Hennessy Focus Fund
Investor
HFCSX
Institutional
HFCIX
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  • Overview

    Category
    Domestic Equity

    Hennessy Focus Fund

    Actively managed, the Fund maintains a highly concentrated, best ideas portfolio.

    Investor

    HFCSX

    Institutional

    HFCIX

    Documents

    Morningstar style box

    Morningstar style box
    Investment Overview Video
    Investment Overview Video

    Focus 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 nearly two decades
    • 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:

    1. High-Quality Business
    2. Large Growth Opportunity
    3. Excellent Management
    4. Low "Tail Risk"
    5. 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 10/15/21
    • Investor Class (HFCSX)

      • NAV

        $78.82

      • $ Change

        $0.41

      • % Change

        0.52%

      • YTD

        28.06%

    • Institutional Class (HFCIX)

      • NAV

        $81.92

      • $ Change

        $0.43

      • % Change

        0.53%

      • YTD

        28.42%

    Average Annualized Total Return

    as of 9/30/21
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97)
    Investor Class (HFCSX) -3.40% 22.47% 35.56% 14.82% 13.81% 15.55% 13.26%
    Institutional Class (HFCIX) -3.37% 22.81% 36.07% 15.24% 14.23% 15.95% 13.47%
    Russell 3000® Index -4.49% 14.99% 31.88% 16.00% 16.85% 16.60% 9.49%
    Russell Midcap® Growth Index -4.84% 9.61% 30.45% 19.14% 19.27% 17.54% 10.44%

    Please swipe to view table

    as of 9/30/21
    Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97)
    Investor Class (HFCSX) 0.76% 22.47% 35.56% 14.82% 13.81% 15.55% 13.26%
    Institutional Class (HFCIX) 0.86% 22.81% 36.07% 15.24% 14.23% 15.95% 13.47%
    Russell 3000® Index -0.10% 14.99% 31.88% 16.00% 16.85% 16.60% 9.49%
    Russell Midcap® Growth Index -0.76% 9.61% 30.45% 19.14% 19.27% 17.54% 10.44%

    Please swipe to view table

    Hypothetical Growth of $10,000

    as of 9/30/2021

    Value of $10,000 invested between 9/30/2020 and 9/30/2021
    Focus Fund (HFCSX) $13,556
    Focus Fund (HFCIX) $13,607
    Russell 3000® Index $13,188
    Russell Midcap® Growth Index $13,045

    Value of $10,000 invested between 9/30/2018 and 9/30/2021
    Focus Fund (HFCSX) $15,138
    Focus Fund (HFCIX) $15,306
    Russell 3000® Index $15,608
    Russell Midcap® Growth Index $16,912

    Value of $10,000 invested between 9/30/2016 and 9/30/2021
    Focus Fund (HFCSX) $19,091
    Focus Fund (HFCIX) $19,446
    Russell 3000® Index $21,785
    Russell Midcap® Growth Index $24,130

    Value of $10,000 invested between 9/30/2011 and 9/30/2021
    Focus Fund (HFCSX) $42,443
    Focus Fund (HFCIX) $43,936
    Russell 3000® Index $46,464
    Russell Midcap® Growth Index $50,349

    Value of $10,000 invested between 1/3/1997 and 9/30/2021
    Focus Fund (HFCSX) $217,468
    Focus Fund (HFCIX) $227,777
    Russell 3000® Index $94,224
    Russell Midcap® Growth Index $116,541

    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%

    Please swipe to view table

    Returns-Based Statistics
    Relative to Russell 3000® Index

    as of 9/30/21
    Investor Class (HFCSX)
    Type 3 yr 5 yr 10 yr
    Alpha -2.14 -3.92 -1.66
    Beta 1.15 1.13 1.07
    Upside Capture 108.83 99.54 96.25
    Downside Capture 119.38 117.78 99.34
    Institutional Class (HFCIX)
    Type 3 yr 5 yr 10 yr
    Alpha -1.77 -3.55 -1.31
    Beta 1.15 1.13 1.07
    Upside Capture 109.57 100.52 97.22
    Downside Capture 118.83 117.16 98.53

    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 9/30/21
    Type 3 yr 5 yr 10 yr
    Investor Class (HFCSX) 0.65 0.71 0.94
    Institutional Class (HFCIX) 0.67 0.73 0.96
    Russell 3000® Index 0.80 0.99 1.15
    Mid-Cap Growth Category Average 0.82 0.99 1.00

    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 9/30/21
    Type 3 yr 5 yr 10 yr
    Investor Class (HFCSX) 24.59 19.44 16.20
    Institutional Class (HFCIX) 24.60 19.44 16.20
    Russell 3000® Index 19.68 15.83 13.75
    Mid-Cap Growth Category Average 22.07 17.72 15.54

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

    Fund Expenses

    • Investor Class (HFCSX)

      • Gross expense ratio

        1.51%

    • Institutional Class (HFCIX)

      • Gross expense ratio

        1.14%

    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 9/30/21. 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.

