Pear Tree Essex Environmental Opportunities Fund
The PEAR TREE ESSEX ENVIRONMENTAL OPPORTUNITIES FUND operates at the nexus of environment and finance, investing in companies that enable greater natural resource and energy efficiency.
Investment Process
The Fund invests in companies the management team believes solve environmental and related social challenges, seeking to provide attractive financial and social impact returns. The Fund is fossil fuel free, investing in public equities will full alignment to the U.N. Sustainable Development Goals. Investments are made across nine environmental themes, providing clean technology diversification in companies with revenue and earnings growth greater than the broad equity market, in companies exhibiting effective capital allocation and strong profitability.
Buy and Sell Discipline
The Fund is concentrated, typically owning 35-45 equity holdings, in growth companies which provide solutions to the world's environmental challenges. Stock selection is based on rigorous fundamental company analysis and a valuation process that is informed by the portfolio management team’s thematic industry assessment. The Fund is generally lower turnover, with half from existing positions. Position sizes average 2-3%, and are diversified across themes, geographies and industries. Risk management and assessment is integral to portfolio construction, with position sizes determined by industry maturity, liquidity, individual security volatility and the management of price and profit expectations.
Portfolio Management
The Fund is managed by William Page and Robert Uek of Essex Investment Management, LLC. Essex is an independent, employee-owned firm with over a 40 year history of growth equity investing. Page and Uek have almost 60 years of combined institutional investment experience. The portfolio management team has been managing clean technology portfolios for over 16 years, with the first listed impact strategy in North America.
Fund Overview
YTD RETURN*
20.78%
NAV*
$16.10
INCEPTION
September 1, 2021
MINIMUM INVESTMENT
$1,000,000
CUSIP
70472Q716
BENCHMARK
MSCI WORLD
NET EXPENSE RATIO(1)
0.99%
GROSS EXPENSE RATIO(2)
1.29%
*as of 8/28/2025
Investment Professionals
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Sub-Advisor
Essex Investment Management Co., LLC
Essex Investment Management Company, LLC. follows an investment philosophy based on the early identification of growth, wherever growth exists.
Portfolio Managers
Robert Uek, CFA
William Page
Performance
| YTD As Of 8/28/2025 |
Quarterly As Of 6/30/2025 |
1 Year As Of 6/30/2025 |
3 Years As Of 6/30/2025 |
5 Years As Of 6/30/2025 |
10 Years As Of 6/30/2025 |
Since Inception As Of 6/30/2025 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| 20.78% | 16.68% | 6.86% | 4.08% | 7.99% | N/A | 5.76% | 1.29% | 0.99% |
Calendar Year
| 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|---|---|---|
| 1.60% | -1.28% | -27.69% | 11.15% | 63.14% | 25.83% | -15.60% | N/A | N/A | N/A | N/A |
Portfolio
as of June 30, 2025
Top Ten Holdings
| Percentage Of Total Net Assets | 44.50% |
|---|---|
| Infineon Technologies AG | 5.70% |
| Badger Meter, Inc. | 5.30% |
| American Superconductor Corporation | 5.20% |
| GE Vernova Inc. | 4.90% |
| First Solar, Inc. | 4.30% |
| Kingspan Group plc | 4.00% |
| Kion Group AG | 3.90% |
| Trimble Navigation Limited | 3.80% |
| NextEra Energy, Inc. | 3.80% |
| Toray Industries, Inc. | 3.60% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Industrials | 45.50% |
| Information Technology | 33.90% |
| Materials | 8.60% |
| Utilities | 3.80% |
| Consumer Discretionary | 2.20% |
| Cash and Other Assets (Net) | 6.00% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| United States | 64.30% |
| Japan | 11.60% |
| Germany | 9.70% |
| Ireland | 4.00% |
| Switzerland | 3.50% |
| China | 0.90% |
| Cash and Other Assets (Net) | 6.00% |
Portfolio Characteristics
| Net Assets | $24,883,510 |
|---|---|
| Number Of Holdings | 31 |
| Percentage in Top 10 Holdings | 44.50% |
| Weighted Average Market Cap (Mil) | $34,195.00 |
| Annual Turnover | 60.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 94.00% |
| Cash and Other Assets (Net) | 6.00% |
Commentary
For the Quarter ended June 30, 2025
The Pear Tree Essex Environmental Opportunities Fund’s Ordinary Shares (the “Fund”) outperformed its benchmark, MSCI World (the “Index”). The Fund achieved a return of 16.69% at net asset value compared to 11.63% for the Index.¹
Market Conditions and Investment Strategies
GEOS had solid performance from lidar solutions firm Ouster, which was up 170% for the quarter, as the market recognized adoption which is occurring initially for smart city intersections, and industrial automation. Long-term power technology holding American Superconductor (AMSC) returned over 100%, based on solid order growth from the US and Canadian Navies for ship mine and surveillance abatement, as well as improvements in wind and their grid harmonization businesses. AMSC is a great example of a company that should benefit from data centers and manufacturing onshoring – both segments require high quality,
consistent power applications such as offered by AMSC.
GE Vernova (GEV) also had strong performance, reflective of their gas turbine generation business which is booked out through 2028. Note that GEV is a leader across several energy sources, including wind power and traditional as well as small form nuclear.
