N-Q 1 pmp_ottercreek-nq.htm QUARTERLY NOTICE OF PORTFOLIO HOLDINGS




UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
 




Investment Company Act file number (811-05037)


Professionally Managed Portfolios
(Exact name of registrant as specified in charter)



615 East Michigan Street
Milwaukee, WI 53202
(Address of principal executive offices) (Zip code)



Elaine E. Richards
Professionally Managed Portfolios
c/o U.S. Bank Global Fund Services
2020 E. Financial Way, Ste. 100
Glendora, CA 91741
 (Name and address of agent for service)



(626) 914-7363
Registrant's telephone number, including area code



Date of fiscal year end: October 31



Date of reporting period:  January 31, 2019


Item 1. Schedule of Investments.
 
Otter Creek Long/Short Opportunity Fund
     
       
SCHEDULE OF INVESTMENTS
     
AT JANUARY 31, 2019 (Unaudited)
     
             
Shares
 
 
  
 
Value
 
COMMON STOCKS: 93.2%
       
Aerospace & Defense: 6.7%
       
 
38,024
 
Harris Corp.
   
$
5,824,516
 
 
31,992
 
United Technologies Corp.
     
3,777,296
 
             
9,601,812
 
Agricultural Products: 2.7%
         
 
87,758
 
Archer-Daniels-Midland Co.
     
3,940,334
 
                 
Agriculture: 1.0%
         
 
18,287
 
Calavo Growers, Inc.
     
1,487,830
 
                 
Application Software: 1.5%
         
 
20,850
 
Microsoft Corp.
     
2,177,365
 
                 
Construction & Engineering: 1.6%
         
 
35,410
 
Jacobs Engineering Group, Inc.
     
2,294,568
 
                 
Consumer Finance: 1.7%
         
 
26,983
 
PayPal Holdings, Inc.(1),(2)
     
2,395,011
 
                 
Diversified Chemicals: 1.1%
         
 
30,262
 
DowDuPont, Inc.
     
1,628,398
 
                 
Diversified Metals & Mining: 3.5%
         
 
148,432
 
Newmont Mining Corp.
     
5,063,015
 
                 
Electronic Equipment & Instruments: 4.8%
         
 
141,667
 
FLIR Systems, Inc.(2)
     
6,924,683
 
                 
Electronic Manufacturing Services: 3.2%
         
 
120,382
 
Trimble, Inc.(1)
     
4,533,586
 
                 
Fertilizers & Agricultural Chemicals: 1.8%
         
 
50,756
 
Nutrien Ltd.
     
2,630,176
 
                 
Food Services: 5.2%
         
 
224,747
 
Aramark(2)
     
7,405,414
 
                 
Health Care Equipment: 6.2%
         
 
32,848
 
Abbott Laboratories
     
2,397,247
 
 
59,870
 
Zimmer Biomet Holdings, Inc.(2)
     
6,559,357
 
             
8,956,604
 
Holding Companies: 4.0%
         
 
27,805
 
Berkshire Hathaway, Inc. - Class B(1),(2)
     
5,715,040
 
                 
Hypermarkets & Super Centers: 1.9%
         
 
28,385
 
Wal-Mart Stores, Inc.(2)
     
2,720,135
 
                 


Industrial Machinery: 3.4%
         
 
67,916
 
Xylem, Inc.(2)
     
4,839,694
 
                 
Integrated Oil & Gas: 1.0%
         
 
21,318
 
Occidental Petroleum Corp.
     
1,423,616
 
                 
Internet & Direct Marketing Research: 3.3%
         
 
140,958
 
eBay, Inc.(1)
     
4,743,237
 
                 
Investment Banking & Brokerage: 5.3%
         
 
85,824
 
The Charles Schwab Corp.
     
4,013,989
 
 
75,346
 
E*TRADE Financial Corp.(2)
     
3,515,644
 
             
7,529,633
 
IT Consulting & Services: 4.5%
         
 
110,289
 
Leidos Holdings, Inc.(2)
     
6,396,762
 
                 
Medical Equipment: 2.9%
         
 
16,899
 
Thermo Fisher Scientific, Inc.
     
4,151,577
 
                 
Movies & Entertainment: 4.6%
         
 
58,807
 
The Walt Disney Co.
     
