700,000
|
15,610,000
|
||||
|
Vishay Precision Group, Inc.(a)
|
550,000
|
16,742,000
|
||||
|
82,767,975
|
||||||
|
Energy Equipment & Services - 0.0%(b)
|
||||||
|
Energy Services of America Corp.
|
50,000
|
358,000
|
||||
|
Food Products - 2.4%
|
||||||
|
Vital Farms, Inc.(a)
|
417,500
|
19,526,475
|
||||
|
Health Care Equipment & Supplies - 1.0%
|
||||||
|
LeMaitre Vascular, Inc.
|
38,500
|
3,167,780
|
||||
|
Omnicell, Inc.(a)
|
87,500
|
2,368,625
|
||||
|
Precision Optics Corp, Inc.(a)(d)
|
366,717
|
2,163,630
|
||||
|
7,700,035
|
||||||
|
Health Care Providers & Services - 0.4%
|
||||||
|
Labcorp Holdings, Inc.
|
12,300
|
2,503,173
|
||||
|
Quest Diagnostics, Inc.
|
3,000
|
410,640
|
||||
|
2,913,813
|
||||||
|
Hotels, Restaurants & Leisure - 1.4%
|
||||||
|
Genius Sports Ltd. (Guernsey)(a)
|
2,100,000
|
11,445,000
|
||||
|
Household Products - 1.9%
|
||||||
|
Oil-Dri Corp. of America
|
241,500
|
15,477,735
|
||||
|
Insurance - 0.4%
|
||||||
|
Markel Group, Inc.(a)
|
2,150
|
3,387,669
|
||||
|
Interactive Media & Services - 0.0%(b)
|
||||||
|
Illumin Holdings, Inc. (Canada)(a)
|
200,000
|
207,595
|
||||
|
IT Services - 3.8%
|
||||||
|
Akamai Technologies, Inc.(a)(c)
|
80,000
|
7,206,400
|
||||
|
Research Solutions, Inc.(a)(d)
|
2,725,000
|
6,948,750
|
||||
|
Unisys Corp.(a)(d)
|
3,855,000
|
15,921,150
|
||||
|
30,076,300
|
||||||
|
Life Sciences Tools & Services - 0.9%
|
||||||
|
Bruker Corp.
|
90,000
|
5,742,900
|
||||
|
CryoPort, Inc.(a)
|
110,000
|
760,100
|
||||
|
Fortrea Holdings, Inc.(a)
|
45,000
|
1,050,300
|
||||
|
7,553,300
|
||||||
See accompanying notes to financial statements.
|
3
|
TABLE OF CONTENTS
Needham Aggressive Growth Fund
Schedule of Investments
as of June 30, 2024 (Unaudited)(Continued)
|
Shares
|
Value
|
|||||
|
COMMON STOCKS - (Continued)
|
||||||
|
Machinery - 0.2%
|
||||||
|
Gorman-Rupp Co.
|
40,000
|
$1,468,400
|
||||
|
Westinghouse Air Brake Technologies Corp.
|
3,000
|
474,150
|
||||
|
1,942,550
|
||||||
|
Media - 0.1%
|
||||||
|
The Trade Desk, Inc. - Class A(a)
|
12,000
|
1,172,040
|
||||
|
Oil, Gas & Consumable Fuels - 0.7%
|
||||||
|
Adams Resources & Energy, Inc.(d)
|
206,500
|
5,782,000
|
||||
|
Professional Services - 4.9%
|
||||||
|
Asure Software, Inc.(a)(d)
|
1,980,000
|
16,632,000
|
||||
|
CRA International, Inc.
|
78,000
|
13,433,160
|
||||
|
Parsons Corp.(a)
|
113,500
|
9,285,435
|
||||
|
39,350,595
|
||||||
|
Semiconductors & Semiconductor Equipment - 12.7%
|
||||||
|
ASML Holding NV (Netherlands)
|
2,700
|
2,761,371
|
||||
|
AXT, Inc.(a)
|
75,000
|
253,500
|
||||
|
Entegris, Inc.
|
64,000
|
8,665,600
|
||||
|
FormFactor, Inc.(a)
|
185,000
|
11,198,050
|
||||
|
MKS Instruments, Inc.
|
41,000
|
5,353,780
|
||||
|
Nova, Ltd. (Israel)(a)
|
64,000
|
15,009,920
|
||||
|
PDF Solutions, Inc.(a)
|
875,000
|
31,832,500
|
||||
|
Photronics, Inc.(a)
|
298,250
|
7,357,827
|
||||
|
SiTime Corp.(a)
|
9,500
|
1,181,610
|
||||
|
Teradyne, Inc.
|
12,500
|
1,853,625
|
||||
|
Veeco Instruments, Inc.(a)
|
347,500
|
16,231,725
|
||||
|
101,699,508
|
||||||
|
Software - 7.3%
|
||||||
|
Altair Engineering, Inc. - Class A(a)
|
150,000
|
14,712,000
|
||||
|
American Software, Inc. - Class A
|
1,435,000
|
13,101,550
|
||||
|
Arteris, Inc.(a)(d)
|
1,975,000
|
14,832,250
|
||||
|
Copperleaf Technologies, Inc. (Canada)(a)
|
800,000
|
6,929,571
|
||||
|
Klaviyo, Inc. - Class A(a)
|
200,000
|
4,978,000
|
||||
|
Thinkific Labs, Inc. (Canada)(a)(d)
|
1,400,000
|
3,806,879
|
||||
|
58,360,250
|
||||||
|
Specialty Retail - 1.9%
|
||||||
|
CarMax, Inc.(a)
|
72,500
|
5,317,150
|
||||
|
ThredUp, Inc. - Class A(a)(d)
|
5,785,000
|
9,834,500
|
||||
|
15,151,650
|
||||||
|
Technology Hardware, Storage & Peripherals - 7.5%
|
||||||
|
Apple, Inc.
|
24,000
|
5,054,880
|
||||
|
Super Micro Computer, Inc.(a)(c)
|
67,450
|
55,265,158
|
||||
|
60,320,038
|
||||||
|
Shares
|
Value
|
|||||
|
Textiles, Apparel & Luxury Goods - 1.3%
|
||||||
|
Carter's, Inc.
|
165,000
|
$10,225,050
|
||||
|
Trading Companies & Distributors - 0.4%
|
||||||
|
Transcat, Inc.(a)
|
27,500
|
3,291,200
|
||||
|
TOTAL COMMON STOCKS
(Cost $518,900,396)
|
689,317,698
|
|||||
|
REAL ESTATE INVESTMENT TRUSTS - 0.5%
|
||||||
|
Equinix, Inc.
|
4,750
|
3,593,850
|
||||
|
TOTAL REAL ESTATE INVESTMENT TRUSTS
(Cost $2,277,668)
|
3,593,850
|
|||||
|
SHORT-TERM INVESTMENTS - 15.0%
|
||||||
|
Money Market Funds - 15.0%
|
||||||
|
Dreyfus Treasury Securities Cash Management - Class Institutional, 5.18%(e)
|
120,395,429
|
120,395,429
|
||||
|
TOTAL SHORT-TERM INVESTMENTS
(Cost $120,395,429)
|
120,395,429
|
|||||
|
TOTAL INVESTMENTS - 101.5%
(Cost $641,573,493)
|
$813,306,977
|
|||||
|
Liabilities in Excess of Other
Assets - (1.5)%
|
(11,690,928)
|
|||||
|
TOTAL NET ASSETS - 100.0%
|
$801,616,049
|
|||||
Percentages are stated as a percent of net assets.
Industry classifications may be different than those used for compliance monitoring purposes.
The Global Industry Classification Standard ("GICS®") was developed by and/or is the exclusive property of MSCI, Inc. ("MSCI") and Standard & Poor's Financial Services LLC ("S&P"). GICS® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bank Global Fund Services.
PLC - Public Limited Company
|
(a)
|
Non-income producing security.
|
|
(b)
|
Represents less than 0.05% of net assets.
|
|
(c)
|
Security position is either entirely or partially held in a segregated account. The aggregated total market value as of June 30, 2024 is $2,588,855.
|
|
(d)
|
Affiliated security. Needham Aggressive Growth Fund owned 5% or more of the voting securities of this issuer during the six months ended June 30, 2024. As a result, this company is deemed to be an affiliate of Needham Aggressive Growth Fund as defined by the 1940 Act.
|
|
(e)
|
The rate shown represents a 7-day effective yield as of June 30, 2024.
|
See accompanying notes to financial statements.
|
4
|
TABLE OF CONTENTS
Needham Aggressive Growth Fund
Schedule of Investments
as of June 30, 2024 (Unaudited)(Continued)
Allocation of Portfolio Holdings by Country as of June 30, 2024
|
(% of Investments)
|
||||||
|
United States^
|
$ 629,914,379
|
94.6%
|
||||
|
Canada
|
25,076,204
|
3.0
|
||||
|
Israel
|
15,009,920
|
1.8
|
||||
|
Guernsey
|
11,445,500
|
1.4
|
||||
|
Ireland
|
7,845,190
|
0.1
|
||||
|
Australia
|
4,582,964
|
0.1
|
||||
|
Netherlands
|
2,761,371
|
0.0
|
||||
|
$813,306,977
|
100.0%
|
|||||
|
^
|
United States allocation includes Short-Term Investment-Money Market Fund of 15.0%.
|
See accompanying notes to financial statements.
|
5
|
TABLE OF CONTENTS
Needham Small Cap Growth Fund
Schedule of Investments
as of June 30, 2024 (Unaudited)
|
Shares
|
Value
|
|||||
|
COMMON STOCKS - 91.0%
|
||||||
|
Aerospace & Defense - 1.4%
|
||||||
|
Mercury Systems, Inc.(a)
|
87,500
|
$ 2,361,625
|
||||
|
Chemicals - 7.1%
|
||||||
|
Aspen Aerogels, Inc.(a)
|
492,529
|
11,746,817
|
||||
|
Communications Equipment - 20.9%
|
||||||
|
ADTRAN Holdings, Inc.
|
950,000
|
4,997,000
|
||||
|
Calix, Inc.(a)
|
175,000
|
6,200,250
|
||||
|
Cambium Networks Corp.(a)
|
675,150
|
1,883,668
|
||||
|
Ciena Corp.(a)
|
60,000
|
2,890,800
|
||||
|
Comtech Telecommunications Corp.(a)
|
100,000
|
303,000
|
||||
|
Harmonic, Inc.(a)
|
600,000
|
7,062,000
|
||||
|
Infinera Corp.(a)
|
500,000
|
3,045,000
|
||||
|
KVH Industries, Inc.(a)
|
364,900
|
1,696,785
|
||||
|
Lumentum Holdings, Inc.(a)
|
100,000
|
5,092,000
|
||||
|
ViaSat, Inc.(a)
|
110,000
|
1,397,000
|
||||
|
34,567,503
|
||||||
|
Construction & Engineering - 0.2%
|
||||||
|
Centuri Holdings, Inc.(a)
|
17,500
|
340,900
|
||||
|
Electrical Equipment - 5.9%
|
||||||
|
Generac Holdings, Inc.(a)
|
27,500
|
3,636,050
|
||||
|
Vicor Corp.(a)
|
185,000
|
6,134,600
|
||||
|
9,770,650
|
||||||
|
Electronic Equipment, Instruments & Components - 18.4%
|
||||||
|
Badger Meter, Inc.
