• 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 Approach

    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, or relative strength, over three- and six-month periods

    Portfolio Managers

    • Neil J. Hennessy
      Portfolio Manager & Chief Investment Officer
      • 18
        Years on Fund
      • 39
        Years of Experience
    • Ryan Kelley
      Portfolio Manager
      • 1
        Year on Fund
      • 22
        Years of Experience

    “The Fund marries value and momentum investing.”

    - Neil Hennessy

  • Insights & News

  • Performance

    Daily Pricing & Performance

    as of 10/18/18 (Investor)
    • Nav

      $23.21

    • $ Change

      -$0.34

    • % Change

      -1.44%

    • YTD

      -3.93%

    Average Annualized Total Return

    as of 9/30/18 (Investor)
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (11/1/96)
    Cornerstone Growth Fund (HFCGX) -1.32% 2.44% 6.18% 9.14% 10.42% 8.20% 9.27%
    Russell 2000® Index -2.41% 11.51% 15.24% 17.12% 11.07% 11.11% 9.05%
    S&P 500 Index 0.57% 10.56% 17.91% 17.31% 13.95% 11.97% 8.72%

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    as of 9/30/18 (Investor)
    Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (11/1/96)
    Cornerstone Growth Fund (HFCGX) 3.64% 2.44% 6.18% 9.14% 10.42% 8.20% 9.27%
    Russell 2000® Index 3.58% 11.51% 15.24% 17.12% 11.07% 11.11% 9.05%
    S&P 500 Index 7.71% 10.56% 17.91% 17.31% 13.95% 11.97% 8.72%

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    Hypothetical Growth of $10,000

    as of 9/30/2018 (Investor)

    Value of $10,000 invested between 9/30/2017 and 9/30/2018

    Cornerstone Growth Fund (HFCGX) $10,618
    Russell 2000® Index $11,524
    S&P 500 Index $11,791

    Value of $10,000 invested between 9/30/2015 and 9/30/2018

    Cornerstone Growth Fund (HFCGX) $12,999
    Russell 2000® Index $16,066
    S&P 500 Index $16,143

    Value of $10,000 invested between 9/30/2013 and 9/30/2018

    Cornerstone Growth Fund (HFCGX) $16,419
    Russell 2000® Index $16,906
    S&P 500 Index $19,210

    Value of $10,000 invested between 9/30/2008 and 9/30/2018

    Cornerstone Growth Fund (HFCGX) $21,984
    Russell 2000® Index $28,686
    S&P 500 Index $30,962

    Value of $10,000 invested between 11/1/1996 and 9/30/2018

    Cornerstone Growth Fund (HFCGX) $69,707
    Russell 2000® Index $66,775
    S&P 500 Index $62,516

    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

    Year Cornerstone Growth Fund (HFCGX) Russell 2000® Index S&P 500 Index
    2017 16.60% 14.65% 21.83%
    2016 8.37% 21.31% 11.96%
    2015 -1.09% -4.41% 1.38%
    2014 13.82% 4.89% 13.69%
    2013 35.89% 38.82% 32.39%
    2012 30.31% 16.35% 16.00%
    2011 -10.78% -4.18% 2.11%
    2010 11.50% 26.85% 15.06%
    2009 10.29% 27.17% 26.46%
    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 9/30/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Alpha -3.63 1.75 -1.17
    Beta 0.77 0.77 0.87
    Upside Capture 59.99 76.62 82.48
    Downside Capture 68.76 63.71 87.11

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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 9/30/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Cornerstone Growth Fund (HFCGX) 0.71 0.84 0.50
    Russell 2000® Index 1.21 0.81 0.63
    Small Blend Category Average 1.12 0.76 0.61

    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 9/30/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Cornerstone Growth Fund (HFCGX) 12.04 12.01 18.88
    Russell 2000® Index 13.11 13.47 19.39
    Small Blend Category Average 12.11 12.29 18.64

    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 9/30/18. 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 9/30/18
    Total Fund Assets $201.5 Million
    Active Share vs. Russell 2000® Index 98%
    Portfolio Turnover 123%
    Median Market Cap $2.3 Billion
    Median Price/Earnings 19.7x
    Median Price/Book 3.1x
    Median Price/Sales 0.8x

    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 and Price/Earnings shown reflects the trailing 12-month period.

