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Overview
Hennessy Cornerstone Growth Fund
Quantitatively managed, the Fund maintains a concentrated portfolio, which seeks growth at a reasonable price.
Why Invest
- Quantitatively-driven, repeatable investment process
- Combines growth investing with a valuation overlay
- Focus on undervalued companies that have proven earnings and stock price growth
Investment Criteria
The Hennessy Cornerstone Growth Fund utilizes a quantitative formula to identify 50 common stocks with the highest one-year price appreciation that also meet the following criteria:
- Market capitalization exceeding $175 million
- Price-to-sales ratio below 1.5
- Annual earnings higher than the previous year
- Positive stock price appreciation over the past three- and six-month periods
Portfolio Managers
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Chief Investment Officer and Portfolio Manager-
19Years on Fund
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40Years of Experience
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“The Fund marries value and momentum investing.”
- Neil Hennessy
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Insights & News
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Performance
Daily Pricing & Performance
as of 3/31/20-
Investor Class (HFCGX)
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NAV
$12.71
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$ Change
-$0.20
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% Change
-1.55%
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YTD
-39.27%
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Institutional Class (HICGX)
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NAV
$13.18
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$ Change
-$0.20
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% Change
-1.49%
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YTD
-39.21%
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Average Annualized Total Return
as of 2/29/20Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (11/1/96) Investor Class (HFCGX) -10.09% -14.43% -8.34% -1.42% -0.41% 7.65% 7.61% Institutional Class (HICGX) -10.08% -14.39% -8.03% -1.11% -0.10% 7.97% 7.78% Russell 2000® Index -8.42% -11.36% -4.92% 3.52% 5.12% 10.41% 7.93% S&P 500® Index -8.23% -8.27% 8.19% 9.87% 9.23% 12.65% 8.37% as of 12/31/19Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (11/1/96) Investor Class (HFCGX) 10.74% 20.70% 20.70% 3.50% 3.51% 9.07% 8.39% Institutional Class (HICGX) 10.78% 21.05% 21.05% 3.85% 3.83% 9.42% 8.57% Russell 2000® Index 9.94% 25.52% 25.52% 8.59% 8.23% 11.83% 8.55% S&P 500® Index 9.07% 31.49% 31.49% 15.27% 11.70% 13.56% 8.84% Hypothetical Growth of $10,000
as of 2/29/2020Value of $10,000 invested between 2/28/2019 and 2/29/2020
Cornerstone Growth Fund (HFCGX) $9,166 Cornerstone Growth Fund (HICGX) $9,197 Russell 2000® Index $9,508 S&P 500® Index $10,819 Value of $10,000 invested between 2/28/2017 and 2/29/2020
Cornerstone Growth Fund (HFCGX) $9,580 Cornerstone Growth Fund (HICGX) $9,670 Russell 2000® Index $11,093 S&P 500® Index $13,262 Value of $10,000 invested between 2/28/2015 and 2/29/2020
Cornerstone Growth Fund (HFCGX) $9,796 Cornerstone Growth Fund (HICGX) $9,950 Russell 2000® Index $12,838 S&P 500® Index $15,549 Value of $10,000 invested between 2/28/2010 and 2/29/2020
Cornerstone Growth Fund (HFCGX) $20,891 Cornerstone Growth Fund (HICGX) $21,524 Russell 2000® Index $26,932 S&P 500® Index $32,918 Value of $10,000 invested between 11/1/1996 and 2/29/2020
Cornerstone Growth Fund (HFCGX) $55,369 Cornerstone Growth Fund (HICGX) $57,471 Russell 2000® Index $59,291 S&P 500® Index $65,209 This data illustrates the performance of a hypothetical $10,000 investment made in the Fund for the period noted, and it assumes reinvestment of dividends and capital gains. This chart does not imply future performance.