|
12,500
|
2,329,375
|
||||
|
Cognex Corp.
|
47,500
|
2,221,100
|
||||
|
Coherent Corp.(a)
|
5,000
|
362,300
|
||||
|
FARO Technologies, Inc.(a)
|
30,000
|
480,000
|
||||
|
Frequency Electronics, Inc.(a)
|
300,000
|
2,733,000
|
||||
|
nLight, Inc.(a)(e)
|
560,000
|
6,120,800
|
||||
|
Rogers Corp.(a)
|
40,000
|
4,824,400
|
||||
|
TTM Technologies, Inc.(a)
|
376,300
|
7,311,509
|
||||
|
Vishay Intertechnology, Inc.
|
60,000
|
1,338,000
|
||||
|
Vishay Precision Group, Inc.(a)
|
90,000
|
2,739,600
|
||||
|
30,460,084
|
||||||
|
Hotels, Restaurants & Leisure - 1.1%
|
||||||
|
Vail Resorts, Inc.
|
10,000
|
1,801,300
|
||||
|
IT Services - 3.1%
|
||||||
|
BigCommerce Holdings, Inc.(a)
|
400,000
|
3,224,000
|
||||
|
Unisys Corp.(a)
|
475,000
|
1,961,750
|
||||
|
5,185,750
|
||||||
|
Life Sciences Tools & Services - 2.2%
|
||||||
|
Bruker Corp.
|
20,000
|
1,276,200
|
||||
|
CryoPort, Inc.(a)
|
110,000
|
760,100
|
||||
|
Standard BioTools, Inc.(a)
|
950,000
|
1,681,500
|
||||
|
3,717,800
|
||||||
|
Shares
|
Value
|
|||||
|
Machinery - 1.7%
|
||||||
|
Chart Industries, Inc.(a)
|
20,000
|
$2,886,800
|
||||
|
Oil, Gas & Consumable Fuels - 0.5%
|
||||||
|
Murphy Oil Corp.
|
20,000
|
824,800
|
||||
|
Professional Services - 0.4%
|
||||||
|
Parsons Corp.(a)
|
7,000
|
572,670
|
||||
|
Semiconductors & Semiconductor Equipment - 19.8%
|
||||||
|
Allegro MicroSystems, Inc.(a)
|
51,000
|
1,440,240
|
||||
|
AXT, Inc.(a)
|
1,099,600
|
3,716,648
|
||||
|
CEVA, Inc.(a)
|
150,000
|
2,893,500
|
||||
|
Cohu, Inc.(a)
|
35,000
|
1,158,500
|
||||
|
FormFactor, Inc.(a)
|
30,000
|
1,815,900
|
||||
|
Marvell Technology, Inc.
|
21,000
|
1,467,900
|
||||
|
MaxLinear, Inc.(a)
|
237,500
|
4,783,250
|
||||
|
MKS Instruments, Inc.
|
20,000
|
2,611,600
|
||||
|
PDF Solutions, Inc.(a)
|
170,000
|
6,184,600
|
||||
|
Photronics, Inc.(a)
|
22,550
|
556,308
|
||||
|
SiTime Corp.(a)
|
25,000
|
3,109,500
|
||||
|
Veeco Instruments, Inc.(a)
|
65,000
|
3,036,150
|
||||
|
32,774,096
|
||||||
|
Software - 7.7%
|
||||||
|
Altair Engineering, Inc. - Class A(a)
|
5,000
|
490,400
|
||||
|
Arteris, Inc.(a)
|
410,000
|
3,079,100
|
||||
|
Yext, Inc.(a)
|
270,000
|
1,444,500
|
||||
|
Zuora, Inc. - Class A(a)
|
772,500
|
7,670,925
|
||||
|
12,684,925
|
||||||
|
Technology Hardware, Storage & Peripherals - 0.6%
|
||||||
|
Intevac, Inc.(a)
|
100,000
|
386,000
|
||||
|
Pure Storage, Inc. - Class A(a)
|
10,000
|
642,100
|
||||
|
1,028,100
|
||||||
|
TOTAL COMMON STOCKS
(Cost $149,880,772)
|
150,723,820
|
|||||
|
Contracts
|
||||||
|
WARRANTS - 0.0%(b)
|
||||||
|
Agile Therapeutics, Inc.(a)(c)
|
88
|
1
|
||||
|
TOTAL WARRANTS
(Cost $1,750)
|
1
|
|||||
See accompanying notes to financial statements.
|
6
|
TABLE OF CONTENTS
Needham Small Cap Growth Fund
Schedule of Investments
as of June 30, 2024 (Unaudited)(Continued)
|
Shares
|
Value
|
|||||
|
SHORT-TERM INVESTMENTS - 8.9%
|
||||||
|
Money Market Funds - 8.9%
|
||||||
|
Dreyfus Treasury Securities Cash Management - Class Institutional, 5.18%(d)
|
14,794,522
|
$14,794,522
|
||||
|
TOTAL SHORT-TERM INVESTMENTS
(Cost $14,794,522)
|
14,794,522
|
|||||
|
TOTAL INVESTMENTS - 99.9%
(Cost $164,677,044)
|
$165,518,343
|
|||||
|
Other Assets in Excess of
Liabilities - 0.1%
|
177,615
|
|||||
|
TOTAL NET ASSETS - 100.0%
|
$165,695,958
|
|||||
Percentages are stated as a percent of net assets.
Industry classifications may be different than those used for compliance monitoring purposes.
The Global Industry Classification Standard ("GICS®") was developed by and/or is the exclusive property of MSCI, Inc. ("MSCI") and Standard & Poor's Financial Services LLC ("S&P"). GICS® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bank Global Fund Services.
|
(a)
|
Non-income producing security.
|
|
(b)
|
Represents less than 0.05% of net assets.
|
|
(c)
|
Fair value determined using significant unobservable inputs in accordance with procedures established by and under the supervision of the Adviser, acting as Valuation Designee. These securities represented $1 or 0.0% of net assets as of June 30, 2024.
|
|
(d)
|
The rate shown represents the 7-day effective yield as of June 30, 2024.
|
|
(e)
|
Security position is either entirely or partially held in a segregated account. The aggregated total market value as of June 30, 2024 is $1,093,000.
|
Allocation of Portfolio Holdings by Country as of June 30, 2024
|
(% of Investments)
|
||||||
|
United States^
|
$ 165,518,343
|
100.0%
|
||||
|
$165,695,958
|
100.0%
|
|||||
|
^
|
United States allocation includes Short-Term Investment-Money Market Fund of 8.9%
|
See accompanying notes to financial statements.
|
7
|
TABLE OF CONTENTS
Statements of Assets and Liabilities
June 30, 2024
|
Needham
Growth Fund
|
Needham Aggressive
Growth Fund
|
Needham Small Cap
Growth Fund
|
|||||||
|
Assets
|
|||||||||
|
Investments, at Value
|
|||||||||
|
Unaffiliated Securities (Cost $114,980,368, $807,981,195, $164,677,044)
|
$234,640,334
|
$732,654,568
|
$165,518,343
|
||||||
|
Affiliated Securities, (Cost $-, $88,802,093, $-)
|
-
|
80,652,409
|
-
|
||||||
|
Receivables:
|
|||||||||
|
Deposit with Broker for Securities Sold Short
|
237,213
|
-
|
-
|
||||||
|
Dividends and Interest
|
188,880
|
520,152
|
87,932
|
||||||
|
Fund Shares Sold
|
1,377,564
|
5,182,547
|
22,068
|
||||||
|
Investment Securities Sold
|
-
|
-
|
466,295
|
||||||
|
Prepaid Expenses
|
33,249
|
130,506
|
37,974
|
||||||
|
Total Assets
|
236,477,240
|
819,140,182
|
166,132,612
|
||||||
|
Liabilities
|
|||||||||
|
Foreign currency due to custodian (Cost $545,947, $5,322,751, $-)
|
546,154
|
5,325,782
|
-
|
||||||
|
Payables:
|
|||||||||
|
Investment Securities Purchased
|
101,745
|
508,725
|
50,873
|
||||||
|
Fund Shares Redeemed
|
117,925
|
10,823,360
|
122,681
|
||||||
|
Due to Adviser
|
214,623
|
712,638
|
143,127
|
||||||
|
Distribution Fees
|
21,650
|
51,619
|
5,522
|
||||||
|
Administration and Accounting Fees
|
35,599
|
36,867
|
41,696
|
||||||
|
Transfer Agent Fees
|
12,935
|
9,380
|
38,789
|
||||||
|
Audit and Tax Fees
|
9,872
|
37,567
|
1,077
|
||||||
|
Directors' Fees
|
1,493
|
5,831
|
2,901
|
||||||
|
Accrued Expenses and Other Liabilities
|
13,959
|
12,364
|
29,988
|
||||||
|
Total Liabilities
|
1,075,955
|
17,524,133
|
436,654
|
||||||
|
Net Assets
|
$235,401,285
|
$801,616,049
|
$165,695,958
|
||||||
|
Retail Class Shares
|
|||||||||
|
Net Assets
|
107,533,007
|
245,553,073
|
39,431,704
|
||||||
|
Shares Issued and Outstanding $0.001 Par Value
|
|||||||||
|
(Authorized 800,000,000,100,000,000 and 100,000,000 respectively)
|
1,519,830
|
5,217,469
|
2,210,637
|
||||||
|
Net Asset Value and Offering Price Per Share
|
$70.75
|
$47.06
|
$17.84
|
||||||
|
Institutional Class Shares
|
|||||||||
|
Net Assets
|
127,868,278
|
556,062,976
|
126,264,254
|
||||||
|
Shares Issued and Outstanding $0.001 Par Value
|
|||||||||
|
(Authorized 800,000,000,100,000,000 and 100,000,000 respectively)
|
1,732,176
|
11,218,469
|
6,653,657
|
||||||
|
Net Asset Value and Offering Price Per Share
|
$73.82
|
$49.57
|
$18.98
|
||||||
|
Components of Net Assets
|
|||||||||
|
Paid-in Capital
|
102,165,358
|
630,950,815
|
224,097,201
|
||||||
|
Distributable Earnings
|
133,235,927
|
170,665,234
|
(58,401,243)
|
||||||
|
Total Net Assets
|
$235,401,285
|
$801,616,049
|
$165,695,958
|
||||||
See accompanying notes to financial statements.
