N-CSR 1 jf-ncsra.htm JACOB FUNDS ANNUAL REPORT 8-31-21

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 811-09447



Jacob Funds Inc.
(Exact name of Registrant as specified in charter)



C/O Jacob Asset Management of New York LLC
727 2nd Street #106
Hermosa Beach, CA 90254
(Address of principal executive offices) (Zip code)



Ryan Jacob
C/O Jacob Asset Management of New York LLC
727 2nd Street #106
Hermosa Beach, CA 90254
(Name and address of agent for service)



(424) 237-2164
Registrant's telephone number, including area code



Date of fiscal year end: August 31


Date of reporting period:  August 31, 2021



Item 1. Reports to Stockholders.

(a)





Jacob Internet Fund
Jacob Small Cap Growth Fund
Jacob Discovery Fund
Jacob Forward ETF


Annual Report
August 31, 2021


The Jacob Internet Fund, Jacob Small Cap Growth Fund and
Jacob Discovery Fund are mutual funds with the primary investment
objective of long-term growth of capital. The Jacob Forward ETF
is an exchange traded fund with the primary investment objective
of long-term growth of capital.
 
The Jacob Internet Fund has current income as a secondary objective.



 

 

 
Investment Adviser
Jacob Asset Management of New York LLC

TABLE OF CONTENTS



Letter From the Manager
   
1
Industry Breakdowns
   
4
Fund Performance
   
8
Schedules of Investments
   
14
Statements of Assets and Liabilities
   
27
Statements of Operations
   
29
Statements of Changes in Net Assets
   
31
Financial Highlights
   
35
Notes to the Financial Statements
   
41
Report of Independent Registered Public
     
  Accounting Firm
   
56
Additional Information on Fund Expenses
   
57
Additional Information
   
59





Dear Fellow Investors,
 
The past year has seen tremendous progress against COVID-19, and as a result, economies around the world have recovered nicely with equity markets making new highs through the end of the fiscal period. Dynamism has returned to the U.S. in a big way, with new business creation reaching levels not seen in years. Unprecedented fiscal stimulus programs are already being deployed, and with a continued accommodative monetary policy, it’s difficult not to be optimistic on the U.S. economy’s prospects in the near-term. Over the past several months we have experienced a more uneven advance in stock prices, as some of that economic growth has been factored in, and we are seeing more sector rotation beneath the surface of the major indices. To be sure, speculative excesses can still be found in many pockets of the market, and overall equity valuations remain at historically high levels. However, we believe high valuations will prove to be justified for those companies able to deliver continued revenue growth and earnings leverage.
 
As for the funds, strong results across most of our portfolio holdings in the fiscal period proved that they would be able to build upon last year’s outperformance. Returns in all three funds significantly exceeded our benchmarks and peers, owing mainly to our focus on unique smaller companies, whose valuations remain more modest, and which should also benefit from a broader economic expansion. While we do expect higher volatility that is sure to emerge from time to time, given the uncertainties that still exist, we are still finding many extraordinary investment opportunities among various sectors. With the recent launch of our newest fund (the Jacob Forward ETF), we remain forward-looking and excited for the prospects of all our holdings in what should remain a fertile environment for growth investing.
 
Jacob Internet Fund
 
The Jacob Internet Fund was up 71.34% for the fiscal period ended August 31, 2021, while the NASDAQ Composite Index rose 30.55%. The growth of the Fund’s largest technology portfolio weightings contributed the most to our returns, while many of the Fund’s laggards were relatively minor positions. Small and mid-cap stock strength early in the fiscal year also contributed to our significant outperformance versus our benchmarks and peers.
 
As in our recent semi-annual period, Voyager Digital Ltd. (“Voyager”) was by far our best performing name, up over 1,800% in the period. Even with a relatively small initial purchase, Voyager’s impact was substantial, and is a perfect example of how a position’s growth can contribute meaningfully to returns. Founded by former senior executives at E*Trade Financial Corporation and Uber Technologies, Inc., Voyager built a fast-growing robust cryptocurrency trading platform that offers transactions in more than 60 different coins today. OptimizeRx Corp., up more than 228% in the period, has seen accelerating growth from its push into more enterprise relationships, giving drug companies more efficient ways to reach doctors and provide patient engagement solutions. Long-time holding Digital Turbine, Inc., up over 141% in the period, continued to make acquisitions to bolster its position as the leading app content platform with carriers, and transition to a more vertically integrated partner that should capture more of the advertising ecosystem economics going forward.
 
Many of the worst performing names in the period were newer names to the portfolio, and relatively small in size and impact. Our worst performing name in the Fund was Zovio, down over 53% in the period, an online education company whose transition away from its own online college has not gone as smoothly as we had hoped. Online food delivery company Waitr Holdings, Inc., down over 51% in the period, initially benefitted from lockdowns but did not fully capitalize once restrictions began to ease and is no longer a position in the Fund. Lastly, another newer holding, WM Technology, Inc., better known online as Weedmaps, has been hurt by the lack of progress in legalization of cannabis on the federal level. As we still believe the regulatory environment will improve considerably in the next few years, we look at this weakness as a buying opportunity and have added to our position.
 
Jacob Small Cap Growth Fund
 
The Jacob Small Cap Growth Fund advanced 61.60% through August 31, 2021 while the Russell 2000 Growth Index rose 35.61%. This outperformance was very diverse among many of the Fund’s holdings, with an astounding eleven names up over 100% in the period. Much of this can be attributed to a combination of strong execution and the gradual reopening of the economy.
 
