• Overview

    HFCSX
    Investor

    Hennessy Focus Fund

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

    Category

    Domestic Equity

    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

    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

  • Performance

    Daily Pricing & Performance

    as of 10/18/19 (Investor)
    • Nav

      $84.24

    • $ Change

      $0.47

    • % Change

      0.56%

    • YTD

      29.22%

    Average Annualized Total Return

    as of 9/30/19 (Investor)
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97)
    Focus Fund (HFCSX) 2.07% 28.13% 11.32% 11.97% 10.65% 13.66% 12.96%
    Russell 3000® Index 1.76% 20.09% 2.92% 12.83% 10.44% 13.08% 8.36%
    Russell Midcap® Growth Index -1.14% 25.23% 5.20% 14.50% 11.12% 14.08% 9.10%

    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 9/30/2019 (Investor)

    Value of $10,000 invested between 9/30/2018 and 9/30/2019

    Focus Fund (HFCSX) $11,132
    Russell 3000® Index $10,292
    Russell Midcap® Growth Index $10,520

    Value of $10,000 invested between 9/30/2016 and 9/30/2019

    Focus Fund (HFCSX) $14,039
    Russell 3000® Index $14,365
    Russell Midcap® Growth Index $15,011

    Value of $10,000 invested between 9/30/2014 and 9/30/2019

    Focus Fund (HFCSX) $16,590
    Russell 3000® Index $16,433
    Russell Midcap® Growth Index $16,940

    Value of $10,000 invested between 9/30/2009 and 9/30/2019

    Focus Fund (HFCSX) $35,966
    Russell 3000® Index $34,183
    Russell Midcap® Growth Index $37,337

    Value of $10,000 invested between 1/3/1997 and 9/30/2019

    Focus Fund (HFCSX) $159,920
    Russell 3000® Index $62,129
    Russell Midcap® Growth Index $72,496

    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%

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    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
    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
    12/07/2018 -- -- $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