Hennessy Small Cap Financial Fund
Ticker
HSFNX
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  • Overview

    HSFNX
    Investor

    Hennessy Small Cap Financial Fund

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

    Category

    Sector & Specialty - Financial

    Documents

    Morningstar style box

    Morningstar style box
    Investment Overview Video
    Investment Overview Video

    Financial 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

  • Insights & News

    View All Fund Insights

  • Performance

    Daily Pricing & Performance

    as of 6/24/19 (Investor)

    • Nav

      $20.46

    • $ Change

      -$0.22

    • % Change

      -1.06%

    • YTD

      7.85%

    Average Annualized Total Return

    as of 5/31/19 (Investor)
    Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97)
    Small Cap Financial Fund (HSFNX) -6.30% 5.80% -15.70% 4.96% 6.52% 9.46% 9.81%
    Russell 2000® Financial Services Index -5.58% 10.04% -6.50% 9.08% 8.59% 12.68% 8.48%
    Russell 2000® Index -7.78% 9.26% -9.05% 9.75% 6.71% 12.84% 7.86%

    Please swipe to view table

    as of 3/31/19 (Investor)
    Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97)
    Small Cap Financial Fund (HSFNX) 6.01% 6.01% -11.14% 7.33% 5.12% 10.85% 9.90%
    Russell 2000® Financial Services Index 11.15% 11.15% 0.49% 11.08% 8.35% 14.03% 8.60%
    Russell 2000® Index 14.58% 14.58% 2.05% 12.92% 7.05% 15.36% 8.15%

    Please swipe to view table

    Hypothetical Growth of $10,000

    as of 5/31/2019 (Investor)

    Value of $10,000 invested between 5/31/2018 and 5/31/2019
    Small Cap Financial Fund (HSFNX) $8,430
    Russell 2000® Financial Services Index $9,350
    Russell 2000® Index $9,096

    Value of $10,000 invested between 5/31/2016 and 5/31/2019
    Small Cap Financial Fund (HSFNX) $11,564
    Russell 2000® Financial Services Index $12,978
    Russell 2000® Index $13,221

    Value of $10,000 invested between 5/31/2014 and 5/31/2019
    Small Cap Financial Fund (HSFNX) $13,713
    Russell 2000® Financial Services Index $15,096
    Russell 2000® Index $13,838

    Value of $10,000 invested between 5/31/2009 and 5/31/2019
    Small Cap Financial Fund (HSFNX) $24,696
    Russell 2000® Financial Services Index $32,987
    Russell 2000® Index $33,466

    Value of $10,000 invested between 1/3/1997 and 5/31/2019
    Small Cap Financial Fund (HSFNX) $81,370
    Russell 2000® Financial Services Index $61,960
    Russell 2000® Index $54,482

    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%

    Please swipe to view table

    Returns-Based Statistics
    Relative to Russell 2000® Financial Services Index

    as of 3/31/19 (Investor)
    Type 3 yr 5 yr 10 yr
    Alpha -3.87 -2.95 -2.97
    Beta 1.08 1.02 1.03
    Upside Capture 98.39 99.41 98.65
    Downside Capture 118.34 116.59 115.45

    Please swipe to view table

    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 3/31/19 (Investor)
    Type 3 yr 5 yr 10 yr
    Small Cap Financial Fund (HSFNX) 0.40 0.33 0.64
    Russell 2000® Financial Services Index 0.66 0.55 0.88
    Financial Category Average 0.73 0.44 0.79

    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 3/31/19 (Investor)
    Type 3 yr 5 yr 10 yr
    Small Cap Financial Fund (HSFNX) 18.38 17.02 17.91
    Russell 2000® Financial Services Index 15.95 15.35 15.95
    Financial Category Average 14.52 13.96 16.55

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

    Fund Expenses

    • 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 3/31/19. 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 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.

  • Portfolio

    Portfolio Characteristics

    as of 3/31/19
    Inception Date (HSFNX) 1/3/97
    Total Fund Assets $135 Million
    Active Share vs. Russell 2000® Financial Services Index 93%
    Portfolio Turnover 37%
    Median Market Cap $1.5 Billion
    Median Price/Earnings 12.2x
    Median Price/Book 1.1x

    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 reflect the trailing 12-month period.

