Hennessy Small Cap Financial Fund (Formerly FBR Small Cap Financial Fund)

Objective
The Fund seeks long-term capital appreciation.

Investment Strategy
The Fund employs a consistent fundamental, bottom-up investment process to identify small-cap financial services companies that meet the strict criteria necessary for inclusion in the portfolio. These characteristics include but are not limited to the following:

- High quality management teams with a philosophy of building for the long-term
- Uncomplicated business model with strong balance sheets
- Conservative lending culture and high quality liabilities
- Emphasis on attractive valuations based on traditional industry relative value measures
- The net result is a portfolio of financial companies that aims to provide shareholders with conservative exposure to the financial services industry.

Barron's Profile with PM Dave Ellison

Fund Fact Sheet

Portfolio Manager Q+A
 
 
Fund Information as of 03/31/13
Equity Sector Weighting
Consumer Discretionary
2.9%
Financials
92.9%
Information Technology
2.1%
Cash
2.1%
Sector Allocation
Regional Banks
28.9%
Thrifts & Mortgage Finance
33.3%
Consumer Finance
5.8%
Specialized Finance
11.3%
Mortgage REITs
3.1%
Homebuilding
2.9%
Property & Casualty Insurance
2.9%
Asset Mgmt & Custody Banks
2.1%
Data Processing & Outsourced Serv.
2.1%
Diversified Capital Markets
0.1%
Investment Banking & Brokerages
2.5%
Multi-Line Insurance
1.5%
Real Estate Development
1.3%
Top 10 Holdings
Popular, Inc.
3.0%
MBIA, Inc.
2.9%
KB Home
2.9%
Nationstar Mortgage Holdings, Inc.
2.9%
First Bancorp P.R.
2.7%
MGIC Investment Corp.
2.7%
Flagstar Bancorp, Inc.
2.7%
Home Loan Servicing Solutions
2.6%
PHH Corp.
2.6%
Hingham Institution for Savings
2.5%
Fund Information
Total Net Assets $262 million  

Beta (vs. NASDAQ Bank Index)

 0.80 (10 year)  
  Investor Class Institutional Class
Expense Ratio 1.51% 1.31%
CUSIP 425 88P 874 425 88P 866
Ticker HSFNX HISFX
Inception Date 1/3/97 5/30/08
Minimum Investment $2,500 $250,000*
Minimum Investment (IRA) $250 $250,000*

Performance as of 03/31/13
Average Annual Total Returns
3 Months
1 Year
3 Year
5 Year
10 Year
Since Inception (1/3/97)
HSFNX (Investor Class)
12.76%
22.50%
5.24%
8.91%
7.53%
10.75%
NASDAQ Bank Index
11.70%
16.23%
6.02%
-1.61%
2.05%
5.54%
Russell 2000 Index
12.39%
16.30%
13.45%
8.24%
11.52%
7.54%

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.

Performance for periods prior to 10/26/12 is that of the FBR Small Cap Financial Fund.
 

 

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. NASDAQ Bank Index is a capitalization weighted index of domestic and foreign common stocks of banks that are traded on the NASDAQ National Market System. The Russell 2000® Index is an unmanaged total return index of the smallest 2000 companies in the Russell 3000 Index, as ranked by total market capitalization. One cannot invest directly in an index.

Mutual fund investing involves risk; Principal loss is possible. A non-diversified fund, one that may concentrate its assets in fewer holdings than a diversified fund, is more exposed to individual stock volatility than a diversified fund. Investors are focused in the financial services industry which may be adversely affected by regulatory or other market conditions such as rising interest rates. The Fund invests in smaller companies, which involves additional risks such as limited liquidity and greater volatility.

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.

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