• Overview

    HLFNX
    Investor

    Hennessy Large Cap Financial Fund

    Actively managed, the Fund maintains a concentrated portfolio of large-cap Financial Services sector.

    Fund Facts

    Category

    Sector & Specialty - Financial

    Inception Date

    1/3/97

    Morningstar style box

    Morningstar style box

    Overall morningstar rating

    Based on risk-adjusted returns among 96 Financial funds, as of 9/30/18.

    Investment Overview Video
    Investment Overview Video

    Why Invest

    • An opportunity to invest in a select group of larger banks and financial services companies
    • Managed by Dave Ellison, the most tenured fund manager in the Financial Services sector
    • Concentrated, actively managed portfolio of 25-50 stocks

    Investment Approach

    From a universe of banks and Financial Services companies with market capitalizations over $3 billion, the Hennessy Large Cap Financial Fund seeks stocks that offer value and/or a catalyst for positive change. The Managers seeks businesses with the following characteristics:

    • High-quality management team with a long-term view and experience through market cycles
    • Uncomplicated business model with a low-cost operating structure
    • Conservative lending culture with high-quality deposits
    • Well-capitalized, well-structured balance sheets
    • Sustainable earnings and book value growth opportunities
    • Attractive valuation relative to peers 

    Portfolio Managers

    • David Ellison
      Portfolio Manager
      • 21
        Years on Fund
      • 35
        Years of Experience
    • Ryan Kelley
      Portfolio Manager
      • 13
        Years on Fund
      • 22
        Years of Experience

    “With stronger economic growth and higher interest rates, the opportunity in Financials appears promising.”

    - Dave Ellison

  • Insights & News

  • Performance

    Daily Pricing & Performance

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

      $21.61

    • $ Change

      -$0.41

    • % Change

      -1.86%

    • YTD

      -1.05%

    Average Annualized Total Return

    as of 9/30/18 (Investor)
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97)
    Large Cap Financial Fund (HLFNX) -2.30% 5.17% 13.57% 14.85% 10.52% 10.18% 8.39%
    Russell 1000® Financial Services Index -1.77% 4.64% 12.42% 16.20% 13.54% 8.51% 7.26%
    Russell 1000® Index 0.38% 10.49% 17.77% 17.07% 13.67% 12.09% 8.64%

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    as of 9/30/18 (Investor)
    Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97)
    Large Cap Financial Fund (HLFNX) 3.80% 5.17% 13.57% 14.85% 10.52% 10.18% 8.39%
    Russell 1000® Financial Services Index 4.68% 4.64% 12.42% 16.20% 13.54% 8.51% 7.26%
    Russell 1000® Index 7.42% 10.49% 17.77% 17.07% 13.67% 12.09% 8.64%

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    Hypothetical Growth of $10,000

    as of 9/30/2018 (Investor)

    Value of $10,000 invested between 9/30/2017 and 9/30/2018

    Large Cap Financial Fund (HLFNX) $11,357
    Russell 1000® Financial Services Index $11,242
    Russell 1000® Index $11,776

    Value of $10,000 invested between 9/30/2015 and 9/30/2018

    Large Cap Financial Fund (HLFNX) $15,148
    Russell 1000® Financial Services Index $15,689
    Russell 1000® Index $16,044

    Value of $10,000 invested between 9/30/2013 and 9/30/2018

    Large Cap Financial Fund (HLFNX) $16,487
    Russell 1000® Financial Services Index $18,866
    Russell 1000® Index $18,977

    Value of $10,000 invested between 9/30/2008 and 9/30/2018

    Large Cap Financial Fund (HLFNX) $26,374
    Russell 1000® Financial Services Index $22,626
    Russell 1000® Index $31,301

    Value of $10,000 invested between 1/3/1997 and 9/30/2018

    Large Cap Financial Fund (HLFNX) $57,660
    Russell 1000® Financial Services Index $45,844
    Russell 1000® Index $60,597