|
8
|
TABLE OF CONTENTS
Statements of Operations
For the Period Ended June 30, 2024
|
Needham
Growth Fund
|
Needham Aggressive
Growth Fund
|
Needham Small Cap
Growth Fund
|
|||||||
|
Investment Income
|
|||||||||
|
Dividend Income from unaffiliated securities
(net of foreign withholding tax of $1,982, $5,597, $-)
|
$391,577
|
$3,106,719
|
$215,829
|
||||||
|
Dividend Income from affiliated securities
|
-
|
100,200
|
-
|
||||||
|
Interest
|
601,985
|
1,003,013
|
86,716
|
||||||
|
Total Investment Income
|
993,562
|
4,209,932
|
302,545
|
||||||
|
Expenses
|
|||||||||
|
Investment Advisory Fees
|
1,224,599
|
3,961,305
|
1,000,798
|
||||||
|
Distribution Fees
|
117,564
|
254,652
|
50,066
|
||||||
|
Administration and Accounting Fees
|
79,489
|
165,891
|
83,736
|
||||||
|
Audit Fees
|
15,994
|
35,583
|
15,804
|
||||||
|
Chief Compliance Officer Fees
|
4,006
|
11,256
|
3,843
|
||||||
|
Custodian Fees
|
5,688
|
17,402
|
7,294
|
||||||
|
Directors' Fees
|
3,747
|
13,452
|
4,837
|
||||||
|
Filing Fees
|
19,616
|
55,032
|
27,365
|
||||||
|
Legal Fees
|
11,691
|
23,898
|
13,242
|
||||||
|
Printing Fees
|
3,735
|
8,879
|
11,046
|
||||||
|
Transfer Agent Fees
|
28,849
|
83,014
|
49,054
|
||||||
|
Other Expenses
|
13,617
|
29,854
|
12,340
|
||||||
|
Total Expenses
|
1,528,595
|
4,660,218
|
1,279,425
|
||||||
|
Fees Waived by Investment Adviser
|
(61,590)
|
(445,586)
|
(215,484)
|
||||||
|
Fees Recouped by Investment Adviser
|
-
|
11,971
|
970
|
||||||
|
Net Expenses
|
1,467,005
|
4,226,603
|
1,064,911
|
||||||
|
Net Investment Income (Loss)
|
(473,443)
|
(16,671)
|
(762,366)
|
||||||
|
Net Realized / Unrealized Gain (Loss) from Investments, Securities Sold Short, Foreign Currency Transactions and Currency
|
|||||||||
|
Net Realized Gain from Unaffiliated Securities
|
14,304,901
|
3,710,279
|
19,149,303
|
||||||
|
Net Realized (Loss) from Affiliated Securities
|
-
|
(1,700,979)
|
-
|
||||||
|
Net Realized Gain from Securities Sold Short
|
-
|
-
|
-
|
||||||
|
Net Realized Gain (Loss) from Foreign Currency Transactions and Currency
|
71
|
(21,501)
|
-
|
||||||
|
Change in Unrealized Appreciation (Depreciation) on Investments and Securities Sold Short
|
28,721,320
|
80,327,049
|
(3,575,247)
|
||||||
|
Change in Unrealized (Depreciation) on Affiliated Investments
|
-
|
(3,919,856)
|
(745,384)
|
||||||
|
Change in Unrealized (Depreciation) on Foreign Currency Transactions and Currency
|
(208)
|
(3,031)
|
-
|
||||||
|
Net Realized / Unrealized Gain from Investments, Securities Sold Short, Foreign Currency Transactions and Currency
|
43,026,084
|
78,391,961
|
14,828,672
|
||||||
|
Change in Net Assets Resulting from Operations
|
$42,552,641
|
$78,375,290
|
$14,066,306
|
||||||
See accompanying notes to financial statements.
|
9
|
TABLE OF CONTENTS
Statements of Changes in Net Assets
|
Needham Growth Fund
|
||||||
|
Period Ended
June 30, 2024
|
Year Ended
December 31, 2023
|
|||||
|
Change in Net Assets
|
||||||
|
Operations:
|
||||||
|
Net Investment Loss
|
$(473,443)
|
$(1,180,212)
|
||||
|
Net Realized Gain from Investments, Securities Sold Short, Foreign Currency Transactions, and Currency
|
14,304,972
|
375,240
|
||||
|
Net Change in Unrealized Appreciation on Investments, Securities Sold Short, Foreign Currency Translations
|
28,721,112
|
31,601,642
|
||||
|
Change in Net Assets Resulting from Operations
|
42,552,641
|
30,796,670
|
||||
|
Distributable Earnings:
|
||||||
|
Retail Class
|
-
|
-
|
||||
|
Institutional Class
|
-
|
-
|
||||
|
Total Distributable Earnings
|
-
|
-
|
||||
|
Capital Transactions:
|
||||||
|
Retail Class:
|
||||||
|
Shares Issued
|
23,756,709
|
6,656,953
|
||||
|
Shares Issued in Reinvestment of Distribution
|
-
|
-
|
||||
|
Shares Exchanged for Institutional Class Shares
|
(1,031,606)
|
3,378
|
||||
|
Shares Redeemed
|
(10,066,603)
|
(10,295,853)
|
||||
|
Institutional Class:
|
-
|
|||||
|
Shares Issued
|
40,661,161
|
11,344,186
|
||||
|
Shares Issued in Reinvestment of Distribution
|
-
|
-
|
||||
|
Shares Issued in Exchange for Retail Class Shares
|
1,031,606
|
(3,378)
|
||||
|
Shares Redeemed
|
(8,886,501)
|
(11,677,683)
|
||||
|
Total Change in Net Assets from Capital Transactions
|
45,464,766
|
(3,972,397)
|
||||
|
Change in Net Assets
|
88,017,407
|
26,824,273
|
||||
|
Total Net Assets
|
||||||
|
Beginning of Year
|
147,383,878
|
120,559,605
|
||||
|
End of Year
|
$235,401,285
|
$147,383,878
|
||||
|
Share Transaction:
|
||||||
|
Retail Class:
|
||||||
|
Number of Shares Issued
|
343,339
|
125,873
|
||||
|
Number of Shares Reinvested
|
-
|
-
|
||||
|
Number of Shares Exchanged for Institutional Class Shares
|
(15,998)
|
(82)
|
||||
|
Number of Shares Redeemed
|
(149,814)
|
(207,200)
|
||||
|
Change in Retail Class Shares
|
177,527
|
(81,409)
|
||||
|
Institutional Class:
|
||||||
|
Number of Shares Issued
|
574,517
|
206,499
|
||||
|
Number of Shares Reinvested
|
-
|
-
|
||||
|
Number of Shares Issued in Exchange for Retail Class Shares
|
15,354
|
79
|
||||
|
Number of Shares Redeemed
|
(126,237)
|
(229,045)
|
||||
|
Change in Institutional Class Shares
|
463,634
|
(22,467)
|
||||
|
Total Change in Shares
|
641,161
|
(103,876)
|
||||
See accompanying notes to financial statements.
|
10
|
TABLE OF CONTENTS
Statements of Changes in Net Assets
|
Needham Aggressive Growth Fund
|
||||||
|
Period Ended
June 30, 2024
|
Year Ended
December 31, 2023
|
|||||
|
Change in Net Assets
|
||||||
|
Operations:
|
||||||
|
Net Investment Loss
|
$(16,671)
|
$(109,935)
|
||||
|
Net Realized Gain (Loss) from Investments, Securities Sold Short, Foreign Currency Transactions, and Currency
|
1,987,799
|
(3,053,938)
|
||||
|
Net Change in Unrealized Appreciation on Investments, Securities Sold Short, Foreign Currency Translations
|
76,404,162
|
69,063,443
|
||||
|
Change in Net Assets Resulting from Operations
|
78,375,290
|
65,899,570
|
||||
|
Distributable Earnings:
|
||||||
|
Retail Class
|
-
|
-
|
||||
|
Institutional Class
|
-
|
-
|
||||
|
Total Distributable Earnings
|
-
|
-
|
||||
|
Capital Transactions:
|
||||||
|
Retail Class:
|
||||||
|
Shares Issued
|
113,265,284
|
88,732,423
|
||||
|
Shares Issued in Reinvestment of Distribution
|
-
|
-
|
||||
|
Shares Exchanged for Institutional Class Shares
|
(2,702,574)
|
(724,885)
|
||||
|
Shares Redeemed
|
(33,910,579)
|
(25,191,895)
|
||||
|
Capital Contribution
|
-
|
83,012
|
||||
|
Institutional Class:
|
-
|
|||||
|
Shares Issued
|
324,492,911
|
185,957,962
|
||||
|
Shares Issued in Reinvestment of Distribution
|
-
|
-
|
||||
|
Shares Issued in Exchange for Retail Class Shares
|
2,702,573
|
724,885
|
||||
|
Shares Redeemed
|
(78,691,298)
|
(52,315,934)
|
||||
|
Total Change in Net Assets from Capital Transactions
|
325,156,317
|
197,265,568
|
||||
|
Change in Net Assets
|
403,531,607
|
263,165,138
|
||||
|
Total Net Assets
|
||||||
|
Beginning of Year
|
398,084,442
|
134,919,304
|
||||
|
End of Year
|
$801,616,049
|
$398,084,442
|
||||
|
Share Transaction:
|
||||||
|
Retail Class:
|
||||||
|
Number of Shares Issued
|
2,467,376
|
2,405,751
|
||||
|
Number of Shares Reinvested
|
-
|
-
|
||||
|
Number of Shares Exchanged for Institutional Class Shares
|
(57,198)
|
(20,178)
|
||||
|
Number of Shares Redeemed
|
(745,491)
|
(704,459)
|
||||
|
Change in Retail Class Shares
|
1,664,687
|
1,681,114
|
||||
|
Institutional Class:
|
||||||
|
Number of Shares Issued
|
6,813,483
|
4,784,150
|
||||
|
Number of Shares Reinvested
|
-
|
-
|
||||
|
Number of Shares Issued in Exchange for Retail Class Shares
|
54,357
|
19,251
|
||||
|
Number of Shares Redeemed
|
(1,631,080)
|
(1,421,695)
|
||||
|
Change in Institutional Class Shares
|
5,236,760
|
3,381,706
|
||||
|
Total Change in Shares
|
6,901,447
|
5,062,820
|
||||
See accompanying notes to financial statements.
