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*
5.88%
NAV*
$17.46
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 2/3/2026
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 2/3/2026 |
Quarterly As Of 12/31/2025 |
1 Year As Of 12/31/2025 |
3 Years As Of 12/31/2025 |
5 Years As Of 12/31/2025 |
10 Years As Of 12/31/2025 |
Since Inception As Of 12/31/2025 |
Total Gross Expense Ratio(1) | Total Net Expense Ratio(2) |
|---|---|---|---|---|---|---|---|---|
| 5.88% | 0.74% | 23.79% | 7.48% | -0.04% | N/A | 7.20% | 1.29% | 0.99% |
Calendar Year
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| 23.79% | 1.60% | -1.28% | -27.69% | 11.15% | 63.14% | 25.83% | -15.60% | N/A | N/A | N/A |
Portfolio
as of December 31, 2025
Top Ten Holdings
| Percentage Of Total Net Assets | 42.00% |
|---|---|
| Infineon Technologies AG | 5.50% |
| Kion Group AG | 5.30% |
| First Solar, Inc. | 5.20% |
| Badger Meter, Inc. | 4.20% |
| Valmont Industries, Inc. | 4.00% |
| Kingspan Group plc | 3.80% |
| Advanced Drainage Systems, Inc. | 3.80% |
| Trimble Navigation Limited | 3.60% |
| Samsara Inc. | 3.30% |
| Corteva, Inc. | 3.30% |
Sector Weightings
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| Industrials | 49.20% |
| Information Technology | 36.70% |
| Materials | 6.40% |
| Consumer Discretionary | 3.50% |
| Utilities | 3.10% |
| Cash and Other Assets (Net) | 1.10% |
Top Ten Country Allocations
| Percentage Of Total Net Assets | 100.00% |
|---|---|
| United States | 68.80% |
| Germany | 10.80% |
| Japan | 10.80% |
| Ireland | 3.80% |
| Switzerland | 3.00% |
| China | 1.70% |
| Cash and Other Assets (Net) | 1.10% |
Portfolio Characteristics
| Net Assets | $26,998,063 |
|---|---|
| Number Of Holdings | 37 |
| Percentage in Top 10 Holdings | 42.00% |
| Weighted Average Market Cap (Mil) | $32,144.20 |
| Annual Turnover | 60.00% |
Portfolio Allocation
| Percentage of Portfolio | 100.00% |
|---|---|
| Equity Securities | 98.90% |
| Cash and Other Assets (Net) | 1.10% |
Commentary
For the Quarter ended December 31, 2025
Market Conditions and Investment Strategies
We have consistently observed and responded to negative sentiment regarding clean tech throughout 2025, and want to reiterate
that on the ground, we believe clean tech fundamentals are strengthening as the demand drivers continue. The outperformance of
the Pear Tree Essex Environmental Opportunities Fund’s Ordinary Shares (the “Fund”) earlier in 2025 abated in the fourth quarter,
as higher growth equity performance took a pause. We believe that despite continued negative sentiment for clean technology, the
catalysts for the Fund’s themes, from power technology to clean tech & efficiency and renewable energy are well intact based on
two primary drivers:
•Increased domestic power demand
•De-globalization driving capital investment
Some segments of clean tech equity shares are at fair valuation in our opinion, and we have been taking profits and deploying
capital to the shares of companies where we project more attractive opportunities based on valuation and earnings growth
analysis.
Portfolio Changes
The top performer for the Fund for the fourth quarter was Fluence Energy which was up just over 83%, on the market’s realization
that stationary storage will be an increasingly important solution for global power demand. Fluence provides energy storage
solutions for electric utilities and commercial customers. Also driven by power demand, First Solar was a strong performer, as they
are well positioned, we believe, for increased demand for quickly deployable energy, of which utility scale solar is currently fastest.
Industrial automation is a trend we are very constructive on, and KION Group rallied on increased demand for their warehouse
automation technology that saves energy and labor costs. Rounding out the top performers is Japanese electrical component
supplier Yaskawa Electric, which focuses on electrical inverters, motion control systems and industrial robotics.
Long standing power technology holding American Superconductor (AMSC) was the leading underperformer for the Fund, down
over 50% after a quarterly earnings report that met expectations. AMSC is a key provider of solutions that assist electric utilities in
balancing power on the grid, and we remain constructive on the holding, believing the correction was based on very strong stock
performance earlier in 2025 that led to a high valuation heading to earnings. Industrial automation firm Cognex slid in the quarter,
given market concerns their conversion of some bookings to sales could be pushed out to mid-2026. We are constructive on
Cognex, as their machine vision systems assist with greater productivity and cost savings for industrial automation and warehouse
fulfillment. Electrical metering company Landis+Gyr underperformed, as they strive to sell their EU business to fund scaling in North
America. Energy Recovery (ERII) rounded out the detractors for the Fund, based on some order delays for large scale desalination
projects in the Middle East, to which ERII provides energy efficiency technology. We believe these delays will convert to revenue in
the first half of 2026.
Outlook
We believe we are at an important inflection point for clean technology investing, as market dynamics are placing a premium on
commercial viability, in the form of market adoption and financial discipline. This is not the cycle of 2021, with loose capital, and
geopolitical frictions are placing a premium on business operations execution from supply chain assessment to manufacturing
locations. Building on the parlance of Warren Buffett, the tide is not only out but is an ultra-low spring tide. This creates opportunity,
as uneconomic business models can be identified and avoided just as the market drivers for clean tech continue to amplify. We
believe the combination for listed companies is capital stewardship where management teams allocate capital to their operations
and optimize profitability and ultimately distribute earnings for shareholders. In this more competitive market environment, we
believe competitive differentiation is of utmost importance – this is not, nor is it ever the time to invest in lab experiments that can
never scale commercially and constantly erode shareholder capital.
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 | |
|---|---|---|---|
| 2025 | $0.0107 | $0.0000 | $0.0000 |
| 2024 | $0.0000 | $0.0000 | $0.0000 |
| 2023 | $0.0000 | $0.0000 | $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.