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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 3/3/21-
Investor Class (HFCSX)
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NAV
$64.57
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$ Change
-$0.38
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% Change
-0.59%
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YTD
4.91%
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Institutional Class (HFCIX)
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NAV
$66.96
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$ Change
-$0.40
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% Change
-0.59%
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YTD
4.97%
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Average Annualized Total Return
as of 2/28/21Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Investor Class (HFCSX) 6.82% 4.13% 16.23% 10.41% 12.19% 11.95% 12.84% Institutional Class (HFCIX) 6.85% 4.19% 16.66% 10.81% 12.61% 12.33% 13.04% Russell 3000® Index 3.13% 2.67% 35.33% 14.97% 17.41% 13.44% 9.22% Russell Midcap® Growth Index 1.71% 1.37% 46.25% 20.11% 20.49% 14.52% 10.34% as of 12/31/20Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Investor Class (HFCSX) 10.69% 5.49% 5.49% 8.40% 10.24% 11.68% 12.74% Institutional Class (HFCIX) 10.80% 5.88% 5.88% 8.80% 10.65% 12.07% 12.94% Russell 3000® Index 14.68% 20.89% 20.89% 14.49% 15.43% 13.79% 9.16% Russell Midcap® Growth Index 19.02% 35.59% 35.59% 20.50% 18.66% 15.04% 10.35% Hypothetical Growth of $10,000
as of 2/28/2021Value of $10,000 invested between 2/29/2020 and 2/28/2021
Focus Fund (HFCSX) $11,623 Focus Fund (HFCIX) $11,666 Russell 3000® Index $13,533 Russell Midcap® Growth Index $14,625 Value of $10,000 invested between 2/28/2018 and 2/28/2021
Focus Fund (HFCSX) $13,458 Focus Fund (HFCIX) $13,606 Russell 3000® Index $15,197 Russell Midcap® Growth Index $17,329 Value of $10,000 invested between 2/29/2016 and 2/28/2021
Focus Fund (HFCSX) $17,777 Focus Fund (HFCIX) $18,108 Russell 3000® Index $22,307 Russell Midcap® Growth Index $25,399 Value of $10,000 invested between 2/28/2011 and 2/28/2021
Focus Fund (HFCSX) $30,915 Focus Fund (HFCIX) $31,989 Russell 3000® Index $35,294 Russell Midcap® Growth Index $38,793 Value of $10,000 invested between 1/3/1997 and 2/28/2021
Focus Fund (HFCSX) $184,896 Focus Fund (HFCIX) $193,235 Russell 3000® Index $84,124 Russell Midcap® Growth Index $107,783 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
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Investor Class (HFCSX) 3.63 16.64 35.33 10.20 2.88 7.16 19.27 -10.47 34.86 5.49 Institutional Class (HFCIX) 3.97 16.98 35.70 10.55 3.25 7.55 19.71 -10.12 35.34 5.88 Russell 3000® Index 1.03 16.42 33.55 12.56 0.48 12.74 21.13 -5.24 31.02 20.89 Russell Midcap® Growth Index -1.65 15.81 35.74 11.90 -0.20 7.33 25.27 -4.75 35.47 35.59 Year Investor Class (HFCSX) Institutional Class (HFCIX) Russell 3000® Index Russell Midcap® Growth Index 2010 24.55% 24.79% 16.93% 26.38% 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 12/31/20Investor Class (HFCSX)Type 3 yr 5 yr 10 yr Alpha -6.23 -5.63 -2.21 Beta 1.13 1.11 1.05 Upside Capture 95.13 90.99 90.80 Downside Capture 118.20 114.70 96.54 Institutional Class (HFCIX)Type 3 yr 5 yr 10 yr Alpha -5.86 -5.26 -1.87 Beta 1.13 1.11 1.05 Upside Capture 95.88 91.99 91.77 Downside Capture 117.65 114.08 95.78 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 12/31/20Type 3 yr 5 yr 10 yr Investor Class (HFCSX) 0.40 0.55 0.73 Institutional Class (HFCIX) 0.42 0.57 0.75 Russell 3000® Index 0.71 0.91 0.94 Mid-Cap Growth Category Average 0.84 0.91 0.82 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 12/31/20Type 3 yr 5 yr 10 yr Investor Class (HFCSX) 24.02 19.26 16.24 Institutional Class (HFCIX) 24.03 19.26 16.24 Russell 3000® Index 19.69 16.02 14.14 Mid-Cap Growth Category Average 21.98 18.15 16.11 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
