Nicholas Fund · NASDAQ:NICSX
Nicholas Fund — Nicholas Company — Investor Presentation (September 2025)
33 slides from Nicholas Fund's investor presentation, Sep 30, 2025
Slide 1: September 30, 2025
September 30, 2025 * 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. We have maintained a patient, long-term focus on investing to avoid overreaction to short-term
Slide 8: Trailing Performance
Trailing Performance Average Annual Expense Assets Year to Performance as of September 30, 2025 Ratio (millions) 3 Month Date 1 Year 3 Year 5 Year 10 Year 15 Year Nicholas Fund - NICSX 0.70% $ 4,140.7 1.25% 4.09% 4.94% 20.88% 13.42% 12.03% 13.59% Morningstar Large Growth Category 0.96% 7.59% 15.25%
Slide 9: Calendar Year Performance
Calendar Year Performance 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Nicholas Fund - NICSX 16.71% 34.23% -18.13% 26.55% 18.89% 33.49% -1.52% 17.54% 0.92% -2.95% Morningstar Large Growth Category 28.96% 36.74% -29.91% 20.45% 35.86% 31.90% -2.09% 27.67% 3.23% 3.60% S&P 500 25.02% 26.29% -18.11%
Slide 10: Rankings and Ratings
Rankings and Ratings As of September 30, 2025 Morningstar Ratings Ticker Morningstar Category Overall 3 Year 5 Year 10 Year Nicholas Fund NICSX Large Growth QQ QQ QQQ QQ # of Funds 1,024 1,024 954 766 Nicholas II Class I NCTWX Mid-Cap Growth QQQ QQ QQQ QQQ # of Funds 476 476 444 368 Nicholas Limited
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: $4,140.7 million Number of Holdings: 55 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, 2025 Ratio (millions) 3 Month Date 1 Year 3 Year 5 Year 10 Year 15 Year Nicholas Fund - NICSX 0.70% $ 4,140.7 1.25% 4.09% 4.94% 20.88% 13.42% 12.03% 13.59% Morningstar Large Growth Category 0.9
Slide 13: Nicholas Fund Characteristics
Nicholas Fund Characteristics Nicholas Fund As of 9/30/2025 Russell 1000 Characteristics Nicholas Fund S&P 500² Growth Net Assets $4,140.7 million Weighted Avg. Market Capitalization $1,044,669 $1,367,649 $2,018,250 NTM P/E¹ 28.37x 24.70x 33.41x LTM P/E¹ 33.42x 28.15x 38.66x Price/Book¹ 6.99x 5.16x
Slide 14: Nicholas Fund Characteristics: Sector Weights and Top Holdings
Nicholas Fund Characteristics Sector Weights - % of Portfolio Nicholas Fund S&P 500 Russell 1000 Growth 60 % of Net Top 10 Equity Holdings Assets 50 Alphabet Inc. 5.40% NVIDIA Corporation 5.19% 40 5.08% 34.5 Microsoft Corporation Amazon.com, Inc. 4.61% 30 Apple Inc. 3.59% TJX Cos Inc./The 2.29% 20 1
Slide 15: Nicholas II
Nicholas II NCTWX Lead Portfolio Manager: David O. Nicholas, CFA Co-Portfolio Manager: Brian J. Janowski, CFA, CPA Co-Portfolio Manager: Jefferey J. Strong, CFA Style: Mid-Cap Growth Fund Inception: 10/17/1983 Fund Assets (Class I): $963.0 million Number of Holdings: 69 Investment Approach: Nicholas
Slide 16: Nicholas II Historical Performance
Nicholas II Historical Performance Average Annual Expense Assets Year to Performance as of September 30, 2025 Ratio (millions) 3 Month Date 1 Year 3 Year 5 Year 10 Year 15 Year Nicholas II Class I - NCTWX 0.59% $ 963.0 -1.03% 0.66% -0.07% 11.40% 7.97% 9.95% 11.04% Morningstar Mid-Cap Growth Category
Slide 17: Nicholas II Characteristics
Nicholas II Characteristics Nicholas II As of 9/30/2025 Russell Midcap Characteristics Nicholas II Growth² Net Assets $1,033 million Weighted Avg. Market Capitalization $28,008 $39,218 NTM P/E¹ 25.57x 28.74x LTM P/E¹ 30.76x 32.92x Price/Book¹ 4.48x 10.40x Price/Sales¹ 3.69x 2.63x Historical 3 Year S
Slide 18: Nicholas II Characteristics: Sector Weights and Top Holdings
Nicholas II Characteristics Sector Weights - % of Portfolio Nicholas II Russell Mid-Cap Growth % of Net 30 Top 10 Equity Holdings Assets 25 24.1 23.3 O'Reilly Automotive, Inc. 2.53% Vulcan Materials Co 2.50% 20 Teledyne Technologies Inc. 2.49% 15.9 PTC Inc 2.34% 14.8 15 CBRE Group Inc. 2.30% 2.23% 7
Slide 19: Nicholas Limited Edition
Nicholas Limited Edition NCLEX Lead Portfolio Manager: David O. Nicholas, CFA Co-Portfolio Manager: Ryan P. Bushman, CFA Associate Portfolio Manager: Aaron D. Hizmi Style: Small-Cap Growth Fund Inception: 05/18/1987 Fund Assets (Class I): $416.2 million Number of Holdings: 67 Investment Approach: Ni