|
11
|
TABLE OF CONTENTS
Statements of Changes in Net Assets
|
Needham Small Cap Growth Fund
|
||||||
|
Period Ended
June 30, 2024
|
Year Ended
December 31, 2023
|
|||||
|
Change in Net Assets
|
||||||
|
Operations:
|
||||||
|
Net Investment Loss
|
$(762,366)
|
$(2,101,991)
|
||||
|
Net Realized Gain (Loss) from Investments, Securities Sold Short, Foreign Currency Transactions, and Currency
|
19,149,303
|
(38,149,724)
|
||||
|
Net Change in Unrealized (Depreciation) on Investments, Securities Sold Short, Foreign Currency Translations
|
(4,320,631)
|
(43,233,707)
|
||||
|
Change in Net Assets Resulting from Operations
|
14,066,306
|
(83,485,422)
|
||||
|
Distributable Earnings:
|
||||||
|
Retail Class
|
-
|
-
|
||||
|
Institutional Class
|
-
|
-
|
||||
|
Total Distributable Earnings
|
-
|
-
|
||||
|
Capital Transactions:
|
||||||
|
Retail Class:
|
||||||
|
Shares Issued
|
2,331,779
|
11,019,549
|
||||
|
Shares Issued in Reinvestment of Distribution
|
-
|
-
|
||||
|
Shares Exchanged for Institutional Class Shares
|
(48,126)
|
(1,472,570)
|
||||
|
Shares Redeemed
|
(11,574,468)
|
(24,468,737)
|
||||
|
Capital Contribution
|
-
|
210,184
|
||||
|
Institutional Class:
|
||||||
|
Shares Issued
|
15,260,223
|
49,505,590
|
||||
|
Shares Issued in Reinvestment of Distribution
|
-
|
-
|
||||
|
Shares Issued in Exchange for Retail Class Shares
|
48,125
|
1,472,570
|
||||
|
Shares Redeemed
|
(20,685,294)
|
(76,599,573)
|
||||
|
Total Change in Net Assets from Capital Transactions
|
(14,667,761)
|
(40,332,987)
|
||||
|
Change in Net Assets
|
(601,455)
|
(123,818,409)
|
||||
|
Total Net Assets
|
||||||
|
Beginning of Year
|
166,297,413
|
196,632,681
|
||||
|
End of Year
|
$165,695,958
|
$166,297,413
|
||||
|
Share Transaction:
|
||||||
|
Retail Class:
|
||||||
|
Number of Shares Issued
|
137,137
|
679,814
|
||||
|
Number of Shares Reinvested
|
-
|
-
|
||||
|
Number of Shares Exchanged for Institutional Class Shares
|
(2,967)
|
(95,196)
|
||||
|
Number of Shares Redeemed
|
(707,148)
|
(1,611,409)
|
||||
|
Change in Retail Class Shares
|
(572,978)
|
(1,026,791)
|
||||
|
Institutional Class:
|
||||||
|
Number of Shares Issued
|
876,646
|
3,258,480
|
||||
|
Number of Shares Reinvested
|
-
|
-
|
||||
|
Number of Shares Issued in Exchange for Retail Class Shares
|
2,793
|
89,791
|
||||
|
Number of Shares Redeemed
|
(1,175,792)
|
(4,787,158)
|
||||
|
Change in Institutional Class Shares
|
(296,353)
|
(1,438,887)
|
||||
|
Total Change in Shares
|
(869,331)
|
(2,465,678)
|
||||
See accompanying notes to financial statements.
|
12
|
TABLE OF CONTENTS
Needham Growth Fund
Financial Highlights
(For a share outstanding throughout each period/year)
|
Retail Class
|
||||||||||||||||||
|
Six Months Ended
June 30, 2024
(Unaudited)
|
Year Ended December 31
|
|||||||||||||||||
|
2023
|
2022
|
2021
|
2020
|
2019
|
||||||||||||||
|
Net Asset Value, Beginning of Year
|
$55.34
|
$43.63
|
$66.90
|
$55.89
|
$41.99
|
$33.04
|
||||||||||||
|
Investment Operations
|
||||||||||||||||||
|
Net Investment Loss
|
(0.23)
|
(0.53)
|
(0.67)
|
(0.89)
|
(0.56)
|
(0.48)
|
||||||||||||
|
Net Realized and Unrealized Gain (Loss) on Investments
|
15.64
|
12.24
|
(21.82)
|
16.53
|
17.66
|
14.18
|
||||||||||||
|
Total from Investment Operations
|
15.41
|
11.71
|
(22.49)
|
15.64
|
17.10
|
13.70
|
||||||||||||
|
Less Distributions
|
||||||||||||||||||
|
Net Realized Gains
|
-
|
-
|
(0.78)
|
(4.63)
|
(3.20)
|
(4.75)
|
||||||||||||
|
Total Distributions
|
-
|
-
|
(0.78)
|
(4.63)
|
(3.20)
|
(4.75)
|
||||||||||||
|
Net Asset Value, End of Year
|
$70.75
|
$55.34
|
$43.63
|
$66.90
|
$55.89
|
$41.99
|
||||||||||||
|
Total Return
|
27.92 %
|
26.85 %
|
(33.66)%
|
27.68 %
|
41.59 %
|
42.31%(1)
|
||||||||||||
|
Net Assets, End of Year (000's)
|
$107,533
|
$74,277
|
$62,117
|
$101,366
|
$82,628
|
$65,526
|
||||||||||||
|
Ratios/Supplemental Data
|
||||||||||||||||||
|
Ratio of Net Expenses to Average Net Assets
|
1.69%
|
1.78 %
|
1.85 %
|
1.78 %
|
1.85 %
|
1.98 %
|
||||||||||||
|
Ratio of Net Expenses to Average Net Assets (before interest and dividend expense)(1)
|
1.70%
|
1.78 %
|
1.85 %
|
1.78 %
|
1.85 %
|
1.95 %
|
||||||||||||
|
Ratio of Total Expenses to Average Net Assets (before waiver and reimbursement of expenses)
|
1.70%
|
1.78 %
|
1.85 %
|
1.78 %
|
1.83 %
|
2.01 %
|
||||||||||||
|
Ratio of Net Investment Loss to Average Net Assets
|
(0.68)
|
(1.07)%
|
(1.34)%
|
(1.40)%
|
(1.23)%
|
(1.21)%
|
||||||||||||
|
Ratio of Net Investment Loss to Average Net Assets (before waivers and reimbursements of expenses)
|
(0.68)
|
(1.07)%
|
(1.34)%
|
(1.40)%
|
(1.21)%
|
(1.24)%
|
||||||||||||
|
Portfolio turnover rate
|
11%
|
9 %
|
14 %
|
15 %
|
15 %
|
13 %
|
||||||||||||
|
(1)
|
The Adviser has contractually agreed to waive its fee and, if necessary, reimburse expenses of the Fund until April 29, 2025 to the extent Total Annual Fund Operating Expenses exceed 1.95% of the average daily net assets of the Retail Class shares of the Fund ("Expense Cap"). For a period of up to 36 months from the time of any waiver or reimbursement pursuant to this agreement, the Adviser may recoup from the Fund fees waived and expenses reimbursed to the extent that such recover would not cause the Total Annual Fund Operating Expenses of the Fund to exceed the lesser of the Expense Cap in effect (i) at the time of the waiver or reimbursement, or (ii) at the time of recoupment.
|
See accompanying notes to financial statements.
|
13
|
TABLE OF CONTENTS
Needham Growth Fund
Financial Highlights
(For a share outstanding throughout each period/year)
|
Institutional Class
|
||||||||||||||||||
|
Six Months Ended
June 30, 2024
(Unaudited)
|
Year Ended December 31
|
|||||||||||||||||
|
2023
|
2022
|
2021
|
2020
|
2019
|
||||||||||||||
|
Net Asset Value, Beginning of Year
|
$57.63
|
$45.27
|
$69.06
|
$57.36
|
$42.83
|
$33.45
|
||||||||||||
|
Investment Operations
|
||||||||||||||||||
|
Net Investment Loss
|
(0.11)
|
(0.36)
|
(0.47)
|
(0.68)
|
(0.36)
|
(0.26)
|
||||||||||||
|
Net Realized and Unrealized Gain (Loss) on Investments
|
16.30
|
12.72
|
(22.54)
|
17.01
|
18.09
|
14.39
|
||||||||||||
|
Total from Investment Operations
|
16.19
|
12.36
|
(23.01)
|
16.33
|
17.73
|
14.13
|
||||||||||||
|
Less Distributions
|
||||||||||||||||||
|
Net Realized Gains
|
-
|
-
|
(0.78)
|
(4.63)
|
(3.20)
|
(4.75)
|
||||||||||||
|
Total Distributions
|
-
|
-
|
(0.78)
|
(4.63)
|
(3.20)
|
(4.75)
|
||||||||||||
|
Net Asset Value, End of Year
|
$73.82
|
$57.63
|
$45.27
|
$69.06
|
$57.36
|
$42.83
|
||||||||||||
|
Total Return
|
28.11 %
|
27.30 %
|
(33.34)%
|
28.18 %
|
42.24 %
|
43.13%
|
||||||||||||
|
Net Assets, End of Year (000's)
|
$127,868
|
$73,107
|
$58,441
|
$115,543
|
$58,046
|
$44,959
|
||||||||||||
|
Ratios/Supplemental Data
|
||||||||||||||||||
|
Ratio of Net Expenses to Average Net Assets
|
1.32%
|
1.40 %
|
1.40 %
|
1.40 %
|
1.40 %
|
1.43%
|
||||||||||||
|
Ratio of Net Expenses to Average Net Assets (before interest and dividend expense)(1)
|
1.32%
|
1.40 %
|
1.40 %
|
1.40 %
|
1.40 %
|
1.40%
|
||||||||||||
|
Ratio of Total Expenses to Average Net Assets (before waiver and reimbursement of expenses)
|
1.43%
|
1.50 %
|
1.58 %
|
1.50 %
|
1.58 %
|
1.73%
|
||||||||||||
|
Ratio of Net Investment Loss to Average Net Assets
|
(0.30)%
|
(0.69)%
|
(0.90)%
|
(1.02)%
|
(0.77)%
|
(0.65)%
|
||||||||||||
|
Ratio of Net Investment Loss to Average Net Assets (before waivers and reimbursements of expenses)
|
(0.41)%
|
(0.79)%
|
(1.08)%
|
(1.12)%
|
(0.96)%
|
(0.95)%
|
||||||||||||
|
Portfolio turnover rate
|
11%
|
9%
|
14%
|
15%
|
15%
|
13%
|
||||||||||||
|
(1)
|
The Adviser has contractually agreed to waive its fee and, if necessary, reimburse expenses of the Fund until April 29, 2025 to the extent Total Annual Fund Operating Expenses exceed 1.21% of the average daily net assets of the Institutional Class shares of the Fund ("Expense Cap"). For a period of up to 36 months from the time of any waiver or reimbursement pursuant to this agreement, the Adviser may recoup from the Fund fees waived and expenses reimbursed to the extent that such recover would not cause the Total Annual Fund Operating Expenses of the Fund to exceed the lesser of the Expense Cap in effect (i) at the time of the waiver or reimbursement, or (ii) at the time of recoupment.
|
See accompanying notes to financial statements.
