1. Silicon Valley Aggressive Growth Fund
October 2017
Prepared by: Thanaa Makdsi | Derek Ehrsam | Jim Wilson
Silicon Valley Fund Social Media Sites: Website | LinkedIn

2. Portfolio
The Silicon Valley Fund returned 1.74% for the month of October, outperforming our benchmark, the Spartan Bay Area
Index and the Russell 2000 for the month. Additionally, we are now tracking our performance against other indexes that are
also aligned with our investment philosophy such as the S&P 400 mid-cap index and the S&P 600 small-cap index, and we
outperformed the small-cap index by 85 bps for the month. We increased our weight in both the financial sector and the
healthcare sector with the addition of Terreno Realty Corporation and Sangamo Therapeutics. October was a good month
for the Technology sector in the Spartan Bay Area Index, and many of our tech companies did well with Ambrella Inc.
(NASDAQ: AMBA) coming at the top of our portfolio gainers with 15.98% return for the month. We are right on track to
increase our invested capital in strong local companies while reducing our cash position with one more round of pitches
before the end of the semester.
Silicon Valley & California
The wildfire ignited in the Napa Valley region earlier in the month had a great effect on the Wine industry and the lives of
many people who were forced to evacuate their homes and jobs. Many companies lost their vineyards and buildings
including the Truett-Hurst, Inc. (THST) while others such as Keysight Technologies (KEYS) faced minor damage to their
main building located in Sonoma County. PG&E (PGE) shares crashed amid investors’ fears of the company’s potential role in
the fires, this has caused shares to plummet by 22% in one week. Meanwhile, Adobe Systems (ADBE) rallied 18% this
month on better than expected forecast for 2018 thanks to strong outlook for its cloud-based businesses.
US
Exit stage left Janet Yellen and please welcome the new Fed Chairman, Jerome Powell. President Trump has announced
his nomination of Powell as the new Fed Chair. Fortunately, Powell is not much different than Yellen in terms of policy
guidance. This is good news for the markets as we should continue to see a gradual rate hike path. We may see a slight
increase in the pace of mortgage rates due to Powell being a huge advocate of selling off mortgage backed securities in the
process of balance sheet normalization. This will force mortgage lenders to increase rates to make their MBS’s more
attractive to private investors.
The Senate released their version of the tax reform bill and it had a few significant differences from the house bill. The
Senate bill preserves the current mortgage interest deduction of $1M for new homes vs $500k proposed by the House bill.
Critics of lowering the interest deduction to $500k say that this will discourage new home buyers. State and local tax
deductions have been eliminated and the estate tax exemption doubled from $5.49M to $11M. The next step is for the House
and Senate to come together and reconcile these two bills to be able to pass it into law.
World
The Bank of Canada left interest rates unchanged. This came as a shock as markets were expecting the BoC to continue
hiking rates at a fast pace. BoC's governor, Poloz, affirmed that rates will continue to rise but at a much more tentative pace.
Meanwhile, the European Central Bank tightened the reins on monetary policy when they stated that they will cut bond
purchases in half from January '18 but will also extend the stimulus program through until September '18. The decision was
largely speculated to help give the ECB a more open-ended approach to its monetary policy. On the other hand, The Bank
of Japan did not budge from its strong monetary easing policy. The BoJ has been battling against Japan's inflation issues
for years now as they can't seem to get inflation to rise to their target rate of 2%. BoJ's governor, Kuroda, noted that Japan's
economy is doing well but inflation continues to be a constant concern.

3. Returns
October 2017 Since Inception
Silicon Valley Fund 1.74% 4.47%
Spartan Bay Area Index 1.25% 15.64%
Russel 2000 Index 0.78% 10.55%
S&P 500 Index 2.22% 9.82%
S&P 400 Index 2.18% 7.95%
S&P 600 Small Cap Index 0.89% 10.52%
Returns - As of 10/31/2017
Ticker Company Name Sector Monthly P&L Total P&L
AMBA Ambarella Inc Technology 15.89% -5.29%
COHR Coherent Inc Technology 11.96% 21.41%
EXEL Exelixis Inc Healtcare 2.10% 17.84%
EGHT 8x8 Inc Technology -4.64% 1.62%
HTBK Heritage Comm Corp Financials 7.25% 6.46%
IDTI Integrated Device Tech Inc Technology 13.02% 13.02%
POWI Power Integrations Inc Technology 9.39% 24.54%
QLYS Qualys Inc Com Technology 4.55% 4.55%
SGMO Sangamo Therapeutics Inc Healtcare -14.48% -14.48%
SJW SJW Group Utilities 2.75% 23.05%
TRNO Terreno Realty Corporation Financials -0.08% -0.08%
UBNT Ubiquiti Networks Inc Technology 8.08% 25.59%
VCRA Vocera Communications Inc Technology -11.40% 19.41%
Portfolio Performance - As of 10/31/2017
Spartan Bay Area Index Sector Monhtly Returns - As of 10/31/2017
0.04%
0.34%
0.66%
0.04%
0.05%
1.10%
4.03%
0.88%
8.22%
0.27%
Basic Materials
Consumer Discretionary
Consumer Goods
Consumer Staples
Energy
Financials
Healthcare
Industrial Goods
Technology
Utilities