Established in 1983, Osterweis Capital Management is an independent asset manager that provides investment management services to institutions and individuals through mutual funds and separate accounts, offering both equity and fixed income investment strategies.

1 Maritime Plaza, San Francisco, CA 94111
415-434-4441
www.osterweis.com

The Osterweis Funds are available by prospectus only. The Funds’ investment objectives, risks, charges and expenses must be considered carefully before investing. The summary and statutory prospectuses contain this and other important information about the Funds. You may obtain a summary or statutory prospectus by calling toll free at (866) 236-0050, or by visiting www.osterweis.com/statpro. Please read the prospectus carefully before investing to ensure the Fund is appropriate for your goals and risk tolerance. Mutual fund investing involves risk. Principal loss is possible.
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Osterweis Capital Management is the adviser to the Osterweis Funds, which are distributed by Quasar Distributors, LLC.

Commentary

“Is the Fed Ignoring Its Own Inflation Data?”

The Fed continues to assert that elevated inflation is largely due to “transitory factors,” but the Underlying Inflation Gauge, which is published by their own New York branch, tells a different story. To understand where inflation is heading, we advise investors to pay close attention to UIG data, even it if the Fed doesn’t.

Commentary

Total Return Perspectives: August 2021

U.S. Treasuries ended their 4-month streak of positive returns and falling yields in August. Intermediate maturity yields rose more than shorter and longer maturities, as the market began to see through the impact of the Delta variant and focus more on the Federal Reserve’s plan to scale back their bond buying program.

Commentary

Total Return Perspectives: July 2021

Longer term Treasury yields fell for a fourth consecutive month in July, as concerns around the resurgence of coronavirus weighed on forecasts for continued economic growth. Agency MBS underperformed investment grade corporates and Treasuries. While some inflation metrics set generational highs, and other economic data indicated a continued recovery, investors were focused on the potential impact of viral spread.

Commentary

A Market in Flux Equity Investment Outlook Third Quarter

Equities continued to rally in the second quarter, but the market remains undecided about whether the recent uptick in inflation is more likely to be transitory or persistent.

Commentary

Transitory, or Not Transitory? That is the Question. Total Return Outlook Third Quarter

Despite a strengthening economy in the second quarter, investors were highly focused on the Federal Reserve’s response to the recent spike in inflation data.

Commentary

FAIT Accompli? Strategic Income Outlook Third Quarter

Our economic outlook remains constructive, though we recognize it’s still too soon to know whether the current bout of inflation is transitory. Given the potential for rate increases, particularly after the Fed’s comments in June, we continue to prefer non-investment grade bonds, as they have lower duration and higher yields.

Commentary

Investment Grade Credit Midyear Report: A Challenging First Half, but Opportunities Remain

Rising interest rates generated negative year-to-date returns for investment grade bonds in 2021, but the second half of the year looks more promising. We believe the combination of reduced supply and strong demand will create attractive opportunities, and we are constructive on corporate credit and asset backed securities (ABS).

Commentary

Total Return Perspectives: June 2021

Following the June Federal Open Market Committee (FOMC) meeting, the Treasury curve flattened as the market reacted to a more aggressive hiking schedule than previously expected. Risk continued to perform well as investment grade (IG) corporates outperformed again and tightened through levels not seen since 2018. Economic data continues to improve showing the reopening remains on track, but investors remain focused on elevated levels of inflation.

Commentary

Why Secular Growth Matters, and How We Find It

Growth stocks have lagged cyclicals so far in 2021, but we remain steadfast in our belief that secular growth is the key to generating long-term returns. In this piece, we discuss how we find attractive opportunities in the small cap universe.

Commentary

Electric Vehicles Have Shifted into High Gear, and One EV Stock Is Well-Positioned to Capitalize

After idling for decades, electric vehicles (EVs) are finally ready to charge ahead. Changes in the regulatory landscape, decreasing costs, and a substantially wider range of buying options have transformed the industry and created a powerful secular growth trend. One little known electronics supplier, Aptiv PLC, is particularly well-positioned to take advantage of the opportunity.

Commentary

Total Return Perspectives: May 2021

Treasury yields fell again in May and credit spreads approached recent tights as the virus continued to recede, allowing the reopening of the economy to progress. Economic data was noisy this month, largely due to base effects, but confirms the ongoing trend of renewed growth and signs of inflation.

Commentary

Inflation in 2021: Why It Could Be Different This Time

Inflation has been top of mind for investors throughout 2021, as a combination of supply chain disruptions and pent up demand have led to higher prices throughout the economy.

Commentary

Nonplussed – Strategic Income Outlook, Second Quarter

Although we remain constructive about the economic outlook, the recent increase in speculative activity gives us some pause. We continue to favor a cautious approach in the near-to-medium term.

Commentary

Tradition… Inflation? – Total Return Outlook, Second Quarter

Investors aggressively sold off Treasuries in the first quarter in favor of risk assets. We think this is likely to continue as the economy strengthens and inflationary pressures build, and we are maintaining a defensive duration profile to protect against rising rates.

Commentary

Solid Fundamentals but Questions Remain – Equity Outlook, Second Quarter

Despite a volatile first quarter, economic fundamentals appear to be improving. We are constructive on the equity market in the near-to-medium term, but we are closely monitoring inflation and interest rates.