Novato, CA, September 23, 2003 - Hennessy
Advisors, Inc. (HNNA: OTC) is pleased to announce the launch
of the Hennessy Focus 30 Fund, a new mid-cap fund which has
become the fifth fund in the $852 million Hennessy Funds no-load
mutual fund group. The fund's objective is long-term growth
of capital and it trades under the NASDAQ symbol HFTFX.
Like its sister funds, the new Hennessy Focus 30 Fund employs
a proprietary and highly disciplined formulaic investment
technique. The fund's manager selects securities through the
"Focus 30 Formula," which involves investing in
those common stocks that have seen the highest one-year price
appreciation and meet other critical criteria.
To be considered for selection for the fund, a company must
have a total market capitalization of between $1 billion and
$10 billion, have a current share price of $5 or greater,
possess a price to sales ratio of less than 1.5 and must have
current earnings that are higher than the previous year's.
Of these, only 30 stocks with the best positive relative price
strength over the past three and six month periods of time
are added to the fund. The portfolio is rebalanced once per
year.
"We've taken our cue for this new fund from the similar
disciplined approach to selecting stocks that we have successfully
employed within the small cap market for the Hennessy Cornerstone
Growth Fund (HFCGX)," said Neil J. Hennessy, portfolio
manager and president of the fund's advisory firm Hennessy
Advisors. "This time we've adapted our value-plus-momentum
investment strategy for use in the larger mid-cap marketplace
which generally provides greater liquidity and less volatility
than the small cap market," he added.
"Unlike pure momentum equity managers, who spin in and
out of a security in the blink of an eye, we adhere to a buy
and hold philosophy that ignores market timing, economic fluctuations
and stock market volatility, and gives chosen stocks an opportunity
to grow. Our investment discipline lets us carefully rebalance
the fund's portfolio only once per year," Hennessy commented.
"The Hennessy Focus 30 Fund could be an ideal addition
to the investment portfolios or retirement plans of investors
who want to be a part of the equity market and are willing
to accept higher short-term risk along with higher potential
for long-term growth of capital," he noted.
The Hennessy Focus 30 Fund is available for new investment
beginning 09/18/2003 with a minimum initial investment of
$2,500 or $250 for regular and Roth IRAs. The Hennessy Focus
30 Fund is a no-load fund, but charges a 1.50% redemption
fee for shares held less than three months. The fund's management
fee is 1.00%.
About Hennessy Advisors
The Hennessy Advisors manages the Hennessy Funds, headquartered
in Novato, California. Hennessy Funds is a family of no-load
mutual funds, satisfying a variety of investment horizons
and risk tolerance levels. In addition to the Hennessy Focus
30 Fund, the company also manages the Hennessy Cornerstone
Growth Fund (HFCGX), the Hennessy Cornerstone Value Fund (HFCVX),
the Hennessy Total Return Fund (HDOGX) and the Hennessy Balanced
Fund (HBFBX). As of September 22, 2003, the firm managed a
total of $852 Million.
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