Besides Digital Turbine, Inc., OptimizeRx Corp. and Voyager Digital Ltd. also being top holdings in this fund, there were many other standouts across a variety of sectors. While not a top position, Inspired Entertainment, Inc. was the best performing stock in the period, up over 255%. With its gambling locations across Europe reopening this year, Inspired’s financial situation improved considerably, while the company continued to grow its nascent virtual sports betting business. Alphatec Holdings, Inc., up over 141% in the period, has been a longtime top holding and has shown renewed strength as hospitals are now allowing more elective spine surgeries in which their products specialize. Many of our other top performers were clear beneficiaries of the gradual reopening of the global economy, such as American Eagle Outfitters, Inc., Cheesecake Factory, Inc., Yelp, Inc. and Urban Outfitters, Inc. which were up 146%, 88%, 67% and 61%, respectively. Because the valuations of many economically sensitive stocks have become more normalized in the past few months, Cheesecake Factory, Inc. and Urban Outfitters, Inc. are no longer positions in the Fund.
1

Most of the Fund’s holdings that negatively affected performance were purposely lighter weighted healthcare names, reflecting their higher risk nature, that limited their negative impact. Our worst performing name, Frequency Therapeutics, Inc., had clinical trial results to help restore hearing loss that were very disappointing, leading to the stock dropping over 83% in the period and is no longer a holding in the Fund. Mesoblast, Ltd., down over 66%, also had trial results in a few drug indications that were mixed at best, but the company did sign a major deal with Novartis to help fund further development of its stem cell therapy. Esperion Therapeutics, Inc., down 64% in the period, was mainly a victim of trying to launch a major drug during Covid, when many cardiologist practitioners shut down and/or went virtual, leading to a shortfall in sales forecasts for its cholesterol reduction pills.
 
Jacob Discovery Fund
 
The Jacob Discovery Fund was up 81.58% for the fiscal period ended August 31, 2021, while the Russell Microcap Growth Index rose 45.77%. We started out the fiscal year extremely strong, benefitting from a robust market that picked up steam in the fall of 2020 on the announcement of the vaccines and the midterm election results. While we still see unsettling amounts of speculation in certain areas of the markets, we are somewhat mollified by the fact we think some of the air has been let out gradually in the micro- and small-cap portion of the market. Valuations are generally still robust, but so are the opportunities in front of many of our portfolio holdings.
 
In terms of individual names, cryptocurrency broker/dealer Voyager Digital Ltd. (“Voyager”), mentioned earlier in the letter, was the standout star of the year. While we remain fans of cryptocurrencies and the management team, we have modestly reduced the position size of Voyager as well as BIGG Digital Assets, Inc., another top performer for the fiscal year, up 466%. USIO, Inc., a payment processor that has also benefitted from the crypto move (Voyager is a big customer), was also up 165% during the period, but we are keeping our position size there due to their execution and performance in other areas of the business.
 
Other strong performing names like OptimizeRx Corp., Alphatec Holdings, Inc. and Inspired Entertainment, Inc. were mentioned earlier in this letter as well, but we should also highlight the 296% gain for Celcuity, Inc.. This company has developed a very intriguing diagnostic technology that looks at live cancer cells in the lab and tries to determine which targeted drug therapies might work best at treating patients. Not only does Celcuity, Inc. have numerous pharmaceutical partners testing their technology in the clinic for various cancer indications and tumor pathways, the company also made a potentially transformative transaction over the past year acquiring the rights to a Pfizer, Inc. drug that they believe their technology showed might be one of those drugs with a larger-than-expected benefit for cancer patients. If successful, the move could create an enormous amount of value for shareholders that is still not being fully recognized by the market.
 
Fortunately, many of the disappointments for the fund over the fiscal year were relatively small positions. Many of the poor performers were biotech companies without commercialized product and with a pipeline in the early stage of development, and it has always been part of the fund’s philosophy to keep such positions to a relatively small size of the overall portfolio due to the inherently riskier nature of those investments. A number of these companies – like ContraFect Corp., Akuous, Inc., Neubase Therapeutics, Inc., were down 34%, 47% and 50% respectively – moved lower on little to no news, and we still hold strong hope in the prospects and science for these names. Meanwhile, we retain small ownership stakes in IMV, Inc. and Mesoblast Ltd., down 59% and 66% respectively, despite some new clinical data that has given us pause. We will continue to do our best to try and find small, interesting and underappreciated growth opportunities that are being overlooked by much of traditional institutional Wall Street.
 
Jacob Forward ETF
 
We are also happy to announce the successful launch of our newest fund: Jacob Forward ETF (ticker – JFWD). This fund continues our team’s focus on investing in innovative, forward-thinking companies that leverage technology to create significant competitive advantages and ultimately, superior, lasting, profitable growth. The ETF format allows access to prospective shareholders across a wide variety of investing platforms worldwide. We will be including updates on the Jacob Forward ETF in all future management commentary.
 
As always, we believe that staying true to our investment philosophy and process is still key to obtaining the best possible long-term investment performance for our shareholders.  Thank you again for your continued confidence and trust.
 
Ryan Jacob
Chairman and Chief Investment Officer
Portfolio Manager
 
Frank Alexander
Portfolio Manager
 
Darren Chervitz
Portfolio Manager
2

Past performance is not a guarantee of future results.
 
Performance data reflects fee waivers and in the absence of these waivers performance would be reduced.
 
Diversification does not assure a profit or protect against a loss in a declining market.
 
Must be accompanied or preceded by a prospectus.
 
The opinions expressed above are those of the portfolio manager and are subject to change at any time. Forecasts cannot be guaranteed and should not be considered investment advice.
 
Mutual fund investing involves risk; loss of principal is possible. The Funds invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater in emerging markets. Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales. There are more specific risks inherent in investing in the internet area, particularly with respect to smaller capitalized companies and the high volatility of internet stocks. The Funds can invest in small-and mid-cap securities which involve additional risks such as limited liquidity and greater volatility. Investments in micro capitalization companies may involve greater risks, as these companies tend to have limited product lines, markets and financial or managerial resources. Micro cap stocks often also have a more limited trading market, such that the Adviser may not be able to sell stocks at an optimal time or price. In addition, less frequently-traded securities may be subject to more abrupt price movements than securities of larger capitalized companies. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer term debt securities.
 
Fund holdings are subject to change and should not be construed as a recommendation to buy or sell any security. Current and future portfolio holdings are subject to risk.
 
Please refer to the schedules of investments for complete Fund holdings information.
 