Calendar Year Total Returns
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Investor Class (HFCGX) 11.50 -10.78 30.31 35.89 13.82 -1.09 8.37 16.60 -21.22 20.70 Institutional Class (HICGX) 12.06 -10.58 30.76 36.43 14.01 -0.86 8.70 16.99 -20.91 21.05 Russell 2000® Index 26.85 -4.18 16.35 38.82 4.89 -4.41 21.31 14.65 -11.01 25.52 S&P 500® Index 15.06 2.11 16.00 32.39 13.69 1.38 11.96 21.83 -4.38 31.49 Year Investor Class (HFCGX) Institutional Class (HICGX) Russell 2000® Index S&P 500® Index 2009 10.29% 10.60% 27.17% 26.46% 2008 -43.69% -43.56% -33.79% -37.00% 2007 -2.18% -2.18% -1.57% 5.49% 2006 10.42% 10.42% 18.37% 15.79% 2005 11.96% 11.96% 4.55% 4.91% 2004 16.65% 16.65% 18.33% 10.88% 2003 45.82% 45.82% 47.25% 28.68% 2002 -4.71% -4.71% -20.48% -22.10% 2001 12.14% 12.14% 2.49% -11.89% 2000 5.30% 5.30% -3.02% -9.10% 1999 37.72% 37.72% 21.26% 21.04% 1998 3.67% 3.67% -2.55% 28.58% 1997 31.33% 31.33% 22.36% 33.36% Returns-Based Statistics
Relative to Russell 2000® Indexas of 12/31/19Investor Class (HFCGX)Type 3 yr 5 yr 10 yr Alpha -4.10 -3.32 -1.87 Beta 0.90 0.84 0.96 Upside Capture 74.71 67.55 86.31 Downside Capture 91.76 79.21 92.17 Institutional Class (HICGX)Type 3 yr 5 yr 10 yr Alpha -3.75 -3.00 -1.56 Beta 0.90 0.83 0.96 Upside Capture 75.58 68.21 86.98 Downside Capture 91.05 78.43 91.49 Alpha measures the fund’s excess return relative to the return of the benchmark. Beta measures the volatility of the fund compared to that of the benchmark. The beta of the benchmark is 1.00. Capture ratios measure the fund’s overall performance in up markets (positive return periods) and down markets (negative return periods).
Sharpe Ratio
as of 12/31/19Type 3 yr 5 yr 10 yr Investor Class (HFCGX) 0.19 0.23 0.54 Institutional Class (HICGX) 0.21 0.25 0.56 Russell 2000® Index 0.49 0.51 0.71 Small Blend Category Average 0.38 0.43 0.67 Sharpe Ratio is a measure of risk-adjusted return, reflecting the average return earned in excess of the risk-free rate per unit of volatility.
Standard Deviation
as of 12/31/19Type 3 yr 5 yr 10 yr Investor Class (HFCGX) 15.92 14.95 17.95 Institutional Class (HICGX) 15.87 14.92 17.95 Russell 2000® Index 15.93 16.04 17.00 Small Blend Category Average 15.19 15.05 16.14 Standard deviation is a statistical measure of the historical volatility of a mutual fund or portfolio.
Fund Expenses
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Investor Class (HFCGX)
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Gross expense ratio
1.34%
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Institutional Class (HICGX)
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Gross expense ratio
1.01%
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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.
Morningstar Proprietary Ratings reflect risk-adjusted performance as of 12/31/19. The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating™ metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. among 630, 507 and 367 Small Blend Funds, respectively. Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in distribution percentage.
Each Morningstar category average represents a universe of funds with similar objectives. The Morningstar Style Box reveals the fund's investment style as of 12/31/19. The vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend, or growth). ©Morningstar, Inc. All Rights Reserved. Past performance is no guarantee of future results.The performance shown for Institutional Class shares / HICGX prior to 3/3/08 represents the performance of Investor Class shares of the Fund and includes expenses that are not applicable to and are higher than those of Institutional Class shares.
The S&P 500® and Russell 2000® are unmanaged indices commonly used to measure the performance of U.S. stocks. One cannot invest directly in an index.
Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes or Russell ratings or underlying data, and no party may rely on any Russell Indexes or Russell ratings or underlying data contained in this communication. No further distribution of Russell data is permitted without Russell’s express written consent. Russell does not promote, sponsor, or endorse the content of this communication.
Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security.
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Portfolio
Portfolio Characteristics
as of 12/31/19Inception Date (HFCGX) 11/1/96 Inception Date (HICGX) 3/3/08 Total Fund Assets $149 Million Active Share vs. Russell 2000® Index 97% Portfolio Turnover 97% Median Market Cap $2.8 Billion Median Price/Earnings 20.0x Median Price/Book 3.0x Median Price/Sales 1.1x Price/Earnings measures a stock’s price per share compared to earnings. Price/Book measures a stock’s price per share to book value. Price/Sales measures a stock’s price per share to revenue. Portfolio Turnover, Price/Earnings, and Price/Sales shown reflect the trailing 12-month period.