|
14
|
TABLE OF CONTENTS
Needham Aggressive Growth Fund
Financial Highlights
(For a share outstanding throughout each period/year)
|
Retail Class
|
||||||||||||||||||
|
Six Months Ended
June 30, 2024
(Unaudited)
|
Year Ended December 31
|
|||||||||||||||||
|
2023
|
2022
|
2021
|
2020
|
2019
|
||||||||||||||
|
Net Asset Value, Beginning of Year
|
$40.47
|
$29.40
|
$40.56
|
$31.58
|
$21.77
|
$16.86
|
||||||||||||
|
Investment Operations
|
||||||||||||||||||
|
Net Investment Loss
|
(0.07)
|
(0.17)
|
(0.43)
|
(0.59)
|
(0.37)
|
(0.30)
|
||||||||||||
|
Net Realized and Unrealized Gain (Loss) on Investments
|
6.66
|
11.24
|
(10.73)
|
12.45
|
11.41
|
7.53
|
||||||||||||
|
Total from Investment
Operations
|
6.59
|
11.07
|
(11.16)
|
11.86
|
11.04
|
7.23
|
||||||||||||
|
Less Distributions
|
||||||||||||||||||
|
Net Realized Gains
|
-
|
-
|
-
|
(2.88)
|
(1.23)
|
(2.32)
|
||||||||||||
|
Total Distributions
|
-
|
-
|
-
|
(2.88)
|
(1.23)
|
(2.32)
|
||||||||||||
|
Net Asset Value, End of Year
|
$47.06
|
$40.47
|
$29.40
|
$40.56
|
$31.58
|
$21.77
|
||||||||||||
|
Total Return
|
16.33 %
|
37.65 %
|
(27.53)%
|
37.54 %
|
51.39 %
|
43.93%
|
||||||||||||
|
Net Assets, End of Year (000's)
|
$245,553
|
$143,772
|
$455,027
|
$63,599
|
$40,258
|
$30,238
|
||||||||||||
|
Ratios/Supplemental Data
|
||||||||||||||||||
|
Ratio of Net Expenses to Average Net Assets
|
1.66%
|
1.79 %
|
1.85 %
|
1.86 %
|
1.95 %
|
2.02%
|
||||||||||||
|
Ratio of Net Expenses to Average Net Assets (before interest and dividend expense)(1)
|
1.66%
|
1.79 %
|
1.85 %
|
1.86 %
|
1.95 %
|
1.95%
|
||||||||||||
|
Ratio of Total Expenses to Average Net Assets (before waiver and reimbursement of expenses)
|
1.65%
|
1.78 %
|
1.82 %
|
1.82 %
|
1.96 %
|
2.17%
|
||||||||||||
|
Ratio of Net Investment Loss to Average Net Assets
|
(0.33)%
|
(0.47)%
|
(1.38)%
|
(1.62)%
|
(1.56)%
|
(1.46)%
|
||||||||||||
|
Ratio of Net Investment Loss to Average Net Assets (before waivers and reimbursements of expenses)
|
(0.32)%
|
(0.45)%
|
(1.35)%
|
(1.59)%
|
(1.57)%
|
(1.61)%
|
||||||||||||
|
Portfolio turnover rate
|
13%
|
7 %
|
11 %
|
12 %
|
13 %
|
9 %
|
||||||||||||
|
(1)
|
The Adviser has contractually agreed to waive its fee and, if necessary, reimburse expenses of the Fund until April 29, 2025 to the extent Total Annual Fund Operating Expenses exceed 1.85% of the average daily net assets of the Retail Class shares of the Fund ("Expense Cap"). For a period of up to 36 months from the time of any waiver or reimbursement pursuant to this agreement, the Adviser may recoup from the Fund fees waived and expenses reimbursed to the extent that such recover would not cause the Total Annual Fund Operating Expenses of the Fund to exceed the lesser of the Expense Cap in effect (i) at the time of the waiver or reimbursement, or (ii) at the time of recoupment.
|
See accompanying notes to financial statements.
|
15
|
TABLE OF CONTENTS
Needham Aggressive Growth Fund
Financial Highlights
(For a share outstanding throughout each period/year)
|
Institutional Class
|
||||||||||||||||||
|
Six Months Ended
June 30, 2024
(Unaudited)
|
Year Ended December 31
|
|||||||||||||||||
|
2023
|
2022
|
2021
|
2020
|
2019
|
||||||||||||||
|
Net Asset Value, Beginning of Year
|
$42.52
|
$30.73
|
$42.11
|
$32.49
|
$22.23
|
$17.08
|
||||||||||||
|
Investment Operations
|
||||||||||||||||||
|
Net Investment Loss
|
0.04
|
0.08
|
(0.23)
|
(0.36)
|
(0.22)
|
(0.19)
|
||||||||||||
|
Net Realized and Unrealized Gain (Loss) on Investments
|
7.01
|
11.71
|
(11.15)
|
12.86
|
11.71
|
7.66
|
||||||||||||
|
Total from Investment
Operations
|
7.05
|
11.79
|
(11.38)
|
12.50
|
11.49
|
7.47
|
||||||||||||
|
Less Distributions
|
||||||||||||||||||
|
Net Realized Gains
|
-
|
-
|
-
|
(2.88)
|
(1.23)
|
(2.32)
|
||||||||||||
|
Total Distributions
|
-
|
-
|
-
|
(2.88)
|
(1.23)
|
(2.32)
|
||||||||||||
|
Net Asset Value, End of Year
|
$49.57
|
$42.52
|
$30.73
|
$42.11
|
$32.49
|
$22.23
|
||||||||||||
|
Total Return
|
16.60 %
|
38.37 %
|
(27.02)%
|
38.43 %
|
52.36 %
|
44.79%
|
||||||||||||
|
Net Assets, End of Year (000's)
|
$556,063
|
$254,313
|
$79,891
|
$76,778
|
$34,132
|
$25,821
|
||||||||||||
|
Ratios/Supplemental Data
|
||||||||||||||||||
|
Ratio of Net Expenses to Average Net Assets
|
1.16%
|
1.18 %
|
1.18 %
|
1.18 %
|
1.33 %
|
1.46%
|
||||||||||||
|
Ratio of Net Expenses to Average Net Assets (before interest and dividend expense)(1)
|
1.16%
|
1.18 %
|
1.18 %
|
1.18 %
|
1.32 %
|
1.40%
|
||||||||||||
|
Ratio of Total Expenses to Average Net Assets (before waiver and reimbursement of expenses)
|
1.39%
|
1.52 %
|
1.55 %
|
1.53 %
|
1.71 %
|
1.90%
|
||||||||||||
|
Ratio of Net Investment Loss to Average Net Assets
|
0.17 %
|
0.21 %
|
(0.71)%
|
(0.95)%
|
(0.94)%
|
(0.90)%
|
||||||||||||
|
Ratio of Net Investment Loss to Average Net Assets (before waivers and reimbursements of expenses)
|
(0.06)%
|
(0.13)%
|
(1.08)%
|
(1.30)%
|
(1.32)%
|
(1.34)%
|
||||||||||||
|
Portfolio turnover rate
|
13%
|
7 %
|
11 %
|
12 %
|
13 %
|
9%
|
||||||||||||
|
(1)
|
The Adviser has contractually agreed to waive its fee and, if necessary, reimburse expenses of the Fund until April 29, 2025 to the extent Total Annual Fund Operating Expenses exceed 1.18% of the average daily net assets of the Institutional Class shares of the Fund ("Expense Cap"). For a period of up to 36 months from the time of any waiver or reimbursement pursuant to this agreement, the Adviser may recoup from the Fund fees waived and expenses reimbursed to the extent that such recover would not cause the Total Annual Fund Operating Expenses of the Fund to exceed the lesser of the Expense Cap in effect (i) at the time of the waiver or reimbursement, or (ii) at the time of recoupment.
|
See accompanying notes to financial statements.
|
16
|
TABLE OF CONTENTS
Needham Small Cap Growth Fund
Financial Highlights
(For a share outstanding throughout each period/year)
|
Retail Class
|
||||||||||||||||||
|
Six Months Ended
June 30, 2024
(Unaudited)
|
Year Ended December 31
|
|||||||||||||||||
|
2023
|
2022
|
2021
|
2020
|
2019
|
||||||||||||||
|
Net Asset Value, Beginning of Year
|
$16.38
|
$15.50
|
$23.19
|
$25.80
|
$17.59
|
$12.40
|
||||||||||||
|
Investment Operations
|
||||||||||||||||||
|
Net Investment Loss
|
(0.12)
|
(0.07)
|
(0.26)
|
(0.48)
|
(0.32)
|
(0.22)
|
||||||||||||
|
Net Realized and Unrealized Gain (Loss) on Investments
|
1.58
|
0.95
|
(6.79)
|
3.69
|
12.06
|
6.89
|
||||||||||||
|
Total from Investment
Operations
|
1.46
|
0.88
|
(7.05)
|
3.21
|
11.74
|
6.67
|
||||||||||||
|
Less Distributions
|
||||||||||||||||||
|
Net Realized Gains
|
-
|
-
|
(0.64)
|
(5.82)
|
(3.53)
|
(1.48)
|
||||||||||||
|
Total Distributions
|
-
|
-
|
(0.64)
|
(5.82)
|
(3.53)
|
(1.48)
|
||||||||||||
|
Net Asset Value, End of Year
|
$17.84
|
$16.38
|
$15.50
|
$23.19
|
$25.80
|
$17.59
|
||||||||||||
|
Total Return
|
8.91 %
|
5.68 %
|
(30.33)%
|
10.98 %
|
71.35 %
|
54.45%
|
||||||||||||
|
Net Assets, End of Year (000's)
|
$39,432
|
$45,583
|
$59,054
|
$112,830
|
$89,206
|
$85,521
|
||||||||||||
|
Ratios/Supplemental Data
|
||||||||||||||||||
|
Ratio of Net Expenses to Average Net Assets
|
1.78%
|
1.80 %
|
1.85 %
|
1.85 %
|
1.85 %
|
1.87%
|
||||||||||||
|
Ratio of Net Expenses to Average Net Assets (before interest and dividend expense)(1)
|
1.78%
|
1.80 %
|
1.85 %
|
1.85 %
|
1.85 %
|
1.87%
|
||||||||||||
|
Ratio of Total Expenses to Average Net Assets (before waiver and reimbursement of expenses)
|
1.81%
|
1.84 %
|
1.86 %
|
1.83 %
|
1.80 %
|
2.07%
|
||||||||||||
|
Ratio of Net Investment Loss to Average Net Assets
|
(1.40)%
|
(0.48)%
|
(1.47)%
|
(1.72)%
|
(1.64)%
|
(1.36)%
|
||||||||||||
|
Ratio of Net Investment Loss to Average Net Assets (before waivers and reimbursements of expenses)
|
(1.43)%
|
(0.51)%
|
(1.48)%
|
(1.70)%
|
(1.59)%
|
(1.56)%
|
||||||||||||
|
Portfolio turnover rate
|
13%
|
126 %
|
109 %
|
133 %
|
191 %
|
136 %
|
||||||||||||
|
(1)
|
The Adviser has contractually agreed to waive its fee and, if necessary, reimburse expenses of the Fund until April 29, 2025 to the extent Total Annual FundOperating Expenses exceed 1.85% of the average daily net assets of the Retail Class shares of the Fund ("Expense Cap"). For a period of up to 36 months from the time of any waiver or reimbursement pursuant to this agreement, the Adviser may recoup from the Fund fees waived and expenses reimbursed to the extent that such recover would not cause the Total Annual Fund Operating Expenses of the Fund to exceed the lesser of the Expense Cap in effect (i) at the time of the waiver or reimbursement, or (ii) at the time of recoupment.
|
See accompanying notes to financial statements.