The NASDAQ Composite Index is a market capitalization weighted index that is designed to represent performance of the National Market System which includes over 5,000 stocks traded only over-the-counter and not on an exchange. The Russell 2000 Growth Index measures the performance of the small cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell Microcap Growth Index measures the performance of the microcap growth segment of the U.S. equity market. It includes Russell Microcap companies that are considered more growth oriented relative to the overall market as defined by Russell’s leading style methodology. The Russell Microcap Growth Index is constructed to provide a comprehensive and unbiased barometer for the microcap growth segment of the market. It is not possible to invest directly in an index.
 
The Funds are distributed by Quasar Distributors, LLC.
3

JACOB INTERNET FUND
INDUSTRY BREAKDOWN AS OF AUGUST 31, 2021
(as a percentage of total investments)
(Unaudited)


 

 



4

JACOB SMALL CAP GROWTH FUND
INDUSTRY BREAKDOWN AS OF AUGUST 31, 2021
(as a percentage of total investments)
(Unaudited)


 

 



5

JACOB DISCOVERY FUND
INDUSTRY BREAKDOWN AS OF AUGUST 31, 2021
(as a percentage of total investments)
(Unaudited)


 





6

JACOB FORWARD ETF
INDUSTRY BREAKDOWN AS OF AUGUST 31, 2021
(as a percentage of total investments)
(Unaudited)


 

 

 

7

Fund Performance
Comparison of $10,000 Investment in
Jacob Internet Fund vs. Indices (Unaudited)



 
Average Annual Total Returns
 
through August 31, 2021
 
One Year
Five Year
Ten Year
Jacob Internet Fund
71.34%
32.32%
22.49%
S&P 500® Index
31.17%
18.02%
16.34%
NASDAQ Composite Index
30.55%
25.25%
20.88%
NASDAQ Internet Index
19.97%
25.47%
22.06%

The Standard & Poor’s 500® Index (S&P 500®) is a capital-weighted index, representing the aggregate market value of the common equity of 500 stocks primarily traded on the New York Stock Exchange.  The NASDAQ Composite Index is a broad-based capitalization-weighted index of all NASDAQ stocks.  The NASDAQ Internet Index (QNET) is a modified market capitalization-weighted index designed to track the performance of the largest and most liquid U.S.-listed companies engaged in internet-related businesses.  The returns of the indices are not reduced by any fees or operating expenses.  An investor cannot invest directly in an index.
 
This chart assumes an initial gross investment of $10,000 made on August 31, 2011 and reflects the fees charged on an account.  Returns shown include the reinvestment of all dividends, if any, but do not include the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  Past performance is not predictive of future performance.  Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than the original cost.
8

Fund Performance
Comparison of $100,000 Investment in
Jacob Small Cap Growth Fund Institutional Class vs. Russell 2000 Growth Index (Unaudited)



 
Average Annual Total Returns
 
through August 31, 2021
 
One Year
Five Year
Since Inception
Jacob Small Cap Growth Fund Institutional Class
62.04%
25.21%
17.15%
Russell 2000 Growth Index
35.61%
16.58%
15.77%

The Russell 2000 Growth Index is an unmanaged index which is comprised of securities in the Russell 2000 Index with a greater-than-average growth orientation.  Companies in this index tend to exhibit higher price-to-book and price-to-earnings ratios.  The return of the index is not reduced by any fees or operating expenses.  An investor cannot invest directly in an index.
 
This chart assumes an initial gross investment of $100,000 made on November 12, 2012 (commencement of operations) and reflects the fees charged on an account.  Returns shown include the reinvestment of all dividends, if any, but do not include the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  Past performance is not predictive of future performance.  Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than the original cost.
9

Fund Performance
Comparison of $10,000 Investment in
Jacob Small Cap Growth Fund Investor Class vs. Russell 2000 Growth Index (Unaudited)



 
Average Annual Total Returns
 
through August 31, 2021
 
One Year
Five Year
Ten Year
Jacob Small Cap Growth Fund Investor Class
61.60%
24.87%
13.43%
Russell 2000 Growth Index
35.61%
16.58%
15.02%

The Russell 2000 Growth Index is an unmanaged index which is comprised of securities in the Russell 2000 Index with a greater-than-average growth orientation.  Companies in this index tend to exhibit higher price-to-book and price-to-earnings ratios.  The return of the index is not reduced by any fees or operating expenses.  An investor cannot invest directly in an index.
 
This chart assumes an initial gross investment of $10,000 made on August 31, 2011 and reflects the fees charged on an account.  Returns shown include the reinvestment of all dividends, if any, but do not include the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  Past performance is not predictive of future performance.  Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than the original cost.
10

Fund Performance
Comparison of $100,000 Investment in
Jacob Discovery Fund Institutional Class vs. Indices (Unaudited)



 
Average Annual Total Returns
 
through August 31, 2021
 
One Year
Five Year
Since Inception*
Jacob Discovery Fund Institutional Class
82.06%
32.33%
19.28%
Russell Microcap Growth Index
45.77%
16.07%
13.99%
Russell 2000 Growth Index
35.61%
16.58%
14.90%

The Russell Microcap Growth Index measures the performance of the microcap growth segment of the U.S. Equity market.  It includes those Russell Microcap Index companies with higher price-to-book ratios and higher forecasted growth values.
 
The Russell 2000 Growth Index is an unmanaged index which is comprised of securities in the Russell 2000 Index with a greater-than-average growth orientation.  Companies in this index tend to exhibit higher price-to-book and price-to-earnings ratios.  The returns of the indices are not reduced by any fees or operating expenses.  An investor cannot invest directly in an index.
 
This chart assumes an initial gross investment of $100,000 made on October 16, 2012 (the day the Adviser took over exclusive management) and reflects the fees charged on an account.  Returns shown include the reinvestment of all dividends, if any, but do not include the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  Past performance is not predictive of future performance.  Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than the original cost.
_______________

*
Fund performance is shown beginning on October 16, 2012, which is when the Adviser’s investment team took over exclusive management of the Jacob Micro Cap Growth Fund (formerly, PineBridge US Micro Cap Growth Fund) (the “Predecessor Fund”), which was reorganized into the Fund on November 12, 2012.  The Jacob Micro Cap Growth Fund changed its name to the Jacob Discovery Fund on December 31, 2020. In previous years, the Predecessor Fund was managed by another investment advisory firm, and, from July 9, 2012 through October 15, 2012, it was managed by the Adviser along with the portfolio manager from the prior advisory firm.

