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Overview
Hennessy Focus Fund
Actively managed, the Fund maintains a highly concentrated, best ideas portfolio.
Investment Overview VideoFocus Fund Investment Strategy
Portfolio Managers David Rainey, Brian Macauley, and Ira Rothberg, discuss the Fund's concentrated, best-ideas investment strategy.
Why Invest
- Highly concentrated portfolio of approximately 20 exceptional investment ideas, conviction weighted with 60-80% of assets in the top 10
- In-depth, rigorous research process developed by a management team who has worked together for over a decade
- Expectation to hold companies five to 10 years or longer, leading to low portfolio turnover
Investment Approach
The Hennessy Focus Fund seeks to identify secular growth businesses that have the potential to produce a sustained mid-teens or higher rate of earnings growth, purchased at a mid-teens or lower multiple of earnings.
The Portfolio Managers employ independent, fundamental research, with a primary focus on five key investment criteria:
- High-Quality Business
- Large Growth Opportunity
- Excellent Management
- Low "Tail Risk"
- Discount Valuation
Portfolio Managers
The Fund is sub-advised by Broad Run Investment Management, LLC, an independent, employee-owned investment adviser headquartered in Arlington, Virginia.
“Simply put, we seek to own a small collection of truly great businesses.”
- David Rainey
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Insights & News
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Performance
Daily Pricing & Performance
as of 7/10/20-
Investor Class (HFCSX)
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NAV
$71.19
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$ Change
$0.88
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% Change
1.25%
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YTD
-10.39%
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Institutional Class (HFCIX)
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NAV
$73.64
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$ Change
$0.91
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% Change
1.25%
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YTD
-10.23%
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Average Annualized Total Return
as of 6/30/20Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Investor Class (HFCSX) 4.40% -9.54% -1.06% 6.53% 6.47% 13.03% 12.29% Institutional Class (HFCIX) 4.45% -9.39% -0.71% 6.91% 6.87% 13.41% 12.49% Russell 3000® Index 2.29% -3.48% 6.53% 10.04% 10.03% 13.72% 8.33% Russell Midcap® Growth Index 2.34% 4.16% 11.91% 14.76% 11.60% 15.09% 9.35% as of 6/30/20Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Investor Class (HFCSX) 29.66% -9.54% -1.06% 6.53% 6.47% 13.03% 12.29% Institutional Class (HFCIX) 29.79% -9.39% -0.71% 6.91% 6.87% 13.41% 12.49% Russell 3000® Index 22.03% -3.48% 6.53% 10.04% 10.03% 13.72% 8.33% Russell Midcap® Growth Index 30.26% 4.16% 11.91% 14.76% 11.60% 15.09% 9.35% Hypothetical Growth of $10,000
as of 6/30/2020Value of $10,000 invested between 6/30/2019 and 6/30/2020
Focus Fund (HFCSX) $9,894 Focus Fund (HFCIX) $9,929 Russell 3000® Index $10,653 Russell Midcap® Growth Index $11,191 Value of $10,000 invested between 6/30/2017 and 6/30/2020
Focus Fund (HFCSX) $12,089 Focus Fund (HFCIX) $12,221 Russell 3000® Index $13,326 Russell Midcap® Growth Index $15,113 Value of $10,000 invested between 6/30/2015 and 6/30/2020
Focus Fund (HFCSX) $13,684 Focus Fund (HFCIX) $13,941 Russell 3000® Index $16,130 Russell Midcap® Growth Index $17,311 Value of $10,000 invested between 6/30/2010 and 6/30/2020