Sector Weighting
as of 12/31/19Fund Russell 2000® Index Difference Consumer Discretionary 21.6% 10.9% +10.7% Information Technology 20.0% 13.6% +6.4% Industrials 11.7% 15.8% -4.1% Financials 10.8% 17.7% -6.9% Health Care 9.0% 18.2% -9.2% Consumer Staples 7.9% 3.0% +4.9% Energy 5.4% 3.2% +2.2% Materials 5.2% 3.9% +1.3% Utilities 3.7% 3.7% 0.0% Communication Services 3.3% 2.3% +1.1% Real Estate 0.0% 7.8% -7.8% Cash & Other 1.5% Portfolio Holdings
Top 10 Holdings
as of 12/31/19Top 10 Holdings % of Net Assets Boot Barn Holdings, Inc. 2.8% Cannae Holdings, Inc. 2.7% World Fuel Services Corp. 2.7% Carvana Co. 2.7% CDW Corp. 2.6% FTI Consulting, Inc. 2.6% Rent-A-Center, Inc. 2.5% Aerojet Rocketdyne Holdings, Inc. 2.5% Tech Data Corp. 2.5% Dollar General Corp. 2.4% Total as % of Net Assets 25.8% Total Holdings: 50
as of 12/31/19Equity Holdings % of Net Assets Boot Barn Holdings, Inc. 2.8% Cannae Holdings, Inc. 2.7% World Fuel Services Corp. 2.7% Carvana Co. 2.7% CDW Corp. 2.6% FTI Consulting, Inc. 2.6% Rent-A-Center, Inc. 2.5% Aerojet Rocketdyne Holdings, Inc. 2.5% Tech Data Corp. 2.5% Dollar General Corp. 2.4% Performance Food Group Co. 2.4% R1 RCM, Inc. 2.4% LPL Financial Holdings, Inc. 2.3% Tenet Healthcare Corp. 2.3% Insight Enterprises, Inc. 2.3% Cardtronics, PLC. 2.3% America's Car-Mart, Inc. 2.3% Great Lakes Dredge & Dock Corp. 2.2% Booz Allen Hamilton Holding Co. 2.2% Brookfield Asset Management, Inc. 2.2% Costco Wholesale Corp. 2.2% Fabrinet 2.2% Stepan Co. 2.1% Canadian Solar, Inc. 2.1% Syneos Health, Inc. 2.1% OSI Systems, Inc. 2.0% AES Corp. 2.0% Live Nation Entertainment, Inc. 2.0% Deere & Co. 1.9% Sleep Number Corp. 1.9% Post Holdings, Inc. 1.9% Avid Technology, Inc. 1.8% Sonoco Products Co. 1.8% Progressive Corp. 1.8% CVR Energy, Inc. 1.8% Argo Group International Holdings 1.7% Genuine Parts Co. 1.7% NRG Energy, Inc. 1.7% Ensign Group, Inc. 1.6% Haverty Furniture Cos., Inc. 1.6% TreeHouse Foods, Inc. 1.4% Funko, Inc. 1.4% EW Scripps Co. 1.3% Core-Mark Holding Co., Inc. 1.3% Luxfer Holdings PLC 1.3% Warrior Met Coal, Inc. 1.3% Insperity, Inc. 1.2% K12, Inc. 1.1% ProPetro Holding Corp. 0.9% The Pennant Group, Inc. 0.6% Total as % of Net Assets 98.5% Cash & Other Holdings % of Net Assets Cash & Other 1.5% Total as % of Net Assets 1.5% Country Allocation
as of 12/31/19-
United States
89.0%
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Foreign
9.5%
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Cash & Other
1.5%
United States 89.0% Canada 4.3% Cayman Islands 2.2% Bermuda 1.7% United Kingdom 1.3% Cash & Other 1.5% -
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Distributions
The Hennessy Cornerstone Growth Fund pays capital gains (if any) once annually, usually in December. Ordinary income distributions (if any) are paid annually, usually in December.
Date Paid Income Short-Term Gain Long-Term Gain Total Per Share Reinvest Price 12/07/2018 -- -- $1.81640 $1.81640 $18.60 12/29/2015 $0.02018 -- -- $0.02018 $19.48 11/29/2007 -- -- $2.23953 $2.23953 $15.25 11/28/2006 -- -- $3.11146 $3.11146 $17.95 11/17/2005 -- $0.83227 $0.39919 $1.23146 $18.70 11/19/2004 -- -- $3.87642 $3.87642 $17.25 11/22/2002 -- $0.01221 $0.47171 $0.48392 $13.93 11/26/2001 -- $0.06809 $0.96207 $1.03016 $13.23 11/16/2000 -- $1.52830 $1.97550 $3.50380 $14.55 12/30/1997 -- $1.78100 -- $1.78100 $11.34 12/31/1996 $0.00300 -- -- $0.00300 $10.07 Past performance is not a guarantee of future results.
Download historical distributions and NAVsDate Paid Income Short-Term Gain Long-Term Gain Total Per Share Reinvest Price 12/07/2018 -- -- $1.87674 $1.87674 $19.20 12/29/2015 $0.05101 -- -- $0.05101 $19.91 Past performance is not a guarantee of future results.
Download historical distributions and NAVs -
Fund Documents
Download PDF View Online Fund Documents Cornerstone Growth Fund Fact Sheet Cornerstone Growth Fund Portfolio Manager Commentary View Cornerstone Growth Fund Summary Prospectus Full Prospectus Statement of Additional Information Shareholder Reports Cornerstone Growth Fund Semi-Annual Report Cornerstone Growth Fund Annual Report
