Otter Creek Long/Short Opportunity Fund
|
||||
SCHEDULE OF INVESTMENTS
|
||||
AT JANUARY 31, 2017 (Unaudited)
|
||||
Shares
|
|
Value
|
||
COMMON STOCKS: 84.9%
|
||||
Aerospace & Defense: 3.4%
|
||||
232,933
|
KLX, Inc. 1
|
$ 11,411,388
|
||
Agriculture: 3.5%
|
||||
215,972
|
Calavo Growers, Inc. 2
|
11,943,251
|
||
Airlines: 3.1%
|
||||
105,527
|
Delta Air Lines, Inc.
|
4,985,095
|
||
104,745
|
Southwest Airlines Co.
|
5,479,211
|
||
10,464,306
|
||||
Application Software: 2.8%
|
||||
147,801
|
Microsoft Corp. 2
|
9,555,335
|
||
Coal & Consumable Fuels: 2.4%
|
||||
113,705
|
Arch Coal, Inc. - Class A 1
|
8,185,623
|
||
Construction & Engineering: 1.7%
|
||||
106,328
|
Fluor Corp.
|
5,901,204
|
||
Consumer Finance: 4.4%
|
||||
380,601
|
PayPal Holdings, Inc. 1, 2
|
15,140,308
|
||
Diversified Banks: 2.0%
|
||||
121,408
|
Citigroup, Inc.
|
6,778,209
|
||
Drug Retail: 2.5%
|
||||
104,024
|
Walgreens Boots Alliance, Inc.
|
8,523,726
|
||
Electric Utilities: 1.1%
|
||||
95,913
|
Avangrid, Inc.
|
3,721,424
|
||
Electronic Equipment & Instruments: 1.0%
|
||||
97,851
|
FLIR Systems, Inc.
|
3,457,076
|
||
Financial Services: 3.1%
|
||||
236,630
|
The Bank of New York Mellon Corp. 2
|
10,584,460
|
||
Food Services: 3.5%
|
||||
356,969
|
Aramark
|
12,079,831
|
||
Health Care Equipment: 2.7%
|
||||
219,882
|
Abbott Laboratories 2
|
9,184,471
|
||
Holding Companies: 4.2%
|
||||
86,798
|
Berkshire Hathaway, Inc. - Class B 1, 2
|
14,247,024
|
||
Industrial Machinery: 3.2%
|
||||
185,308
|
Pentair PLC
|
10,864,608
|
||
Internet Software & Services: 3.1%
|
||||
12,967
|
Alphabet, Inc. - Class A 1, 2
|
10,635,404
|
||
Investment Banking & Brokerage: 2.6%
|
||||
239,084
|
E*TRADE Financial Corp. 1
|
8,953,696
|
||
Medical Equipment: 2.3%
|
||||
51,297
|
Thermo Fisher Scientific, Inc.
|
7,817,150
|
||
Mortgage Insurance: 3.3%
|
||||
1,046,646
|
MGIC Investment Corp. 1, 2
|
11,146,780
|
||
Oil & Gas Equipment & Services: 1.0%
|
||||
90,850
|
National Oilwell Varco, Inc.
|
3,435,038
|
Packaged Foods & Meats: 8.7%
|
||||
243,710
|
Mondelez International, Inc. - Class A 2
|
10,791,479
|
||
309,895
|
Snyder’s-Lance, Inc. 2
|
11,893,770
|
||
93,589
|
TreeHouse Foods, Inc. 1
|
7,101,533
|
||
29,786,782
|
||||
Regional Banks: 4.6%
|
||||
272,794
|
F.N.B. Corp.
