Hennessy Cornerstone Large Growth Fund (HFLGX)

Overview
The Hennessy Cornerstone Large Growth Fund seeks long-term growth of capital by investing in 50 growth-oriented stocks selected by the purely quantitative Cornerstone Large Growth Formula. The Formula selects growth oriented, larger cap stocks.

Investment Strategy
The Hennessy Cornerstone Large Growth Formula marries value and growth. Stocks for the portfolio are chosen from the universe of stocks in the S&P Compustat Database*, excluding American Depositary Receipts (ADR's), by strictly adhering to the following time-tested, quantitative formula:
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Fact Sheet
Market capitalization that exceeds the average of the Database
Price to cash flow ratio less than the median of the Database
  This value criterion helps to uncover relative bargains among large cap companies.
Positive total capital
Select the 50 stocks with the highest one-year return on total capital
  Return on total capital is a good measurement of how well a company is utilizing its limited resources to maximize growth.
  The portfolio is rebalanced once annually, generally in the Winter
 
Fund Information as of 12/31/11
Equity Sector Weighting
Consumer Discretionary
25.2%
Consumer Staples
12.6%
Energy
7.6%
Financials 1.9%
Health Care
16.3%
Industrials
9.7%
Information Technology
16.5%
Materials
7.2%
Top 10 Holdings
Apollo Group, Inc. 2.8%
TJX Companies, Inc. 2.6%
Newmont Mining Corp. 2.4%
Humana, Inc. 2.4%
Kimberely-Clark Corp. 2.3%
IBM Corp. 2.3%
Eli Lilly and Co. 2.3%
Wal-Mart Stores, Inc. 2.3%
Mattel, Inc. 2.2%
Exxon Mobil Corp. 2.2%
Domestic/Foreign Holdings
USA
96.9%
Cash and Other Assets, Less Liabilities
3.1%
Portfolio Composition
Equity
96.9%
Cash
3.1%
Fund Information
Total Net Assets $75 million  
Beta (vs. S&P 500)** n/a  
Distributions Paid Annually, generally in Nov. or Dec.  
  Original Class Institutional Class
Expense Ratio 1.30% Gross 1.16%; Net 0.98%***
CUSIP 425 88P 205 425 88P 403
Ticker HFLGX HILGX
SEC Fund Identifier
Series S000019531 Series S000019531
  Class C000054248 Class C000074662
Inception Date 3/20/09 3/20/09
Minimum Investment $2,500 $250,000^
Minimum Investment (IRA) $250 $250,000^
 

Performance as of 12/31/11
Average Annual Total Returns
3 Months
YTD
1 Year
Since Inception (3/20/09)
   
HFLGX
9.98%
2.59%
2.59%
25.08%
    
Russell 1000 Index
11.84%
1.50%
1.50%
22.43%
    
S&P 500 Index
11.82%
2.11%
2.11%
21.87%
    

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by clicking here.
Year by Year Total Returns
 
2010
2011
      
HFLGX
18.85%
2.59%
      
Russell 1000 Index
16.10%
1.50%
      
S&P 500 Index
15.06%
2.11%
      

The Fund’s composition and sector weightings are shown as a percentage of the Fund’s total net assets. Portfolio composition and sector weightings are subject to change at any time and should not be considered a recommendation to buy or sell a particular security. The S&P 500 and Russell 1000 are unmanaged indices commonly used to measure the performance of U.S. stocks. One cannot invest directly in an index.

Medium-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Investments in foreign securities involve greater volatility and political, economic and currency risk and differences in accounting methods.

Price to cash flow ratio is a stock valuation measure calculated by dividing a firm's cash flow per share into the current stock price. Cash flow measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) to income before extraordinary items (unusual and infrequent occurrences). Income before extraordinary items also excludes dividends paid on common and preferred stock.

* The Standard and Poor's Compustat Database is a robust source of data on publicly traded companies.

** Beta is a measure of a portfolio’s sensitivity to market movements (as represented by the S&P 500). The index has a beta of 1.0. A beta of more (less) than 1.0 indicates that a fund’s historical returns have fluctuated more (less) than the index.

*** The expense ratio for Institutional Class shares is contractually capped at 0.98% indefinitely.

^ Initial minimum investment of $250,000 may be waived for certain fee-based or retirement plans.