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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 8/20/19 (Investor)-
Nav
$20.09
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$ Change
-$0.17
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% Change
-0.84%
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YTD
5.90%
Average Annualized Total Return
as of 7/31/19 (Investor)Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Small Cap Financial Fund (HSFNX) 1.27% 13.65% -7.63% 8.06% 8.72% 9.39% 10.08% Russell 2000® Financial Services Index 1.22% 16.93% -2.61% 9.59% 9.87% 12.39% 8.71% Russell 2000® Index 0.58% 17.66% -4.42% 10.37% 8.53% 12.47% 8.15% as of 6/30/19 (Investor)Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Small Cap Financial Fund (HSFNX) 5.87% 12.23% -9.48% 8.89% 7.14% 10.45% 10.06% Russell 2000® Financial Services Index 3.94% 15.52% -2.01% 11.05% 8.71% 13.36% 8.68% Russell 2000® Index 2.10% 16.98% -3.31% 12.30% 7.06% 13.45% 8.16% Hypothetical Growth of $10,000
as of 7/31/2019 (Investor)Value of $10,000 invested between 7/31/2018 and 7/31/2019
Small Cap Financial Fund (HSFNX) $9,237 Russell 2000® Financial Services Index $9,739 Russell 2000® Index $9,558 Value of $10,000 invested between 7/31/2016 and 7/31/2019
Small Cap Financial Fund (HSFNX) $12,618 Russell 2000® Financial Services Index $13,163 Russell 2000® Index $13,443 Value of $10,000 invested between 7/31/2014 and 7/31/2019
Small Cap Financial Fund (HSFNX) $15,191 Russell 2000® Financial Services Index $16,013 Russell 2000® Index $15,060 Value of $10,000 invested between 7/31/2009 and 7/31/2019
Small Cap Financial Fund (HSFNX) $24,533 Russell 2000® Financial Services Index $32,143 Russell 2000® Index $32,396 Value of $10,000 invested between 1/3/1997 and 7/31/2019
Small Cap Financial Fund (HSFNX) $87,410 Russell 2000® Financial Services Index $65,840 Russell 2000® Index $58,669 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 Small Cap Financial Fund (HSFNX) 20.13 17.50 -15.63 21.42 36.59 -3.40 11.74 33.41 -0.20 -15.86 Russell 2000® Financial Services Index -0.03 20.37 -2.96 21.30 31.37 8.85 0.60 31.14 5.78 -10.83 Russell 2000® Index 27.17 26.85 -4.18 16.35 38.82 4.89 -4.41 21.31 14.65 -11.01 Year Small Cap Financial Fund (HSFNX) Russell 2000® Financial Services Index Russell 2000® Index 2008 -8.73% -24.97% -33.79% 2007 -22.18% -16.57% -1.57% 2006 11.80% 19.71% 18.37% 2005 -1.55% 2.31% 4.55% 2004 16.04% 21.52% 18.33% 2003 41.05% 39.43% 47.25% 2002 18.68% 2.09% -20.48% 2001 23.85% 15.74% 2.49% 2000 32.42% 21.16% -3.02% 1999 -5.43% -6.03% 21.26% 1998 -13.52% -7.16% -2.55% Returns-Based Statistics
Relative to Russell 2000® Financial Services Indexas of 6/30/19 (Investor)Type 3 yr 5 yr 10 yr Alpha -2.42 -1.42 -3.10 Beta 1.08 1.03 1.06 Upside Capture 99.21 103.62 101.08 Downside Capture 109.54 113.21 117.90 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 6/30/19 (Investor)Type 3 yr 5 yr 10 yr Small Cap Financial Fund (HSFNX) 0.46 0.43 0.61 Russell 2000® Financial Services Index 0.62 0.55 0.85 Financial Category Average 0.83 0.48 0.70 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 6/30/19 (Investor)Type 3 yr 5 yr 10 yr Small Cap Financial Fund (HSFNX) 18.98 17.38 17.99 Russell 2000® Financial Services Index 16.66 15.66 15.73 Financial Category Average 15.33 14.72 15.84 Standard deviation is a statistical measure of the historical volatility of a mutual fund or portfolio.
Fund Expenses
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Gross expense ratio
1.55%
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 6/30/19. 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 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 6/30/19Inception Date (HSFNX) 1/3/97 Total Fund Assets $122 Million Active Share vs. Russell 2000® Financial Services Index 93% Portfolio Turnover 37% Median Market Cap $1.4 Billion Median Price/Earnings 12.3x 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 6/30/19Fund Financials 96.3% Information Technology 1.0% Real Estate 0.4% Cash & Other 2.3% Sub-Industry Weighting % of Net Assets Regional Banks 70.4% Thrifts & Mortgage Finance 25.8% Data Processing & Outsourced Services 1.0% Real Estate Services 0.4% Portfolio Holdings
Top 10 Holdings
as of 6/30/19Top 10 Holdings % of Net Assets First Bancorp 5.5% Meridian Bancorp, Inc. 5.3% ConnectOne Bancorp, Inc. 5.1% Hingham Institution for Savings 4.6% Banc of California, Inc. 4.5% Brookline Bancorp, Inc. 4.4% OceanFirst Financial Corp. 4.3% Independent Bank Corp. 4.3% Berkshire Hills Bancorp, Inc. 4.2% Opus Bank 4.1% Total as % of Net Assets 46.4% Total Holdings: 39
as of 6/30/19Equity Holdings % of Net Assets First Bancorp 5.5% Meridian Bancorp, Inc. 5.3% ConnectOne Bancorp, Inc. 5.1% Hingham Institution for Savings 4.6% Banc of California, Inc. 4.5% Brookline Bancorp, Inc. 4.4% OceanFirst Financial Corp. 4.3% Independent Bank Corp. 4.3% Berkshire Hills Bancorp, Inc. 4.2% Opus Bank 4.1% Franklin Financial Network, Inc. 3.9% Lakeland Bancorp, Inc. 3.7% Atlantic Union Bankshares Corp. 3.7% Sterling Bancorp 3.5% United Financial Bancorp, Inc. 3.2% Texas Capital Bancshares, Inc. 2.9% TriCo Bancshares 2.8% Kearny Financial Corp. 2.7% Ameris Bancorp, Inc. 2.4% Midland States Bancorp, Inc. 2.3% Columbia Financial, Inc. 2.2% Eagle Bancorp, Inc. 2.2% Washington Federal, Inc. 2.1% First Midwest Bancorp, Inc. 1.8% Wintrust Financial Corp. 1.8% IBERIABANK Corp. 1.5% PacWest Bancorp 1.4% HarborOne Bancorp, Inc. 1.4% Veritex Holdings, Inc. 1.3% Banner Corp. 1.0% Dime Community Bancshares, Inc. 0.8% WSFS Financial Corp. 0.6% BankUnited, Inc. 0.5% Paysign, Inc. 0.4% eXp World Holdings, Inc. 0.4% International Money Express Inc. 0.4% Western Alliance Bancorp 0.2% MoneyGram International, Inc. 0.2% Synovus Financial Corp, 0.1% Total as % of Net Assets 97.7% Cash & Other Holdings % of Net Assets Cash & Other 2.3% Total as % of Net Assets 2.3% Country Allocation
as of 6/30/19-
United States
92.2%
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Foreign
5.5%
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Cash & Other
2.3%
United States 92.2% Puerto Rico 5.5% Cash & Other 2.3% -
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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 12/27/2018 $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 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
