Hennessy Focus Fund
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HFCSX
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  • Overview

    HFCSX
    Investor

    Hennessy Focus Fund

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

    Category

    Domestic Equity

    Documents

    Morningstar style box

    Morningstar style box

    Overall morningstar rating

    Based on risk-adjusted returns among 544 Mid-Cap Growth funds, as of 9/30/19.

    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 20-30 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:

    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

  • Insights & News

    View All Fund Insights

  • Performance

    Daily Pricing & Performance

    as of 12/6/19 (Investor)

    • Nav

      $80.23

    • $ Change

      -$7.98

    • % Change

      -9.05%

    • YTD

      36.20%

    Average Annualized Total Return

    as of 11/30/19 (Investor)
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97)
    Focus Fund (HFCSX) 4.02% 35.80% 24.23% 13.82% 10.21% 14.14% 13.15%
    Russell 3000® Index 3.80% 27.34% 15.49% 14.22% 10.61% 13.41% 8.58%
    Russell Midcap® Growth Index 4.98% 33.90% 21.75% 17.04% 11.28% 14.79% 9.35%

    Please swipe to view table

    as of 9/30/19 (Investor)
    Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97)
    Focus Fund (HFCSX) 3.92% 28.13% 11.32% 11.97% 10.65% 13.66% 12.96%
    Russell 3000® Index 1.16% 20.09% 2.92% 12.83% 10.44% 13.08% 8.36%
    Russell Midcap® Growth Index -0.67% 25.23% 5.20% 14.50% 11.12% 14.08% 9.10%

    Please swipe to view table

    Hypothetical Growth of $10,000

    as of 11/30/2019 (Investor)

    Value of $10,000 invested between 11/30/2018 and 11/30/2019
    Focus Fund (HFCSX) $12,423
    Russell 3000® Index $11,549
    Russell Midcap® Growth Index $12,175

    Value of $10,000 invested between 11/30/2016 and 11/30/2019
    Focus Fund (HFCSX) $14,744
    Russell 3000® Index $14,902
    Russell Midcap® Growth Index $16,032

    Value of $10,000 invested between 11/30/2014 and 11/30/2019
    Focus Fund (HFCSX) $16,262
    Russell 3000® Index $16,557
    Russell Midcap® Growth Index $17,065

    Value of $10,000 invested between 11/30/2009 and 11/30/2019
    Focus Fund (HFCSX) $37,532
    Russell 3000® Index $35,202
    Russell Midcap® Growth Index $39,734

    Value of $10,000 invested between 1/3/1997 and 11/30/2019
    Focus Fund (HFCSX) $169,492
    Russell 3000® Index $65,879
    Russell Midcap® Growth Index $77,513

    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

      2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
    Focus Fund (HFCSX)    		 34.80 24.55 3.63 16.64 35.33 10.20 2.88 7.16 19.27 -10.47
    Russell 3000® Index    		 28.34 16.93 1.03 16.42 33.55 12.56 0.48 12.74 21.13 -5.24
    Russell Midcap® Growth Index    		 46.29 26.38 -1.65 15.81 35.74 11.90 -0.20 7.33 25.27 -4.75
    Year
    Focus Fund (HFCSX)
    Russell 3000® Index
    Russell Midcap® Growth Index
    2008 -33.85% -37.31% -44.32%
    2007 2.30% 5.14% 11.43%
    2006 28.49% 15.72% 10.66%
    2005 2.32% 6.12% 12.10%
    2004 30.65% 11.95% 15.48%
    2003 45.77% 31.06% 42.71%
    2002 2.63% -21.54% -27.41%
    2001 32.63% -11.46% -20.15%
    2000 -8.79% -7.46% -11.75%
    1999 19.62% 20.90% 51.29%
    1998 -3.52% 24.14% 17.86%

    Please swipe to view table

    Returns-Based Statistics
    Relative to Russell 3000® Index

    as of 9/30/19 (Investor)
    Type 3 yr 5 yr 10 yr
    Alpha 0.68 1.02 1.16
    Beta 0.86 0.91 0.95
    Upside Capture 87.90 88.58 93.54
    Downside Capture 82.40 77.45 83.29