|
4,075,542
|
||
528,802
|
Seacoast Banking Corp. of Florida 1, 2, 3
|
11,517,308
|
||
15,592,850
|
||||
Specialized Real Estate Investment Trusts: 6.1%
|
||||
199,351
|
Potlatch Corp. - REIT 2
|
8,213,261
|
||
400,869
|
Weyerhaeuser Co. - REIT
|
12,559,226
|
||
20,772,487
|
||||
Specialty Chemicals: 3.5%
|
||||
100,372
|
Ashland Global Holdings, Inc.
|
11,947,279
|
||
Transportation & Logistics: 2.5%
|
||||
131,602
|
Kirby Corp. 1
|
8,481,749
|
||
Utilities: 2.6%
|
||||
121,885
|
American Water Works Co., Inc.
|
8,951,234
|
||
TOTAL COMMON STOCKS
|
||||
(Cost $264,187,441)
|
289,562,693
|
|||
Principal
|
|
|
||
CONVERTIBLE BONDS: 0.1%
|
||||
Mortgage Insurance: 0.1%
|
||||
$ 200,000
|
MGIC Investment Corp.
|
|||
9.000%, 4/1/2063 (Acquired 01/03/2014 through 04/03/2014, Cost $235,030) 2, 4
|
258,875
|
|||
TOTAL CONVERTIBLE BONDS
|
||||
(Cost $235,030)
|
258,875
|
|||
Shares
|
|
|
||
SHORT-TERM INVESTMENTS: 13.4%
|
||||
Money Market Funds: 13.4%
|
||||
45,670,490
|
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio, 0.410% 5
|
45,670,490
|
||
TOTAL SHORT-TERM INVESTMENTS
|
||||
(Cost $45,670,490)
|
45,670,490
|
|||
OTHER SECURITIES: 2.6% 6
|
||||
Miscellaneous Put Options
|
9,034,200
|
|||
TOTAL OTHER SECURITIES
|
||||
(Cost $18,423,088)
|
9,034,200
|
|||
TOTAL INVESTMENTS IN SECURITIES: 101.0%
|
||||
(Cost $328,516,049)
|
344,526,258
|
|||
Liabilities in Excess of Other Assets: (1.0)%
|
(3,460,473)
|
|||
TOTAL NET ASSETS: 100.0%
|
$ 341,065,785
|
|||
|
REIT
|
Real Estate Investment Trust
|
||
1
|
Non-income producing security
|
||
2
|
All or a portion of the shares of this security have been committed as collateral for securities sold short.
|
||
3
|
A portion of this security is considered illiquid. As of January 31, 2017, the total market value of the investment considered illiquid was $545,916 or 0.2% of total net assets.
|
||
4
|
Security is exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At January 31, 2017, the value of this security was $258,875 or 0.1% of total net assets.
|
||
5
|
Seven-day yield as of January 31, 2017
|
||
6
|
Represents previously undisclosed securities which the Fund has held for less than one year.
|
Otter Creek Long/Short Opportunity Fund
|
||||
SCHEDULE OF SECURITIES SOLD SHORT
|
||||
AT JANUARY 31, 2017 (Unaudited)
|
||||
Shares
|
|
Value
|
||
COMMON STOCKS: 42.6% *
|
||||
Air Freight & Logistics: 1.6%
|
||||
119,500
|
XPO Logistics, Inc.
|
$ 5,346,430
|
||
Apparel Retail: 1.9%
|
||||
125,650
|
Dick’s Sporting Goods, Inc.
|
6,483,540
|
||
Application Software: 3.0%
|
||||
57,752
|
Ellie Mae, Inc.
|
4,778,400
|
||
70,840
|
salesforce.com, Inc.
|
5,603,444
|
||
10,381,844
|
||||
Asset Management & Custody Banks: 4.5%
|
||||
20,726
|
BlackRock, Inc.
|
7,751,109
|
||
194,900
|
Financial Engines, Inc.
|
7,513,395
|
||
15,264,504
|
||||
Automobile Manufacturers: 1.0%
|
||||
14,233
|
Tesla Motors, Inc.
