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, 2020

 
Item 1. Schedule of Investments.


Otter Creek Long/Short Opportunity Fund
       
SCHEDULE OF INVESTMENTS (Unaudited)
      
AT JANUARY 31, 2020
      
             
Shares
  
 
  
  
Value
  
COMMON STOCKS: 80.8%
        
Aerospace & Defense: 5.9%
        
 
22,986
  
L3Harris Technologies, Inc.
    
$
5,087,491
  
 
13,790
  
United Technologies Corp.
      
2,071,258
  
             
7,158,749
  
Application Software: 1.8%
          
 
13,040
  
Microsoft Corp.
      
2,219,799
  
                 
Construction & Engineering: 8.7%
          
 
93,900
  
Ameresco, Inc. - Class A (1)
      
1,801,941
  
 
48,050
  
Jacobs Engineering Group, Inc. (2)
      
4,446,067
  
 
110,841
  
Quanta Services, Inc.
      
4,339,425
  
             
10,587,433
  
Consumer Finance: 3.6%
          
 
38,714
  
PayPal Holdings, Inc. (1),(2)
      
4,409,137
  
                 
Diversified Metals & Mining: 3.7%
          
 
98,907
  
Newmont Corp. (2)
      
4,456,749
  
                 
Electrical Components & Equipment: 1.5%
          
 
24,604
  
EnerSys
      
1,770,504
  
                 
Electronic Equipment & Instruments: 5.7%
          
 
79,250
  
FLIR Systems, Inc. (2)
      
4,084,545
  
 
34,959
  
Itron, Inc. (1)
      
2,857,898
  
             
6,942,443
  
Electronic Manufacturing Services: 2.4%
          
 
68,831
  
Trimble, Inc. (1)
      
2,926,694
  
                 
Gold: 0.8%
          
 
100,000
  
NovaGold Resources, Inc. (1)
      
912,000
  
                 
Health Care Equipment: 7.6%
          
 
22,101
  
Abbott Laboratories
      
1,925,881
  
 
45,583
  
Hologic, Inc. (1)
      
2,439,602
  
 
32,976
  
Zimmer Biomet Holdings, Inc. (2)
      
4,877,151
  
             
9,242,634
  
Industrial Machinery: 1.5%
          
 
22,475
  
Xylem, Inc.
      
1,835,309
  
                 
Insurance Brokers: 3.8%
          
 
20,980
  
Aon PLC
      
4,620,845
  
                 
Integrated Oil & Gas: 1.9%
          
 
62,500
  
BP PLC - ADR
      
2,258,125
  
                 
Internet Software & Services: 2.0%
          
 
1,734
  
Alphabet, Inc. - Class A (1)
      
2,484,441
  
                 

IT Consulting & Other Services: 2.1%
          
 
25,190
  
Leidos Holdings, Inc.
      
2,530,839
  
                 
Medical Equipment: 3.3%
          
 
12,860
  
Thermo Fisher Scientific, Inc. (2)
      
4,027,623
  
                 
Movies & Entertainment: 3.2%
          
 
27,624
  
The Walt Disney Co.
      
3,820,675
  
                 
Oil & Gas Equipment & Services: 2.0%
          
 
101,233
  
Halliburton Co.
      
2,207,892
  
 
50,000
  
KLX Energy Services Holdings, Inc. (1)
      
202,000
  
             
2,409,892
  
Oil & Gas Exploration & Production: 0.9%
          
 
52,483
  
Viper Energy Partners LP - Class B
      
1,144,654
  
                 
Oil & Gas Storage & Transportation: 1.3%
          
 
66,000
  
Hess Midstream LP - Class A
      
1,572,120
  
                 
Regional Banks: 2.8%
          
 
125,372
  
Seacoast Banking Corporation of Florida (1),(2)
      
3,403,850
  
                 
Reinsurance: 1.5%
          
 
200,000
  
Greenlight Capital Re Ltd. (1)
      
1,862,000
  
                 
Renewable Electricity: 3.4%
          
 
72,211
  
NextEra Energy Partners LP
      
4,099,419
  
                 
Semiconductors: 2.6%
          
 
7,676
  
Analog Devices, Inc.
      