11

Fund Performance
Comparison of $10,000 Investment in
Jacob Discovery Fund Investor Class vs. Indices (Unaudited)



 
Average Annual Total Returns
 
through August 31, 2021
 
One Year
Five Year
Since Inception*
Jacob Discovery Fund Investor Class
81.58%
32.01%
18.96%
Russell Microcap Growth Index
45.77%
16.07%
13.99%
Russell 2000 Growth Index
35.61%
16.58%
14.90%

The Russell Microcap Growth Index measures the performance of the microcap growth segment of the U.S. Equity market.  It includes those Russell Microcap Index companies with higher price-to-book ratios and higher forecasted growth values.
 
The Russell 2000 Growth Index is an unmanaged index which is comprised of securities in the Russell 2000 Index with a greater-than-average growth orientation.  Companies in this index tend to exhibit higher price-to-book and price-to-earnings ratios.  The returns of the indices are not reduced by any fees or operating expenses.  An investor cannot invest directly in an index.
 
This chart assumes an initial gross investment of $10,000 made on October 16, 2012 (the day the Adviser took over exclusive management) and reflects the fees charged on an account.  Returns shown include the reinvestment of all dividends, if any, but do not include the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  Past performance is not predictive of future performance.  Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than the original cost.
_______________

*
Fund performance is shown beginning on October 16, 2012, which is when the Adviser’s investment team took over exclusive management of the Jacob Micro Cap Growth Fund (formerly, PineBridge US Micro Cap Growth Fund) (the “Predecessor Fund”), which was reorganized into the Fund on November 12, 2012.  The Jacob Micro Cap Growth Fund changed its name to the Jacob Discovery Fund on December 31, 2020.  In previous years, the Predecessor Fund was managed by another investment advisory firm, and, from July 9, 2012 through October 15, 2012, it was managed by the Adviser along with the portfolio manager from the prior advisory firm.
12

Fund Performance
Comparison of $10,000 Investment in
Jacob Forward ETF vs. S&P 500® Index (Unaudited)



 
Cumulative Total Returns
 
through August 31, 2021
 
Since Inception
Jacob Forward ETF
 
    NAV Return
4.70%
    Market Price Return
4.55%
S&P 500® Index
3.71%

The Standard & Poor’s 500® Index (S&P 500®) is a capital-weighted index, representing the aggregate market value of the common equity of 500 stocks primarily traded on the New York Stock Exchange. The return of the index is not reduced by any fees or operating expenses. An investor cannot invest directly in an index.
 
This chart assumes an initial gross investment of $10,000 made on July 13, 2021 (commencement of operations) and reflects the fees charged on an account. Returns shown include the reinvestment of all dividends, if any, but do not include the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than the original cost.
13

JACOB INTERNET FUND
SCHEDULE OF INVESTMENTS(+)
August 31, 2021

Shares
                 
Value
 
   
COMMON STOCKS
         
99.9
%
     
                           
   
Amusement & Recreation Services
   
0.0
%
             
 
1,000
 
Esports Entertainment Group, Inc.*^
                 
$
8,930
 
                               
     
Business Services
   
13.0
%
               
 
475,000
 
comScore, Inc.*
                   
1,843,000
 
 
203,275
 
OptimizeRx Corp.*
                   
13,452,740
 
 
71,675
 
Zillow Group, Inc.—Class C*
                   
6,864,315
 
                           
22,160,055
 
                               
     
Calculating & Accounting
                       
     
  Machine (No Electronic Computers)
   
2.2
%
               
 
367,000
 
Cantaloupe, Inc.*
                   
3,758,080
 
                               
     
Catalog & Mail-Order Houses
   
0.1
%
               
 
800
 
Alibaba Group Holding Ltd.—ADR*^
                   
133,592
 
                               
     
Communications Equipment
   
1.7
%
               
 
405,740
 
Powerfleet, Inc.*
                   
2,888,869
 
                               
     
Computer Integrated Systems Design
   
3.1
%
               
 
158,500
 
Telos Corp.*
                   
5,230,500
 
                               
     
Computer Peripheral Equipment
   
8.2
%
               
 
333,726
 
Identiv, Inc.*
                   
5,926,974
 
 
282,911
 
Immersion Corp.*
                   
2,121,832
 
 
100,300
 
Impinj, Inc.*
                   
5,846,487
 
                           
13,895,293
 
                               
     
Computer Processing & Data Preparation
   
3.6
%
               
 
263,992
 
Sohu.com Ltd.—ADR*^
                   
6,177,413
 
                               
     
Computer Programming, Data Processing, Etc.
   
21.9
%
               
 
1,500
 
Alphabet, Inc.—Class C*
                   
4,363,860
 
 
11,800
 
Facebook, Inc.—Class A*
                   
4,476,684
 
 
325,800
 
Momentive Global, Inc.*
                   
6,388,938
 
 
29,000
 
MongoDB, Inc.*
                   
11,363,070
 
 
17,000
 
Tencent Holdings Ltd. (HKD)(a)
                   
1,049,968
 
 
150,317
 
Twitter, Inc.*
                   
9,695,446
 
                           
37,337,966
 
                               
     
Educational Services
   
1.2
%
               
 
804,436
 
Zovio, Inc.*
                   
2,075,445
 
                               
     
Electric Services
   
0.8
%
               
 
300,000
 
Transphorm, Inc.*
                   
1,305,000
 

The accompanying notes are an integral part of these financial statements.
14

JACOB INTERNET FUND
SCHEDULE OF INVESTMENTS(+) (Continued)
August 31, 2021

Shares
                 
Value
 
   
COMMON STOCKS—(Continued)
         
99.9
%
     
                           
   
Miscellaneous Amusement & Recreation
   
1.0
%
             
 
28,000
 
DraftKings, Inc.—Class A*
                 
$
1,660,120
 
                               
     
Patent Owners & Lessors
   
5.7
%
               
 
165,496
 
Digital Turbine, Inc.*
                   
9,673,241
 
                               
     
Personal Services
   
4.0
%
               
 
176,200
 
Yelp, Inc.*
                   
6,785,462
 
                               
     
