|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.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...
Jul. 28, 2015 04:30 PM EDT Reads: 1,735
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
Jul. 28, 2015 04:00 PM EDT Reads: 2,165
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Jul. 28, 2015 04:00 PM EDT Reads: 179
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at @DevOpsSummit, Haseeb Budhani, CEO and Co-founder of Soha, shared five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the friction an...
Jul. 28, 2015 03:30 PM EDT Reads: 459
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Jul. 28, 2015 03:30 PM EDT Reads: 121
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
Jul. 28, 2015 03:00 PM EDT Reads: 1,232
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Jul. 28, 2015 03:00 PM EDT Reads: 1,042
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Jul. 28, 2015 03:00 PM EDT Reads: 440
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...
Jul. 28, 2015 02:00 PM EDT Reads: 1,148
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to tran...
Jul. 28, 2015 01:00 PM EDT Reads: 307
Containers are changing the security landscape for software development and deployment. As with any security solutions, security approaches that work for developers, operations personnel and security professionals is a requirement. In his session at DevOps Summit, Kevin Gilpin, CTO and Co-Founder of Conjur, will discuss various security considerations for container-based infrastructure and related DevOps workflows.
Jul. 28, 2015 01:00 PM EDT Reads: 1,038
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, broke down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them to d...
Jul. 28, 2015 01:00 PM EDT Reads: 1,937
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Jul. 28, 2015 12:00 PM EDT
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Jul. 28, 2015 11:45 AM EDT Reads: 384
SYS-CON Events announced today that Agema Systems will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Agema Systems is the leading provider of critical white-box rack solutions to data centers through the major integrators and value added distribution channels.
Jul. 28, 2015 11:25 AM EDT