|
3,585,720
|
||
Automotive Retail: 1.0%
|
||||
12,600
|
O’Reilly Automotive, Inc.
|
3,304,602
|
||
Construction, Farm Machinery & Heavy Trucks: 2.1%
|
||||
73,650
|
Caterpillar, Inc.
|
7,045,359
|
||
Consumer Finance: 2.6%
|
||||
454,657
|
The Western Union Co.
|
8,902,184
|
||
Electronic Equipment & Instruments: 1.1%
|
||||
56,250
|
Cognex Corp.
|
3,800,250
|
||
General Merchandise Stores: 1.0%
|
||||
114,900
|
Ollie’s Bargain Outlet Holdings, Inc.
|
3,510,195
|
||
Health Care Technology: 1.0%
|
||||
71,000
|
Medidata Solutions, Inc.
|
3,517,340
|
||
Housewares & Specialties: 1.0%
|
||||
76,000
|
Newell Brands, Inc.
|
3,597,080
|
||
Investment Banking & Brokerage: 2.9%
|
||||
199,460
|
Stifel Financial Corp.
|
10,038,822
|
||
Investment Companies: 1.0%
|
||||
48,700
|
T. Rowe Price Group, Inc.
|
3,284,328
|
||
Medical Equipment: 2.1%
|
||||
76,800
|
Align Technology, Inc.
|
7,041,792
|
||
Office Real Estate Investment Trusts: 1.0%
|
||||
32,584
|
SL Green Realty Corp. - REIT
|
3,550,679
|
||
Packaged Foods & Meats: 1.1%
|
||||
58,000
|
General Mills, Inc.
|
3,623,840
|
||
Regional Banks: 2.6%
|
||||
67,000
|
Bank of the Ozarks, Inc.
|
3,676,290
|
||
30,715
|
SVB Financial Group
|
5,290,044
|
||
8,966,334
|
Restaurants: 3.8%
|
||||
59,100
|
The Cheesecake Factory, Inc.
|
3,561,366
|
||
107,202
|
Dave & Buster’s Entertainment, Inc.
|
5,838,221
|
||
32,500
|
Jack in the Box, Inc.
|
3,507,400
|
||
12,906,987
|
||||
Retail Real Estate Investment Trusts: 1.3%
|
||||
71,863
|
Realty Income Corp. - REIT
|
4,285,191
|
||
Semiconductors: 3.7%
|
||||
39,280
|
Broadcom Ltd.
|
7,836,360
|
||
51,066
|
Skyworks Solutions, Inc.
|
4,684,795
|
||
12,521,155
|
||||
Specialized Real Estate Investment Trusts: 1.3%
|
||||
23,941
|
Simon Property Group, Inc. - REIT
|
4,399,637
|
||
TOTAL COMMON STOCKS
|
||||
(Proceeds $143,242,912)
|
145,357,813
|
|||
INVESTMENT COMPANIES: 2.8% *
|
||||
21,000
|
iShares 20+ Year Treasury Bond ETF
|
2,522,100
|
||
182,600
|
iShares U.S. Preferred Stock ETF
|
6,957,060
|
||
TOTAL INVESTMENT COMPANIES
|
||||
(Proceeds $9,691,823)
|
9,479,160
|
|||
TOTAL SECURITIES SOLD SHORT: 45.4%
|
||||
(Proceeds $152,934,735)
|
$ 154,836,973
|
|||
Percentages are stated as a percent of net assets.
|
||||
*
|
Non-income producing securities
|
|||
REIT
|
Real Estate Investment Trust
|
|||
ETF
|
Exchange-Traded Fund
|
The cost basis of investments at January 31, 2017 was as follows+:
|
||||
Cost of investments
|
$
|
328,516,049
|
||
Gross unrealized appreciation
|
29,212,429
|
|||
Gross unrealized depreciation
|
(13,202,220
|
)
|
||
Net unrealized appreciation
|
$
|
16,010,209
|
||
+Because tax adjustments are calculated annually at the end of the Otter Creek Long/Short Opportunity Fund’s (the “Fund”) fiscal year, the above table does not reflect tax adjustments for the current fiscal year. For the previous fiscal year’s federal income tax information, please refer to the Notes to Financial Statements section in the Fund’s most recent annual report.