Underperformance for the second quarter was led by long-term GEOS water holding Energy Recovery (ERII), down 19.6% after announcing some pushouts for Middle Eastern desalination projects. These projects are still in the pipeline, and we continue to hold ERII based on their dominant market share providing energy saving pressure devices to the desalination market. Recent purchase Copart experienced weak quarterly performance, which we believe was driven by the market moving to higher growth securities. Copart is the largest reseller of salvage vehicles, used for automotive parts, and we believe well positioned as the value of used cars increases given the consumer spending cycle and skyrocketing new car prices. Generac Holdings was a weak performer for GEOS and was sold in April to fund the Copart purchase.
Porfolio Changes
Several positions that have performed well were trimmed during the quarter to add to existing positions which we believe are better positioned from a valuation and growth perspective. GE Vernova and Valmont Industries were trimmed to add to vision systems firm Cognex, advanced electric meter company Landis+Gyr and leading Chinese EV manufacturer BYD. Chart Industries and Hannon Armstrong were sold to purchase three new positions:
· Amprius Technologies, manufacturer of silicone anode batteries providing enhanced battery performance.
· ON Semiconductor Corp., providing silicon carbide devices and sensors for industrial automation, automotive and power.
· Samsara Inc. is a central hub, using AI and machine learning for managing physical operations for efficiency.
Outlook
We believe that companies providing environmental solutions can catalyze progress, from social to economic and for our world. There are several important drivers that have been in the headlines lately, from the need for data center power to public infrastructure resiliency in the face of increasingly catastrophic storms. Global geopolitical stress places a premium on domestic energy sources, and a full palate of solutions is an economic competitive advantage. Additional drivers are extensive, from the global water crisis amidst drought and excessive rainfall, to the immediate need to enhance agricultural crop productivity. GEOS has direct
exposure to companies providing solutions to these challenges, and many more.
¹The Fund is the successor to the investment performance of the Essex Environmental Opportunities Fund (“Predecessor Fund”) as a result of the reorganization of the Predecessor Fund into the Environmental Opportunities Fund on September 1, 2021. Performance information shown prior to the close of business on August 31, 2021 is that of the Predecessor Fund.
²The Wilderhill Clean Energy Index (ticker: ECO) is a modified equal dollar weighted index comprised of publicly traded companies whose businesses stand to benefit from societal transition toward the use of cleaner energy and conservation.
³For three years, ended 12/31/24, the Pear Tree Essex Environmental Opportunities Fund returned (10.39%) versus (34.16%) for the Wilderhill Clean Energy Index. For the two-year period, the Fund posted (0.11%) while the Wilderhill returned (27.23%). For the one-year period, the Fund returned 1.32%, versus (31.72%) for the Wilderhill.
Disclosures:
This commentary is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. The opinions and analyses expressed in this commentary are based on Essex Investment Management LLC’s (“Essex”) research and professional experience and are expressed as of the date of its release. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future results, nor is it intended to speak to any future periods. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties.
Distributions
| Dividend | Short-Term Capital Gain | Long-Term Capital Gain | |
|---|---|---|---|
| 2024 | $0.0000 | $0.0000 | $0.0000 |
| 2023 | $0.0000 | $0.0000 | $0.0000 |
| 2022 | $0.0000 | $0.0007 | $0.0000 |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost.
Before investing, carefully consider the Fund's investment objectives, risks, charges and expenses. For this and other information obtain the Fund's prospectus or, if available, the Fund's summary prospectus by calling (800) 326-2151 or by clicking the Literature and Forms section of this website to view or download a prospectus or, if available, a summary prospectus. Please read the prospectus carefully before you invest or send money.
1, 3, 5, and 10Yr performance numbers quoted are average annual total returns. Performance numbers quoted under one year are cumulative.
Polaris Capital began subadvising the Pear Tree Small Cap Fund on January 1, 2015.
The Pear Tree Essex Environment Opportunities Fund (the “Fund”) is the successor to the investment performance of the Essex Environmental Opportunities Fund (“Predecessor Fund”) as a result of the reorganization of the Predecessor Fund into the Environmental Opportunities Fund on September 1, 2021. Performance information shown prior to the close of business on August 31, 2021 is that of the Predecessor Fund’s for the Fund’s Ordinary Shares and Institutional Shares.
Expense Ratios Disclosure
1. Expense Ratio (Gross)
The gross expense ratio is the total operating expense from the class of shares of the fund stated as a percent of the fund's total net assets as disclosed in the fund’s most recent prospectus before waivers or reimbursements.
2. Expense Ratio (Net)
Net Expense Ratio is the total annual operating expense from the class of shares of the funds stated as a percent of the fund's total net assets as disclosed in the fund’s most recent prospectus after any fee waiver and/or expense reimbursements that will reduce any fund operating expenses until July 31, 2026 for all funds.
Risk Disclosure
Pear Tree Polaris Foreign Value
Pear Tree Polaris Foreign Value Small Cap
Pear Tree Polaris International Opportunities
Pear Tree Polaris Small Cap
Pear Tree Essex Environmental Opportunities
Foreign and Emerging Market Risk. Foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Emerging markets can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile.
Small Cap Investing. The value of securities of smaller, less well-known issuers can perform differently from the market as a whole and other types of stocks and can be more volatile than that of larger issuers.