Pharmaceutical Preparations
   
1.0
%
               
 
97,000
 
Galaxy Digital Holdings Ltd.*
                   
1,620,569
 
                               
     
Prepackaged Software
   
20.3
%
               
 
14,000
 
Cloudflare, Inc.—Class A*
                   
1,690,360
 
 
484,543
 
Inspired Entertainment, Inc.*
                   
6,168,232
 
 
256,000
 
Porch Group, Inc.*
                   
5,120,000
 
 
34,000
 
Square, Inc.—Class A*
                   
9,114,380
 
 
11,600
 
Tabula Rasa HealthCare, Inc.*
                   
363,196
 
 
24,200
 
Twilio, Inc.—Class A*
                   
8,638,432
 
 
246,000
 
WM Technology, Inc.*
                   
3,421,860
 
                           
34,516,460
 
                               
     
Real Estate
   
0.5
%
               
 
584,681
 
Leju Holdings Ltd.—ADR*^
                   
853,634
 
                               
     
Security Brokers, Dealers & Flotation Companies
   
5.7
%
               
 
655,000
 
Voyager Digital Ltd.*
                   
9,759,500
 
                               
     
Semiconductors and Related Devices
   
1.0
%
               
 
36,300
 
CEVA, Inc.*
                   
1,751,475
 
                               
     
State Commercial Banks
   
4.9
%
               
 
29,363
 
First Internet Bancorp
                   
872,668
 
 
65,625
 
Silvergate Capital Corp.—Class A*
                   
7,414,313
 
                           
8,286,981
 
     
TOTAL COMMON STOCKS (Cost $96,550,546)
                   
169,878,585
 

The accompanying notes are an integral part of these financial statements.
15

JACOB INTERNET FUND
SCHEDULE OF INVESTMENTS(+) (Continued)
August 31, 2021

Shares
           
Value
 
   
MONEY MARKET FUND
   
0.2
%
     
 
331,355
 
First American Government Obligations Fund— Class X, 0.03%(b)
         
$
331,355
 
     
TOTAL MONEY MARKET FUND (Cost $331,355)
           
331,355
 
     
TOTAL INVESTMENTS (Cost $96,881,901)—100.1%
           
170,209,940
 
     
LIABILITIES IN EXCESS OF OTHER ASSETS—(0.1)%
           
(90,930
)
     
TOTAL NET ASSETS—100.0%
         
$
170,119,010
 

(+)
Schedule of Investments is classified using the U.S. Securities and Exchange Commission’s Standard Industrial Classification (SIC) Code List.
*
Non Income Producing.
^
U.S. Dollar-denominated foreign security.
ADR
American Depositary Receipt.
(HKD)
Security denominated in Hong Kong dollars. Value translated into U.S. dollars.
(a)
Level 2 security.
(b)
7-day yield.


The accompanying notes are an integral part of these financial statements.
16

JACOB SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS(+)
August 31, 2021

Shares
                 
Value
 
   
COMMON STOCKS
         
99.8
%
     
                           
   
Biological Products (No Diagnostic Substances)
   
7.3
%
             
 
55,000
 
Aerie Pharmaceuticals, Inc.*
                 
$
820,050
 
 
5,100
 
Krystal Biotech, Inc.*
                   
295,494
 
 
35,000
 
Mesoblast Ltd.—ADR*^
                   
228,550
 
 
45,000
 
Precision BioSciences, Inc.*
                   
565,650
 
 
2,700
 
Twist Bioscience Corp.*
                   
305,667
 
                           
2,215,411
 
                               
     
Business Services
   
7.7
%
               
 
35,000
 
OptimizeRx Corp.*
                   
2,316,300
 
                               
     
Calculating & Accounting
                       
     
  Machines (No Electronic Computers)
   
1.9
%
               
 
57,200
 
Cantaloupe, Inc.*
                   
585,728
 
                               
     
Computer Integrated Systems Design
   
2.9
%
               
 
26,300
 
Telos Corp.*
                   
867,900
 
                               
     
Computer Peripheral Equipment
   
5.1
%
               
 
51,700
 
Immersion Corp.*
                   
387,750
 
 
19,600
 
Impinj, Inc.*
                   
1,142,484
 
                           
1,530,234
 
                               
     
Computer Programming, Data Processing, Etc.
   
3.6
%
               
 
55,300
 
Momentive Global, Inc.*
                   
1,084,433
 
                               
     
Eating Places
   
0.7
%
               
 
5,000
 
BJ’s Restaurants, Inc.*
                   
213,800
 
                               
     
Family Clothing Stores
   
1.7
%
               
 
16,800
 
American Eagle Outfitters, Inc.
                   
512,736
 
                               
     
Industrial Organic Chemicals
   
7.4
%
               
 
17,000
 
Amyris, Inc.*
                   
255,850
 
 
73,046
 
Codexis, Inc.*
                   
1,973,703
 
                           
2,229,553
 
                               
     
Medical Laboratories
   
2.1
%
               
 
3,617
 
CareDx, Inc.*
                   
265,054
 
 
9,800
 
DermTech, Inc.*
                   
364,560
 
                           
629,614
 
                               
     
Miscellaneous Business Services
   
1.2
%
               
 
3,400
 
NV5 Global, Inc.*
                   
359,210
 

The accompanying notes are an integral part of these financial statements.
17

JACOB SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS(+) (Continued)
August 31, 2021

Shares
                 
Value
 
   
COMMON STOCKS—(Continued)
         
99.8
%
     
                         
   
Miscellaneous Metal Ores
   
3.2
%
             
 
274,600
 
Thunderbird Entertainment Group, Inc.*^(a)
                 
$
952,862
 
                               
     
Patent Owners & Lessors
   
5.4
%
               
 
27,800
 
Digital Turbine, Inc.*
                   
1,624,910
 
                               
     
Personal Services
   
3.8
%
               
 
29,400
 
Yelp, Inc.*
                   
1,132,194
 
                               
     