Slide 20: Nicholas Limited Edition Performance History
Nicholas Limited Edition Performance History Average Annual Expense Assets Year to Performance as of September 30, 2025 Ratio (millions) 3 Month Date 1 Year 3 Year 5 Year 10 Year 15 Year Nicholas Limited Edition Class I - NCLEX 0.85% $ 416.2 -3.59% -7.85% -7.03% 7.22% 5.81% 9.14% 9.92% Morningstar S
Slide 21: Nicholas Limited Edition Characteristics
Nicholas Limited Edition Characteristics Nicholas Limited Edition As of 9/30/2025 Nicholas Limited Russell 2000 Characteristics Edition Growth² Net Assets $431.6 million Weighted Avg. Market Capitalization $5,250 $5,270 NTM P/E¹ 21.81x 21.53x LTM P/E¹ 25.39x 24.76x Price/Book¹ 3.16x 4.37x Price/Sale
Slide 22: Nicholas Limited Edition: Sector Weights and Top Holdings
Nicholas Limited Edition Characteristics Sector Weights - % of Portfolio Nicholas Limited Edition Russell 2000 Growth % of Net 35 Top 10 Equity Holdings Assets 29.4 30 Dorman Products, Inc. 2.67% 25.6 Encompass Health Corp 2.46% 25 I3 Verticals Inc. 2.46% 2.30% 20 ExlService Holdings, Inc. 16.9 Q2 H
Slide 23: Nicholas Equity Income
Nicholas Equity Income NSEIX Lead Portfolio Manager: Michael L. Shelton, CFA, CPA Co-Portfolio Manager: David O. Nicholas, CFA Associate Portfolio Manager: Paul J. Knych Style: Equity Income with Growth Fund Inception: 11/23/1993 Fund Assets: $468.6 million Number of Holdings: 60 Investment Approach
Slide 24: Nicholas Equity Income Fund Performance History
Nicholas Equity Income Fund Performance History Average Annual Expense Assets Year to Performance as of September 30, 2025 Ratio (millions) 3 Month Date 1 Year 3 Year 5 Year 10 Year 15 Year Nicholas Equity Income Fund - NSEIX 0.70% $ 468.6 4.94% 9.86% 6.02% 13.91% 11.61% 10.51% 10.61% Morningstar La
Slide 25: Nicholas Equity Income Fund Characteristics
Nicholas Equity Income Fund Characteristics Nicholas Equity Income As of 9/30/2025 Russell 1000 Characteristics Equity Income S&P 500² Value Net Assets $468.6 million Weighted Avg. Market Capitalization $361,231 $1,367,649 $338,501 NTM P/E¹ 20.64x 24.70x 18.52x LTM P/E¹ 22.60x 28.15x 20.91x Price/Bo
Slide 26: Equity Income Fund: Sector Weights and Top Holdings
Nicholas Equity Income Fund Characteristics Sector Weights - % of Portfolio Nicholas Equity Income S&P 500 Russell 1000 Value % of Net 40 Top 10 Equity Holdings Assets 35 Microsoft Corporation 3.75% Broadcom Inc. 2.86% 30 Analog Devices, Inc. 2.78% 25 Chevron Corporation 2.64% 19.1 20 17.7 JPMorgan
Slide 27: 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 28: Investment Team
Investment Team Jeffrey J. Strong, CFA – Senior Research Analyst and Co-Portfolio Manager • Nicholas Company, Inc., 2021 – Present • State of Wisconsin Investment Board, 2018 – 2021 • Heartland Advisors, Inc., 2017 – 2018 • BMO Asset Management, 2006 – 2016 • University of Wisconsin, M.B.A 2010 • Un
Slide 29: 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 30: Glossary of Terms
Glossary of Terms • EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization. • Fiscal Year - Business year. Assumed to be the calendar year, unless otherwise designated. • Free Cash Flow (FCF) - It is generally defined as cash flow from operating activities minus total capital expend
Slide 31: Glossary of Terms
Glossary of Terms • Medium/Mid Cap - Medium Capitalization - refers to those companies with a market capitalization generally between $2 billion and $10 billion. • Morningstar™ Category Averages - Each Morningstar™ Average represents a universe with similar investment objectives. • NASDAQ Composite
Slide 32: Glossary of Terms
Glossary of Terms • Russell 1000® Index - The Russell 1000® Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. One cannot invest directly in an index. • Russell 1000
Slide 33: Glossary of Terms
Glossary of Terms • Standard Deviation – a statistical measurement of how much an investment’s returns vary from its average. • Total Return (Cumulative Return) - Rate of return of the account over the specified time period. See Rate of Return. • Turnover Rate - The percentage of investment holdings
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