842,441
  
 
10,843
  
Qorvo, Inc. (1)
      
1,147,840
  
 
10,553
  
Skyworks Solutions, Inc.
      
1,194,072
  
             
3,184,353
  
Specialized Real Estate Investment Trusts: 3.5%
          
 
99,250
  
Potlatch Corp.
      
4,267,750
  
                 
Trading Companies & Distributors: 1.6%
          
 
210,380
  
Ferguson PLC - ADR
      
1,893,420
  
                 
Utilities: 1.7%
          
 
15,208
  
American Water Works Company, Inc.
      
2,071,330
  
TOTAL COMMON STOCKS
          
(Cost $83,813,554)
      
98,112,787
  
                 
Principal
 
        
CORPORATE BONDS: 6.1%
          
Oil & Gas Equipment & Services: 4.9%
          
$
7,000,000
  
KLX Energy Services Holdings, Inc. (2)
          
     
 11.500%, 11/1/2025
      
5,915,000
  
                 
Steel: 1.2%
          
 
1,500,000
  
SunCoke Energy Partners LP / SunCoke Energy Partners Finance Corp. (2)
          
     
 7.500%, 6/15/2025
      
1,443,735
  
TOTAL CORPORATE BONDS
          
(Cost $7,480,426)
      
7,358,735
  

CONVERTIBLE BONDS: 0.2%
          
Mortgage Insurance: 0.2%
          
 
200,000
  
MGIC Investment Corp. (2)
          
     
 9.000%, 4/1/2063
      
269,957
  
TOTAL CONVERTIBLE BONDS
          
(Cost $234,767)
      
269,957
  
                 
Shares
  
 
 
        
CLOSED-END MUTUAL FUNDS: 1.1%
          
 
41,683
  
BlackRock Florida Municipal 2020 Term Trust
      
603,153
  
 
49,471
  
BlackRock Municipal 2020 Term Trust
      
738,602
  
             
1,341,755
  
TOTAL CLOSED-END MUTUAL FUNDS
          
(Cost $1,342,790)
      
1,341,755
  
                 
SHORT-TERM INVESTMENTS: 6.1%
          
Money Market Funds: 6.1%
          
 
7,446,950
  
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio, 1.452% (3)
      
7,446,950
  
TOTAL SHORT-TERM INVESTMENTS
          
(Cost $7,446,950)
      
7,446,950
  
        
Notional Value
        
TOTAL MISCELLANEOUS SECURITIES: 4.2% (4)
 $        75,697,734
    
5,043,487
  
(Cost $5,210,611)
          
                 
TOTAL INVESTMENTS IN SECURITIES: 98.5%
          
(Cost $105,529,098)
      
119,573,671
  
Other Assets in Excess of Liabilities: 1.5%
      
1,772,698
  
TOTAL NET ASSETS: 100.0%
    
$
121,346,369
  

 
 ADR -
American Depositary Receipt
  
 
(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)  
Annualized seven-day effective yield as of January 31, 2020.
  
 
(4)  
Represents previously undisclosed exchange-traded purchased options which the Fund has held for less than one year.
  

 
Otter Creek Long/Short Opportunity Fund
   
SCHEDULE OF SECURITIES SOLD SHORT (Unaudited)
  
AT JANUARY 31, 2020
  
           
Shares
  
 
  
Value
  
COMMON STOCKS: 38.8% (1)
      
Apparel Retail: 1.7%
      
 
48,800
  
Boot Barn Holdings, Inc.
  
$
2,048,136
  
               
Application Software: 1.8%
        
 
12,003
  
salesforce.com, Inc.
    
2,188,267
  
               
Asset Management & Custody Banks: 1.5%
        
 
3,483
  
BlackRock, Inc.
    
1,836,760
  
               
Automotive Retail: 2.7%
        
 
33,464
  
CarMax, Inc.
    
