Firsthand Funds

Investment Strategy

The Fund invests in alternative energy and energy technology companies, both U.S. and international. Alternative energy includes solar, hydrogen, wind, geothermal, hydroelectric, tidal, biofuel, and biomass. Because there are no market capitalization restrictions on the Fund's investments, the Fund may purchase stocks of any capitalization.

What sets the Fund apart from other Firsthand Funds?

Firsthand Alternative Energy Fund is the only Firsthand Fund that invests a significant portion of its assets in alternative energy and related technologies.

Top 10 Holdings

As of June 30, 2010

A123 Systems, Inc.

JA Solar Holdings Co, Ltd.

Meyer Burger Technology AG

GT Solar International, Inc.

Vestas Wind Systems A/S

Suntech Power Holdings Co., Ltd. - ADR

Yingli Green Energy Holding Co. - ADR

Intevac, Inc.

MEMC Electronic Materials, Inc.

10.

Power Integrations, Inc.

Percentage of Total Portfolio: 46.5%

Fund Facts

As of June 30, 2010

Manager:

Kevin Landis

Manager tenure:

Since inception

Total net assets:

$5.4 million

Number of companies:

2009 turnover:

41%

Inception date:

10/29/07

Ticker symbol:

ALTEX

CUSIP:

337941827

Sales load:

None

Redemption fee:

None

2009 gross expense ratio:

2.27%

2009 net expense ratio:

2.15%

Expense ratio includes dividend expenses on securities sold short of 0.11%.

Performance

Average Annual Total Returns vs. Indices¹

As of June 30, 2010

Month-End Performance Update

As of July 31, 2010

Firsthand Alternative Energy Fund

S&P 500
Index

WilderHill
Clean Energy
Index

Since inception*

-16.79%

-11.96%

-34.66%

1-Year

-6.85%

14.43%

-16.73%

Q2 '10**

-21.34%

-11.41%

-16.41%

	Firsthand Alternative Energy Fund

Since inception*	-12.78%

1-Year	0.73%

YTD	-14.36%

* 10/29/07 ** Not annualized

The Fund's performance information assumes reinvestment of all dividends and includes all Fund expenses, but does not reflect the impact of taxes. Performance data quoted represent past performance, which is not a guarantee of future results, and current performance may be lower or higher than the performance quoted. Both the return from and the principal value of an investment in the Fund will fluctuate so that any investor's shares, when redeemed, may be worth more or less than their original cost.

The Fund's total operating expenses are 1.98%. Under the Investment Advisory Agreement, the Investment Adviser has agreed to reduce its fees and/or make expense reimbursements so that Firsthand Alternative Energy Fund's total annual operating expenses (with certain exclusions discussed below) are limited to 1.98% of Firsthand Alternative Energy Fund's average daily net assets up to $200 million, 1.93% of such assets from $200 million to $500 million, 1.88% of such assets from $500 million to $1 billion, and 1.83% of such assets in excess of $1 billion. The Investment Adviser has also agreed to donate a portion of its management fees collected, amounting to 0.20% of the Fund's average daily net assets, to various non-profit organizations as elected by Fund shareholders. Under the Administration Agreement, the Fund's Administrator has assumed responsibility for payment of all of the Fund's operating expenses excluding certain expenses, for example, brokerage and commission expenses, short sale expenses, litigation costs, and any extraordinary and non-recurring expenses.

Growth of a Hypothetical $10,000 Investment

October 29, 2007 through June 30, 2010

Chart represents the growth of a hypothetical $10,000 investment from Firsthand Alternative Energy Fund inception date until the end of the quarter indicated. Firsthand Alternative Energy Fund performance assumes reinvestment of all dividends and includes all Firsthand Alternative Energy Fund expenses but does not reflect the impact of taxes.

Portfolio Holdings

As of June 30, 2010

By Industry

Renewable Energy	53.3%
Advanced Materials	9.3%
Energy Efficiency	8.2%
Battery	7.1%
Other Electronics	6.2%
Semiconductors	5.7%
Other	2.9%
Intellectual Property	2.3%
Industrials	1.8%
Net Cash	3.2%

By Market Cap***

Giant Cap (>$25B)	11.6%
Large Cap ($5-$25B)	11.8%
Mid Cap ($1-$5B)	26.7%
Small Cap (<$1B)	46.7%
Net Cash	3.2%

By Country

United States	54.6%
China	20.0%
Switzerland	5.8%
Japan	5.5%
Denmark	4.8%
Taiwan	3.0%
Spain	2.9%
Netherlands	2.8%
Other	0.6%

*** Expressed as a % of total long assets plus the absolute value of short positions.

Portfolio assets such as cash, treasuries, options, and warrants are not presented in the top 10 list.

The information provided should not be considered a recommendation to purchase or sell a particular security and there is no assurance that, as of the date of publication, the securities purchased remain in the Fund's portfolio or that securities sold have not been repurchased. Also, you should note that the securities discussed, even if they have been purchased by the Fund, do not represent the Fund's entire portfolio and, in the aggregate, may represent only a small percentage of the Fund's holdings. There can be no assurance that any Firsthand Fund will buy, sell, or hold any particular security after the date referred to in the discussion.

Distributions

As of June 30, 2010

Distribution History
2009 total distributions:	None
2008 total distributions:	None
2007 total distributions:	None



¹		The Standard & Poor's 500 Index (S&P 500) represents an unmanaged, broad-based basket of stocks and is typically used as a benchmark for overall market performance. The WilderHill Clean Energy Index is a market-weighted index of 40 companies in the cleaner fuel, energy conversion, energy storage, greener utilities, power delivery and conservation, and renewable energy harvesting sectors. The indices' performance figures assume the reinvestment of all dividends (except where noted), but do not reflect the impact of taxes. Additionally, because an investor cannot invest in an index directly, indices' performance figures do not reflect the expenses associated with the management of an actual mutual fund portfolio.

		Firsthand Alternative Energy Fund is subject to greater risk than more diversified funds because of its investments in fewer securities and because of its concentration of investments in the alternative energy and energy technology sectors. Specific risks associated with these investments could cause the Fund's share price to fluctuate dramatically. The Fund's investments in small-cap companies present greater risk than investments in larger companies. The Fund invests in several industries within the alternative energy and energy technology sectors and the relative weightings of these industries in the Fund's portfolio may change at any time. Equity investing involves risks, including the potential loss of the principal amount invested.