• Overview

    HFCGX
    Investor

    Hennessy Cornerstone Growth Fund

    Quantitatively managed, the Fund maintains a concentrated portfolio, which seeks growth at a reasonable price.

    Fund Facts

    Category

    Domestic Equity

    Inception Date

    11/1/96

    Morningstar style box

    Morningstar style box
    Portfolio Manager Commentary
    Portfolio Manager Commentary

    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 select 50 stocks with the highest 12-month price appreciation, which also meet the following criteria:

    1. Market capitalization exceeding $175 million
    2. Price to sales ratio below 1.5
    3. Annual earnings higher than the previous year
    4. Positive stock price appreciation over three- and six-month periods

    Portfolio Managers

    “The Fund marries value and momentum investing.”

    - Neil Hennessy

  • Insights & News

  • Performance

    Daily Pricing & Performance

    as of 3/21/19 (Investor)
    • Nav

      $19.14

    • $ Change

      $0.18

    • % Change

      0.95%

    • YTD

      10.38%

    Average Annualized Total Return

    as of 2/28/19 (Investor)
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (11/1/96)
    Cornerstone Growth Fund (HFCGX) 1.40% 12.69% -7.27% 5.55% 4.71% 11.38% 8.39%
    Russell 2000® Index 5.20% 17.03% 5.58% 16.67% 7.36% 16.60% 8.54%
    S&P 500® Index 3.21% 11.48% 4.68% 15.28% 10.67% 16.67% 8.38%

    Please swipe to view table

    as of 12/31/18 (Investor)
    Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (11/1/96)
    Cornerstone Growth Fund (HFCGX) -23.10% -21.22% -21.22% -0.15% 2.31% 8.09% 7.87%
    Russell 2000® Index -20.20% -11.01% -11.01% 7.36% 4.41% 11.97% 7.84%
    S&P 500® Index -13.52% -4.38% -4.38% 9.26% 8.49% 13.12% 7.91%

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    Hypothetical Growth of $10,000

    as of 2/28/2019 (Investor)

    Value of $10,000 invested between 2/28/2018 and 2/28/2019

    Cornerstone Growth Fund (HFCGX) $9,273
    Russell 2000® Index $10,558
    S&P 500® Index $10,468

    Value of $10,000 invested between 2/29/2016 and 2/28/2019

    Cornerstone Growth Fund (HFCGX) $11,759
    Russell 2000® Index $15,881
    S&P 500® Index $15,320

    Value of $10,000 invested between 2/28/2014 and 2/28/2019

    Cornerstone Growth Fund (HFCGX) $12,585
    Russell 2000® Index $14,264
    S&P 500® Index $16,600

    Value of $10,000 invested between 2/28/2009 and 2/28/2019

    Cornerstone Growth Fund (HFCGX) $29,371
    Russell 2000® Index $46,441
    S&P 500® Index $46,739

    Value of $10,000 invested between 11/1/1996 and 2/28/2019

    Cornerstone Growth Fund (HFCGX) $60,408
    Russell 2000® Index $62,362
    S&P 500® Index $60,271

    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

      2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
    Cornerstone Growth Fund (HFCGX)
    10.29 11.50 -10.78 30.31 35.89 13.82 -1.09 8.37 16.60 -21.22
    Russell 2000® Index
    27.17 26.85 -4.18 16.35 38.82 4.89 -4.41 21.31 14.65 -11.01
    S&P 500® Index
    26.46 15.06 2.11 16.00 32.39 13.69 1.38 11.96 21.83 -4.38
    Year
    Cornerstone Growth Fund (HFCGX)
    Russell 2000® Index
    S&P 500® Index
    2008 -43.69% -33.79% -37.00%
    2007 -2.18% -1.57% 5.49%
    2006 10.42% 18.37% 15.79%
    2005 11.96% 4.55% 4.91%
    2004 16.65% 18.33% 10.88%
    2003 45.82% 47.25% 28.68%
    2002 -4.71% -20.48% -22.10%
    2001 12.14% 2.49% -11.89%
    2000 5.30% -3.02% -9.10%
    1999 37.72% 21.26% 21.04%
    1998 3.67% -2.55% 28.58%
    1997 31.33% 22.36% 33.36%

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    Returns-Based Statistics
    Relative to Russell 2000® Index

    as of 12/31/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Alpha -6.17 -1.27 -1.85
    Beta 0.82 0.79 0.86
    Upside Capture 54.80 67.09 80.14
    Downside Capture 80.71 71.27 87.41

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    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 12/31/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Cornerstone Growth Fund (HFCGX) -0.01 0.18 0.50
    Russell 2000® Index 0.45 0.31 0.69
    Small Blend Category Average 0.38 0.24 0.68

    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 12/31/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Cornerstone Growth Fund (HFCGX) 14.88 13.81 17.98
    Russell 2000® Index 16.01 15.43 18.44
    Small Blend Category Average 14.79 14.12 17.55

    Standard deviation is a statistical measure of the historical volatility of a mutual fund or portfolio.

    Fund Expenses

    • Gross expense ratio

      1.30%

    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.