3,247,347
  
               
Building Products: 2.9%
        
 
23,543
  
AAON, Inc.
    
1,234,595
  
 
23,306
  
Trex Co, Inc.
    
2,289,581
  
           
3,524,176
  
Construction & Farm Machinery & Heavy Trucks: 0.9%
        
 
8,700
  
Caterpillar, Inc.
    
1,142,745
  
               
Electronic Equipment & Instruments: 0.9%
        
 
22,118
  
Cognex Corp.
    
1,127,354
  
               
Food & Beverage: 1.0%
        
 
16,093
  
Anheuser-Busch InBev NV - ADR
    
1,211,803
  
               
Home Improvement Retail: 1.6%
        
 
38,186
  
Floor & Decor Holdings, Inc.
    
1,882,952
  
               
Household Products: 2.9%
        
 
46,841
  
Church & Dwight Co, Inc.
    
3,476,539
  
               
Industrial Machinery: 1.5%
        
 
16,192
  
Middleby Corp.
    
1,816,095
  
               
Industrial Products & Materials: 1.6%
        
 
6,500
  
W.W. Grainger, Inc.
    
1,967,355
  
               
Internet Retail: 2.0%
        
 
7,095
  
Netflix, Inc.
    
2,448,414
  
               
Internet Software & Services: 1.5%
        
 
38,808
  
Zillow  Group, Inc. - Class A
    
1,792,930
  

Leisure Facilities: 1.7%
        
 
26,038
  
Planet Fitness, Inc. - Class A
    
2,103,610
  
               
Life Sciences Tools & Services: 2.7%
        
 
4,347
  
Mettler-Toledo International, Inc.
    
3,291,461
  
               
Packaged Foods & Meats: 2.9%
        
 
21,214
  
McCormick & Company Inc. (2)
    
3,465,731
  
               
Regional Banks: 2.4%
        
 
12,185
  
SVB Financial Group
    
2,928,421
  
               
Semiconductors: 1.0%
        
 
3,913
  
Broadcom, Inc.
    
1,194,091
  
               
Specialty Chemicals: 2.2%
        
 
20,212
  
International Flavors & Fragrances, Inc.
    
2,649,995
  
               
Specialty Stores: 1.4%
        
 
50,600
  
National Vision Holdings, Inc.
    
1,726,472
  
TOTAL COMMON STOCKS
        
(Proceeds $44,661,485)
    
47,070,654
  
Total Securities Sold Short
  
$
47,070,654
  
(Proceeds $44,661,485)
        

 
Percentages are stated as a percent of net assets.
  
 
 ADR -
American Depositary Receipt
  
 
(1)  
Non-income producing securities.
  
 
(2)  
Non-voting shares.
  

 
Summary of Fair Value Exposure at January 31, 2020 (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, 2020. See the Schedule of Investments, Schedule of Securities Sold Short, and Schedule of Options Written for the industry breakout.
         


Description
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Investments
                        
Common Stocks
  
$
98,112,787
    
$
–
    
$
–
    
$
98,112,787
  
Corporate Bonds
    
–
      
7,358,735
      
–
      
7,358,735
  
Convertible Bonds
    
–
      
269,957
      
–
      
269,957
  
Closed-End Mutual Funds
    
1,341,755
      
–
      
–
      
1,341,755
  
Short-Term Investments
    
7,446,950
      
–
      
–
      
7,446,950
  
Miscellaneous Securities
    
74,000
      
4,969,504
      
–
      
5,043,504
  
Total Investments in Securities
  
$
106,975,492
    
$
12,598,196
    
$
–
    
$
119,573,688
  
Securities Sold Short
                                
Common Stocks
  
$
47,070,654
    
$
–
    
$
–
    
$
47,070,654
  
Total Securities Sold Short
  
$
47,070,654
    
$
–
    
$
–
    
$
47,070,654
  


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 26, 2020                                                                            


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 26, 2020                                                                             


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

Date  March 26, 2020                                                                            

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