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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 1/20/21-
Investor Class (HSFNX)
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NAV
$25.01
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$ Change
-$0.03
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% Change
-0.12%
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YTD
12.00%
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Institutional Class (HISFX)
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NAV
$14.69
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$ Change
-$0.02
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% Change
-0.14%
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YTD
12.05%
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Average Annualized Total Return
as of 12/31/20Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Investor Class (HSFNX) 9.67% 2.58% 2.58% 1.14% 6.62% 7.60% 9.82% Institutional Class (HISFX) 9.65% 2.91% 2.91% 1.50% 7.00% 7.94% 9.99% Russell 2000® Index Financials 8.31% -1.95% -1.95% 2.79% 8.54% 9.82% 8.36% Russell 2000® Index 8.65% 19.96% 19.96% 10.25% 13.26% 11.20% 8.77% as of 12/31/20Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Investor Class (HSFNX) 57.27% 2.58% 2.58% 1.14% 6.62% 7.60% 9.82% Institutional Class (HISFX) 57.51% 2.91% 2.91% 1.50% 7.00% 7.94% 9.99% Russell 2000® Index Financials 35.30% -1.95% -1.95% 2.79% 8.54% 9.82% 8.36% Russell 2000® Index 31.37% 19.96% 19.96% 10.25% 13.26% 11.20% 8.77% Hypothetical Growth of $10,000
as of 12/31/2020Value of $10,000 invested between 12/31/2019 and 12/31/2020
Small Cap Financial Fund (HSFNX) $10,258 Small Cap Financial Fund (HISFX) $10,291 Russell 2000® Index Financials $9,805 Russell 2000® Index $11,996 Value of $10,000 invested between 12/31/2017 and 12/31/2020
Small Cap Financial Fund (HSFNX) $10,346 Small Cap Financial Fund (HISFX) $10,458 Russell 2000® Index Financials $10,859 Russell 2000® Index $13,400 Value of $10,000 invested between 12/31/2015 and 12/31/2020
Small Cap Financial Fund (HSFNX) $13,775 Small Cap Financial Fund (HISFX) $14,024 Russell 2000® Index Financials $15,064 Russell 2000® Index $18,636 Value of $10,000 invested between 12/31/2010 and 12/31/2020
Small Cap Financial Fund (HSFNX) $20,805 Small Cap Financial Fund (HISFX) $21,474 Russell 2000® Index Financials $25,508 Russell 2000® Index $28,920 Value of $10,000 invested between 1/3/1997 and 12/31/2020
Small Cap Financial Fund (HSFNX) $94,576 Small Cap Financial Fund (HISFX) $98,298 Russell 2000® Index Financials $68,574 Russell 2000® Index $75,085 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
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Investor Class (HSFNX) -15.63 21.42 36.59 -3.40 11.74 33.41 -0.20 -15.86 19.88 2.58 Institutional Class (HISFX) -15.52 21.71 36.96 -3.08 12.20 33.92 0.13 -15.46 20.21 2.91 Russell 2000® Index Financials -2.96 21.30 31.37 8.85 0.60 31.14 5.78 -10.83 24.21 -1.95 Russell 2000® Index -4.18 16.35 38.82 4.89 -4.41 21.31 14.65 -11.01 25.52 19.96 Year Investor Class (HSFNX) Institutional Class (HISFX) Russell 2000® Index Financials Russell 2000® Index 2010 17.50% 17.75% 20.37% 26.85% 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® Index Financialsas of 12/31/20Investor Class (HSFNX)Type 3 yr 5 yr 10 yr Alpha -0.90 -2.21 -2.61 Beta 1.16 1.16 1.11 Upside Capture 112.93 110.40 106.80 Downside Capture 118.27 120.99 120.78 Institutional Class (HISFX)Type 3 yr 5 yr 10 yr Alpha -0.54 -1.86 -2.29 Beta 1.17 1.16 1.11 Upside Capture 113.69 111.22 107.43 Downside Capture 117.92 120.53 120.00 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 12/31/20Type 3 yr 5 yr 10 yr Investor Class (HSFNX) 0.14 0.33 0.43 Institutional Class (HISFX) 0.15 0.35 0.44 Russell 2000® Index Financials 0.18 0.44 0.59 Financial Category Average 0.18 0.45 0.51 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 12/31/20Type 3 yr 5 yr 10 yr Investor Class (HSFNX) 30.13 25.74 21.07 Institutional Class (HISFX) 30.16 25.76 21.06 Russell 2000® Index Financials 24.61 21.11 17.75 Financial Category Average 24.85 21.13 17.95 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 12/31/20. 