|
||||
Summary of Fair Value Exposure at January 31, 2017 (Unaudited)
|
The Fund utilizes various methods to measure the fair value of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
|
||||
• Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.
|
||||
• Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment spreads, credit risk, yield curves, default rates and similar data.
|
||||
• Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
|
||||
The following is a summary of the inputs used to value the Fund’s investments and securities sold short as of January 31, 2017. See the Schedule of Investments and Schedule of Securities Sold Short for the industry breakout.
|
Description
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Investments at fair value
|
||||||||||||||||
Common Stocks
|
$
|
289,562,693
|
$
|
-
|
$
|
-
|
$
|
289,562,693
|
||||||||
Convertible Bonds
|
-
|
258,875
|
-
|
258,875
|
||||||||||||
Short-Term Investments
|
45,670,490
|
-
|
-
|
45,670,490
|
||||||||||||
Other Securities
|
-
|
9,034,200
|
-
|
9,034,200
|
||||||||||||
Total Investments in Securities
|
$
|
335,233,183
|
$
|
9,293,075
|
$
|
-
|
$
|
344,526,258
|
||||||||
Securities sold short at fair value
|
||||||||||||||||
Common Stocks
|
$
|
145,357,813
|
$
|
-
|
$
|
-
|
$
|
145,357,813
|
||||||||
Investment Companies
|
9,479,160
|
-
|
-
|
9,479,160
|
||||||||||||
Total Securities Sold Short
|
$
|
154,836,973
|
$
|
-
|
$
|
-
|
$
|
154,836,973
|
||||||||
The basis for recognizing and valuing transfers is as of the end of the period in which transfers occur. There were no transfers into or out of Levels 1, 2 or 3 during the period ended January 31, 2017.
|
The Fund has adopted financial reporting rules and regulations that require enhanced disclosure regarding derivatives and hedging activity intending to improve financial reporting of derivative instruments by enabling investors to understand how an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position.
|
|||||||||||
The Fund may invest in options on equities, debt and stock indices (collectively, “options”). The Fund may also invest in futures contracts and options on futures contracts (collectively, “futures”). The Fund may make these investments as a substitute for a comparable market position in the underlying security, to attempt to hedge or limit the exposure of the Fund’s position, to create a synthetic money market position for certain tax-related purposes and to effect closing transactions. The Fund will not invest in futures for speculative purposes.
|
|||||||||||
The monthly average absolute value of options held by the Fund during the period was $9,587,032. The following table presents the fair value of derivative instruments, held long or written by the Fund at January 31, 2017:
|
Asset Derivatives as of January 31, 2017
|
Liability Derivatives as of January 31, 2017
|
|||||||||||
Instruments
|
Balance Sheet Location
|
Value
|
Balance Sheet Location
|
Value
|
||||||||
Equity
Contracts:
Put Options
Purchased
|
Investments in securities, at value
|
$
|
9,034,200
|
None
|
$
|
-
|
(a)
|
The Registrant’s President and Treasurer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d‑15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)).
|
(b)
|
There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (17 CFR 270.30a-3(d)) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
|
1.
|
I have reviewed this report on Form N-Q of Professionally Managed Portfolios;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation;
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: March 28, 2017
|
/s/ Elaine E. Richards
|
Elaine E. Richards
President/Principal Executive Officer
|
1.
|
I have reviewed this report on Form N-Q of Professionally Managed Portfolios;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation;
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: March 30, 2017
|
/s/ Aaron J. Perkovich
|
Aaron J. Perkovich
Treasurer/Principal Financial Officer
|