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Overview
Hennessy Small Cap Financial Fund
Actively managed, the Fund maintains a concentrated portfolio of small-cap Financial Services sector stocks.
Investment Overview VideoFinancial Funds Investment Strategy
Portfolio Managers Dave Ellison and Ryan Kelley describe their investment strategy, which seeks high-quality and well managed Financial Services companies.
Why Invest
- An opportunity to invest in a select group of geographically diverse regional and community banks
- 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 under $3 billion, the Hennessy Small 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
“We look for smaller banks that we believe can grow profits regardless of the interest rate environment.”
- Dave Ellison
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Insights & News
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Performance
Daily Pricing & Performance
as of 3/31/20-
Investor Class (HSFNX)
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NAV
$13.61
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$ Change
$0.04
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% Change
0.29%
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YTD
-38.05%
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Institutional Class (HISFX)
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NAV
$8.07
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$ Change
$0.03
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% Change
0.37%
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YTD
-37.97%
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Average Annualized Total Return
as of 2/29/20Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Investor Class (HSFNX) -8.34% -13.93% -10.70% -3.94% 5.23% 6.65% 9.36% Institutional Class (HISFX) -8.27% -13.84% -10.36% -3.59% 5.64% 6.97% 9.53% Russell 2000® Financial Services Index -9.29% -12.05% -5.26% 0.62% 6.42% 10.35% 8.16% Russell 2000® Index -8.42% -11.36% -4.92% 3.52% 5.12% 10.41% 7.68% as of 12/31/19Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Investor Class (HSFNX) 9.81% 19.88% 19.88% 0.22% 8.46% 9.07% 10.14% Institutional Class (HISFX) 9.82% 20.21% 20.21% 0.58% 8.86% 9.41% 10.31% Russell 2000® Financial Services Index 6.19% 24.21% 24.21% 5.42% 9.10% 12.09% 8.83% Russell 2000® Index 9.94% 25.52% 25.52% 8.59% 8.23% 11.83% 8.30% Hypothetical Growth of $10,000
as of 2/29/2020Value of $10,000 invested between 2/28/2019 and 2/29/2020
Small Cap Financial Fund (HSFNX) $8,930 Small Cap Financial Fund (HISFX) $8,964 Russell 2000® Financial Services Index $9,474 Russell 2000® Index $9,508 Value of $10,000 invested between 2/28/2017 and 2/29/2020
Small Cap Financial Fund (HSFNX) $8,864 Small Cap Financial Fund (HISFX) $8,962 Russell 2000® Financial Services Index $10,188 Russell 2000® Index $11,093 Value of $10,000 invested between 2/28/2015 and 2/29/2020
Small Cap Financial Fund (HSFNX) $12,904 Small Cap Financial Fund (HISFX) $13,154 Russell 2000® Financial Services Index $13,651 Russell 2000® Index $12,838 Value of $10,000 invested between 2/28/2010 and 2/29/2020
Small Cap Financial Fund (HSFNX) $19,032 Small Cap Financial Fund (HISFX) $19,623 Russell 2000® Financial Services Index $26,768 Russell 2000® Index $26,932 Value of $10,000 invested between 1/3/1997 and 2/29/2020
Small Cap Financial Fund (HSFNX) $79,357 Small Cap Financial Fund (HISFX) $82,304 Russell 2000® Financial Services Index $61,510 Russell 2000® Index $55,484 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
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Investor Class (HSFNX) 17.50 -15.63 21.42 36.59 -3.40 11.74 33.41 -0.20 -15.86 19.88 Institutional Class (HISFX) 17.75 -15.52 21.71 36.96 -3.08 12.20 33.92 0.13 -15.46 20.21 Russell 2000® Financial Services Index 20.37 -2.96 21.30 31.37 8.85 0.60 31.14 5.78 -10.83 24.21 Russell 2000® Index 26.85 -4.18 16.35 38.82 4.89 -4.41 21.31 14.65 -11.01 25.52 Year Investor Class (HSFNX) Institutional Class (HISFX) Russell 2000® Financial Services Index Russell 2000® Index 2009 20.13% 19.91% -0.03% 27.17% 2008 -8.73% -8.11% -24.97% -33.79% 2007 -22.18% -22.18% -16.57% -1.57% 2006 11.80% 11.80% 19.71% 18.37% 2005 -1.55% -1.55% 2.31% 4.55% 2004 16.04% 16.04% 21.52% 18.33% 2003 41.05% 41.05% 39.43% 47.25% 2002 18.68% 18.68% 2.09% -20.48% 2001 23.85% 23.85% 15.74% 2.49% 2000 32.42% 32.42% 21.16% -3.02% 1999 -5.43% -5.43% -6.03% 21.26% 1998 -13.52% -13.52% -7.16% -2.55% Returns-Based Statistics
Relative to Russell 2000® Financial Services Indexas of 12/31/19Investor Class (HSFNX)Type 3 yr 5 yr 10 yr Alpha -5.05 -0.82 -3.14 Beta 1.06 1.07 1.06 Upside Capture 96.46 108.93 101.32 Downside Capture 122.79 116.55 119.27 Institutional Class (HISFX)Type 3 yr 5 yr 10 yr Alpha -4.69 -0.44 -2.81 Beta 1.06 1.07 1.06 Upside Capture 97.51 109.94 101.96 Downside Capture 122.15 115.81 118.42 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 12/31/19Type 3 yr 5 yr 10 yr Investor Class (HSFNX) -0.01 0.49 0.55 Institutional Class (HISFX) 0.02 0.51 0.57 Russell 2000® Financial Services Index 0.31 0.58 0.79 Financial Category Average 0.52 0.55 0.64 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 12/31/19Type 3 yr 5 yr 10 yr Investor Class (HSFNX) 16.77 17.38 17.39 Institutional Class (HISFX) 16.76 17.38 17.38 Russell 2000® Financial Services Index 14.90 15.08 15.27 Financial Category Average 14.45 14.94 15.49 Standard deviation is a statistical measure of the historical volatility of a mutual fund or portfolio.
