Needham Funds fourth quarter letter to shareholders.

The year began with terrible weather in the first quarter, which led to a 2.9% gross domestic product (GDP) contraction. The quarter brought a correction to some of the excesses in Software-as-a-Service, biotech and social media stocks, all areas we tend to avoid. Markets and the Funds stabilized and then appreciated in the second quarter. The third quarter brought concern over lower growth in Europe and lower than expected inflation. Small cap stocks underperformed their larger cap peers through the first three quarters, but outperformed in the fourth quarter.

See full PDF below.

Needham Funds Q4 Letter To Shareholders