Nicholas Fund · NASDAQ:NICSX
Nicholas Fund — Nicholas Company — Investor Presentation (September 2023)
29 slides from Nicholas Fund's investor presentation, Sep 30, 2023
Slide 1: September 30, 2023
September 30, 2023 * NICHOLAS
Slide 2: Offering and risk disclosures
The Nicholas Funds are offered only to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of any Nicholas Fund in any jurisdiction where the offer or solicitation woul
Slide 3: Nicholas 50+ Year History
Nicholas 50+ Year History o Founded in 1967 o Located in Milwaukee, WI o Independently owned boutique investment firm o Practice the investment philosophy created in 1967 o Advisor to the Nicholas Funds and separately managed accounts o Four funds including growth and income-oriented strategies o Ni
Slide 4: Leadership and Investment Team
Leadership and Investment Team David O. Nicholas, CFA Lawrence J. Pavelec, CFA Jennifer R. Kloehn, CPA Christopher E. O’Reilly CEO and President Executive Vice President Executive Vice President Executive Vice President Portfolio Manager Chief Operations Officer Chief Compliance Officer Chief Techno
Slide 5: Investment Philosophy
Nicholas Investment Philosophy We believe using independent research to identify companies with high-quality growth attributes and sustainable competitive advantages guides us to stocks offering superior EPS and equity growth over the long-term. A disciplined, patient approach to stock valuation is
Slide 6: Investment Process – A Proven Approach
Nicholas Investment Process – A Proven Approach Idea Generation o Key characteristics: o Historical sales & earnings growth o ROIC o Dividend and capital returns to shareholders Idea o Stock valuation based on industry specific metrics Generation o Industry research, conferences and company meetings
Slide 7: What is distinct to the Nicholas Investment Approach?
What is distinct to the Nicholas Investment Approach? Our investment focus is on companies with sustainable competitive advantages 1 that can drive superior potential earnings growth and financial results. Nicholas has over 50 years of experience managing small-, mid- and large-cap growth portfolios
Slide 8: Trailing Performance
Trailing Performance Average Annual Expense Assets Year to Performance as of September 30, 2023 Ratio (millions) 3 Month Date 1 Year 3 Year 5 Year 10 Year 15 Year Nicholas Fund - NICSX 0.71% $ 3,433.8 -2.88% 18.12% 27.94% 10.78% 11.28% 10.91% 12.16% Morningstar Large Growth Category 1.07% -3.59% 19.
Slide 9: Calendar Year Performance
Calendar Year Performance 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Nicholas Fund - NICSX -18.13% 26.55% 18.89% 33.49% -1.52% 17.54% 0.92% -2.95% 15.31% 40.18% Morningstar Large Growth Category (a) -29.91% 20.45% 35.86% 31.90% -2.09% 27.67% 3.23% 3.60% 7.00% 34.93% S&P 500 -18.11% 28.71% 18.
Slide 10: Rankings and Ratings
Rankings and Ratings As of September 30, 2023 Morningstar Ratings Ticker Morningstar Category Overall 3 Year 5 Year 10 Year Nicholas Fund NICSX Large Growth ÙÙÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙ # of Funds 1,125 1,125 1,040 810 Nicholas II Class I NCTWX Mid-Cap Growth ÙÙÙÙ ÙÙÙÙÙ ÙÙÙÙ ÙÙÙÙ # of Funds 520 520 491 390 N
Slide 11: Nicholas Fund
Nicholas Fund NICSX Lead Portfolio Manager: David O. Nicholas, CFA Co-Portfolio Manager: Michael L. Shelton, CFA, CPA Co-Portfolio Manager: Jeffrey J. Strong, CFA Style: Multi-cap Growth Fund Inception: 07/14/1969 Fund Assets: $3,433.8 million Number of Holdings: 60 Investment Approach: Nicholas Fun
Slide 12: Nicholas Fund Historical Performance
Nicholas Fund Historical Performance Average Annual Expense Assets Year to Performance as of September 30, 2023 Ratio (millions) 3 Month Date 1 Year 3 Year 5 Year 10 Year 15 Year Nicholas Fund - NICSX 0.71% $ 3,433.8 -2.88% 18.12% 27.94% 10.78% 11.28% 10.91% 12.16% Morningstar Large Growth Category
Slide 13: Nicholas Fund Characteristics
Nicholas Fund Characteristics Nicholas Fund As of 9/30/2023 Characteristics Top 10 Equity Holdings % of Net Assets Net Assets $3,433.8 million Alphabet Inc. - Class C 5.12% Weighted Avg. Market Capitalization $441,751.7 Microsoft Corporation 4.20% Geometric Avg. Market Capitalization $150,824.5 Appl
Slide 14: Nicholas II
Nicholas II NCTWX Lead Portfolio Manager: David O. Nicholas, CFA Co-Portfolio Manager: Brian J. Janowski, CFA, CPA Style: Mid-cap Growth Fund Inception: 10/17/1983 Fund Assets (Class I): $882.5 million Number of Holdings: 61 Investment Approach: Nicholas II, Inc. pursues long-term capital growth thr
Slide 15: Nicholas II Historical Performance
Nicholas II Historical Performance Average Annual Expense Assets Year to Performance as of September 30, 2023 Ratio (millions) 3 Month Date 1 Year 3 Year 5 Year 10 Year 15 Year Nicholas II Class I - NCTWX 0.59% $ 882.5 -4.85% 6.10% 13.83% 6.51% 7.46% 9.67% 10.36% Morningstar Mid-Cap Growth Category
