• Overview

    HFCSX
    Investor

    Hennessy Focus Fund

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

    Fund Facts

    Category

    Domestic Equity

    Inception Date

    1/3/97

    Morningstar style box

    Morningstar style box
    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 5/17/19 (Investor)
    • Nav

      $77.78

    • $ Change

      -$0.33

    • % Change

      -0.42%

    • YTD

      19.31%

    Average Annualized Total Return

    as of 4/30/19 (Investor)
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97)
    Focus Fund (HFCSX) 5.26% 19.94% 10.21% 10.35% 9.95% 14.24% 12.89%
    Russell 3000® Index 3.99% 18.60% 12.68% 14.74% 11.20% 15.29% 8.47%
    Russell Midcap® Growth Index 4.50% 25.00% 17.64% 16.78% 12.20% 16.56% 9.27%

    Please swipe to view table

    as of 3/31/19 (Investor)
    Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97)
    Focus Fund (HFCSX) 13.94% 13.94% 4.50% 8.53% 8.54% 15.58% 12.68%
    Russell 3000® Index 14.04% 14.04% 8.77% 13.49% 10.36% 16.00% 8.31%
    Russell Midcap® Growth Index 19.62% 19.62% 11.51% 15.06% 10.89% 17.60% 9.09%

    Please swipe to view table

    Hypothetical Growth of $10,000

    as of 4/30/2019 (Investor)

    Value of $10,000 invested between 4/30/2018 and 4/30/2019

    Focus Fund (HFCSX) $11,021
    Russell 3000® Index $11,268
    Russell Midcap® Growth Index $11,764

    Value of $10,000 invested between 4/30/2016 and 4/30/2019

    Focus Fund (HFCSX) $13,439
    Russell 3000® Index $15,106
    Russell Midcap® Growth Index $15,925

    Value of $10,000 invested between 4/30/2014 and 4/30/2019

    Focus Fund (HFCSX) $16,069
    Russell 3000® Index $17,000
    Russell Midcap® Growth Index $17,780

    Value of $10,000 invested between 4/30/2009 and 4/30/2019

    Focus Fund (HFCSX) $37,851
    Russell 3000® Index $41,499
    Russell Midcap® Growth Index $46,299

    Value of $10,000 invested between 1/3/1997 and 4/30/2019

    Focus Fund (HFCSX) $149,696
    Russell 3000® Index $61,355
    Russell Midcap® Growth Index $72,361

    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 3/31/19 (Investor)
    Type 3 yr 5 yr 10 yr
    Alpha -4.15 -1.58 -0.24
    Beta 0.97 1.00 1.00
    Upside Capture 80.19 89.13 93.33
    Downside Capture 103.60 95.01 88.15

    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 3/31/19 (Investor)
    Type 3 yr 5 yr 10 yr
    Focus Fund (HFCSX) 0.67 0.67 1.04
    Russell 3000® Index 1.08 0.85 1.16
    Mid-Cap Growth Category Average 0.96 0.63 0.99

    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 3/31/19 (Investor)
    Type 3 yr 5 yr 10 yr
    Focus Fund (HFCSX) 11.31 12.19 14.62
    Russell 3000® Index 11.09 11.50 13.17
    Mid-Cap Growth Category Average 13.23 13.41 15.08

    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.

    Each Morningstar category average represents a universe of funds with similar objectives. The Morningstar Style Box reveals the fund's investment style as of 3/31/19. 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 3/31/19
    Total Fund Assets $1.8 Billion
    Active Share vs. Russell 3000® Index 99%
    Portfolio Turnover 15%
    Median Market Cap $10.0 Billion
    Median Price/Earnings 20.4x
    Median Price/Book 3.2x

    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 3/31/19
    Fund Russell 3000® Index Difference
    Financials 39.4% 13.2% +26.2%
    Consumer Discretionary 29.1% 10.4% +18.7%
    Industrials 18.4% 10.1% +8.2%
    Real Estate 11.2% 4.0% +7.1%
    Communication Services 0.0% 9.1% -9.1%
    Utilities 0.0% 3.2% -3.2%
    Materials 0.0% 3.0% -3.0%
    Health Care 0.0% 14.3% -14.3%
    Consumer Staples 0.0% 6.5% -6.5%
    Information Technology 0.0% 21.1% -21.1%
    Energy 0.0% 5.1% -5.1%
    Cash & Other 2.0%

    Portfolio Holdings

    Top 10 Holdings

    as of 3/31/19
    Top 10 Holdings Ticker % of Net Assets
    American Tower Corp. AMT 11.2%
    CarMax, Inc. KMX 10.8%
    O'Reilly Automotive, Inc. ORLY 10.2%
    Brookfield Asset Management, Inc. BAM 9.8%
    Markel Corp. MKL 8.3%
    AON Corp. AON 8.1%
    The Charles Schwab Corp. SCHW 6.6%
    American Woodmark Corp. AMWD 6.5%
    NVR, Inc. NVR 6.2%
    Hexcel Corp. HXL 5.2%
    Total as % of Net Assets 82.9%

    Total Holdings: 17

    as of 3/31/19
    Equity Holdings Ticker % of Net Assets
    American Tower Corp. AMT 11.2%
    CarMax, Inc. KMX 10.8%
    O'Reilly Automotive, Inc. ORLY 10.2%
    Brookfield Asset Management, Inc. BAM 9.8%
    Markel Corp. MKL 8.3%
    AON Corp. AON 8.1%
    The Charles Schwab Corp. SCHW 6.6%
    American Woodmark Corp. AMWD 6.5%
    NVR, Inc. NVR 6.2%
    Hexcel Corp. HXL 5.2%
    Encore Capital Group, Inc. ECPG 4.7%
    Ashtead Group, PLC AHT 3.9%
    AMETEK, Inc. AME 2.0%
    Camping World Holdings, Inc. CWH 1.9%
    Marlin Business Services Corp. MRLN 1.2%
    Mistras Group, Inc. MG 0.8%
    Metro Bank, PLC MTRO 0.7%
    Total as % of Net Assets 98.0%
    Cash & Other Holdings % of Net Assets
    Cash & Other 2.0%
    Total as % of Net Assets 2.0%

    Country Allocation

    as of 3/31/19
    • United States

      83.6%

    • Foreign

      14.3%

    • Cash & Other

      2.0%

    United States 83.6%
    Canada 9.8%
    United Kingdom 4.5%
    Cash & Other 2.0%
  • 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