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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 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:
- 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 3/22/23-
Investor Class (HFCSX)
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NAV
$45.07
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$ Change
-$0.87
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% Change
-1.89%
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YTD
-0.24%
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Institutional Class (HFCIX)
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NAV
$47.09
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$ Change
-$0.91
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% Change
-1.90%
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YTD
-0.17%
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Average Annualized Total Return
as of 2/28/23Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Investor Class (HFCSX) -3.53% 7.02% -10.36% 5.63% 6.42% 9.52% 11.86% Institutional Class (HFCIX) -3.51% 7.08% -10.03% 6.02% 6.81% 9.91% 12.08% Russell 3000® Index -2.34% 4.39% -8.07% 11.79% 9.42% 11.87% 8.62% Russell Midcap® Growth Index -0.99% 7.65% -8.31% 8.66% 8.74% 11.45% 8.97% as of 12/31/22Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Investor Class (HFCSX) 7.44% -24.99% -24.99% 1.35% 4.68% 9.44% 11.65% Institutional Class (HFCIX) 7.53% -24.71% -24.71% 1.72% 5.07% 9.83% 11.87% Russell 3000® Index 7.18% -19.21% -19.21% 7.07% 8.79% 12.13% 8.49% Russell Midcap® Growth Index 6.90% -26.72% -26.72% 3.85% 7.64% 11.41% 8.72% Hypothetical Growth of $10,000
as of 2/28/2023Value of $10,000 invested between 2/28/2022 and 2/28/2023
Focus Fund (HFCSX) $8,964 Focus Fund (HFCIX) $8,997 Russell 3000® Index $9,193 Russell Midcap® Growth Index $9,169 Value of $10,000 invested between 2/29/2020 and 2/28/2023
Focus Fund (HFCSX) $11,787 Focus Fund (HFCIX) $11,918 Russell 3000® Index $13,970 Russell Midcap® Growth Index $12,830 Value of $10,000 invested between 2/28/2018 and 2/28/2023
Focus Fund (HFCSX) $13,647 Focus Fund (HFCIX) $13,901 Russell 3000® Index $15,688 Russell Midcap® Growth Index $15,202 Value of $10,000 invested between 2/28/2013 and 2/28/2023
Focus Fund (HFCSX) $24,818 Focus Fund (HFCIX) $25,722 Russell 3000® Index $30,694 Russell Midcap® Growth Index $29,571 Value of $10,000 invested between 1/3/1997 and 2/28/2023
Focus Fund (HFCSX) $187,506 Focus Fund (HFCIX) $197,421 Russell 3000® Index $86,840 Russell Midcap® Growth Index $94,555 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
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Investor Class (HFCSX) 35.33 10.20 2.88 7.16 19.27 -10.47 34.86 5.49 31.55 -24.99 Institutional Class (HFCIX) 35.70 10.55 3.25 7.55 19.71 -10.12 35.34 5.88 32.02 -24.71 Russell 3000® Index 33.55 12.56 0.48 12.74 21.13 -5.24 31.02 20.89 25.66 -19.21 Russell Midcap® Growth Index 35.74 11.90 -0.20 7.33 25.27 -4.75 35.47 35.59 12.73 -26.72 Year Investor Class (HFCSX) Institutional Class (HFCIX) Russell 3000® Index Russell Midcap® Growth Index 2012 16.64% 16.98% 16.42% 15.81% 2011 3.63% 3.97% 1.03% -1.65% 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 12/31/22Investor Class (HFCSX)Type 3 yr 5 yr 10 yr Alpha -5.61 -4.09 -3.15 Beta 1.22 1.13 1.10 Upside Capture 111.90 101.92 97.29 Downside Capture 133.26 118.82 111.18 Institutional Class (HFCIX)Type 3 yr 5 yr 10 yr Alpha -5.24 -3.72 -2.79 Beta 1.22 1.13 1.10 Upside Capture 112.52 102.67 98.22 Downside Capture 132.70 118.24 110.47 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 12/31/22Type 3 yr 5 yr 10 yr Investor Class (HFCSX) 0.16 0.26 0.55 Institutional Class (HFCIX) 0.17 0.28 0.57 Russell 3000® Index 0.38 0.46 0.78 Mid-Cap Growth Category Average 0.23 0.34 0.59 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 12/31/22Type 3 yr 5 yr 10 yr Investor Class (HFCSX) 28.04 23.31 17.97 Institutional Class (HFCIX) 28.05 23.31 17.97 Russell 3000® Index 21.79 19.22 15.19 Mid-Cap Growth Category Average 24.55 21.69 17.15 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
1.52%
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Institutional Class (HFCIX)
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Gross expense ratio
1.13%
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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.