    Please swipe to view table

    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 9/30/19 (Investor)
    Type 3 yr 5 yr 10 yr
    Focus Fund (HFCSX) 0.90 0.83 0.98
    Russell 3000® Index 0.90 0.80 0.97
    Mid-Cap Growth Category Average 0.80 0.65 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 9/30/19 (Investor)
    Type 3 yr 5 yr 10 yr
    Focus Fund (HFCSX) 11.60 11.91 13.42
    Russell 3000® Index 12.54 12.17 12.97
    Mid-Cap Growth Category Average 14.26 13.60 14.75

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

    Fund Expenses

    • Gross expense ratio

      1.48%

    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 9/30/19. 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, 4 stars for the five-year and 4 stars for the ten-year periods ended 9/30/19 among 544, 487 and 375 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 9/30/19. 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 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 9/30/19
    Inception Date (HFCSX) 1/3/97
    Total Fund Assets $1.8 Billion
    Active Share vs. Russell 3000® Index 99%
    Portfolio Turnover 2%
    Median Market Cap $13.6 Billion
    Median Price/Earnings 23.8x
    Median Price/Book 3.4x

    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 9/30/19
    Fund Russell 3000® Index Difference
    Financials 40.3% 13.5% +26.8%
    Consumer Discretionary 27.1% 10.4% +16.8%
    Industrials 19.8% 10.1% +9.7%
    Real Estate 10.5% 4.3% +6.2%
    Information Technology 0.3% 21.5% -21.2%
    Communication Services 0.0% 9.3% -9.3%
    Utilities 0.0% 3.5% -3.5%
    Materials 0.0% 2.9% -2.9%
    Health Care 0.0% 13.5% -13.5%
    Consumer Staples 0.0% 6.8% -6.8%
    Energy 0.0% 4.2% -4.2%
    Cash & Other 2.1%

    Portfolio Holdings

    Top 10 Holdings

    as of 9/30/19
    Top 10 Holdings Ticker % of Net Assets
    American Tower Corp. AMT 10.5%
    CarMax, Inc. KMX 10.2%
    O'Reilly Automotive, Inc. ORLY 10.0%
    Brookfield Asset Management, Inc. BAM 9.9%
    Markel Corp. MKL 8.7%
    Aon PLC AON 8.0%
    American Woodmark Corp. AMWD 7.0%
    The Charles Schwab Corp. SCHW 6.5%
    NVR, Inc. NVR 6.0%
    Encore Capital Group, Inc. ECPG 5.8%
    Total as % of Net Assets 82.5%

    Total Holdings: 17

    as of 9/30/19
    Print All Holdings
    Equity Holdings Ticker % of Net Assets
    American Tower Corp. AMT 10.5%
    CarMax, Inc. KMX 10.2%
    O'Reilly Automotive, Inc. ORLY 10.0%
    Brookfield Asset Management, Inc. BAM 9.9%
    Markel Corp. MKL 8.7%
    Aon PLC AON 8.0%
    American Woodmark Corp. AMWD 7.0%
    The Charles Schwab Corp. SCHW 6.5%
    NVR, Inc. NVR 6.0%
    Encore Capital Group, Inc. ECPG 5.8%
    Hexcel Corp. HXL 5.5%
    Ashtead Group, PLC AHT 4.4%
    AMETEK, Inc. AME 2.0%
    Marlin Business Services Corp. MRLN 1.4%
    Camping World Holdings, Inc. CWH 1.0%
    Mistras Group, Inc. MG 0.9%
    SS&C Technologies Holdings, Inc. SSNC 0.3%
    Total as % of Net Assets 97.9%
    Cash & Other Holdings % of Net Assets
    Cash & Other 2.1%
    Total as % of Net Assets 2.1%

    Country Allocation

    as of 9/30/19

    • United States

      83.6%

    • Foreign

      14.3%

    • Cash & Other

      2.1%
    United States 83.6%
    Canada 9.9%
    United Kingdom 4.4%
    Cash & Other 2.1%

  • 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

    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
    Focus Fund Fact Sheet
    Focus Fund Portfolio Manager Commentary View
    Focus Fund Summary Prospectus
    Full Prospectus
    Statement of Additional Information
    Shareholder Reports
    Focus Fund Semi-Annual Report
    Focus Fund Annual Report

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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 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, 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.

To view the Morningstar ratings for the Japan Fund, please click here. (Media - TD Ameritrade) JPSIX received Overall Morningstar rating of 5 Stars based on risk-adjusted returns among 41 Japan Stock funds, as of 9/30/19.

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.

Quasar Distributors, LLC, Distributor.

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