|
17
|
TABLE OF CONTENTS
Needham Small Cap Growth Fund
Financial Highlights
(For a share outstanding throughout each period/year)
|
Institutional Class
|
||||||||||||||||||
|
Six Months Ended
June 30, 2024
(Unaudited)
|
Year Ended December 31
|
|||||||||||||||||
|
2023
|
2022
|
2021
|
2020
|
2019
|
||||||||||||||
|
Net Asset Value, Beginning of Year
|
$17.37
|
$16.40
|
$24.32
|
$26.64
|
$17.96
|
$12.57
|
||||||||||||
|
Investment Operations
|
||||||||||||||||||
|
Net Investment Loss
|
(0.07)
|
0.03
|
(0.14)
|
(0.31)
|
(0.20)
|
(0.12)
|
||||||||||||
|
Net Realized and Unrealized Gain (Loss) on Investments
|
1.68
|
0.94
|
(7.14)
|
3.81
|
12.41
|
6.99
|
||||||||||||
|
Total from Investment
Operations
|
1.61
|
0.97
|
(7.28)
|
3.50
|
12.21
|
6.87
|
||||||||||||
|
Less Distributions
|
||||||||||||||||||
|
Net Realized Gains
|
-
|
-
|
(0.64)
|
(5.82)
|
(3.53)
|
(1.48)
|
||||||||||||
|
Total Distributions
|
-
|
-
|
(0.64)
|
(5.82)
|
(3.53)
|
(1.48)
|
||||||||||||
|
Net Asset Value, End of Year
|
$18.98
|
$17.37
|
$16.40
|
$24.32
|
$26.64
|
$17.96
|
||||||||||||
|
Total Return
|
9.27 %
|
5.85 %
|
(29.82)%
|
11.74 %
|
72.51 %
|
55.31%
|
||||||||||||
|
Net Assets, End of Year (000's)
|
$126,264
|
$120,715
|
$137,578
|
$173,855
|
$127,943
|
$46,589
|
||||||||||||
|
Ratios/Supplemental Data
|
||||||||||||||||||
|
Ratio of Net Expenses to Average Net Assets
|
1.18%
|
1.18 %
|
1.18 %
|
1.18 %
|
1.18 %
|
1.22%
|
||||||||||||
|
Ratio of Net Expenses to Average Net Assets (before interest and dividend expense)(1)
|
1.18%
|
1.18 %
|
1.18 %
|
1.18 %
|
1.18 %
|
1.22%
|
||||||||||||
|
Ratio of Total Expenses to Average Net Assets (before waiver and reimbursement of expenses)
|
1.53%
|
1.57 %
|
1.62 %
|
1.54 %
|
1.57 %
|
1.83%
|
||||||||||||
|
Ratio of Net Investment Loss to Average Net Assets
|
(0.80)%
|
0.16 %
|
(0.76)%
|
(1.04)%
|
(0.97)%
|
(0.72)%
|
||||||||||||
|
Ratio of Net Investment Loss to Average Net Assets (before waivers and reimbursements of expenses)
|
(1.15)%
|
(0.23)%
|
(1.21)%
|
(1.40)%
|
(1.35)%
|
(1.33)%
|
||||||||||||
|
Portfolio turnover rate
|
13%
|
126%
|
109%
|
133%
|
191%
|
136%
|
||||||||||||
|
(1)
|
The Adviser has contractually agreed to waive its fee and, if necessary, reimburse expenses of the Fund until April 29, 2025 to the extent Total Annual FundOperating Expenses exceed 1.18% of the average daily net assets of the Institutional Class shares of the Fund ("Expense Cap"). For a period of up to 36months from the time of any waiver or reimbursement pursuant to this agreement, the Adviser may recoup from the Fund fees waived and expenses reimbursed to the extent that such recover would not cause the Total Annual Fund Operating Expenses of the Fund to exceed the lesser of the Expense Capin effect (i) at the time of the waiver or reimbursement, or (ii) at the time of recoupment.
|
See accompanying notes to financial statements.
|
18
|
TABLE OF CONTENTS
Needham Funds
Notes to Financial Statements
June 30, 2024 (Unaudited)
1. Organization
Needham Growth Fund ("NGF"), Needham Aggressive Growth Fund ("NAGF") and Needham Small Cap Growth Fund ("NSCGF") (each, a "Portfolio" and collectively, the "Portfolios"), are portfolios of The Needham Funds, Inc. (the "Company"), which is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company. The Portfolios are "diversified" for purposes of the 1940 Act. Please refer to the most recently filed Registration Statement and Statement of Additional Information for a detailed description of each Portfolio's investment strategy. The Company was organized as a Maryland corporation on October 12, 1995. NGF, NAGF, and NSCGF each currently offer two classes, the Retail Class and the Institutional Class. The Institutional Class of each Portfolio commenced operations on December 30, 2016.
Each Portfolio is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946 "Financial Services - Investment Companies."
2. Class Specific Expenses
Class level expenses are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of the net assets of the Portfolio. Expenses deemed directly attributable to a class of shares are recorded by the specific class. Most Portfolio expenses are allocated by class based on relative net assets. Distribution Fees incurred in connection with the Company's Amended and Restated Plan of Distribution Pursuant to Rule 12b-1 are expensed at 0.25% of average daily net assets of the Retail Class shares, and the specific amounts are detailed in Note 5.
3. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Company in the preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP").
Security Valuation: Portfolio securities for which market quotations are readily available are stated at the last reported sale price reported by the principal exchange for the security as of the exchange's close of business. Securities for which no sale has taken place during the day and securities which are not listed on an exchange are valued at the mean of the highest closing bid and lowest asked prices. Exchange traded options are valued at the last reported sale price on any exchange on which the option is principally traded. If no sales are reported on a particular day, the options will be valued at the mean between the highest closing bid and lowest asked prices across the exchanges where the option is traded. Non-exchange traded options will also be valued at the mean between the last bid and asked quotations. For options where market quotations are not readily available, value will be determined in accordance with the fair value procedures described below. All other securities and assets for which (a) market quotations are not readily available, such as in the case of a market or technical disruption that prevents the normal trading of a security held by a Portfolio, (b) market quotations are believed to be unrepresentative of fair market value, such as in the case of a thinly traded security, or (c) valuation is normally made at the last sale price on a foreign exchange and a significant event occurs after the close of that exchange but before the New York Stock Exchange closes, are valued at their fair value as determined in good faith by the Company's Valuation Designee in accordance with Fair Value Procedures. The Company's Fair Value Procedures are implemented and monitored by a Fair Value Committee (the "Committee") established by the Valuation Designee. The Company's Board of Directors (the "Board") has designated the Portfolios' investment adviser as the Company's Valuation Designee.
When a security is valued in accordance with the Fair Value Procedures, the Committee determines a value after taking into consideration any relevant information that is reasonably available to the Committee. Some of the more common reasons that may necessitate that a security be valued pursuant to these Fair Value Procedures include, but are not limited to: the security's trading has been halted or suspended; the security has been delisted from a national exchange; the security's primary trading market is temporarily closed at a time when under normal conditions it would be open; or the security's primary pricing source is not able or willing to provide a price. The securities of each Portfolio may also be valued on the basis of valuations provided by a pricing service approved by, or on behalf of, the Board.
|
19
|
TABLE OF CONTENTS
Needham Funds
Notes to Financial Statements
June 30, 2024 (Unaudited)(Continued)
Portfolio securities listed or traded on securities exchanges, including American Depositary Receipts ("ADRs"), are valued at the closing price on the exchange or system where the security is principally traded or at the NASDAQ Official Closing Price. If there have been no sales for that day on the exchange or system, a security is valued at the mean of the highest closing bid and lowest asked prices on the exchange or system where the security is principally traded. The Portfolios value their investments in money market funds based on their daily net asset values.
Investment Transactions: Changes in holdings of portfolio securities for the Portfolios shall be reflected no later than in the first calculation on the first business day following the trade date for purposes of calculating each Portfolio's daily net asset value per share. However, for financial reporting purposes, portfolio security transactions are reported on the trade date of the last business day of the reporting period. The cost (proceeds) of investments sold (sold short) is determined on a specific identification basis for the purpose of determining gains or losses on sales and buys to cover short positions. Dividend income, distributions to shareholders and dividend expense from securities sold short are recorded on the ex-dividend date. Interest income and interest expense from securities sold short is recorded on an accrual basis.
Foreign Currency: Foreign currency amounts are translated into U.S. dollars as follows: (i) assets and liabilities at the rate of exchange at the end of the respective period; and (ii) purchases and sales of securities and income and expenses at the rate of exchange prevailing on the dates of such transactions. The portion of realized/unrealized gains (losses) arising from changes in the exchange rates are included with the net realized/unrealized gain (loss) from affiliated and unaffiliated securities, securities sold short and foreign currency translations. Principal risks associated with such transactions include the movement in value of the foreign currency relative to the U.S. dollar and the ability of the counterparty to perform.
The Portfolios may also invest in forward currency contracts. Fluctuations in the value of such forward currency transactions are recorded daily as unrealized gain or loss; realized gain or loss includes net gain or loss on transactions that have terminated by settlement. These instruments involve securities and currency market risk, credit risk, or both kinds of risks, in excess of the amount recognized in the statements of assets and liabilities. Risks also arise from the possible inability of counterparties to meet the terms of their contracts. The Portfolios did not enter into forward currency contracts during the period ended June 30, 2024.
Allocation of Expenses: Expenses directly attributable to a Portfolio are charged directly to that Portfolio, while expenses which are attributable to more than one Portfolio are allocated among the respective Portfolios based upon relative net assets or some other reasonable method.
Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period.
Actual results could differ from those estimates.
Distributions to Shareholders: Dividends from net investment income, if any, are declared and paid annually for the Portfolios. Distributable net realized gains, if any, are declared and distributed at least annually.
Federal Income Taxes: It is the policy of each Portfolio to continue to qualify as a regulated investment company, as defined in the Internal Revenue Code, by complying with the provisions available to certain investment companies and to make distributions of net investment income and net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for income taxes has been made in the Portfolios' financial statements.
As of December 31, 2023, the Portfolios did not have any tax positions that did not meet the "more-likely-than-not" threshold of being sustained by the applicable tax authority. Open tax years are those that are open for exam by Federal and state taxing authorities. As of December 31, 2023, open Federal and New York tax years include the tax years ended December 31, 2020 through December 31, 2023. The Portfolios have no tax examinations in progress.
|
20
|
TABLE OF CONTENTS
Needham Funds
Notes to Financial Statements
June 30, 2024 (Unaudited)(Continued)
Fair Value Measurements: Valuation inputs used to determine the value of the Portfolios' investments are summarized in the three broad levels listed below:
Level 1 -
Unadjusted quoted prices in active markets for identical assets and liabilities that the Portfolios have the ability to access.
Level 2 -
Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 -
Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Portfolios' own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The inputs or methodology used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Portfolio securities listed or traded on securities exchanges, including ADRs, are valued at the closing price on the exchange or system where the security is principally traded or at the NASDAQ Official Closing Price. If there have been no sales for that day on the exchange or system, a security is valued at the mean of the highest closing bid and lowest asked prices on the exchange or system where the security is principally traded. These valuations are typically categorized as Level 1 in the fair value hierarchy.