Fund Expenses
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Investor Class (HSFNX)
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Gross expense ratio
1.59%
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Institutional Class (HISFX)
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Gross expense ratio
1.24%
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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.
Morningstar Proprietary Ratings reflect risk-adjusted performance as of 12/31/19. 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. among 92, 85 and 69 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 12/31/19. 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 Institutional Class shares / HISFX 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 2000® Financial Services Index is an unmanaged index commonly used to measure the performance of U.S. small-capitalization financial sector stocks. The Russell 2000® Index is an unmanaged index commonly used to measure the performance of U.S. small-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.
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Portfolio
Portfolio Characteristics
as of 12/31/19Inception Date (HSFNX) 1/3/97 Inception Date (HISFX) 5/30/08 Total Fund Assets $110 Million Active Share vs. Russell 2000® Financial Services Index 94% Portfolio Turnover 48% Median Market Cap $1.3 Billion Median Price/Earnings 13.9x Median Price/Book 1.2x 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 12/31/19Fund Financials 94.5% Information Technology 2.3% Real Estate 1.3% Cash & Other 1.9% Sub-Industry Weighting % of Net Assets Regional Banks 73.9% Thrifts & Mortgage Finance 18.5% Consumer Finance 2.1% Data Processing & Outsourced Services 1.8% Real Estate Services 1.3% Application Software 0.5% Portfolio Holdings
Top 10 Holdings
as of 12/31/19Top 10 Holdings % of Net Assets Independent Bank Corp. 5.3% Meridian Bancorp, Inc. 5.3% ConnectOne Bancorp, Inc. 5.3% Berkshire Hills Bancorp, Inc. 5.2% Opus Bank 5.2% Hingham Institution for Savings 5.2% Banc of California, Inc. 5.1% First Bancorp 5.1% Lakeland Bancorp, Inc. 4.6% Cadence BanCorp 4.5% Total as % of Net Assets 50.6% Total Holdings: 34
as of 12/31/19Equity Holdings % of Net Assets Independent Bank Corp. 5.3% Meridian Bancorp, Inc. 5.3% ConnectOne Bancorp, Inc. 5.3% Berkshire Hills Bancorp, Inc. 5.2% Opus Bank 5.2% Hingham Institution for Savings 5.2% Banc of California, Inc. 5.1% First Bancorp 5.1% Lakeland Bancorp, Inc. 4.6% Cadence BanCorp 4.5% First Midwest Bancorp, Inc. 4.2% Brookline Bancorp, Inc. 4.2% Franklin Financial Network, Inc. 4.1% OceanFirst Financial Corp. 3.4% People's United Financial, Inc. 3.2% Eagle Bancorp, Inc. 3.0% ServisFirst Bancshares, Inc. 2.3% Green Dot Corp. 2.1% HomeTrust Bancshares, Inc. 2.1% Kearny Financial Corp. 2.0% Texas Capital Bancshares, Inc. 1.9% Sterling Bancorp 1.9% Columbia Financial, Inc. 1.8% TriCo Bancshares 1.6% Atlantic Union Bankshares Corp. 1.5% HarborOne Bancorp, Inc. 1.5% eXp World Holdings, Inc. 1.3% Silvergate Capital Corp. 1.0% International Money Express Inc. 0.9% Midland States Bancorp, Inc. 0.9% Washington Federal, Inc. 0.8% Paysign, Inc. 0.8% PacWest Bancorp 0.5% Bill.Com Holdings, Inc. 0.5% Total as % of Net Assets 98.1% Cash & Other Holdings % of Net Assets Cash & Other 1.9% Total as % of Net Assets 1.9% Country Allocation
as of 12/31/19-
