Hennessy Focus 30 Fund (HFTFX)

Overview
The Hennessy Focus 30 Fund seeks long-term growth of capital by investing in 30 growth-oriented stocks selected by the purely quantitative Focus 30 Formula. The Formula selects domestic, mid cap companies.

Investment Strategy
The Hennessy Focus 30 Formula marries value with momentum. Stocks for the portfolio are selected by strictly adhering to the following time-tested, quantitative formula:
Download Fund Fact Sheet
Market capitalization between $1 and $10 billion, excluding foreign stocks/ADR's
  The market cap spread allows for inclusion of a broad range of mid-cap companies. Foreign stocks/ADR’s are excluded as they do not generate additional returns for the additional associated risk.
Price to sales ratio* below 1.5
  This value criteria helps to uncover relative bargains. The formula chooses sales as its guide because sales figures are more difficult for companies to manipulate than earnings and frequently provide a clearer picture of a company's potential value.
Annual earnings higher than the previous year
  While sales may be the best indicator of a company's value, the formula considers improvement in earnings beneficial as an indicator of a company's financial strength.
Positive stock price appreciation, or relative strength, over 3 and 6-month periods
  Historically, relative strength has been one of the most influential variables in predicting which stocks will outperform the market.
Select the 30 stocks with the highest 12-month price appreciation
  Limiting the portfolio to 30 stocks allows just the top performers to be included, while providing ample diversification.
  The portfolio is rebalanced once annually, generally in the Fall
 
Fund Information as of 09/30/12
Equity Sector Weighting
Consumer Discretionary 32.1%
Consumer Staples 9.4%
Energy 14.5%
Industrials 11.7%
Information Technology 2.6%
Utilities 27.0%
Top 10 Holdings
Tesoro Corp. 4.5%
Ross Stores, Inc. 4.1%
PetSmart, Inc. 4.0%
Sunoco Logistics Partners L.P. 4.0%
Sally Beauty Holdings, Inc. 3.8%
HSN, Inc. 3.8%
LKQ Corp. 3.6%
ONEOK Partners L.P. 3.4%
Casey's General Stores, Inc. 3.3%
Triumph Group, Inc. 3.3%
Domestic/Foreign Holdings
USA
97.3%
Cash and Other Assets, Less Liabilities
2.7%
Portfolio Composition
Equity
97.3%
Cash
2.7%
Fund Information
Total Net Assets $194 million  
Beta (vs. S&P 500)** 0.91  
  Original Class Institutional Class
Expense Ratio 1.36% Gross 1.14%; Net 0.98%***
CUSIP 425 888 302 425 888 609
Ticker HFTFX HIFTX
SEC Fund Identifier
Series S000000839 Series S000000839
  Class C000002454 Class C000060823
Inception Date 9/17/03 03/03/08
Minimum Investment $2,500 $250,000****
Minimum Investment (IRA) $250 $250,000****


Performance as of 09/30/12
Average Annual Total Returns
3 Months
YTD
1 Year
3 Year
5 Year
Since Inception
(9/17/03)
HFTFX
5.85%
12.16%
29.09%
16.26%
3.12%
10.07%
S&P 400 Mid cap Index
5.44%
13.77%
28.54%
14.33%
3.83%
8.74%
S&P 500 Index
6.35%
16.44%
30.20%
13.20%
1.05%
5.96%
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
 
2004
2005
2006
2007
2008
2009
2010
2011
HFTFX
14.10%
32.74%
11.91%
6.69%
-33.10%
24.67%
27.26%
4.05%
S&P 400 Mid cap Index
16.48%
12.56%
10.32%
7.98%
-36.23%
37.38%
26.64%
-1.73%
S&P 500 Index
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 S&P 400 Mid-cap are unmanaged indices commonly used to measure the performance of U.S. stocks. One cannot invest directly in an index.

Small and medium-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies.

* Price-to-sales ratio is a tool for calculating a stock's valuation relative to other companies. It is calculated by dividing a stock's current price by its revenue per share.

** 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.