  • Portfolio

    Portfolio Characteristics

    as of 9/30/21
    Inception 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 0%
    Median Market Cap $16.7 Billion
    Median Price/Earnings 26.6x
    Median Price/Book 4.2x

    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 9/30/21
    Fund Russell 3000® Index Difference
    Financials 38.0% 11.9% +26.1%
    Consumer Discretionary 26.2% 12.2% +14.0%
    Industrials 16.0% 9.0% +7.0%
    Real Estate 9.5% 3.4% +6.1%
    Information Technology 7.9% 27.1% -19.1%
    Communication Services 1.2% 10.1% -8.9%
    Utilities 0.0% 2.4% -2.4%
    Health Care 0.0% 13.6% -13.6%
    Consumer Staples 0.0% 5.3% -5.3%
    Energy 0.0% 2.8% -2.8%
    Materials 0.0% 2.4% -2.4%
    Cash & Other 1.2%

    Portfolio Holdings

    Top 10 Holdings

    as of 9/30/21
    % of Net Assets
    Top 10 Holdings Ticker Current Vs. 2Q21 Vs. 3Q20 10-Year Holdings History (%) Time Held
    Brookfield Asset Management, Inc. BAM 9.81% -0.08% +0.02%
    		7 Years
    American Tower Corp. AMT 9.46% -0.50% +0.23%
    		23 Years
    Encore Capital Group, Inc. ECPG 9.07% +0.57% +0.09%
    		14 Years
    Markel Corp. MKL 8.85% +0.29% +0.14%
    		24 Years
    CarMax, Inc. KMX 8.56% +0.14% +0.36%
    		19 Years
    Aon PLC AON 8.29% +0.99% +0.24%
    		1 Year
    O'Reilly Automotive, Inc. ORLY 6.44% +0.10% -3.62%
    		16 Years
    RH RH 6.06% +0.05% +2.63%
    		1 Year
    Ashtead Group, PLC AHT 5.71% +0.28% +1.09%
    		3 Years
    NVR, Inc. NVR 5.16% -0.06% -0.46%
    		4 Years
    Total as % of Net Assets 77.41%

    Please swipe to view table

    Total Holdings: 20

    as of 9/30/21
    Print All Holdings
    % of Net Assets
    Equity Holdings Ticker Current Vs. 2Q21 Vs. 3Q20 10-Year Holdings History (%) Time Held
    Brookfield Asset Management, Inc. BAM 9.81% -0.08% +0.02%
    		7 Years
    American Tower Corp. AMT 9.46% -0.50% +0.23%
    		23 Years
    Encore Capital Group, Inc. ECPG 9.07% +0.57% +0.09%
    		14 Years
    Markel Corp. MKL 8.85% +0.29% +0.14%
    		24 Years
    CarMax, Inc. KMX 8.56% +0.14% +0.36%
    		19 Years
    Aon PLC AON 8.29% +0.99% +0.24%
    		1 Year
    O'Reilly Automotive, Inc. ORLY 6.44% +0.10% -3.62%
    		16 Years
    RH RH 6.06% +0.05% +2.63%
    		1 Year
    Ashtead Group, PLC AHT 5.71% +0.28% +1.09%
    		3 Years
    NVR, Inc. NVR 5.16% -0.06% -0.46%
    		4 Years
    SS&C Technologies Holdings, Inc. SSNC 4.54% -0.05% -0.41%
    		2 Years
    American Woodmark Corp. AMWD 3.94% -0.86% -3.58%
    		18 Years
    Hexcel Corp. HXL 2.93% -0.89% -0.19%
    		6 Years
    CDW Corp. CDW 2.89% +0.18% +2.89%
    		1 Year
    Allegiant Travel Co. ALGT 2.73% +0.08% +1.75%
    		1 Year
    Marlin Business Services Corp. MRLN 1.86% -0.10% +1.25%
    		10 Years
    AST SpaceMobile, Inc. ASTS 1.18% -0.19% +1.18%
    		< 1 Year
    Mistras Group, Inc. MG 0.70% +0.04% +0.37%
    		8 Years
    Applied Materials, Inc. AMAT 0.50% +0.50% +0.50%
    		< 1 Year
    Brookfield Asset Management Reinsurance BAMR 0.08% +0.01% +0.08%
    		< 1 Year
    Total as % of Net Assets 98.8%
    Cash & Other Holdings % of Net Assets
    Cash & Other 1.2%
    Total as % of Net Assets 1.2%

    Please swipe to view table

    Country Allocation

    as of 9/30/21

    • United States

      74.9%

    • International

      23.9%

    • Cash & Other

      1.2%
    United States 74.9%
    United Kingdom 14.0%
    Canada 9.8%
    Bermuda 0.1%
    Cash & Other 1.2%

  • 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

    Please swipe to view table

    Past performance is not a guarantee of future results.

