|By PR Newswire||
|April 8, 2014 12:50 PM EDT||
CHICAGO, April 8, 2014 /PRNewswire/ -- Oberweis Asset Management, Inc. announced today that The Oberweis International Opportunities Fund (OBIOX) received two 2014 Lipper Fund Awards in the International Small/Mid-Cap Growth Funds classification, one Award as the "Best Fund" over the three-year period ending December 31, 2013, and one Award as the "Best Fund" over the five-year period ending December 31, 2013. Lipper reported that the Oberweis International Opportunities Fund won "Best Fund" out of 130 funds in that classification for the three-year period and 101 funds for the five-year period*. The Lipper Awards recognize funds that have demonstrated consistent and strong risk-adjusted returns relative to their peers. The Oberweis International Opportunities Fund has been managed since its inception in 2007 by portfolio manager Ralf Scherschmidt.
The Oberweis International Opportunities Fund seeks to identify and capitalize on the long-term investment opportunities offered by smaller-cap companies in Europe, the United Kingdom, Canada, Asia, Japan, and Latin America. The Oberweis investment team uses a disciplined and structured approach to identify under-followed companies undergoing positive changes in business fundamentals that drive strong earnings growth and positive earnings estimate revisions. The Fund is supported by an experienced and dedicated team of analysts and traders with international experience and an extensive network of global contacts.
"I am very excited for Ralf and his team," said Jim Oberweis, President of Oberweis Asset Management. "Their strong performance record is the result of years of dedication and hard work, and we have seen tremendous interest in the Oberweis International Opportunities Fund from investors seeking exposure to international small-cap stocks."
We asked Ralf Scherschmidt, Portfolio Manager of The Oberweis International Opportunities Fund, some questions about his investment philosophy and what makes it unique.
Q: What is your fund's investment philosophy?
We believe that while markets are generally efficient at pricing securities, there are specific situations when it takes the market time to correctly price companies undergoing meaningful changes in business fundamentals. Specifically, we take advantage of a well-documented stock market anomaly termed the Post-Earnings-Announcement Drift (PEAD). When a firm posts actual earnings which are meaningfully higher than what the market had expected, if this is based on fundamental changes at the firm that can sustainably drive higher future earnings, the market should theoretically digest this news quickly and price the stock accordingly. However, this does not always happen, and instead it often takes many months or even years for the market to digest the new situation and price the stock correctly. As a result, the stock price tends to drift higher after the earnings announcement; hence the name of the effect. Academic research supports this finding and PEAD is considered one of the most statistically significant and robust stock market anomalies.
Q: This seems counter to the widely-held belief in the Efficient Market Hypothesis (EMH). How is this PEAD effect explained?
It is correct that the traditional theory of EMH would preclude these research findings. Behavioral economists, on the other hand, believe that the PEAD effect is well explained by the decisional biases exhibited by humans in the real world. These biases have been widely written about in financial literature and include concepts such as anchoring, commitment bias, confirmation bias, and herding. Basically, people tend to anchor beliefs to old data, people do not like to change their minds, people do not process new data objectively (instead evaluating it through the lens of ingrained, prior beliefs and pre-conceived notions), and people feel safer agreeing with the general consensus (safety in the herd) rather than having controversial, non-consensus opinions. All of these factors contribute to the delayed or 'sticky' way in which the market reacts to new information that is at odds with investors' prior beliefs and pre-conceived notions. Over time, the market will eventually overcome its biases and adjust its beliefs to reflect the changed situation. We find that if an investor is nimble enough the PEAD effect can provide an opportunity to generate returns in excess of the market.
Q: How do you take advantage of the PEAD effect in your investment process?
We have created a rigorous, systematic process that identifies companies experiencing positive fundamental changes which can lead to sustainably higher future earnings than currently expected by the market. This efficient, check-listed, bottom-up fundamental analysis process helps us determine if the market has not yet fully appreciated the improved earnings potential of the business. If that is the case, we will buy the stock. We continue to monitor the situation, and when we believe the market has digested the new information and priced the stock correctly, we will sell it in favor of another company which is not yet fully understood.