Pharmaceutical Preparations
   
18.3
%
               
 
19,000
 
Akouos, Inc.*
                   
225,910
 
 
11,800
 
Apellis Pharmaceuticals, Inc.*
                   
777,030
 
 
10,800
 
Arcturus Therapeutics Holdings, Inc.*
                   
591,948
 
 
11,034
 
Esperion Therapeutics, Inc.*
                   
143,663
 
 
16,000
 
Galaxy Digital Holdings Ltd.*
                   
267,310
 
 
78,500
 
Harrow Health, Inc.*
                   
832,100
 
 
42,000
 
Heron Therapeutics, Inc.*
                   
490,140
 
 
10,700
 
Ideaya Biosciences, Inc.*
                   
251,450
 
 
82,500
 
NeuBase Therapeutics, Inc.*
                   
329,175
 
 
83,890
 
Omeros Corp.*
                   
1,367,407
 
 
4,300
 
Schrodinger, Inc.*
                   
256,667
 
                           
5,532,800
 
                               
     
Prepackaged Software
   
8.4
%
               
 
82,509
 
Inspired Entertainment, Inc.*
                   
1,050,340
 
 
44,000
 
Porch Group, Inc.*
                   
880,000
 
 
2,100
 
Tabula Rasa HealthCare, Inc.*
                   
65,751
 
 
38,000
 
WM Technology, Inc.*
                   
528,580
 
                           
2,524,671
 
                               
     
Real Estate
   
0.6
%
               
 
4,670
 
Rafael Holdings, Inc.—Class B*
                   
195,439
 
                               
     
Security Brokers, Dealers & Flotation Companies
   
4.6
%
               
 
94,000
 
Voyager Digital Ltd.*
                   
1,400,600
 
                               
     
Semiconductors and Related Devices
   
1.2
%
               
 
7,500
 
CEVA, Inc.*
                   
361,875
 
                               
     
State Commercial Banks
   
4.2
%
               
 
11,339
 
Silvergate Capital Corp.—Class A*
                   
1,281,080
 
                               
     
Surgical and Medical Instruments and Apparatus
   
7.0
%
               
 
131,800
 
Alphatec Holdings, Inc.*
                   
1,908,464
 
 
17,350
 
iCAD, Inc.*
                   
209,241
 
                           
2,117,705
 

The accompanying notes are an integral part of these financial statements.
18

JACOB SMALL CAP GROWTH FUND
SCHEDULE OF INVESTMENTS(+) (Continued)
August 31, 2021


Shares
                 
Value
 
   
COMMON STOCKS—(Continued)
         
99.8
%
     
   
Trucking (No Local)
   
1.5
%
             
 
50,000
 
U.S. Xpress Enterprises, Inc.—Class A*
                 
$
437,000
 
     
TOTAL COMMON STOCKS (Cost $20,495,257)
                   
30,106,055
 
                               
     
MONEY MARKET FUND
           
0.8
%
       
 
237,077
 
First American Government Obligations Fund—Class X, 0.03%(b)
                   
237,077
 
     
TOTAL MONEY MARKET FUND (Cost $237,077)
                   
237,077
 
     
TOTAL INVESTMENTS (Cost $20,732,334)—100.6%
                   
30,343,132
 
     
LIABILITIES IN EXCESS OF OTHER ASSETS—(0.6)%
                   
(177,260
)
     
TOTAL NET ASSETS—100.0%
                 
$
30,165,872
 

(+)
Schedule of Investments is classified using the U.S. Securities and Exchange Commission’s Standard Industrial Classification (SIC) Code List.
*
Non Income Producing.
^
U.S. Dollar-denominated foreign security.
ADR
American Depositary Receipt.
(a)
Level 2 security.
(b)
7-day yield.

The accompanying notes are an integral part of these financial statements.
19

JACOB DISCOVERY FUND
SCHEDULE OF INVESTMENTS(+)
August 31, 2021


Share
                 
Value
 
   
COMMON STOCKS
         
99.0
%
     
                           
   
Advertising
   
0.6
%
             
 
265,000
 
IZEA Worldwide, Inc.*
                 
$
651,900
 
                               
     
Advertising Agencies
   
1.8
%
               
 
368,541
 
SRAX, Inc.*
                   
2,060,144
 
                               
     
Amusement & Recreation Services
   
0.8
%
               
 
1,000
 
Esports Entertainment Group, Inc.*^
                   
8,930
 
 
210,000
 
Super League Gaming, Inc.*
                   
892,500
 
                           
901,430
 
                               
     
Biological Products (No Diagnostic Substances)
   
5.6
%
               
 
112,100
 
Aerie Pharmaceuticals, Inc.*
                   
1,671,411
 
 
155,000
 
IMV, Inc.*^
                   
274,350
 
 
18,500
 
Krystal Biotech, Inc.*
                   
1,071,890
 
 
137,400
 
Mesoblast Ltd.—ADR* ^
                   
897,222
 
 
187,000
 
Precision BioSciences, Inc.*
                   
2,350,590
 
                           
6,265,463
 
                               
     
Bottled and Canned Soft Drinks and Carbonated Waters
   
0.5
%
               
 
770,000
 
Reed’s, Inc.*
                   
514,745
 
                               
     
Business Services
   
6.5
%
               
 
325,000
 
comScore, Inc.*
                   
1,261,000
 
 
90,793
 
OptimizeRx Corp.*
                   
6,008,681
 
                           
7,269,681
 
                               
     
Calculating & Accounting
                       
     
  Machines (No Electronic Computers)
   
1.8
%
               
 
198,600
 
Cantaloupe, Inc.*
                   
2,033,664
 
                               
     
Communications Equipment
   
1.9
%
               
 
299,599
 
Powerfleet, Inc.*
                   
2,133,145
 
                               
     
Computer Communications Equipment
   
2.3
%
               
 
406,879
 
Lantronix, Inc.*
                   
2,612,163
 
                               
     
Computer Peripheral Equipment
   
8.3
%
               
 
211,000
 
Identiv, Inc.*
                   
3,747,360
 
 
169,174
 
Immersion Corp.*
                   
1,268,805
 
 
72,200
 
Impinj, Inc.*
                   
4,208,538
 
                           
9,224,703
 
                               
     
