Welcome!

News Feed Item

Oberweis International Opportunities Fund (OBIOX) wins two prestigious 2014 Lipper Fund Awards

Named "Best Fund" by Lipper in the International Small/Mid-Cap Growth Funds classification for both the three-year and five-year periods ended December 31, 2013*.

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.

Disclosures:

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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
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, ...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
Much of IT terminology is often misused and misapplied. Modernization and transformation are two such terms. They are often used interchangeably even though they mean different things and have very different connotations. Indeed, it is somewhat safe to assume that in IT any transformative effort is likely to also have a modernizing effect, and thus, we can see these as levels of improvement efforts. However, many businesses are being led to believe if they don’t transform now they risk becoming ...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
"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.
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.