Fair value pricing may be used if events materially affecting the value of foreign securities occur between the times the exchange on which they are traded closes and the time the Portfolios' net asset values are calculated. These valuations are categorized as Level 2 in the fair value hierarchy.
The following is a summary categorization, as of June 30, 2024, of each Portfolio's investments based on the level of inputs utilized in determining the value of such investments:
Needham Growth Fund
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||
|
Assets(1)
|
||||||||||||
|
Common Stocks
|
$198,254,919
|
$ -
|
$ -
|
$198,254,919
|
||||||||
|
Short-Term Investments
|
36,385,415
|
-
|
-
|
36,385,415
|
||||||||
|
Total
|
$234,640,334
|
$-
|
$-
|
$234,640,334
|
||||||||
Needham Aggressive Growth Fund
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||
|
Assets(1)
|
||||||||||||
|
Common Stocks
|
$692,911,548
|
$ -
|
$ -
|
$692,911,548
|
||||||||
|
Short-Term Investments
|
120,395,429
|
-
|
-
|
120,395,429
|
||||||||
|
Total
|
$813,306,977
|
$-
|
$-
|
$813,306,977
|
||||||||
Needham Small Cap Growth Fund
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||
|
Assets(1)
|
||||||||||||
|
Common Stocks
|
$150,723,820
|
$ -
|
$ -
|
$150,723,820
|
||||||||
|
Warrants
|
-
|
-
|
1
|
1
|
||||||||
|
Short-Term Investments
|
14,794,522
|
-
|
-
|
14,794,522
|
||||||||
|
Total
|
$165,518,342
|
$-
|
$1
|
$165,518,343
|
||||||||
|
(1)
|
Please refer to the Schedule of Investments to view segregation by industry.
|
|
21
|
TABLE OF CONTENTS
Needham Funds
Notes to Financial Statements
June 30, 2024 (Unaudited)(Continued)
4. Investment Advisory and Administrative Services
The Company has engaged Needham Investment Management L.L.C. (the "Adviser") to manage its investments pursuant to an Investment Advisory Agreement. The Company pays the Adviser an investment advisory fee at the annual rate of 1.25% of the average daily net assets of each Portfolio.
The Adviser has entered into an agreement with the Company (the "Expense Limitation Agreement") whereby the Adviser has contractually agreed to waive its investment advisory fee for, and to reimburse expenses of, the Institutional Class and Retail Class shares of each Portfolio in an amount that limits annual operating expenses to not more than 1.21% and 1.95% for NGF, 1.18% and 1.85% for NAGF, and 1.18% and 1.85% for NSCGF, of the average daily net assets of the Portfolio's Institutional Class and Retail Class, respectively (excluding taxes, interest, brokerage, dividends on short positions, acquired fund fees and expenses and extraordinary items, but including the investment advisory fee stated in the Investment Advisory Agreement). The Expense Limitation Agreement is effective for the period from April 29, 2024 through April 29, 2025. The Expense Limitation Agreement shall continue in effect from year to year thereafter only upon mutual agreement of the Company and the Adviser. Similar agreements were in effect for periods prior to April 29, 2024.
Any reimbursements or fee waivers made by the Adviser in respect of a Portfolio are subject to recoupment by the Adviser, to the extent that the Portfolio is able to make the repayment within the expense limitation established in the Expense Limitation Agreement. Under the Expense Limitation Agreement, the Adviser has a right to receive from each Portfolio class reimbursement for fee waivers and/or expense reimbursements made pursuant to the Agreement for a period of up to 36 months from the time of any waiver or reimbursement. The table below contains the amounts of fee waivers and expense reimbursements subject to recapture by the Adviser through December 31 of the period indicated:
|
2027
|
2026
|
2025
|
2024
|
Total
|
|||||||||||
|
NGF (Retail Class)
|
$-
|
$-
|
$-
|
$-
|
$-
|
||||||||||
|
NGF (Institutional Class)
|
54,337
|
63,757
|
144,749
|
49,994
|
312,837
|
||||||||||
|
NAGF (Retail Class)
|
-
|
-
|
-
|
-
|
-
|
||||||||||
|
NAGF (Institutional Class)
|
445,586
|
467,987
|
307,532
|
104,463
|
1,325,568
|
||||||||||
|
NSCGF (Retail Class)
|
6,401
|
35,362
|
45,556
|
-
|
87,319
|
||||||||||
|
NSCGF (Institutional Class)
|
209,082
|
455,161
|
597,068
|
406,568
|
1,667,879
|
||||||||||
The Company and Fund Services (the "Administrator") are parties to a Fund Administration Servicing Agreement. The Administrator provides administrative and fund accounting services pursuant to this agreement and, in consideration of these services, receives a fee computed daily and paid monthly at an annual rate based on a percentage of the value of each Portfolio's assets. The Administrator is also compensated for any out of pocket expenses that are reasonably incurred in carrying out its duties under this agreement. The Administrator also provides transfer agent services pursuant to a Transfer Agent Servicing Agreement for additional fees.
Certain officers of the Company are also officers of the Adviser and/or Needham & Company, LLC (the "Distributor"), an affiliate of the Adviser. Such officers receive no fees from the Company for serving as officers of the Company. Each of the three Directors who is not an "interested person" (as defined in the 1940 Act) of the Company (each, an "Independent Director") receives a quarterly retainer of $3,750 and a per-meeting fee of $1,000. Each Independent Director is also a member of the Audit Committee of the Board and receives a fee of $1,000 per meeting attended. An affiliate of the Adviser provides an employee to serve as Chief Compliance Officer for the Company and to provide certain related services. The affiliate pays the Chief Compliance Officer's compensation for acting as such and the Company reimburses the affiliate for the Company's allocated portion of the expense.
5. Distribution Plan and Brokerage Commissions
The Company has adopted an Amended and Restated Plan of Distribution pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, each Portfolio may pay compensation to the Distributor or any other distributor or financial institution with which the Company has an agreement with respect to the Retail Class of each Portfolio, with the amount
|
22
|
TABLE OF CONTENTS
Needham Funds
Notes to Financial Statements
June 30, 2024 (Unaudited)(Continued)
of such compensation not to exceed an annual rate of 0.25% of the daily average net assets of each Portfolio's Retail Class shares. During the period ended June 30, 2024, NGF, NAGF, and NSCGF Retail Class shares incurred $117,564, $254,652 and $50,066, respectively, pursuant to the Plan.
During the period ended June 30, 2024, NGF, NAGF and NSCGF incurred and paid brokerage commissions to the Distributor in the amount of $9,843, $37,557, and $187,849, respectively.
6. Temporary Borrowings
Each Portfolio may borrow from banks up to 25% of its total assets and may pledge its assets in connection with these borrowings, provided that no additional investments shall be made while borrowings exceed 5% of total assets.
The Portfolios did not engage in any temporary borrowings during the period ended June 30, 2024.
7. Short Sale Transactions
During the period ended June 30, 2024, NGF sold securities short. Upon selling a security short, the Portfolios record an asset for the settlement amount as "Deposit with Broker for Securities Sold Short" and a corresponding liability, which is marked-to- market to reflect current value. The broker for the Portfolios' short sale transactions requires maintenance by each Portfolio of a minimum amount of collateral at all times, regardless of whether any short sales are outstanding. To the extent necessary to meet the broker's collateral requirements for open short positions, additional securities will be segregated above the minimum to cover the short positions. At June 30, 2024, the market value of securities separately segregated to cover short positions was $5,632,150, $2,588,855, and $1,093,000 for NGF, NAGF and NSCGF, respectively.
Additionally, the Portfolios had receivables for Deposit with Broker for Securities Sold Short of $237,213, $-, and $- pledged as collateral with a broker in connection with any open short positions for NGF, NAGF, and NSCGF, respectively as of June 30, 2024. NGF, NAGF and NSCGF did not hold any securities sold short as of June 30, 2024.
8. Investment Transactions
The following summarizes the aggregate amount of the cost of purchases and proceeds from sales of investment securities and securities sold short, excluding short-term securities, during the period ended June 30, 2024:
|
Purchases
|
Sales
|
|||||
|
NGF
|
||||||
|
Long Transactions
|
$28,479,823
|
$18,188,912
|
||||
|
Short Sale Transactions
|
-
|
53,800
|
||||
|
NAGF
|
||||||
|
Long Transactions
|
326,140,279
|
14,616,940
|
||||
|
Short Sale Transactions
|
-
|
-
|
||||
|
NSCGF
|
||||||
|
Long Transactions
|
42,764,340
|
67,455,423
|
||||
|
Short Sale Transactions
|
-
|
-
|
||||
9. Financial Instruments With Off-Balance Sheet Risk
In the normal course of their business, the Portfolios may engage in transactions with off-balance sheet risk, including securities sold short, written options, futures, and forward currency contracts. Transactions in certain financial instruments represent future commitments to purchase or sell other financial instruments at specific terms at specified future dates. Each of these financial instruments contains varying degrees of off-balance sheet risk whereby changes in the market values of the securities underlying the financial instruments may be in excess of the amounts recognized in the financial statements.
Securities sold short represent obligations of the Portfolios to make future delivery of specific securities and, correspondingly, create an obligation to purchase the securities at market prices prevailing at a later delivery date (or to
|
23
|
TABLE OF CONTENTS
Needham Funds
Notes to Financial Statements
June 30, 2024 (Unaudited)(Continued)
deliver the securities if already owned by the Portfolios). As a result, short sales create the risk that the Portfolios' ultimate obligation to satisfy the delivery requirements may exceed the amount of the proceeds initially received on the liability recorded in the financial statements.
10. Indemnification
Under the Company's organizational documents, the Company's Directors and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Company. In addition, in the ordinary course of business, the Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown.