Focus Fund (HFCSX) $34,042 Focus Fund (HFCIX) $35,200 Russell 3000® Index $36,180 Russell Midcap® Growth Index $40,780 Value of $10,000 invested between 1/3/1997 and 6/30/2020
Focus Fund (HFCSX) $152,259 Focus Fund (HFCIX) $158,726 Russell 3000® Index $65,425 Russell Midcap® Growth Index $81,681 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 (HFCSX) 24.55 3.63 16.64 35.33 10.20 2.88 7.16 19.27 -10.47 34.86 Institutional Class (HFCIX) 24.79 3.97 16.98 35.70 10.55 3.25 7.55 19.71 -10.12 35.34 Russell 3000® Index 16.93 1.03 16.42 33.55 12.56 0.48 12.74 21.13 -5.24 31.02 Russell Midcap® Growth Index 26.38 -1.65 15.81 35.74 11.90 -0.20 7.33 25.27 -4.75 35.47 Year Investor Class (HFCSX) Institutional Class (HFCIX) Russell 3000® Index Russell Midcap® Growth Index 2009 34.80% 35.70% 28.34% 46.29% 2008 -33.85% -33.81% -37.31% -44.32% 2007 2.30% 2.30% 5.14% 11.43% 2006 28.49% 28.49% 15.72% 10.66% 2005 2.32% 2.32% 6.12% 12.10% 2004 30.65% 30.65% 11.95% 15.48% 2003 45.77% 45.77% 31.06% 42.71% 2002 2.63% 2.63% -21.54% -27.41% 2001 32.63% 32.63% -11.46% -20.15% 2000 -8.79% -8.79% -7.46% -11.75% 1999 19.62% 19.62% 20.90% 51.29% 1998 -3.52% -3.52% 24.14% 17.86% Returns-Based Statistics
Relative to Russell 3000® Indexas of 6/30/20Investor Class (HFCSX)Type 3 yr 5 yr 10 yr Alpha -3.61 -3.71 -0.85 Beta 1.15 1.11 1.04 Upside Capture 95.96 90.90 92.75 Downside Capture 111.15 107.07 90.53 Institutional Class (HFCIX)Type 3 yr 5 yr 10 yr Alpha -3.25 -3.34 -0.53 Beta 1.15 1.11 1.05 Upside Capture 96.93 92.04 93.82 Downside Capture 110.66 106.45 90.01 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 6/30/20Type 3 yr 5 yr 10 yr Investor Class (HFCSX) 0.33 0.38 0.81 Institutional Class (HFCIX) 0.34 0.40 0.83 Russell 3000® Index 0.53 0.63 0.95 Mid-Cap Growth Category Average 0.59 0.54 0.80 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 6/30/20Type 3 yr 5 yr 10 yr Investor Class (HFCSX) 22.13 18.44 16.02 Institutional Class (HFCIX) 22.14 18.44 16.05 Russell 3000® Index 17.69 15.36 13.96 Mid-Cap Growth Category Average 20.18 17.46 16.01 Standard deviation is a statistical measure of the historical volatility of a mutual fund or portfolio.
Fund Expenses
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Investor Class (HFCSX)
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Gross expense ratio
1.47%
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Institutional Class (HFCIX)
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Gross expense ratio
1.12%
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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 6/30/20. 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 558, 500 and 381 Mid-Cap Growth 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 6/30/20. 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 / HFCIX prior to 5/30/08 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 performance shown for periods prior to 10/26/12 is that of the predecessor FBR Fund.
The Russell 3000® Index is an unmanaged index commonly used to measure the performance of U.S. stocks. The Russell Midcap® Growth Index is an unmanaged index commonly used to measure the performance of U.S. medium-capitalization growth 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 6/30/20Inception Date (HFCSX) 1/3/97 Inception Date (HFCIX) 5/30/08 Total Fund Assets $1.2 Billion Active Share vs. Russell 3000® Index 99% Portfolio Turnover 5% Median Market Cap $13.6 Billion Median Price/Earnings 21.6x Median Price/Book 3.3x 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 reflect the trailing 12-month period.