    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

    Year Large Cap Financial Fund (HLFNX) Russell 1000® Financial Services Index Russell 1000® Index
    2017 19.38% 21.57% 21.69%
    2016 14.96% 16.54% 12.05%
    2015 -6.11% 0.70% 0.92%
    2014 7.85% 14.66% 13.24%
    2013 42.03% 34.80% 33.11%
    2012 27.77% 27.21% 16.42%
    2011 -18.38% -12.95% 1.50%
    2010 7.42% 11.73% 16.10%
    2009 33.23% 20.14% 28.43%
    2008 -29.11% -51.13% -37.60%
    2007 -11.95% -16.23% 5.77%
    2006 14.15% 19.36% 15.46%
    2005 -0.45% 6.97% 6.27%
    2004 11.73% 12.73% 11.40%
    2003 32.52% 31.13% 29.89%
    2002 -4.06% -13.64% -21.65%
    2001 -1.72% -5.94% -12.45%
    2000 47.19% 25.42% -7.79%
    1999 -16.55% 2.88% 20.91%
    1998 3.56% 10.09% 27.02%

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    Returns-Based Statistics
    Relative to Russell 1000® Financial Services Index

    as of 9/30/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Alpha -3.77 -4.47 3.08
    Beta 1.20 1.16 0.79
    Upside Capture 114.13 107.05 98.48
    Downside Capture 147.42 140.98 91.26

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    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 9/30/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Large Cap Financial Fund (HLFNX) 0.93 0.74 0.60
    Russell 1000® Financial Services Index 1.27 1.14 0.48
    Financial Category Average 0.97 0.82 0.47

    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 9/30/18 (Investor)
    Type 3 yr 5 yr 10 yr
    Large Cap Financial Fund (HLFNX) 15.18 14.07 18.61
    Russell 1000® Financial Services Index 11.67 11.26 21.15
    Financial Category Average 12.83 11.95 19.11

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

    Fund Expenses

    • Gross expense ratio

      1.82%

    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 9/30/18. 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, 3 stars for the five-year and 4 stars for the ten-year periods ended 9/30/18 among 96, 91 and 70 Financial 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 9/30/18. 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 1000 Financial Services Index is an unmanaged index commonly used to measure the performance of U.S. large-capitalization financial sector stocks. The Russell 1000 Index is an unmanaged index commonly used to measure the performance of U.S. large-capitalization 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 9/30/18
    Total Fund Assets $54.5 Million
    Active Share vs. Russell 1000® Financial Services Index 57%
    Portfolio Turnover 48%
    Median Market Cap $45.4 Billion
    Median Price/Earnings 14.3x
    Median Price/Book 2.1x

    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 reflects the trailing 12-month period.

    Sector Weighting

    as of 9/30/18
    Sector % of Net Assets
    Financials 61.0%
    Information Technology 30.3%
    Communication Services 3.7%
    Cash & Other 5.0%
    Sub-Industry Weighting % of Net Assets
    Data Processing & Outsourced Services 28.7%
    Diversified Banks 17.0%
    Investment Banking & Brokerage 11.5%
    Regional Banks 9.0%
    Financial Exchanges & Data 8.4%
    Consumer Finance 6.6%
    Multi-Sector Holdings 5.0%
    Interactive Media & Services 3.7%
    Asset Management & Custody Banks 3.6%
    Application Software 1.6%

    Portfolio Holdings

    Top 10 Holdings

    as of 9/30/18
    Top 10 Holdings Ticker % of Net Assets
    Mastercard, Inc. MA 5.6%
    Visa, Inc. V 5.6%
    PayPal Holdings, Inc. PYPL 5.1%
    Berkshire Hathaway, Inc. (Class B) BRK/B 5.0%
    J.P. Morgan Chase & Co. JPM 4.8%
    Global Payments, Inc. GPN 4.7%
    Bank of America Corp. BAC 4.7%
    Moody's Corp. MCO 4.6%
    Citigroup, Inc. C 4.4%
    PNC Financial Services Group, Inc. PNC 4.3%
    Total as % of Net Assets 48.8%