Computer Processing & Data Preparation
   
3.8
%
               
 
298,958
 
Park City Group, Inc.*
                   
1,620,352
 
 
111,000
 
Sohu.com Ltd.—ADR*^
                   
2,597,400
 
                           
4,217,752
 

The accompanying notes are an integral part of these financial statements.
20

JACOB DISCOVERY FUND
SCHEDULE OF INVESTMENTS(+) (Continued)
August 31, 2021

Shares
                 
Value
 
   
COMMON STOCKS—(Continued)
         
99.0
%
     
                         
   
Computer Programming Services
   
1.4
%
             
 
350,000
 
Scout Gaming Group AB (SEK)*
                 
$
1,525,010
 
                               
     
Direct Mail Advertising Services
   
2.2
%
               
 
145,064
 
SharpSpring, Inc.*
                   
2,480,594
 
                               
     
Educational Services
   
1.5
%
               
 
646,500
 
Zovio, Inc.*
                   
1,667,970
 
                               
     
Electric Services
   
0.7
%
               
 
185,000
 
Transphorm, Inc.*
                   
804,750
 
                               
     
Electronic Components & Accessories
   
0.6
%
               
 
32,000
 
IntriCon Corp.*
                   
720,000
 
                               
     
Functions Related to Depository Banking
   
1.7
%
               
 
300,000
 
Usio, Inc.*
                   
1,881,000
 
                               
     
Games, Toys & Children’s Vehicles (No Dolls & Bicycles)
   
0.5
%
               
 
620,000
 
BIGG Digital Assets, Inc.*^
                   
568,106
 
                               
     
Gold and Silver Ores
   
0.4
%
               
 
900,000
 
Solitario Zinc Corp.*
                   
486,900
 
                               
     
Help Supply Services
   
1.8
%
               
 
114,907
 
Hudson Global, Inc.*
                   
1,970,655
 
                               
     
Industrial Organic Chemicals
   
5.2
%
               
 
214,006
 
Codexis, Inc.*
                   
5,782,442
 
                               
     
Medical Laboratories
   
3.7
%
               
 
121,832
 
Celcuity, Inc.*
                   
2,680,304
 
 
38,000
 
DermTech, Inc.*
                   
1,413,600
 
                           
4,093,904
 
                               
     
Medicinal Chemicals and Botanical Products
   
0.6
%
               
 
84,000
 
ChromaDex Corp.*
                   
716,520
 
                               
     
Metal Mining
   
0.5
%
               
 
350,000
 
Western Copper & Gold Corp.*^
                   
591,500
 
                               
     
Mining & Quarrying of Nonmetallic Mineral (No Fuels)
   
0.9
%
               
 
580,000
 
Azimut Exploration, Inc.*^
                   
1,049,800
 
                               
     
Miscellaneous Metal Ores
   
2.9
%
               
 
948,000
 
Thunderbird Entertainment Group, Inc.*^(a)
                   
3,289,560
 
 
The accompanying notes are an integral part of these financial statements.
21

JACOB DISCOVERY FUND
SCHEDULE OF INVESTMENTS(+) (Continued)
August 31, 2021


Shares
                 
Value
 
   
COMMON STOCKS—(Continued)
         
99.0
%
     
                         
   
Pharmaceutical Preparations
   
18.5
%
             
 
69,000
 
Akouos, Inc.*
                 
$
820,410
 
 
340,000
 
Arbutus Biopharma Corp.*^
                   
1,166,200
 
 
42,200
 
Arcturus Therapeutics Holdings, Inc.*
                   
2,312,982
 
 
770,000
 
Athersys, Inc.*
                   
1,293,600
 
 
410,000
 
ContraFect Corp.*
                   
1,488,300
 
 
275,000
 
DiaMedica Therapeutics, Inc.*
                   
1,182,500
 
 
36,500
 
Esperion Therapeutics, Inc.*
                   
475,230
 
 
299,889
 
Harrow Health, Inc.*
                   
3,178,824
 
 
41,000
 
Ideaya Biosciences, Inc.*
                   
963,500
 
 
325,000
 
NeuBase Therapeutics, Inc.*
                   
1,296,750
 
 
304,910
 
Omeros Corp.*
                   
4,970,033
 
 
113,000
 
Tela Bio, Inc.*
                   
1,480,300
 
                           
20,628,629
 
                               
     
Prepackaged Software
   
7.1
%
               
 
308,596
 
Inspired Entertainment, Inc.*
                   
3,928,427
 
 
154,500
 
Porch Group, Inc.*
                   
3,090,000
 
 
301,700
 
Qumu Corp.*
                   
883,981
 
                           
7,902,408
 
                               
     
Real Estate
   
1.2
%
               
 
400,869
 
Leju Holdings Ltd.—ADR*^
                   
585,269
 
 
16,630
 
Rafael Holdings, Inc.—Class B*
                   
695,965
 
                           
1,281,234
 
                               
     
Security Brokers, Dealers & Flotation Companies
   
3.7
%
               
 
280,000
 
Voyager Digital Ltd.*
                   
4,172,000
 
                               
     
Semiconductors and Related Devices
   
1.1
%
               
 
26,440
 
CEVA, Inc.*
                   
1,275,730
 
                               
     
State Commercial Banks
   
1.3
%
               
 
100,000
 
BM Technologies, Inc.*
                   
974,000
 
 
16,015
 
First Internet Bancorp
                   
475,966
 
                           
1,449,966
 
                               
     
Surgical and Medical Instruments and Apparatus
   
6.0
%
               
 
284,500
 
Alphatec Holdings, Inc.*
                   
4,119,560
 
 
185,000
 
CytoSorbents Corp.*
                   
1,770,450
 
 
65,910
 
iCAD, Inc.*
                   
794,875
 
                           
6,684,885
 

The accompanying notes are an integral part of these financial statements.
22

JACOB DISCOVERY FUND
SCHEDULE OF INVESTMENTS(+) (Continued)
August 31, 2021


Shares
                 
Value
 
   
COMMON STOCKS—(Continued)
         
99.0
%
     
                           
   
Trucking (No Local)
   
1.6
%
             
 
210,000
 
U.S. Xpress Enterprises, Inc.—Class A*
                 
$
1,835,400
 
     
TOTAL COMMON STOCKS (Cost $95,954,551)
                   
