• Overview

    HFLGX
    Investor

    Hennessy Cornerstone Large Growth Fund

    Quantitatively managed, the Fund maintains a concentrated portfolio of large, growth-oriented companies.

    Fund Facts

    Category

    Domestic Equity

    Inception Date

    3/20/09

    Morningstar style box

    Morningstar style box

    Overall morningstar rating

    Based on risk-adjusted returns among 1109 Large Value funds, as of 9/30/18.

    Portfolio Manager Commentary
    Portfolio Manager Commentary

    Why Invest

    • Quantitatively-driven, repeatable investment process
    • Focus on large companies with high levels of profitability, trading at reasonable valuations 

    Investment Approach

    The Hennessy Cornerstone Large Growth Fund utilizes a quantitative formula to select 50 domestic, large stocks with the highest one-year return on capital, which also meet the following criteria:

    1. Market capitalization that exceeds the average of the S&P Capital IQ Database
    2. Price to cash flow ratio less than the median of the S&P Capital IQ Database
    3. Positive total capital

    Portfolio Managers

    • Neil J. Hennessy
      Portfolio Manager & Chief Investment Officer
      • 9
        Years on Fund
      • 39
        Years of Experience
    • Ryan Kelley
      Portfolio Manager
      • 1
        Year on Fund
      • 22
        Years of Experience

    “We believe that return on capital is the best way to assess how effective a company is at turning capital into profits.”

    - Neil Hennessy

  • Insights & News

  • Performance

    Daily Pricing & Performance

    as of 11/13/18 (Investor)
    • Nav

      $12.55

    • $ Change

      $0.01

    • % Change

      0.08%

    • YTD

      2.37%

    Average Annualized Total Return

    as of 10/31/18 (Investor)
    Name 1 Mo YTD 1 yr 3 yr 5 yr Since Inception (3/20/09)
    Cornerstone Large Growth Fund (HFLGX) -4.90% -0.16% 8.53% 8.82% 9.12% 15.53%
    Russell 1000® Index -7.08% 2.67% 6.98% 11.31% 11.05% 16.53%
    S&P 500 Index -6.84% 3.01% 7.35% 11.52% 11.34% 16.42%

    Please swipe to view table

    as of 9/30/18 (Investor)
    Name QTR YTD 1 yr 3 yr 5 yr Since Inception (3/20/09)
    Cornerstone Large Growth Fund (HFLGX) 5.84% 4.98% 13.63% 13.40% 11.15% 16.29%
    Russell 1000® Index 7.42% 10.49% 17.77% 17.07% 13.67% 17.59%
    S&P 500 Index 7.71% 10.56% 17.91% 17.31% 13.95% 17.44%

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    Hypothetical Growth of $10,000

    as of 10/31/2018 (Investor)

    Value of $10,000 invested between 10/31/2017 and 10/31/2018

    Cornerstone Large Growth Fund (HFLGX) $10,853
    Russell 1000® Index $10,698
    S&P 500 Index $10,735

    Value of $10,000 invested between 10/31/2015 and 10/31/2018

    Cornerstone Large Growth Fund (HFLGX) $12,887
    Russell 1000® Index $13,793
    S&P 500 Index $13,870

    Value of $10,000 invested between 10/31/2013 and 10/31/2018

    Cornerstone Large Growth Fund (HFLGX) $15,471
    Russell 1000® Index $16,891
    S&P 500 Index $17,111

    Value of $10,000 invested between 3/20/2009 and 10/31/2018

    Cornerstone Large Growth Fund (HFLGX) $40,068
    Russell 1000® Index $43,544
    S&P 500 Index $43,133

    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 Large Growth Fund (HFLGX) Russell 1000® Index S&P 500 Index
    2017 17.08% 21.69% 21.83%
    2016 14.69% 12.05% 11.96%
    2015 -6.60% 0.92% 1.38%
    2014 16.18% 13.24% 13.69%
    2013 33.79% 33.11% 32.39%
    2012 10.44% 16.42% 16.00%
    2011 2.59% 1.50% 2.11%
    2010 18.85% 16.10% 15.06%