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, 83 and 71 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 12/31/20. 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® Index Financials 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 12/31/20Inception Date (HSFNX) 1/3/97 Inception Date (HISFX) 5/30/08 Total Fund Assets $84 Million Active Share vs. Russell 2000® Index Financials 92% Portfolio Turnover 78% Median Market Cap $2.5 Billion Median Price/Earnings 13.7x Median Price/Book 0.9x 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 12/31/20Fund Financials 93.6% Information Technology 5.1% Cash & Other 1.3% Sub-Industry Weighting % of Net Assets Regional Banks 82.2% Thrifts & Mortgage Finance 11.4% Data Processing & Outsourced Services 5.1% Portfolio Holdings
Top 10 Holdings
as of 12/31/20% of Net Assets Top 10 Holdings Ticker Current Vs. 3Q20 Vs. 4Q19 10-Year Holdings History (%) Time Held Hancock Whitney Corp. HWC 5.48% +0.67% +5.48% < 1 Year Texas Capital Bancshares, Inc. TCBI 5.33% +0.50% +3.40% 2 Years Alliance Data Systems Corp. ADS 5.13% +0.14% +5.13% 1 Year CIT Group, Inc. CIT 5.06% +0.21% +5.06% 1 Year Synovus Financial Corp, SNV 4.94% -0.28% +4.94% < 1 Year First Bancorp FBP 4.68% +0.63% -0.37% 5 Years First Midwest Bancorp, Inc. FMBI 4.65% +0.51% +0.46% 1 Year Wintrust Financial Corp. WTFC 4.59% -0.17% +4.59% 1 Year Independent Bank Corp. INDB 4.36% +0.29% -0.93% 12 Years Berkshire Hills Bancorp, Inc. BHLB 4.29% -0.51% -0.93% 2 Years Total as % of Net Assets 48.51% Total Holdings: 28
as of 12/31/20% of Net Assets Equity Holdings Current Vs. 3Q20 Vs. 4Q19 10-Year Holdings History (%) Time Held Hancock Whitney Corp. 5.48% +0.67% +5.48% < 1 Year Texas Capital Bancshares, Inc. 5.33% +0.50% +3.40% 2 Years Alliance Data Systems Corp. 5.13% +0.14% +5.13% 1 Year CIT Group, Inc. 5.06% +0.21% +5.06% 1 Year Synovus Financial Corp, 4.94% -0.28% +4.94% < 1 Year First Bancorp 4.68% +0.63% -0.37% 5 Years First Midwest Bancorp, Inc. 4.65% +0.51% +0.46% 1 Year Wintrust Financial Corp. 4.59% -0.17% +4.59% 1 Year Independent Bank Corp. 4.36% +0.29% -0.93% 12 Years Berkshire Hills Bancorp, Inc. 4.29% -0.51% -0.93% 2 Years Cadence BanCorp 4.02% +0.72% -0.51% 1 Year HomeTrust Bancshares, Inc. 3.92% +0.20% +1.85% 1 Year Pacific Premier Bancorp, Inc. 3.74% -0.86% +3.74% < 1 Year PacWest Bancorp 3.64% +3.64% +3.12% < 1 Year Meridian Bancorp, Inc. 3.61% -0.55% -1.68% 6 Years New York Community Bancorp, Inc. 3.21% +3.21% +3.21% < 1 Year Lakeland Bancorp, Inc. 3.18% -0.27% -1.39% 2 Years Investors Bancorp, Inc. 3.15% +3.15% +3.15% < 1 Year BankUnited, Inc. 3.11% +0.51% +3.11% < 1 Year Hingham Institution for Savings 3.09% -1.11% -2.06% 22 Years Sterling Bancorp 2.90% +0.40% +0.99% 3 Years ConnectOne Bancorp, Inc. 2.36% -0.47% -2.89% 4 Years Associated Banc-Corp. 2.03% -0.62% +2.03% 1 Year Webster Financial Corp. 2.01% -1.73% +2.01% 1 Year Brookline Bancorp, Inc. 2.01% -0.28% -2.17% 5 Years HarborOne Bancorp, Inc. 1.68% -0.16% +0.23% 1 Year Kearny Financial Corp. 1.45% +0.40% -0.50% 5 Years Banc of California, Inc. 1.05% -0.52% -4.02% 3 Years Total as % of Net Assets 98.7% Cash & Other Holdings % of Net Assets Cash & Other 1.3% Total as % of Net Assets 1.3% Country Allocation
as of 12/31/20-
United States
94.0%
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International
4.7%
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Cash & Other
1.3%
United States 94.0% Puerto Rico 4.7% Cash & Other 1.3% -
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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 12/29/2020 $0.20265 -- -- $0.20265 $21.93 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 12/29/2020 $0.27354 -- -- $0.27354 $12.88 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 Perspective View Shareholder Reports Small Cap Financial Fund Summary Prospectus Full Prospectus Statement of Additional Information Small Cap Financial Fund Semi-Annual Report Small Cap Financial Fund Annual Report