    Sector Weighting

    as of 9/30/18
    Sector % of Net Assets
    Consumer Discretionary 27.4%
    Industrials 16.0%
    Health Care 11.2%
    Materials 11.1%
    Financials 11.0%
    Energy 8.0%
    Consumer Staples 6.2%
    Information Technology 4.9%
    Communication Services 2.1%
    Cash & Other 2.1%

    Portfolio Holdings

    Top 10 Holdings

    as of 9/30/18
    Top 10 Holdings Ticker % of Net Assets
    CVR Energy, Inc. CVI 3.6%
    Verso Corp. VRS 3.4%
    Insperity, Inc. NSP 3.2%
    Boot Barn Holdings, Inc. BOOT 3.0%
    Crocs, Inc. CROX 2.8%
    Callaway Golf Co. ELY 2.8%
    Comtech Telecommunications CMTL 2.8%
    Centene Corp. CNC 2.6%
    Burlington Stores, Inc. BURL 2.4%
    CBIZ, Inc. CBZ 2.4%
    Total as % of Net Assets 28.8%

    Total Holdings: 49

    as of 9/30/18
    Equity Holdings Ticker % of Net Assets
    CVR Energy, Inc. CVI 3.6%
    Verso Corp. VRS 3.4%
    Insperity, Inc. NSP 3.2%
    Boot Barn Holdings, Inc. BOOT 3.0%
    Crocs, Inc. CROX 2.8%
    Callaway Golf Co. ELY 2.8%
    Comtech Telecommunications CMTL 2.8%
    Centene Corp. CNC 2.6%
    Burlington Stores, Inc. BURL 2.4%
    CBIZ, Inc. CBZ 2.4%
    Enova International, Inc. ENVA 2.3%
    Regis Corp. RGS 2.2%
    Progressive Corp. PGR 2.2%
    XPO Logistics, Inc. XPO 2.2%
    Penn National Gaming, Inc. PENN 2.2%
    The Chefs' Warehouse, Inc. CHEF 2.2%
    Nomad Foods Ltd. NOMD 2.1%
    Anthem, Inc. ANTM 2.1%
    ManTech International Corp. MANT 2.1%
    UnitedHealth Group, Inc. UNH 2.1%
    Kohl's Corp. KSS 2.1%
    HollyFrontier Corp. HFC 2.1%
    Live Nation Entertainment, Inc. LYV 2.1%
    Best Buy Co., Inc. BBY 2.0%
    SPX FLOW, Inc. FLOW 2.0%
    Providence Service Corp. PRSC 1.9%
    Sprouts Farmers Market, Inc. SFM 1.9%
    ArcBest Corp. ARCB 1.8%
    Noodles & Co. NDLS 1.8%
    LPL Financial Holdings, Inc. LPLA 1.8%
    Constellium NV CSTM 1.8%
    Carlyle Group LP CG 1.8%
    AMN Healthcare Services, Inc. AMN 1.7%
    RH RH 1.7%
    Turtle Beach Corp. HEAR 1.7%
    Warrior Met Coal, Inc. HCC 1.6%
    MasTec, Inc. MTZ 1.6%
    PennyMac Financial Services, Inc. PFSI 1.5%
    CNH Industria NV CNHI 1.5%
    Boise Cascade Co. BCC 1.5%
    Legacy Reserves, Inc. LGCY 1.5%
    EZCORP, Inc. EZPW 1.4%
    Huntsman Corp. HUN 1.4%
    BlueLinx Holdings, Inc. BXC 1.4%
    KB Home KBH 1.4%
    Schnitzer Steel Industries, Inc. SCHN 1.4%
    Lear Corp. LEA 1.4%
    Pioneer Energy Services Corp. PES 0.9%
    Triple-S Management Corp. GTS 0.9%
    Total as % of Net Assets 97.8%
    Cash & Other Holdings % of Net Assets
    Cash & Other 2.1%
    Total as % of Net Assets 2.1%

    Country Allocation

    as of 9/30/18
    • United States

      91.6%

    • Foreign

      6.3%

    • Cash & Other

      2.1%

    United States 91.6%
    Netherlands 3.3%
    Virgin Islands (British) 2.1%
    Puerto Rico 0.9%
    Cash & Other 2.1%
  • 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
    12/29/2015 $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