Slide 16: Nicholas II Characteristics
Nicholas II Characteristics Nicholas II As of 9/30/2023 Characteristics Top 10 Equity Holdings % of Net Assets Net Assets $955.0 million O'Reilly Automotive, Inc. 2.95% Weighted Avg. Market Capitalization $23,194.2 Verisk Analytics, Inc. 2.37% Geometric Avg. Market Capitalization $19,008.0 BJ's Whol
Slide 17: Nicholas Limited Edition
Nicholas Limited Edition NCLEX Lead Portfolio Manager: David O. Nicholas, CFA Co-Portfolio Manager: Ryan P. Bushman, CFA Style: Small-cap Growth Fund Inception: 05/18/1987 Fund Assets (Class I): $410.7 million Number of Holdings: 64 Investment Approach: Nicholas Limited Edition, Inc. pursues long-te
Slide 18: Nicholas Limited Edition Performance History
Nicholas Limited Edition Performance History Average Annual Expense Assets Year to Performance as of September 30, 2023 Ratio (millions) 3 Month Date 1 Year 3 Year 5 Year 10 Year 15 Year Nicholas Limited Edition Class I - NCLEX 0.86% $ 410.7 -4.59% 7.05% 9.17% 5.51% 5.25% 8.41% 10.02% Morningstar Sm
Slide 19: Nicholas Limited Edition Characteristics
Nicholas Limited Edition Characteristics Nicholas Limited Edition As of 9/30/2023 Characteristics Top 10 Equity Holdings % of Net Assets Net Assets $426.8 million RB Global, Inc. 3.30% Weighted Avg. Market Capitalization $4,583.1 ICF International, Inc. 2.49% Geometric Avg. Market Capitalization $3,
Slide 20: Nicholas Equity Income
Nicholas Equity Income NSEIX Lead Portfolio Manager: Michael L. Shelton, CFA, CPA Co-Portfolio Manager: David O. Nicholas, CFA Style: Equity Income with Growth Fund Inception: 11/23/1993 Fund Assets: $421.9 million Number of Holdings: 64 Investment Approach: Nicholas Equity Income Fund, Inc. seeks t
Slide 21: Nicholas Equity Income Fund Performance History
Nicholas Equity Income Fund Performance History Average Annual Expense Assets Year to Performance as of September 30, 2023 Ratio (millions) 3 Month Date 1 Year 3 Year 5 Year 10 Year 15 Year Nicholas Equity Income Fund - NSEIX 0.70% $ 421.9 -4.13% -1.82% 11.36% 9.27% 7.30% 8.25% 10.13% Morningstar La
Slide 22: Nicholas Equity Income Fund Characteristics
Nicholas Equity Income Fund Characteristics Nicholas Equity Income Fund As of 9/30/2023 Characteristics Top 10 Equity Holdings % of Net Assets Net Assets $421.9 million Microsoft Corporation 2.98% Weighted Avg. Market Capitalization $195,708.6 Chubb Limited 2.17% Geometric Avg. Market Capitalization
Slide 23: Investment Team
Investment Team David O. Nicholas, CFA – Chief Executive Officer, President and Portfolio Manager • Nicholas Company, Inc., 1986 – Present • First Wisconsin National Bank, Milwaukee, 1983 – 1986 • University of Wisconsin – Milwaukee, M.S. 1987 • University of Wisconsin, B.B.A. 1983 Lawrence J. Pavel
Slide 24: Investment Team
Investment Team Ryan P. Bushman, CFA – Senior Research Analyst and Co-Portfolio Manager • Nicholas Company, Inc., 2020 – Present • Rice Hall James & Associates, 2017 – 2020 • BMO Asset Management, 2000 – 2016 • Marquette University, M.B.A 2010 • University of Wisconsin-Whitewater, B.B.A. 2000 Jeffre
Slide 25: Glossary of Terms
Glossary of Terms • Annualized Return - Rate of return of the account smoothed as though the return occurred equally over twelve-month periods. When the specified time frame is less than a year, the rate of return is projected as though the same performance continues to occur for a twelve-month peri
Slide 26: Glossary of Terms
Glossary of Terms • Diversification - Spreading your money over many different types of investments. This does not guarantee against loss of value in your investments. • Debt to Capital - The ratio is the long-term debt of a company divided by the company's total capital. A company's capital is defi
Slide 27: Glossary of Terms
Glossary of Terms • Gross of Fees - Prior to subtraction of management fees. • Harmonic Average - A way to average a set of data. This function ignores NA and zero (0) data points. Negative values are included in the calculation. The harmonic average is useful when averaging series with abnormal spi
Slide 28: Glossary of Terms
Glossary of Terms • Rate of Return - Percentage change in the market value of the account over the specified time frame, including realized and unrealized gains or losses, dividends, and income. • Return on Assets (ROA) - A measure of a company's profitability determined by dividing the net income o
Slide 29: Glossary of Terms
Glossary of Terms • Sales Growth - The amount a company derives from sales compared to a previous, corresponding period of time. • Sharpe Ratio - A risk-adjusted measure developed by Professor William F. Sharpe, which measures reward per unit of risk. The higher the Sharpe Ratio, the better. The num
Nicholas Company — Investor Presentation (September 2023) on 6ix