The firm maintains an Average Parent rating.
Oberweis is a global, small-cap boutique focused on exploiting inefficiencies that arise after earnings announcements. The firm offers key employees ownership and has a program to share revenues with investment team members, both of which have kept personnel turnover extremely low. It also maintains strict capacity limits for its high-turnover, small-cap-focused strategies, which protects existing fundholders.
The firm has stayed true to its expertise in small-cap stocks, but its concentration in the asset class has driven large, correlated swings in fund performance, which can in turn lead to variable flows. Roughly half of the firm's assets under management remain in Oberweis International Opportunities, which has struggled recently and suffered withdrawals. Oberweis has worked to diversify revenue streams and client segments by building out its marketing team, and assets in its US micro- and small-cap strategies have grown, boosted by strong performance. Although the firm's asset mix is more diversified than in the past, its narrow focus and resulting volatility have limited its ability to scale and pass benefits on to fundholders in the form of fee reductions. Relative to peers, the firm tends to charge above-average expenses on its funds.
United States