6,558,157
 
                 
Oil & Gas Equipment & Services: 1.2%
         
 
67,741
 
KLX Energy Services Holdings, Inc.(1)
     
1,765,330
 
                 
Regional Banks: 5.9%
         
 
144,538
 
CenterState Bank Corp.
     
3,584,542
 
 
174,717
 
Seacoast Banking Corporation of Florida(1),(2)
     
4,808,212
 
             
8,392,754
 
Renewable Electricity: 4.7%
         
 
166,166
 
NextEra Energy Partners LP
     
6,673,227
 
                 
Specialized Real Estate Investment Trusts: 1.6%
         
 
63,402
 
Potlatch Corp.
     
2,338,266
 
                 
Specialty Chemicals: 3.0%
         
 
56,140
 
Ashland Global Holdings, Inc.(2)
     
4,261,026
 
                 
Utilities: 3.1%
         
 
47,059
 
American Water Works Company, Inc.(2)
     
4,502,135
 
                 
Water Utilities: 1.8%
         
 
43,015
 
SJW Group
     
2,578,749
 
                 
TOTAL COMMON STOCKS
         
(Cost $132,595,772)
     
133,628,134
 
                 
Principal
 
       
CONVERTIBLE BONDS: 0.2%
         
Mortgage Insurance: 0.2%
         
 
200,000
 
MGIC Investment Corp.
         
     
 9.000%, 4/1/2063(2),(3)
     
256,822
 
TOTAL CONVERTIBLE BONDS
         
(Cost $234,842)
     
256,822
 
                 


Shares
Notional Value
       
SHORT-TERM INVESTMENTS: 5.9%
         
Money Market Funds: 5.9%
         
 
8,483,789
 
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio, 2.280%(4)
     
8,483,789
 
TOTAL SHORT-TERM INVESTMENTS
         
(Cost $8,483,789)
     
8,483,789
 
                 
TOTAL MISCELLANEOUS SECURITIES: 2.5%(5)
         
(Cost $10,094,186)
 $      231,509,048
   
3,536,197
 
                 
TOTAL INVESTMENTS IN SECURITIES: 101.8%
         
(Cost $151,408,589)
     
145,904,942
 
Liabilities in Excess of Other Assets: (1.8)%
     
(2,581,448
)
TOTAL NET ASSETS: 100.0%
   
$
143,323,494
 

   
(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) 
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, 2019, the value of this security was $256,822 or 0.2% of net assets.
   
(4) 
Annualized seven-yield as of January 31, 2019.
   
(5) 
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, 2019 (Unaudited)
 
           
Shares
 
 
 
Value
 
COMMON STOCKS: 48.6%(1)
     
Air Freight & Logistics: 1.3%
     
 
22,085
 
C.H. Robinson Worldwide, Inc.
 
$
1,916,315
 
               
Airlines: 1.6%
       
 
37,909
 
Spirit Airlines, Inc.
   
2,229,807
 
               
Apparel, Accessories & Luxury Goods: 1.2%
       
 
11,972
 
lululemon Athletica, Inc.
   
1,769,581
 
               
Application Software: 2.2%
       
 
20,391
 
salesforce.com, Inc.
   
3,098,820
 
               
Asset Management & Custody Banks: 2.6%
       
 
8,927
 
BlackRock, Inc.
   
3,705,419
 
               
Automobile Manufacturers: 1.0%
       
 
4,774
 
Tesla Motors, Inc.
   
1,465,714
 
               
Automotive Retail: 1.3%
       
 
31,415
 
CarMax, Inc.
   
1,846,574
 
               
Construction & Farm Machinery & Heavy Trucks: 1.9%
       
 
20,715
 
Caterpillar, Inc.
   
2,758,409
 
               
Consumer Finance: 1.0%
       
 
80,715
 
The Western Union Co.
   
1,473,049
 
               
Data Processing & Outsourced Services: 1.1%
       
 
11,349
 
Visa, Inc. - Class A
   
1,532,229
 
               
Financial Exchanges & Data: 4.1%
       
 
28,947
 
Intercontinental Exchange, Inc.
   
2,221,972
 
 
42,152
 
Nasdaq, Inc.
   