110,743,753
 
                               
                               
     
MONEY MARKET FUND
           
0.9
%
       
 
960,835
 
First American Government Obligations Fund—Class X, 0.03%(b)
                   
960,835
 
     
TOTAL MONEY MARKET FUND (Cost $960,835)
                   
960,835
 
     
TOTAL INVESTMENTS (Cost $96,915,386)—99.9%
                   
111,704,588
 
     
OTHER ASSETS IN EXCESS OF LIABILITIES—0.1%
                   
128,738
 
     
TOTAL NET ASSETS—100.0%
                 
$
111,833,326
 

(+)
Schedule of Investments is classified using the U.S. Securities and Exchange Commission’s Standard Industrial Classification (SIC) Code List.
*
Non Income Producing.
^
U.S. Dollar-denominated foreign security.
ADR
American Depositary Receipt.
(SEK)
Security denominated in Swedish Krona. Value translated into U.S. Dollars.
(a)
Level 2 Security.
(b)
7-day yield.

The accompanying notes are an integral part of these financial statements.
23

JACOB FORWARD ETF
SCHEDULE OF INVESTMENTS(+)
August 31, 2021

Shares
                 
Value
 
   
COMMON STOCKS
         
100.0
%
     
                           
   
Biological Products (No Diagnostic Substances)
   
6.6
%
             
 
13,848
 
Aerie Pharmaceuticals, Inc.*
                 
$
206,474
 
 
543
 
CRISPR Therapeutics AG*^
                   
67,848
 
 
902
 
Fate Therapeutics, Inc.*
                   
66,072
 
 
1,368
 
Krystal Biotech, Inc.*
                   
79,262
 
 
662
 
Twist Bioscience Corp.*
                   
74,945
 
                           
494,601
 
                               
     
Business Services
   
9.5
%
               
 
6,420
 
OptimizeRx Corp.*
                   
424,876
 
 
3,018
 
Zillow Group, Inc.—Class C*
                   
289,034
 
                           
713,910
 
                               
     
Catalog & Mail-Order Houses
   
0.5
%
               
 
211
 
Alibaba Group Holding Ltd.—ADR*^
                   
35,235
 
                               
     
Computer Integrated Systems Design
   
2.7
%
               
 
6,135
 
Telos Corp.*
                   
202,455
 
                               
     
Computer Peripheral Equipment
   
3.7
%
               
 
4,779
 
Impinj, Inc.*
                   
278,567
 
                               
     
Computer Programming, Data Processing, Etc.
   
17.1
%
               
 
44
 
Alphabet, Inc.—Class C*
                   
128,007
 
 
355
 
Facebook, Inc.—Class A*
                   
134,680
 
 
13,529
 
Momentive Global, Inc.*
                   
265,304
 
 
1,010
 
MongoDB, Inc.*
                   
395,748
 
 
612
 
Tencent Holdings Ltd.—ADR^(a)
                   
37,736
 
 
5,106
 
Twitter, Inc.*
                   
329,337
 
                           
1,290,812
 
                               
     
Industrial Organic Chemicals
   
7.2
%
               
 
5,621
 
Amyris, Inc.*
                   
84,596
 
 
16,967
 
Codexis, Inc.*
                   
458,448
 
     
 
                     543,044  
                               
     
Medical Laboratories
   
2.2
%
               
 
1,054
 
CareDx, Inc.*
                   
77,237
 
 
2,479
 
DermTech, Inc.*
                   
92,219
 
     
 
                     169,456  
                               
     
Miscellaneous Amusement & Recreation
   
2.3
%
               
 
2,951
 
DraftKings, Inc.—Class A*
                   
174,965
 

The accompanying notes are an integral part of these financial statements.
24

JACOB FORWARD ETF
SCHEDULE OF INVESTMENTS(+) (Continued)
August 31, 2021

Shares
                 
Value
 
   
COMMON STOCKS—(Continued)
         
100.0
%
     
                           
   
Patent Owners & Lessors
   
5.3
%
             
 
6,810
 
Digital Turbine, Inc.*
                 
$
398,044
 
                               
     
Pharmaceutical Preparations
   
13.9
%
               
 
3,210
 
Apellis Pharmaceuticals, Inc.*
                   
211,378
 
 
2,989
 
Arcturus Therapeutics Holdings, Inc.*
                   
163,827
 
 
4,541
 
Galaxy Digital Holdings Ltd.*
                   
75,866
 
 
11,556
 
Heron Therapeutics, Inc.*
                   
134,859
 
 
2,725
 
Ideaya Biosciences, Inc.*
                   
64,037
 
 
19,921
 
Omeros Corp.*
                   
324,712
 
 
1,192
 
Schrodinger, Inc.*
                   
71,150
 
                           
1,045,829
 
                               
     
Prepackaged Software
   
14.4
%
               
 
576
 
Cloudflare, Inc.—Class A*
                   
69,546
 
 
10,698
 
Porch Group, Inc.*
                   
213,960
 
 
1,229
 
Square, Inc.—Class A*
                   
329,458
 
 
900
 
Twilio, Inc.—Class A*
                   
321,264
 
 
11,016
 
WM Technology, Inc.*
                   
153,233
 
                           
1,087,461
 
                               
     
Security Brokers, Dealers & Flotation Companies
   
4.3
%
               
 
21,761
 
Voyager Digital Ltd.*
                   
324,239
 
                               
     
Semiconductors & Related Devices
   
0.9
%
               
 
1,440
 
CEVA, Inc.*
                   
69,480
 
                               
     
State Commercial Banks
   
4.1
%
               
 
2,713
 
Silvergate Capital Corp.—Class A*
                   
306,515
 
                               
     
Surgical and Medical Instruments and Apparatus
   
5.3
%
               
 
27,816
 
Alphatec Holdings, Inc.*
                   
402,776
 
     
TOTAL COMMON STOCKS (Cost $7,019,576)
                   
7,537,389
 

The accompanying notes are an integral part of these financial statements.
25

JACOB FORWARD ETF
SCHEDULE OF INVESTMENTS(+) (Continued)
August 31, 2021

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