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    Returns-Based Statistics
    Relative to Russell 1000® Index

    as of 9/30/18 (Investor)
    Type 3 yr 5 yr
    Alpha -2.67 -1.85
    Beta 0.98 0.98
    Upside Capture 75.88
    Downside Capture 64.88 85.36

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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
    Cornerstone Large Growth Fund (HFLGX) 1.10 0.98
    Russell 1000® Index 1.67 1.34
    Large Value Category Average 1.30 0.99

    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
    Cornerstone Large Growth Fund (HFLGX) 11.20 10.85
    Russell 1000® Index 9.21 9.56
    Large Value Category Average 9.25 9.52

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

    Fund Expenses

    • Gross expense ratio

      1.26%

    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 9/30/18. 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. The fund received 3 stars for the three-year and 4 stars for the five-year periods ended 9/30/18 among 1109 and 948 Large Value 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 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 Capital IQ Database is a robust source of data on the universe of publicly traded companies.

    Price to cash flow ratio is a stock valuation measure calculated by dividing a firm's cash flow per share into the current stock price.

    The Russell 1000 and S&P 500 are unmanaged indices commonly used to measure the performance of U.S. stocks. The Russell 1000 measures large-cap 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 $153.9 Million
    Active Share vs. Russell 1000® Index 89%
    Portfolio Turnover 72%
    Median Market Cap $34.2 Billion
    Median Price/Earnings 13.7x
    Median Price/Book 3.6x

    Price/Earnings measures a stock’s price per share compared to earnings. Price/Book measures a stock’s price per share to book value. Portfolio Turnover and Price/Earnings shown reflects the trailing 12-month period.

    Sector Weighting

    as of 9/30/18
    Sector % of Net Assets
    Industrials 20.8%
    Consumer Discretionary 18.7%
    Consumer Staples 15.5%
    Information Technology 13.9%
    Health Care 9.8%
    Communication Services 7.7%
    Materials 7.1%
    Financials 3.8%
    Cash & Other 2.7%

    Portfolio Holdings

    Top 10 Holdings

    as of 9/30/18
    Top 10 Holdings Ticker % of Net Assets
    HCA Healthcare, Inc. HCA 2.7%
    Centene Corp. CNC 2.6%
    CSX Corp. CSX 2.6%
    United Continental Holdings, Inc. UAL 2.6%
    Apple, Inc. AAPL 2.6%
    Express Scripts Holding Co. ESRX 2.4%
    Union Pacific Corp. UNP 2.4%
    Hewlett-Packard Co. HPQ 2.4%
    Target Corp. TGT 2.3%
    Kohl's Corp. KSS 2.3%
    Total as % of Net Assets 24.8%