Each Morningstar category average represents a universe of funds with similar objectives. The Morningstar Style Box reveals the fund's investment style as of 12/31/22. 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 12/31/22Inception Date (HFCSX) 1/3/97 Inception Date (HFCIX) 5/30/08 Total Fund Assets $663 Million Active Share vs. Russell 3000® Index 98% Portfolio Turnover 11% Median Market Cap $17.7 Billion Median Price/Earnings 25.4x 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 12/31/22Fund Russell 3000® Index Difference Financials 35.8% 12.3% +23.5% Consumer Discretionary 21.7% 10.0% +11.8% Industrials 13.6% 9.7% +3.9% Information Technology 12.5% 24.4% -11.9% Real Estate 8.9% 3.3% +5.6% Communication Services 5.2% 6.8% -1.6% Health Care 0.8% 15.6% -14.7% Consumer Staples 0.0% 6.6% -6.6% Utilities 0.0% 3.1% -3.1% Energy 0.0% 5.3% -5.3% Materials 0.0% 3.0% -3.0% Cash & Other 1.4% Portfolio Holdings
Top 10 Holdings
as of 12/31/22% of Net Assets Top 10 Holdings Ticker Current Vs. 3Q22 Vs. 4Q21 10-Year Holdings History (%) Time Held Encore Capital Group, Inc. ECPG 9.14% -0.14% +0.20% 15 Years Aon PLC AON 8.95% -1.04% +0.45% 2 Years American Tower Corp. AMT 8.91% -1.42% -1.26% 24 Years Markel Corp. MKL 8.86% -1.69% -0.04% 25 Years O'Reilly Automotive, Inc. ORLY 7.48% -0.25% +0.22% 18 Years Ashtead Group, PLC AHT 7.48% +1.98% +1.59% 4 Years Brookfield Corp. BN 7.14% +7.14% +7.14% < 1 Year CarMax, Inc. KMX 7.11% +0.02% -1.38% 20 Years SS&C Technologies Holdings, Inc. SSNC 5.06% +0.04% -0.17% 3 Years CDW Corp. CDW 4.96% +0.97% +1.79% 2 Years Total as % of Net Assets 75.09% Total Holdings: 25
as of 12/31/22% of Net Assets Equity Holdings Current Vs. 3Q22 Vs. 4Q21 10-Year Holdings History (%) Time Held Encore Capital Group, Inc. 9.14% -0.14% +0.20% 15 Years Aon PLC 8.95% -1.04% +0.45% 2 Years American Tower Corp. 8.91% -1.42% -1.26% 24 Years Markel Corp. 8.86% -1.69% -0.04% 25 Years O'Reilly Automotive, Inc. 7.48% -0.25% +0.22% 18 Years Ashtead Group, PLC 7.48% +1.98% +1.59% 4 Years Brookfield Corp. 7.14% +7.14% +7.14% < 1 Year CarMax, Inc. 7.11% +0.02% -1.38% 20 Years SS&C Technologies Holdings, Inc. 5.06% +0.04% -0.17% 3 Years CDW Corp. 4.96% +0.97% +1.79% 2 Years American Woodmark Corp. 4.73% +0.48% +0.89% 19 Years RH 4.24% +0.65% -0.51% 3 Years Applied Materials, Inc. 2.47% +0.25% +1.88% 1 Year NVR, Inc. 2.13% -0.32% -4.07% 5 Years Shenandoah Telecommunications 1.93% +0.36% +1.93% < 1 Year Brookfield Asset Management, Ltd. 1.64% +1.64% +1.64% < 1 Year AST SpaceMobile, Inc. 1.47% +0.21% +0.63% 1 Year Cogent Communications Holdings 0.91% +0.91% +0.91% < 1 Year Warner Music Group Corp. 0.88% +0.88% +0.88% < 1 Year TransDigm Group, Inc. 0.85% +0.85% +0.85% < 1 Year Danaher Corp 0.84% +0.84% +0.84% < 1 Year Hilton Worldwide Holdings, Inc. 0.76% +0.76% +0.76% < 1 Year Mistras Group, Inc. 0.54% +0.05% +0.04% 9 Years Brookfield Reinsurance, Ltd. 0.07% +0.07% +0.07% < 1 Year Allegiant Travel Co. 0.01% -1.63% -2.54% 2 Years Total as % of Net Assets 98.6% Cash & Other Holdings % of Net Assets Cash & Other 1.4% Total as % of Net Assets 1.4% Country Allocation
as of 12/31/22-
United States
73.3%
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International
25.4%
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Cash & Other
1.4%
United States 73.3% Ireland 9.0% Canada 8.8% United Kingdom 7.5% Bermuda 0.1% Cash & Other 1.4% -
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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 12/08/2022 -- -- $6.84360 $6.84360 $46.59 12/07/2021 -- -- $11.87407 $11.87407 $69.00 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 12/08/2022 -- -- $7.14363 $7.14363 $48.63 12/07/2021 -- -- $12.34819 $12.34819 $71.75 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 Focus Fund Documents Fact Sheet Portfolio Perspective View Portfolio Updates Focus Fund Portfolio Update - February 2023 View Focus Fund Portfolio Update - October 2022 View Focus Fund Portfolio Update - August 2022 View Focus Fund Portfolio Update - May 2022 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.