Q: In summary, your buy and sell decisions are not based solely on your beliefs about a company's earnings potential in isolation, but also on the difference between your and the market's belief about the company's earnings potential?
Exactly. There are many great companies with steadily growing earnings. But our process focuses specifically on a subset of these companies – those companies which are misunderstood by the market, and therefore mispriced.
About Oberweis Asset Management, Inc.
Oberweis Asset Management, Inc. is based in Lisle, Illinois and specializes in smaller capitalization growth equity management globally. The firm has over $1.5 billion in assets under management and manages assets for its own seven-fund mutual fund family, The Oberweis Funds, institutions, and high-net-worth individuals.
Past performance is no guarantee of future results. Investment return and principle value will fluctuate; investors may experience gains or losses when shares are sold. You can obtain performance data current to the most recent month by visiting oberweisfunds.com.
The Oberweis Funds invest in rapidly growing smaller and medium sized companies which may offer greater return potential. However, these investments often involve greater risks and volatility. Foreign investments involve greater risks than U.S investments, including political and economic risks and the risk of currency fluctuations. There is no guarantee that the funds can achieve their objectives. Holdings in the Funds are subject to change. Before investing, consider the fund's investment objectives, risks, charges, and expenses. To obtain a copy of the prospectus or summary prospectus containing this and other information please visit our website at oberweisfunds.com or call 800-323-6166. Read it carefully before investing.
The Oberweis Funds are distributed by Oberweis Securities, Inc. Member: FINRA & SIPC
*The Lipper Fund Awards program honors funds that have excelled in delivering consistently strong risk-adjusted performance, relative to peers. In addition, the Lipper Fund Awards program recognizes fund families with high average scores for all funds within a particular asset class or overall. The Lipper Fund Awards take place in 23 countries in Asia, Europe, MENA, and the Americas. The awards winners are formally announced between January and April.
Lipper designates award-winning funds in most individual classifications for the three-, five-, and ten-year periods and fund families with high average scores for the three-year time period. Please review the Lipper Fund Awards methodology document to learn more about how the awards are calculated. Lipper Award designations are not intended to constitute investment advice or predict future results and Lipper does not guarantee the accuracy of this information.
Lipper Fund Awards are part of the broader Thomson Reuters Awards for Excellence program. Please visit the Awards for Excellence website for more details about the Lipper Fund Awards. If you have specific questions about please send an email to [email protected].
SOURCE Oberweis Asset Management, Inc.
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jan. 23, 2017 07:30 AM EST Reads: 3,696
"We provide DevOps solutions. We also partner with some key players in the DevOps space and we use the technology that we partner with to engineer custom solutions for different organizations," stated Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 23, 2017 07:00 AM EST Reads: 4,793
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Jan. 23, 2017 07:00 AM EST Reads: 6,939
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
Jan. 23, 2017 06:45 AM EST Reads: 1,699
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Jan. 23, 2017 05:15 AM EST Reads: 3,593
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, discussed the best practices that will ensure a successful smart city journey.
Jan. 23, 2017 05:00 AM EST Reads: 2,145
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
Jan. 23, 2017 04:00 AM EST Reads: 3,956
The pace of innovation, vendor lock-in, production sustainability, cost-effectiveness, and managing risk… In his session at 18th Cloud Expo, Dan Choquette, Founder of RackN, discussed how CIOs are challenged finding the balance of finding the right tools, technology and operational model that serves the business the best. He also discussed how clouds, open source software and infrastructure solutions have benefits but also drawbacks and how workload and operational portability between vendors an...
Jan. 23, 2017 03:30 AM EST Reads: 5,111
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Jan. 23, 2017 03:00 AM EST Reads: 1,028
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Jan. 23, 2017 03:00 AM EST Reads: 6,173
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
Jan. 23, 2017 02:45 AM EST Reads: 5,421
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at Dell EMC, introduced a methodology for capturing, enriching and sharing data (and analytics) across the organization...
Jan. 23, 2017 02:30 AM EST Reads: 3,380
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 23, 2017 02:30 AM EST Reads: 5,022
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
Jan. 23, 2017 02:00 AM EST Reads: 6,649
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Jan. 23, 2017 01:45 AM EST Reads: 2,788