Hennessy Cornerstone Value Fund (HFCVX)

Overview
The Hennessy Cornerstone Value Fund seeks total return, consisting of capital appreciation and current income. The Fund invests in 50 very large, dividend-yielding companies selected by the purely quantitative Cornerstone Value Formula. The Fund selects large-cap, value oriented stocks.

Investment Strategy
The Hennessy Cornerstone Value Formula identifies a universe of large, widely-held companies with strong sales and cash flow, known as "Market Leaders". Stocks for the portfolio are chosen from the universe of stocks in the S&P Compustat Database*, excluding utility companies, by strictly adhering to the following time-tested, quantitative formula:
Download Fund Fact Sheet
Market capitalization that exceeds the average of the database
Number of shares outstanding that exceeds the average of the database
12-month sales that are 50% greater than the average of the database
Cash flow that exceeds the average of the database
Select the 50 stocks with the highest dividend yield
  The portfolio is rebalanced once annually, generally in the Winter
 
Fund Information as of 12/31/11
Equity Sector Weighting
Consumer Discretionary
2.2%
Consumer Staples
23.0%
Energy
15.9%
Financials
2.3%
Health Care
19.3%
Industrials
7.2%
Information Technology
7.3%
Materials
2.7%
Telecommunication Services
16.8%
Top 10 Holdings
Bristol Myers Squibb Co.
2.5%
Philip Morris International
2.4%
Pfizer, Inc.
2.4%
BCE, Inc.
2.3%
Chevron Corp.
2.3%
Marsh & McLennan Companies
2.3%
Verizon Communications, Inc.
2.2%
ConAgra Foods, Inc.
2.2%
Kraft Foods, Inc.
2.2%
Statoil ADA (ADR)
2.2%
Domestic/Foreign Holdings
Brazil
0.9%
Canada
2.3%
China
1.8%
Finland
0.9%
France
5.0%
Hong Kong
1.7%
Italy
1.7%
Korea, Republic Of
1.3%
Netherlands
2.0%
Norway
2.2%
Russian Federation
1.3%
Spain
1.3%
Switzerland
2.2%
Taiwan
2.1%
United Kingdom
6.1%
United States
63.8%
Cash & Other Assets, Less Liabilities
3.4%
Fund Information
Total Net Assets $119 million  
Beta (vs. S&P 500)** 1.16  
  Original Class Institutional Class
30-Day SEC Yield - net 3.04% 3.36%
Expense Ratio 1.30% Gross 1.11%; Net 0.98%***
CUSIP 425 888 203 425 888 401
Ticker HFCVX HICVX
SEC Fund Identifier Series S000000840 Series S000000840

Class C000002455 Class C000060824
Inception Date 11/1/96 03/03/08
Minimum Investment $2,500 $250,000****
Minimum Investment (IRA) $250 $250,000****
Portfolio Composition
Equity
96.6%
Cash
3.4%

Performance as of 12/31/11
Average Annual Total Returns
3 Months
YTD
1 Year
3 Year
5 Year
10 Year
Since Inception (11/1/96)
HFCVX
10.22%
6.47%
6.47%
20.10%
-0.16%
3.87%
5.39%
Russell 1000 Value Index
13.11%
0.39%
0.39%
11.55%
-2.64%
3.89%
6.59%
S&P 500 Index
-11.82%
2.11%
2.11%
14.11%
-0.25%
2.92%
5.77%
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
 
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
HFCVX
-16.03%
28.39%
11.67%
1.91%
20.14%
0.59%
-43.07%
44.62%
12.51%
6.47%
Russell 1000 Value Index
  
-15.52%
30.03%
16.49%
7.05%
22.25%
-0.17%
-36.85%
19.69%
15.51%
0.39%
S&P 500 Index
  
-22.10%
28.68%
10.88%
4.91%
15.80%
5.49%
-37.00%
26.46%
15.06%
2.11%

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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 Value 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.

Cash flow measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) and interest expense to pretax income. Dividend Yield is calculated as the annual dividends paid by a company divided by the price of a share of their stock. SEC Yield is a standardized yield computed by dividing the net investment income per share earned during the 30-day period prior to quarter-end.

* 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 is contractually capped at 0.98% indefinitely.

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