    Download historical distributions and NAVs
    Date 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

    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
    Focus Fund Documents
    Fact Sheet
    Portfolio Perspective View
    Portfolio Updates
    Focus Fund Portfolio Update - July 2021 View
    Focus Fund Portfolio Update - April 2021 View
    Focus Fund Portfolio Update - January 2021 View
    Focus Fund Portfolio Update - October 2020 View
    Summary Prospectus
    Full Prospectus
    Statement of Additional Information
    Focus Fund Shareholder Reports and Quarterly Holdings
    Q1 Holdings
    Semi-Annual Report
    Q3 Holdings
    Annual Report

    Paper copies of the annual and semi-annual reports will no longer be sent by mail unless shareholders specifically request paper copies. You may elect to receive paper copies free of charge by calling U.S. Bank Global Fund Services at 1-800-261-6950 or, if you own shares through a financial intermediary, by contacting your financial intermediary.

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The Funds' investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read it carefully before investing. A hard copy of the prospectus can be requested by calling 1-800-966-4354.

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 and can be found here. Neither forward earnings nor earnings growth is a measure of a fund’s future performance.

Mutual fund investing involves risk. Principal loss is possible. Small and medium-capitalization companies may have more limited liquidity and greater price volatility than large-capitalization companies. Investments in foreign securities may involve greater volatility and political, economic, and currency risk and differences in accounting methods. The Focus, Total Return, Balanced, Large Cap Financial, Small Cap Financial, and BP Midstream Funds are considered non-diversified funds. A non-diversified fund, which may concentrate its assets in fewer individual holdings than a diversified fund, is more exposed to individual stock volatility than a diversified fund. A fund that concentrates its investments within one country, one sector, or a small group of industries, such as Japan, Technology, Financials, or Energy, may be subject to a higher degree of risk. Investments in debt securities typically decrease in value when interest rates rise. The risk is greater for longer-term debt securities. Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Mortgage- and asset-backed securities are subject to prepayment risk, which is the risk that the borrower will prepay some or all of the principal owed to the issuer. Funds that invest in pooled investment vehicles (including ETFs) may experience higher fees. The formula-based strategy employed by some Funds may cause those Funds to buy or sell securities at times when it may not be advantageous.

Master Limited Partnerships (MLPs) and MLP investments have unique characteristics. A Fund does not receive the same tax benefits as a direct investment in an MLP.

The prices of MLP units may fluctuate abruptly and trading volume may be low, making it difficult for a Fund to sell its units at a favorable price. MLP general partners have the power to take actions that adversely affect the interests of unit holders. Most MLPs do not pay U.S. federal income tax at the partnership level, but an adverse change in tax laws could result in MLPs being treated as corporations for federal income tax purposes, which could reduce or eliminate distributions paid by MLPs to the Fund. If the BP Energy Transition Fund’s MLP investments exceed 25% of its assets, it may not qualify for treatment as a regulated investment company (“RIC”) under the Internal Revenue Code (“Code”), and the Fund would be taxed as an ordinary corporation, which could substantially reduce its net assets and its distributions to shareholders. The BP Midstream Fund is treated as a regular corporation, or “C” corporation, for U.S. federal income tax purposes, and therefore, is subject to U.S. federal income tax on its taxable income at the graduated rates applicable to corporations (currently a maximum rate of 21%) as well as state and local income taxes. The BP Midstream Fund will not benefit from current favorable federal income tax rates on long-term capital gains, and Fund income and losses will not be passed on to shareholders. The BP Midstream Fund accrues deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax-deferred return of capital and for any net operating gains as well as capital appreciation of its investments. This deferred tax liability is reflected in the daily NAV, and as a result, the Fund’s after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked.

Glossary of Terms contains definitions and additional information.

To view the top 10 holdings of a Fund, please click the Fund name: Cornerstone Growth, Focus, Cornerstone Mid Cap 30, Cornerstone Large Growth, Cornerstone Value, Total Return, Equity and Income, Balanced, BP Energy Transition, BP Midstream, Gas Utility, Japan, Japan Small Cap, Large Cap Financial, Small Cap Financial, Technology. Fund holdings are subject to change and not recommendations to buy or sell any security.

Opinions expressed are subject to change at any time, are not guaranteed, and should not be considered investment advice.

News and Media Page:

To view the Morningstar ratings for the Japan Fund, please click here. (Media - TD Ameritrade)

To view the Morningstar ratings for the Focus Fund, please click here. (Media - CNBC-B. Macualey).

1 USD = 105.36 Yen as of 07/27/2020 (Media - Ticker - M. Takeda)

Tom White is a TD Ameritrade Network contributor and is not affiliated with the Hennessy Funds. Content is not investment advice, or a recommendation of any security, strategy, or account type. Options involve risks and are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.(Media - TD Ameritrade-Rothberg)

To view the Morningstar ratings, please click here.

The Hennessy Funds are offered only to United States residents, and information on this web site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of any Hennessy Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

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