Sector Weighting
as of 6/30/20Fund Russell 3000® Index Difference Financials 38.0% 10.3% +27.6% Consumer Discretionary 26.3% 11.7% +14.7% Industrials 19.7% 8.7% +11.0% Real Estate 9.5% 3.6% +6.0% Information Technology 5.0% 26.6% -21.6% Utilities 0.0% 2.9% -2.9% Materials 0.0% 2.7% -2.7% Health Care 0.0% 14.9% -14.9% Consumer Staples 0.0% 6.2% -6.2% Energy 0.0% 2.5% -2.5% Communication Services 0.0% 10.0% -10.0% Cash & Other 1.6% Portfolio Holdings
Top 10 Holdings
as of 6/30/20Top 10 Holdings % of Net Assets O'Reilly Automotive, Inc. 9.6% American Tower Corp. 9.5% Brookfield Asset Management, Inc. 9.4% CarMax, Inc. 9.2% Markel Corp. 8.6% Encore Capital Group, Inc. 8.5% American Woodmark Corp. 7.9% Aon PLC 7.4% NVR, Inc. 5.4% Ashtead Group, PLC 5.2% Total as % of Net Assets 80.7% Total Holdings: 18
as of 6/30/20Equity Holdings % of Net Assets O'Reilly Automotive, Inc. 9.6% American Tower Corp. 9.5% Brookfield Asset Management, Inc. 9.4% CarMax, Inc. 9.2% Markel Corp. 8.6% Encore Capital Group, Inc. 8.5% American Woodmark Corp. 7.9% Aon PLC 7.4% NVR, Inc. 5.4% Ashtead Group, PLC 5.2% SS&C Technologies Holdings, Inc. 5.0% Hexcel Corp. 4.3% The Charles Schwab Corp. 3.3% RH 2.2% Fastenal Co. 1.0% AMETEK, Inc. 1.0% Marlin Business Services Corp. 0.7% Mistras Group, Inc. 0.3% Total as % of Net Assets 98.4% Cash & Other Holdings % of Net Assets Cash & Other 1.6% Total as % of Net Assets 1.6% Country Allocation
as of 6/30/20-
United States
76.5%
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Foreign
22.0%
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Cash & Other
1.6%
United States 76.5% United Kingdom 12.6% Canada 9.4% Cash & Other 1.6% -
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Distributions
The Hennessy Focus Fund pays capital gains (if any) once annually, usually in December. Ordinary income distributions (if any) are paid annually, usually in late December.
Date Paid Income Short-Term Gain Long-Term Gain Total Per Share Reinvest Price 12/06/2019 -- -- $8.56199 $8.56199 $80.23 12/07/2018 -- -- $14.47031 $14.47031 $67.71 12/07/2017 -- -- $0.00534 $0.00534 $87.76 12/09/2015 -- -- $0.13953 $0.13953 $70.33 12/31/2014 $0.01684 -- -- $0.01684 $67.35 12/08/2014 -- $0.12621 $5.11315 $5.23936 $65.89 12/10/2013 -- -- $1.06512 $1.06512 $64.42 12/07/2012 -- -- $4.32119 $4.32119 $49.36 12/15/2011 -- -- $5.24345 $5.24345 $44.72 12/15/2010 -- -- $1.72061 $1.72061 $49.14 12/16/2008 -- -- $5.19180 $5.19180 $30.11 12/31/2007 $0.12018 -- -- $0.12018 $54.45 12/14/2007 -- $0.02147 $0.48914 $0.51061 $53.60 12/15/2006 -- -- $0.12387 $0.12387 $52.62 07/31/2006 -- -- $0.05348 $0.05348 $44.47 12/16/2005 -- -- $0.71639 $0.71639 $42.02 10/31/2005 -- -- $0.00384 $0.00384 $40.36 12/17/2004 -- $0.34281 $0.22818 $0.57099 $40.66 12/17/2003 -- -- $0.02779 $0.02779 $31.75 12/20/2001 -- -- $0.16925 $0.16925 $21.12 12/20/2000 -- -- $0.64495 $0.64495 $15.56 12/11/1998 -- $0.21190 $0.22240 $0.43430 $14.30 12/12/1997 -- $0.48740 -- $0.48740 $16.54 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 12/06/2019 -- -- $8.83830 $8.83830 $82.82 12/07/2018 -- -- $14.98779 $14.98779 $69.66 12/07/2017 -- -- $0.00549 $0.00549 $90.04 12/09/2015 -- -- $0.14191 $0.14191 $71.63 12/31/2014 $0.04974 -- -- $0.04974 $68.36 12/08/2014 -- $0.12815 $5.19208 $5.32023 $66.90 12/10/2013 -- -- $1.06512 $1.06512 $65.20 12/07/2012 -- -- $4.32119 $4.32119 $49.80 12/15/2011 -- -- $5.24345 $5.24345 $44.96 12/15/2010 -- -- $1.72061 $1.72061 $49.23 12/31/2009 $0.02053 -- -- $0.02053 $2.30 12/16/2008 -- -- $5.19180 $5.19180 $1.68 Past performance is not a guarantee of future results.
Download historical distributions and NAVs -
Fund Documents
Download PDF View Online Fund Documents Focus Fund Fact Sheet Focus Fund Portfolio Perspective View Portfolio Updates Focus Fund Portfolio Update - April 2020 View Shareholder Reports Focus Fund Summary Prospectus Full Prospectus Statement of Additional Information Focus Fund Semi-Annual Report Focus Fund Annual Report