However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
11. Transactions with Affiliates
NAGF owned 5% or more of the voting securities of the following companies during the period ended June 30, 2024. As a result, each of these companies is deemed to be an "affiliated person" (as defined in the 1940 Act) of NAGF (and the other Portfolios). Transactions during the year in affiliated companies were as follows:
|
Security Name
|
Value at
January 1,
2024
|
Value of
Purchases
|
Value of
Sales
|
Net Change
in Unrealized
Appreciation
(Depreciation)
|
Net
Realized
Gains (Losses)
|
Dividend
Income
|
Value at
June 30,
2024
|
Share
Balance
June 30,
2024
|
||||||||||||||||
|
Alpha Pro Tech, Ltd.
|
$1,163,800
|
$2,305,681
|
$-
|
$(155,731)
|
$-
|
$-
|
$3,313,750
|
602,500
|
||||||||||||||||
|
Adams Resources & Energy, Inc.
|
3,586,660
|
1,816,799
|
(95,252)
|
501,145
|
(27,352)
|
100,200
|
5,782,000
|
206,500
|
||||||||||||||||
|
Educational Development Corp.
|
649,600
|
388,754
|
-
|
379,146
|
-
|
-
|
1,417,500
|
750,000
|
||||||||||||||||
|
ThredUp, Inc.
|
4,280,625
|
8,001,354
|
(405,159)
|
(369,116)
|
(1,673,205)
|
-
|
9,834,500
|
5,785,000
|
||||||||||||||||
|
Thinkific Labs, Inc.
|
-
|
3,864,315
|
-
|
(57,436)
|
-
|
-
|
3,806,878
|
1,400,000
|
||||||||||||||||
|
Research Solutions, Inc.
|
3,315,000
|
4,246,472
|
-
|
(612,722)
|
-
|
-
|
6,948,750
|
2,725,000
|
||||||||||||||||
|
Arteris, Inc.
|
3,534,000
|
9,793,186
|
-
|
1,505,064
|
-
|
-
|
14,832,250
|
1,975,000
|
||||||||||||||||
|
Precision Optics Corp, Inc.
|
1,848,000
|
428,368
|
-
|
(112,738)
|
-
|
-
|
2,163,630
|
366,717
|
||||||||||||||||
|
Unisys Corp.
|
10,537,500
|
10,556,736
|
-
|
(5,173,086)
|
-
|
-
|
15,921,150
|
3,855,000
|
||||||||||||||||
|
Asure Software, Inc.
|
3,094,000
|
14,157,963
|
-
|
(619,963)
|
-
|
-
|
16,632,000
|
1,980,000
|
||||||||||||||||
|
$32,009,185
|
$ 55,559,628
|
$ (500,410)
|
$ (4,715,437)
|
$ (1,700,556)
|
$ 100,200
|
$80,652,409*
|
||||||||||||||||||
|
*
|
The value of these securities agrees to the Investments in Affiliated Securities, at Value in the Statements of Assets and Liabilities.
|
12. Federal Income Taxes
No provision for federal income taxes is required since the Company intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and distribute substantially all of its taxable income and capital gains to shareholders. Because income tax regulations differ from GAAP, the timing and character of income and capital gain distributions determined in accordance with tax regulations can differ from income and capital gains recognized for financial reporting purposes. Accordingly, the character of distributions and the composition of net assets for tax purposes can differ from those reflected in the financial statements. These book/tax differences may be temporary or permanent in nature. Temporary differences are generally due to differing book and tax treatment for the timing of the recognition of gains and losses on securities, including post-October losses (as described below). Permanent differences are generally due to differing treatment of net investment losses and distributions paid in connection with redemptions. To the extent these differences are permanent, they are charged or credited to paid-in
|
24
|
TABLE OF CONTENTS
Needham Funds
Notes to Financial Statements
June 30, 2024 (Unaudited)(Continued)
capital or distributable earnings, as appropriate, in the period in which the differences arise. These reclassifications have no effect on net assets or net asset value per share of each Portfolio. For the year ended December 31, 2023, the following table shows the reclassifications made:
|
Distributable Earnings/
(Accumulated Deficit)
|
Paid In
Capital
|
|||||
|
NGF
|
-
|
$56,700,592
|
||||
|
NAGF
|
-
|
305,794,498
|
||||
|
NSCGF
|
-
|
238,764,962
|
||||
As of December 31, 2023, the cost, gross unrealized appreciation, gross unrealized depreciation, and the net unrealized appreciation (depreciation) on securities, including proceeds from securities sold short for federal income tax purposes, were as follows:
|
Cost
|
Gross
Unrealized
Appreciation
|
Gross
Unrealized
Depreciation
|
Net Unrealized
Appreciation
(Depreciation)
|
|||||||||
|
NGF
|
$56,333,702
|
$96,494,207
|
$(5,610,168)
|
$90,884,039
|
||||||||
|
NAGF
|
301,408,226
|
116,197,338
|
(20,873,311)
|
95,324,027
|
||||||||
|
NSCGF
|
163,480,980
|
26,569,338
|
(22,455,240)
|
4,114,098
|
||||||||
The difference between the tax cost of investments and the cost of investments for GAAP purposes is primarily due to the tax treatment for wash sale losses and as it relates to NAGF Passive Foreign Investment Company income. As of December 31, 2023, the components of distributable earnings (loss) on a tax basis were as follows:
|
NGF
|
NAGF
|
NSCGF
|
|||||||
|
Undistributed ordinary income
|
$-
|
$-
|
$-
|
||||||
|
Undistributed long-term capital gains
|
-
|
-
|
-
|
||||||
|
Other accumulated appreciation (depreciation)
|
(200,753)
|
(3,034,083)
|
(76,581,647)
|
||||||
|
Unrealized appreciation (depreciation)
|
90,884,039
|
95,324,027
|
4,114,098
|
||||||
|
Total accumulated earnings (loss)
|
$90,683,286
|
$92,289,944
|
$(72,467,549)
|
||||||
As of December 31, 2023, the Funds had accumulated capital loss carryovers of:
|
Capital Loss
Carryover ST
|
Capital Loss
Carryover LT
|
Expires
|
|||||||
|
NGF
|
$(191,869)
|
$(8,844)
|
Indefinite
|
||||||
|
NAGF
|
$(526,527)
|
$(2,504,901)
|
Indefinite
|
||||||
|
NSCGF
|
$(18,157,043)
|
$(58,424,604)
|
Indefinite
|
||||||
Under current tax law, capital and currency losses realized after October 31 of a Portfolio's fiscal year may be deferred and treated as occurring on the first business day of the following fiscal year for tax purposes. For the year ended December 31, 2023 the Portfolios had no such losses to defer.
|
13.
|
Subsequent Events
|
Management has evaluated subsequent events through the date the financial statements were issued. This evaluation did not result in any subsequent events that necessitated recognition or disclosures.
|
25
|
TABLE OF CONTENTS
Supplementary Information
June 30, 2024 (Unaudited)
Federal Income Tax Information
For the fiscal year ended December 31, 2023, certain dividends paid by the Portfolios may be subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of dividends declared from ordinary income reported as qualified dividend income was as follows:
|
NGF
|
0.00%
|
||
|
NAGF
|
0.00%
|
||
|
NSCGF
|
0.00%
|
||
For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the fiscal year ended December 31, 2023 was as follows:
|
NGF
|
0.00%
|
||
|
NAGF
|
0.00%
|
||
|
NSCGF
|
0.00%
|
||
The percentage of taxable ordinary income distributions that are designed as short-term capital gain distributions under Internal Revenue Section 871 (k)(2)(C) for each Fund were as follows:
|
NGF
|
0.00%
|
||
|
NAGF
|
0.00%
|
||
|
NSCGF
|
0.00%
|
||
Privacy Policy
It is the policy of the Company to keep personally identifiable financial information about you as an individual ("nonpublic personal information") confidential, and use or disclose it only as necessary to provide services to you or the Company or as otherwise required or permitted by law. We may collect the following nonpublic personal information about you:
|
•
|
Information we receive from you on or in applications or other forms, correspondence, or conversations, including, but not limited to, your name, address, phone number, social security number, assets, income and date of birth; and
|
|
•
|
Information about your transactions with us, our affiliates, or others, including, but not limited to, your account number and balance, payments history, parties to transactions, cost basis information, other financial information and information about how you vote your shares.
|
We disclose nonpublic personal information about current and former shareholders to companies that provide necessary services to the Company. These companies include the transfer agent, distributor, administrator and investment adviser as well as other affiliates of the Company. We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information and restrict access to this information to those persons who need it to provide services to you or the Company or who are otherwise permitted by law to receive it. In the event that you hold any shares of our funds through a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of your financial intermediary governs how your nonpublic personal information is shared with nonaffiliated third parties. If you have any questions concerning the Company's Privacy Policy, please call 1-800-625-7071.
Disclosure of Portfolio Holdings
Each Portfolio files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. For the Portfolios, this would be for the fiscal quarters ending March 31 and September 30. Each Portfolio's Form N-PORT reports are available without charge, upon request, by calling 800-625-7071 or on the SEC's website at http://www.sec.gov.
|
26
|
TABLE OF CONTENTS
Supplementary Information
June 30, 2024 (Unaudited)(Continued)
Voting Proxies on Company Portfolio Securities
A description of the policies and procedures that the Company uses to determine how to vote proxies relating to portfolio securities and information regarding how the Company voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 are available without charge, upon request, by calling 800-625-7071 or on the SEC's website at http://www.sec.gov.
Household Delivery of Shareholder Documents
To reduce expenses, the Company may mail only one copy of the Portfolios' prospectuses, proxy statements, information statements, and each annual and semi-annual report to those addresses shared by two or more accounts. If you wish to receive individual copies of these documents, please call the Portfolios at 1-800-625-7071 or contact your financial institution. You will begin receiving individual copies thirty days after receiving your request.
Index Disclaimer
The Portfolios have been developed solely by the Adviser. The Portfolios are not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). FTSE Russell is a trading name of certain of the LSE Group companies.
All rights in the Russell 2000 Index and the Russell 3000 Index (together, the "Indexes") vest in the relevant LSE Group company which owns the Index. "Russell®" is a trade mark of the relevant LSE Group company and is used by any other LSE Group company under license. The Indexes are calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Indexes or (b) investment in or operation of the Portfolios. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the Portfolios or the suitability of the Indexes for the purpose to which it is being put by the Adviser.
The source of the data for each of the Indexes is the LSE Group. © LSE Group 2021. All rights in the Indexes or data vest in the relevant LSE Group company which owns the Index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the Indexes or data and no party may rely on any Indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company's express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
|
27
|
| (b) | Financial Highlights are included within the financial statements filed under Item 7 of this Form. |
Item 8. Changes in and Disagreements with Accountants for Open-End Investment Companies.
There were no changes in or disagreements with accountants during the period covered by this report.
Item 9. Proxy Disclosure for Open-End Investment Companies.
There were no matters submitted to a vote of shareholders during the period covered by this report.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Investment Companies.
See Item 7(a).
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
See Item 7(a).
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 15. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors.
Item 16. Controls and Procedures.
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable to open-end investment companies.
Item 18. Recovery of Erroneously Awarded Compensation.
Not applicable
Item 19. Exhibits.
| (a) | (1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Incorporated by reference to the Registrant's Form N-CSR filed on March 11, 2022. |
(2) Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the registrant's securities are listed. Not Applicable to open-ended investment companies.
(3) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)). Filed herewith.
(4) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.
(5) Change in the registrant's independent public accountant. Provide the information called for by Item 4 of Form 8-K under the Exchange Act (17 CFR 249.308). Unless otherwise specified by Item 4, or related to and necessary for a complete understanding of information not previously disclosed, the information should relate to events occurring during the reporting period. Not applicable to open-end investment companies.
| (b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) | The Needham Funds, Inc. |
| By (Signature and Title) | /s/ George A. Needham | ||
| George A. Needham, President (Chief Executive Officer) |
| Date | 9/5/24 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title) | /s/ George A. Needham | ||
| George A. Needham, President (Chief Executive Officer) |
| Date | 9/5/24 |
| By (Signature and Title) | /s/ James W. Giangrasso | ||
| James W. Giangrasso, Treasurer and Secretary (Chief Financial Officer) |
| Date | 9/5/24 |