1.51%
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Institutional Class (HFCIX)
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Gross expense ratio
1.14%
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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 12/31/20. 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 564, 504 and 383 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 12/31/20. 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 12/31/20Inception Date (HFCSX) 1/3/97 Inception Date (HFCIX) 5/30/08 Total Fund Assets $1.1 Billion Active Share vs. Russell 3000® Index 99% Portfolio Turnover 5% Median Market Cap $15.3 Billion Median Price/Earnings 27.7x Median Price/Book 4.0x 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 12/31/20Fund Russell 3000® Index Difference Financials 37.0% 10.7% +26.3% Consumer Discretionary 28.3% 12.4% +15.9% Industrials 18.8% 9.3% +9.5% Real Estate 9.2% 3.2% +6.0% Information Technology 6.2% 27.1% -20.9% Utilities 0.0% 2.7% -2.7% Materials 0.0% 2.8% -2.8% Health Care 0.0% 14.0% -14.0% Consumer Staples 0.0% 5.9% -5.9% Energy 0.0% 2.1% -2.1% Communication Services 0.0% 9.9% -9.9% Cash & Other 0.5% Portfolio Holdings
Top 10 Holdings
as of 12/31/20% of Net Assets Top 10 Holdings Ticker Current Vs. 3Q20 Vs. 4Q19 10-Year Holdings History (%) Time Held O'Reilly Automotive, Inc. ORLY 9.90% -0.16% +0.40% 16 Years Brookfield Asset Management, Inc. BAM 9.86% +0.07% +0.37% 7 Years American Tower Corp. AMT 9.18% -0.05% -0.44% 22 Years Markel Corp. MKL 9.12% +0.41% +1.49% 23 Years Encore Capital Group, Inc. ECPG 8.78% -0.20% +2.94% 13 Years CarMax, Inc. KMX 8.73% +0.53% -0.53% 18 Years Aon PLC AON 8.10% +0.05% +8.10% < 1 Year American Woodmark Corp. AMWD 6.38% -1.14% -1.21% 17 Years NVR, Inc. NVR 5.39% -0.23% +0.20% 3 Years SS&C Technologies Holdings, Inc. SSNC 5.02% +0.07% +2.70% 1 Year Total as % of Net Assets 80.46% Total Holdings: 18
as of 12/31/20% of Net Assets Equity Holdings Current Vs. 3Q20 Vs. 4Q19 10-Year Holdings History (%) Time Held O'Reilly Automotive, Inc. 9.90% -0.16% +0.40% 16 Years Brookfield Asset Management, Inc. 9.86% +0.07% +0.37% 7 Years American Tower Corp. 9.18% -0.05% -0.44% 22 Years Markel Corp. 9.12% +0.41% +1.49% 23 Years Encore Capital Group, Inc. 8.78% -0.20% +2.94% 13 Years CarMax, Inc. 8.73% +0.53% -0.53% 18 Years Aon PLC 8.10% +0.05% +8.10% < 1 Year American Woodmark Corp. 6.38% -1.14% -1.21% 17 Years NVR, Inc. 5.39% -0.23% +0.20% 3 Years SS&C Technologies Holdings, Inc. 5.02% +0.07% +2.70% 1 Year Ashtead Group, PLC 4.58% -0.04% -0.08% 2 Years RH 4.29% +0.86% +4.29% < 1 Year Hexcel Corp. 3.98% +0.86% -0.69% 6 Years Allegiant Travel Co. 1.88% +0.90% +1.88% < 1 Year Fastenal Co. 1.28% +0.17% +1.28% < 1 Year CDW Corp. 1.15% +1.15% +1.15% < 1 Year Marlin Business Services Corp. 1.14% +0.53% -0.05% 9 Years Mistras Group, Inc. 0.69% +0.36% -0.05% 7 Years Total as % of Net Assets 99.5% Cash & Other Holdings % of Net Assets Cash & Other 0.5% Total as % of Net Assets 0.5% Country Allocation
as of 12/31/20-
United States
76.9%
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International
22.6%
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Cash & Other
0.5%
United States 76.9% United Kingdom 12.7% Canada 9.9% Cash & Other 0.5% -
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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 12/08/2020 -- -- $22.03448 $22.03448 $60.94 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 12/08/2020 -- -- $22.82989 $22.82989 $63.14 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 - January 2021 View Focus Fund Portfolio Update - October 2020 View Focus Fund Portfolio Update - July 2020 View 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