    Total Holdings: 29

    as of 9/30/18
    Equity Holdings Ticker % of Net Assets
    Mastercard, Inc. MA 5.6%
    Visa, Inc. V 5.6%
    PayPal Holdings, Inc. PYPL 5.1%
    Berkshire Hathaway, Inc. (Class B) BRK/B 5.0%
    J.P. Morgan Chase & Co. JPM 4.8%
    Global Payments, Inc. GPN 4.7%
    Bank of America Corp. BAC 4.7%
    Moody's Corp. MCO 4.6%
    Citigroup, Inc. C 4.4%
    PNC Financial Services Group, Inc. PNC 4.3%
    Total System Services, Inc. TSS 4.2%
    The Charles Schwab Corp. SCHW 4.1%
    Capital One Financial Corp. COF 4.0%
    MSCI, Inc. MSCI 3.8%
    Zillow Group, Inc. ZG 3.7%
    State Street Corp. STT 3.6%
    Morgan Stanley MS 3.5%
    Goldman Sachs Group, Inc. GS 3.3%
    American Express Co. AXP 2.6%
    Wells Fargo & Co. WFC 1.9%
    Square, Inc. SQ 1.8%
    SunTrust Banks, Inc. STI 1.7%
    Worldpay, Inc. WP 1.7%
    SS&C Technologies Holdings, Inc. SSNC 1.6%
    Citizens Financial Group, Inc. CFG 1.5%
    U.S. Bancorp USB 1.2%
    Fifth Third Bancorp FITB 0.8%
    Zions Bancorp ZION 0.7%
    E*TRADE Financial Corp. ETFC 0.6%
    Total as % of Net Assets 95.0%
    Cash & Other Holdings % of Net Assets
    Cash & Other 5.0%
    Total as % of Net Assets 5.0%

    Country Allocation

    as of 9/30/18
    • United States

      95.0%

    • Cash & Other

      5.0%

    United States 95.0%
    Cash & Other 5.0%
  • Distributions

    The Hennessy Large Cap Financial Fund pays capital gains (if any) once annually, usually in December. Ordinary income distributions (if any) are paid annually, usually in December.

    Date Paid Income Short-Term Gain Long-Term Gain Total Per Share Reinvest Price
    12/07/2017 -- -- $1.00493 $1.00493 $21.75
    12/28/2016 $0.10420 -- -- $0.10420 $19.26
    12/29/2015 $0.02138 -- -- $0.02138 $17.02
    12/09/2015 -- -- $1.69087 $1.69087 $16.78
    12/08/2014 -- $0.10319 $2.01658 $2.11977 $19.71
    12/10/2013 -- -- $0.57670 $0.57670 $19.42
    12/31/2012 $0.01278 -- -- $0.01278 $14.63
    12/31/2008 $0.11509 -- -- $0.11509 $9.81
    12/31/2007 $0.18441 -- -- $0.18441 $14.00
    12/14/2007 -- -- $3.68369 $3.68369 $13.96
    12/29/2006 $0.11145 -- -- $0.11145 $20.36
    12/15/2006 -- -- $2.01751 $2.01751 $20.38
    12/30/2005 $0.15866 -- -- $0.15866 $19.71
    12/16/2005 -- -- $2.85624 $2.85624 $20.14
    12/31/2004 $0.07948 -- -- $0.07948 $22.79
    12/17/2004 -- $0.82152 $2.00040 $2.82192 $22.46
    12/30/2003 $0.06798 -- $0.03448 $0.10246 $23.00
    12/17/2003 -- -- $0.04650 $0.04650 $22.44
    12/30/2002 $0.08613 -- -- $0.08613 $17.53
    12/28/2001 $0.07567 -- -- $0.07567 $18.41
    12/20/2001 -- -- $1.15335 $1.15335 $18.26
    12/20/2000 $0.15844 -- -- $0.15844 $18.92
    12/21/1999 $0.08350 -- $0.13280 $0.21630 $13.39
    12/14/1998 $0.11980 $0.32080 $0.96940 $1.41000 $15.58
    12/12/1997 $0.04300 $0.19010 -- $0.23310 $17.07

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    Past performance is not a guarantee of future results.

    Download historical distributions and NAVs
  • Fund Documents

    Download PDF View Online
    Fund Documents
    Large Cap Financial Fund Fact Sheet
    Large Cap Financial Fund Portfolio Manager Commentary View
    Large Cap Financial Fund Summary Prospectus
    Full Prospectus
    Statement of Additional Information
    Shareholder Reports
    Large Cap Financial Fund Semi-Annual Report
    Large Cap Financial Fund Annual Report