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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.
Fund Facts
Category
Sector & Specialty - FinancialInception Date
1/3/97Morningstar style box
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 10/16/18 (Investor)-
Nav
$23.16
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$ Change
$0.14
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% Change
0.61%
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YTD
-3.98%
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) Small Cap Financial Fund (HSFNX) -4.44% -0.04% 0.49% 11.26% 9.51% 10.02% 10.71% Russell 2000® Financial Services Index -3.48% 5.73% 6.79% 14.88% 11.92% 8.96% 9.13% Russell 2000® Index -2.41% 11.51% 15.24% 17.12% 11.07% 11.11% 8.79% as of 9/30/18 (Investor)Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Small Cap Financial Fund (HSFNX) -4.17% -0.04% 0.49% 11.26% 9.51% 10.02% 10.71% Russell 2000® Financial Services Index 0.58% 5.73% 6.79% 14.88% 11.92% 8.96% 9.13% Russell 2000® Index 3.58% 11.51% 15.24% 17.12% 11.07% 11.11% 8.79% Hypothetical Growth of $10,000
as of 9/30/2018 (Investor)Value of $10,000 invested between 9/30/2017 and 9/30/2018
Small Cap Financial Fund (HSFNX) $10,049 Russell 2000® Financial Services Index $10,679 Russell 2000® Index $11,524 Value of $10,000 invested between 9/30/2015 and 9/30/2018
Small Cap Financial Fund (HSFNX) $13,774 Russell 2000® Financial Services Index $15,160 Russell 2000® Index $16,066 Value of $10,000 invested between 9/30/2013 and 9/30/2018
Small Cap Financial Fund (HSFNX) $15,747 Russell 2000® Financial Services Index $17,558 Russell 2000® Index $16,906 Value of $10,000 invested between 9/30/2008 and 9/30/2018
Small Cap Financial Fund (HSFNX) $25,994 Russell 2000® Financial Services Index $23,583 Russell 2000® Index $28,686 Value of $10,000 invested between 1/3/1997 and 9/30/2018
Small Cap Financial Fund (HSFNX) $91,372 Russell 2000® Financial Services Index $66,764 Russell 2000® Index $62,487 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 Small Cap Financial Fund (HSFNX) Russell 2000® Financial Services Index Russell 2000® Index 2017 -0.20% 5.78% 14.65% 2016 33.41% 31.14% 21.31% 2015 11.74% 0.60% -4.41% 2014 -3.40% 8.85% 4.89% 2013 36.59% 31.37% 38.82% 2012 21.42% 21.30% 16.35% 2011 -15.63% -2.96% -4.18% 2010 17.50% 20.37% 26.85% 2009 20.13% -0.03% 27.17% 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 9/30/18 (Investor)Type 3 yr 5 yr 10 yr Alpha -3.93 -2.33 2.74 Beta 1.07 1.03 0.80 Upside Capture 96.15 99.86 94.58 Downside Capture 117.65 116.23 87.75 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 Small Cap Financial Fund (HSFNX) 0.69 0.64 0.62 Russell 2000® Financial Services Index 1.01 0.88 0.54 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 Small Cap Financial Fund (HSFNX) 15.96 14.91 17.36 Russell 2000® Financial Services Index 13.72 13.13 18.52 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
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Gross expense ratio
1.53%
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 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 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 9/30/18Total Fund Assets $176.9 Million Active Share vs. Russell 2000® Financial Services Index 93% Portfolio Turnover 28% Median Market Cap $1.4 Billion Median Price/Earnings 16.3x Median Price/Book 1.3x 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 9/30/18Sector % of Net Assets Financials 92.4% Cash & Other 7.6% Sub-Industry Weighting % of Net Assets Regional Banks 59.9% Thrifts & Mortgage Finance 32.5% Portfolio Holdings
Top 10 Holdings
as of 9/30/18Top 10 Holdings % of Net Assets Hingham Institution for Savings 5.4% Union Bankshares Corp. 5.1% OceanFirst Financial Corp. 4.8% Brookline Bancorp, Inc. 4.8% Meridian Bancorp, Inc. 4.3% Kearny Financial Corp. 4.0% Eagle Bancorp, Inc. 3.6% ConnectOne Bancorp, Inc. 3.5% Opus Bank 3.4% Columbia Financial, Inc. 3.4% Total as % of Net Assets 42.3% Total Holdings: 34
as of 9/30/18Equity Holdings % of Net Assets Hingham Institution for Savings 5.4% Union Bankshares Corp. 5.1% OceanFirst Financial Corp. 4.8% Brookline Bancorp, Inc. 4.8% Meridian Bancorp, Inc. 4.3% Kearny Financial Corp. 4.0% Eagle Bancorp, Inc. 3.6% ConnectOne Bancorp, Inc. 3.5% Opus Bank 3.4% Columbia Financial, Inc. 3.4% Independent Bank Corp. 3.3% FCB Financial Holdings, Inc. 3.2% Banc of California, Inc. 3.2% HarborOne Bancorp, Inc. 3.1% First Bancorp 2.8% Washington Federal, Inc. 2.7% BankUnited, Inc. 2.7% Green Bancorp, Inc. 2.5% Sterling Bancorp 2.4% Wintrust Financial Corp. 2.4% IBERIABANK Corp. 2.3% Beneficial Mutual Bancorp, Inc. 2.3% PacWest Bancorp 2.3% Banner Corp. 2.3% United Financial Bancorp, Inc. 2.2% First Connecticut Bancorp, Inc. 1.8% Blue Hills Bancorp, Inc. 1.8% Midland States Bancorp, Inc. 1.6% Dime Community Bancshares, Inc. 1.5% Axos Financial, Inc. 1.4% Flushing Financial Corp. 0.8% Capstar Financial Holdings, Inc. 0.7% Provident Financial Services 0.5% Western Alliance Bancorp 0.3% Total as % of Net Assets 92.5% Cash & Other Holdings % of Net Assets Cash & Other 7.6% Total as % of Net Assets 7.6% Country Allocation
as of 9/30/18-
United States
89.6%
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Foreign
2.8%
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Cash & Other
7.6%
United States 89.6% Puerto Rico 2.8% Cash & Other 7.6% -
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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 12/27/2017 $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