3,711,062
 
           
5,933,034
 
General Merchandise Stores: 1.5%
       
 
27,988
 
Ollie's Bargain Outlet Holdings, Inc.
   
2,187,822
 
               
Homefurnishing Retail: 1.6%
       
 
44,750
 
Aaron's, Inc.
   
2,240,185
 
               
Industrial Machinery: 3.4%
       
 
11,384
 
Proto Labs, Inc.
   
1,413,324
 
 
21,254
 
Snap-on, Inc.
   
3,527,951
 
           
4,941,275
 


Industrial Products & Materials: 1.5%
       
 
7,083
 
W.W. Grainger, Inc.
   
2,092,247
 
               
Internet & Direct Marketing Research: 1.2%
       
 
15,356
 
Wayfair, Inc. - Class A
   
1,680,868
 
               
Internet Media: 1.4%
       
 
11,988
 
Facebook, Inc. - Class A
   
1,998,280
 
               
Internet Retail: 2.2%
       
 
872
 
Amazon.com, Inc.
   
1,498,733
 
 
5,079
 
Netflix, Inc.
   
1,724,320
 
           
3,223,053
 
Investment Banking & Brokerage: 1.9%
       
 
56,866
 
Stifel Financial Corp.
   
2,722,175
 
               
Leisure Facilities: 1.6%
       
 
40,297
 
Planet Fitness, Inc. - Class A
   
2,334,002
 
               
Regional Banks: 2.7%
       
 
16,304
 
SVB Financial Group
   
3,805,028
 
               
Restaurants: 4.2%
       
 
36,849
 
Dine Brands Global, Inc.
   
2,810,473
 
 
53,208
 
Texas Roadhouse, Inc.
   
3,237,175
 
           
6,047,648
 
Semiconductors: 4.1%
       
 
8,144
 
Broadcom, Inc.
   
2,184,628
 
 
25,266
 
NVIDIA Corp.
   
3,631,988
 
           
5,816,616
 
Specialty Stores: 2.0%
       
 
23,249
 
Five Below, Inc.
   
2,876,599
 
               
TOTAL COMMON STOCKS
       
(Proceeds $69,262,664)
   
69,694,749
 
TOTAL SECURITIES SOLD SHORT: 48.6%
       
(Proceeds $69,262,664)
 
$
69,694,749
 

   
Percentages are stated as a percent of net assets.
   
(1) 
Non-income producing security.
 

Summary of Fair Value Exposure at January 31, 2019 (Unaudited)
The Otter Creek Long/Short Opportunity Fund (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, 2019. See the Schedule of Investments and Schedule of Securities Sold Short for the industry breakout.

Description
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments
                       
Common Stocks
 
$
133,628,134
   
$
   
$
   
$
133,628,134
 
Convertible Bonds
   
     
256,822
     
     
256,822
 
Short-Term Investments
   
8,483,789
     
     
     
8,483,789
 
Miscellaneous Securities
   
     
3,536,197
     
     
3,536,197
 
Total Investments in Securities
 
$
142,111,923
   
$
3,793,019
   
$
   
$
145,904,942
 
Securities Sold Short
                               
Common Stocks
 
$
69,694,749
   
$
   
$
   
$
69,694,749
 
Total Securities Sold Short
 
$
69,694,749
   
$
   
$
   
$
69,694,749
 
                                 

Item 2. Controls and Procedures.
 
(a)
The Registrant’s Principal Executive Officer and Principal Financial Officer 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.


Item 3. Exhibits.
 
Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)).  Filed herewith.
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant)  Professionally Managed Portfolios                                                        


By (Signature and Title) /s/ Elaine E. Richards                                                           
                                        Elaine E. Richards, President/Principal Executive Officer


Date                                           March 27, 2019                                                      


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)* /s/ Elaine E. Richards                                                           
                            Elaine E. Richards, President/Principal Executive Officer


Date                                           March 27, 2019                                                         


By (Signature and Title)* /s/ Aaron J. Perkovich                                                         
                                                        Aaron J. Perkovich, Treasurer/Principal Financial Officer


Date                                           March 26, 2019                                                         

* Print the name and title of each signing officer under his or her signature.