    Each Morningstar category average represents a universe of funds with similar objectives. The Morningstar Style Box reveals the fund's investment style as of 12/31/18. 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 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.

  • Portfolio

    Portfolio Characteristics

    as of 12/31/18
    Total Fund Assets $145.9 Million
    Active Share vs. Russell 2000® Index 98%
    Portfolio Turnover 140%
    Median Market Cap $1.7 Billion
    Median Price/Earnings 16.0x
    Median Price/Book 2.3x
    Median Price/Sales 0.5x

    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 12/31/18
    Fund Russell 2000® Index Difference
    Consumer Discretionary 28.5% 12.3% +16.3%
    Industrials 14.5% 14.8% -0.3%
    Health Care 12.7% 15.5% -2.8%
    Financials 9.2% 18.3% -9.1%
    Materials 8.3% 3.8% +4.6%
    Energy 8.3% 3.8% +4.5%
    Consumer Staples 7.2% 2.9% +4.3%
    Information Technology 5.8% 14.4% -8.6%
    Communication Services 2.3% 3.4% -1.1%
    Real Estate 0.0% 7.2% -7.2%
    Utilities 0.0% 3.7% -3.7%
    Cash & Other 3.2%

    Portfolio Holdings

    Top 10 Holdings

    as of 12/31/18
    Top 10 Holdings Ticker % of Net Assets
    Crocs, Inc. CROX 4.3%
    CVR Energy, Inc. CVI 3.8%
    Insperity, Inc. NSP 3.2%
    Burlington Stores, Inc. BURL 3.0%
    Verso Corp. VRS 2.8%
    Centene Corp. CNC 2.5%
    Anthem, Inc. ANTM 2.5%
    UnitedHealth Group, Inc. UNH 2.5%
    CBIZ, Inc. CBZ 2.4%
    The Chefs' Warehouse, Inc. CHEF 2.3%
    Total as % of Net Assets 29.3%

    Total Holdings: 50

    as of 12/31/18
    Equity Holdings Ticker % of Net Assets
    Crocs, Inc. CROX 4.3%
    CVR Energy, Inc. CVI 3.8%
    Insperity, Inc. NSP 3.2%
    Burlington Stores, Inc. BURL 3.0%
    Verso Corp. VRS 2.8%
    Centene Corp. CNC 2.5%
    Anthem, Inc. ANTM 2.5%
    UnitedHealth Group, Inc. UNH 2.5%
    CBIZ, Inc. CBZ 2.4%
    The Chefs' Warehouse, Inc. CHEF 2.3%
    Progressive Corp. PGR 2.3%
    Kohl's Corp. KSS 2.3%
    Comtech Telecommunications CMTL 2.3%
    Live Nation Entertainment, Inc. LYV 2.3%
    Regis Corp. RGS 2.3%
    Boot Barn Holdings, Inc. BOOT 2.2%
    AMN Healthcare Services, Inc. AMN 2.2%
    Nomad Foods Ltd. NOMD 2.2%
    Callaway Golf Co. ELY 2.2%
    ManTech International Corp. MANT 2.2%
    LPL Financial Holdings, Inc. LPLA 2.1%
    Providence Service Corp. PRSC 2.1%
    Renewable Energy Group, Inc. REGI 2.0%
    Sprouts Farmers Market, Inc. SFM 2.0%
    RH RH 1.9%
    PennyMac Financial Services, Inc. PFSI 1.9%
    HollyFrontier Corp. HFC 1.9%
    MasTec, Inc. MTZ 1.8%
    Warrior Met Coal, Inc. HCC 1.8%
    Best Buy Co., Inc. BBY 1.7%
    BJ's Restaurants, Inc. BJRI 1.6%
    ArcBest Corp. ARCB 1.6%
    Penn National Gaming, Inc. PENN 1.5%
    Carlyle Group LP CG 1.5%
    Turtle Beach Corp. HEAR 1.5%
    CNH Industria NV CNHI 1.4%
    Lear Corp. LEA 1.4%
    SPX FLOW, Inc. FLOW 1.4%
    KB Home KBH 1.4%
    BlueLinx Holdings, Inc. BXC 1.4%
    XPO Logistics, Inc. XPO 1.3%
    Unisys Corp. UIS 1.3%
    Noodles & Co. NDLS 1.3%
    EZCORP, Inc. EZPW 1.3%
    Huntsman Corp. HUN 1.3%
    Constellium NV CSTM 1.3%
    Boise Cascade Co. BCC 1.2%
    Endo International PLC ENDP 0.9%
    Pyxus International, Inc. PYX 0.7%
    Legacy Reserves, Inc. LGCY 0.6%
    Total as % of Net Assets 96.8%
    Cash & Other Holdings % of Net Assets
    Cash & Other 3.2%
    Total as % of Net Assets 3.2%

    Country Allocation

    as of 12/31/18
    • United States

      91.0%

    • Foreign

      5.8%

    • Cash & Other

      3.2%

    United States 91.0%
    Netherlands 2.7%
    Virgin Islands (British) 2.2%
    Ireland 0.9%
    Cash & Other 3.2%
  • 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

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    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