United States
93.0%
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Foreign
5.0%
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Cash & Other
1.9%
United States 93.0% Puerto Rico 5.0% Cash & Other 1.9% -
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Distributions
The Hennessy Small 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 12/27/2019 $0.09444 -- -- $0.09444 $21.96 12/06/2019 -- -- $0.65961 $0.65961 $21.51 12/27/2018 $0.07119 -- -- $0.07119 $18.71 12/07/2018 -- $0.00162 $1.31958 $1.32120 $20.10 12/27/2017 $0.00291 -- -- $0.00291 $24.27 12/07/2017 -- $0.16690 $1.80632 $1.97322 $24.48 12/28/2016 $0.06500 -- -- $0.06500 $26.34 12/07/2016 -- -- $3.19063 $3.19063 $25.42 12/29/2015 $0.02529 -- -- $0.02529 $22.55 12/09/2015 -- $0.15543 $1.44849 $1.60392 $22.38 12/08/2014 -- -- $3.34234 $3.34234 $20.83 12/31/2013 $0.05812 -- -- $0.05812 $25.48 12/10/2013 -- $0.16499 $1.43869 $1.60368 $24.71 12/31/2012 $0.12360 -- -- $0.12360 $19.91 12/30/2011 $0.28967 -- -- $0.28967 $16.50 12/31/2010 $0.05717 -- -- $0.05717 $19.90 12/15/2010 -- $0.12946 -- $0.12946 $19.16 12/31/2009 $0.06710 -- -- $0.06710 $17.10 12/31/2008 $0.18543 -- -- $0.18543 $14.29 12/31/2007 $0.28204 -- -- $0.28204 $15.86 12/14/2007 -- -- $6.23575 $6.23575 $15.78 12/29/2006 $0.14674 -- -- $0.14674 $28.94 12/15/2006 -- $0.07876 $4.27513 $4.35389 $28.90 07/31/2006 -- -- $0.01524 $0.01524 $31.47 12/30/2005 $0.14416 -- -- $0.14416 $29.95 12/16/2005 -- -- $3.68831 $3.68831 $30.47 10/31/2005 -- -- $0.01175 $0.01175 $32.96 12/31/2004 $0.18461 -- -- $0.18461 $34.28 12/17/2004 -- $0.11033 $4.24179 $4.35212 $34.19 12/30/2003 $0.07202 -- -- $0.07202 $33.83 12/17/2003 -- $0.05453 $0.60031 $0.65484 $33.01 10/31/2003 -- -- $0.00153 $0.00153 $32.56 12/30/2002 $0.13093 -- -- $0.13093 $24.30 12/18/2002 -- -- $0.63781 $0.63781 $24.33 12/28/2001 $0.46875 -- -- $0.46875 $21.00 12/20/2001 -- -- $0.34210 $0.34210 $21.13 12/20/2000 $0.10219 -- -- $0.10219 $16.79 12/21/1999 $0.01670 -- -- $0.01670 $13.14 12/14/1998 $0.07080 $1.33330 $0.60060 $2.00470 $14.19 12/12/1997 $0.03220 $0.15050 -- $0.18270 $17.88 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 12/27/2019 $0.19225 -- -- $0.19225 $13.00 12/06/2019 -- -- $0.39469 $0.39469 $12.87 12/27/2018 $0.18031 -- -- $0.18031 $11.16 12/07/2018 -- $0.00101 $0.82307 $0.82408 $12.14 12/27/2017 $0.02033 -- -- $0.02033 $14.63 12/07/2017 -- $0.10053 $1.08807 $1.18860 $14.77 12/28/2016 $0.16682 -- -- $0.16682 $15.83 12/07/2016 -- -- $1.95258 $1.95258 $15.39 12/29/2015 $0.03989 -- -- $0.03989 $13.62 12/09/2015 -- $0.09311 $0.86773 $0.96084 $13.54 12/08/2014 -- -- $2.01129 $2.01129 $12.55 12/31/2013 $0.13517 -- -- $0.13517 $15.30 12/10/2013 -- $0.16499 $1.43869 $1.60368 $14.94 12/31/2012 $0.17751 -- -- $0.17751 $12.48 12/30/2011 $0.35426 -- -- $0.35426 $10.40 12/31/2010 $0.12307 -- -- $0.12307 $12.73 12/15/2010 -- $0.12946 -- $0.12946 $12.34 12/31/2009 $0.13321 -- -- $0.13321 $11.03 12/31/2008 $0.20868 -- -- $0.20868 $9.31 Past performance is not a guarantee of future results.
Download historical distributions and NAVs -
Fund Documents
Download PDF View Online Fund Documents Small Cap Financial Fund Fact Sheet Small Cap Financial Fund Portfolio Manager Commentary View Small Cap Financial Fund Summary Prospectus Full Prospectus Statement of Additional Information Shareholder Reports Small Cap Financial Fund Semi-Annual Report Small Cap Financial Fund Annual Report