    Total Holdings: 51

    as of 9/30/18
    Equity Holdings Ticker % of Net Assets
    HCA Healthcare, Inc. HCA 2.7%
    Centene Corp. CNC 2.6%
    CSX Corp. CSX 2.6%
    United Continental Holdings, Inc. UAL 2.6%
    Apple, Inc. AAPL 2.6%
    Express Scripts Holding Co. ESRX 2.4%
    Union Pacific Corp. UNP 2.4%
    Hewlett-Packard Co. HPQ 2.4%
    Target Corp. TGT 2.3%
    Kohl's Corp. KSS 2.3%
    Darden Restaurants, Inc. DRI 2.2%
    The Walt Disney Co. DIS 2.1%
    Best Buy Co., Inc. BBY 2.1%
    CVS Health Corp. CVS 2.1%
    Waste Management, Inc. WM 2.1%
    Delta Air Lines, Inc. DAL 2.1%
    Southwest Airlines Co. LUV 2.1%
    Allstate Corp. ALL 2.0%
    CBS Corp. CBS 2.0%
    Micron Technology, Inc. MU 2.0%
    The Kroger Co. KR 2.0%
    Verizon Communications, Inc. VZ 2.0%
    Walgreens Boots Alliance, Inc. WBA 2.0%
    Intel Corp. INTC 2.0%
    AutoZone, Inc. AZO 2.0%
    Starbucks Corp. SBUX 1.9%
    Steel Dynamics, Inc. STLD 1.9%
    FedEx Corp. FDX 1.9%
    Kimberly-Clark Corp. KMB 1.9%
    Nucor Corp. NUE 1.9%
    IBM Corp. IBM 1.9%
    PACCAR, Inc. PCAR 1.9%
    Eastman Chemical Co. EMN 1.8%
    Conagra Brands, Inc. CAG 1.8%
    Deere & Co. DE 1.8%
    Ameriprise Financial, Inc. AMP 1.8%
    Walmart, Inc. WMT 1.8%
    Altria Group, Inc. MO 1.7%
    Gap, Inc. GPS 1.7%
    Lam Research Corp. LRCX 1.6%
    Omnicom Group, Inc. OMC 1.6%
    American Airlines Group, Inc. AAL 1.5%
    General Motors Co. GM 1.5%
    Tyson Foods, Inc. TSN 1.5%
    Freeport-McMoRan, Inc. FCX 1.5%
    Campbell Soup Co. CPB 1.5%
    General Mills, Inc. GIS 1.5%
    Applied Materials, Inc. AMAT 1.5%
    L Brands, Inc. LB 1.2%
    Wyndham Hotels & Resorts, Inc. WH 0.9%
    Wyndham Destinations, Inc WYND 0.7%
    Total as % of Net Assets 97.3%
    Cash & Other Holdings % of Net Assets
    Cash & Other 2.7%
    Total as % of Net Assets 2.7%

    Country Allocation

    as of 9/30/18
    • United States

      97.3%

    • Cash & Other

      2.7%

    United States 97.3%
    Cash & Other 2.7%
  • Distributions

    The Hennessy Cornerstone Large 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
    12/27/2017 $0.07705 -- -- $0.07705 $12.33
    12/07/2017 -- $0.01724 $0.40932 $0.42656 $12.05
    12/28/2016 $0.12393 -- -- $0.12393 $10.98
    12/29/2015 $0.15914 -- -- $0.15914 $9.78
    12/09/2015 -- -- $2.73419 $2.73419 $9.86
    12/31/2014 $0.14224 -- -- $0.14224 $13.37
    12/08/2014 -- -- $2.23720 $2.23720 $13.35
    12/31/2013 $0.14574 -- -- $0.14574 $13.58
    12/10/2013 -- $0.00147 $0.67490 $0.67637 $13.33
    12/31/2012 $0.10383 -- -- $0.10383 $10.78
    12/07/2012 -- -- $0.01678 $0.01678 $10.79
    12/27/2011 $0.07380 -- -- $0.07380 $9.96
    12/05/2011 -- -- $2.46063 $2.46063 $10.07
    12/30/2010 $0.09412 -- -- $0.09412 $12.07
    12/02/2010 -- -- $0.01631 $0.01631 $12.00
    12/29/2009 $0.04948 -- -- $0.04948 $10.33

    Please swipe to view table

    Past performance is not a guarantee of future results.

    Download historical distributions and NAVs
  • Fund Documents

    Download PDF View Online
    Fund Documents
    Cornerstone Large Growth Fund Fact Sheet
    Cornerstone Large Growth Fund Portfolio Manager Commentary View
    Cornerstone Large Growth Fund Summary Prospectus
    Full Prospectus
    Statement of Additional Information
    Shareholder Reports
    Cornerstone Large Growth Fund Semi-Annual Report
    Cornerstone Large Growth Fund Annual Report