    Sector Weighting

    as of 3/31/19
    Fund
    Financials 93.6%
    Cash & Other 6.4%
    Sub-Industry Weighting % of Net Assets
    Regional Banks 68.5%
    Thrifts & Mortgage Finance 25.1%

    Portfolio Holdings

    Top 10 Holdings

    as of 3/31/19
    Top 10 Holdings Ticker % of Net Assets
    First Bancorp FBP 5.0%
    Meridian Bancorp, Inc. EBSB 4.6%
    Union Bankshares Corp. UBSH 4.3%
    ConnectOne Bancorp, Inc. CNOB 4.3%
    OceanFirst Financial Corp. OCFC 4.3%
    Brookline Bancorp, Inc. BRKL 4.2%
    Independent Bank Corp. INDB 4.2%
    Hingham Institution for Savings HIFS 4.1%
    Banc of California, Inc. BANC 3.6%
    Sterling Bancorp STL 3.5%
    Total as % of Net Assets 42.2%

    Total Holdings: 34

    as of 3/31/19
    Print All Holdings
    Equity Holdings Ticker % of Net Assets
    First Bancorp FBP 5.0%
    Meridian Bancorp, Inc. EBSB 4.6%
    Union Bankshares Corp. UBSH 4.3%
    ConnectOne Bancorp, Inc. CNOB 4.3%
    OceanFirst Financial Corp. OCFC 4.3%
    Brookline Bancorp, Inc. BRKL 4.2%
    Independent Bank Corp. INDB 4.2%
    Hingham Institution for Savings HIFS 4.1%
    Banc of California, Inc. BANC 3.6%
    Sterling Bancorp STL 3.5%
    Opus Bank OPB 3.5%
    Franklin Financial Network, Inc. FSB 3.5%
    Berkshire Hills Bancorp, Inc. BHLB 3.3%
    Lakeland Bancorp, Inc. LBAI 3.1%
    Kearny Financial Corp. KRNY 3.0%
    Eagle Bancorp, Inc. EGBN 2.9%
    TriCo Bancshares TCBK 2.9%
    Columbia Financial, Inc. CLBK 2.5%
    Midland States Bancorp, Inc. MSBI 2.5%
    BankUnited, Inc. BKU 2.4%
    United Financial Bancorp, Inc. UBNK 2.4%
    IBERIABANK Corp. IBKC 2.3%
    Veritex Holdings, Inc. VBTX 2.2%
    Washington Federal, Inc. WAFD 2.2%
    PacWest Bancorp PACW 2.1%
    Texas Capital Bancshares, Inc. TCBI 2.0%
    HarborOne Bancorp, Inc. HONE 1.7%
    Wintrust Financial Corp. WTFC 1.6%
    Synovus Financial Corp, SNV 1.5%
    Banner Corp. BANR 1.3%
    WSFS Financial Corp. WSFS 1.2%
    Dime Community Bancshares, Inc. DCOM 0.9%
    Hancock Whitney Corp. HWC 0.4%
    Western Alliance Bancorp WAL 0.2%
    Total as % of Net Assets 93.6%
    Cash & Other Holdings % of Net Assets
    Cash & Other 6.4%
    Total as % of Net Assets 6.4%

    Country Allocation

    as of 3/31/19

    • United States

      88.6%

    • Foreign

      5.0%

    • Cash & Other

      6.4%
    United States 88.6%
    Puerto Rico 5.0%
    Cash & Other 6.4%

  • 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

    Please swipe to view table

    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

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Contact
Hennessy Funds
7250 Redwood Boulevard, Suite 200
 Novato, CA 94945

The Funds' investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read it carefully before investing. A hard copy of the prospectus can be requested by calling 1-800-966-4354.

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 and can be found here. Neither forward earnings nor earnings growth is a measure of a fund’s future performance.

Mutual fund investing involves risk. Principal loss is possible. Small and medium-capitalization companies may have more limited liquidity and greater price volatility than large-capitalization companies. Investments in foreign securities may involve greater volatility and political, economic, and currency risk and differences in accounting methods. The Focus, Total Return, Balanced, Large Cap Financial, Small Cap Financial, and BP Midstream Funds are considered non-diversified funds. A non-diversified fund, which may concentrate its assets in fewer individual holdings than a diversified fund, is more exposed to individual stock volatility than a diversified fund. A fund that concentrates its investments within one country, one sector, or a small group of industries, such as Japan, Technology, Financials, or Energy, may be subject to a higher degree of risk. Investments in debt securities typically decrease in value when interest rates rise. The risk is greater for longer-term debt securities. Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities. Mortgage- and asset-backed securities are subject to prepayment risk, which is the risk that the borrower will prepay some or all of the principal owed to the issuer. Funds that invest in pooled investment vehicles (including ETFs) may experience higher fees. The formula-based strategy employed by some Funds may cause those Funds to buy or sell securities at times when it may not be advantageous.

Master Limited Partnerships (MLPs) and MLP investments have unique characteristics. A Fund does not receive the same tax benefits as a direct investment in an MLP.

The prices of MLP units may fluctuate abruptly and trading volume may be low, making it difficult for a Fund to sell its units at a favorable price. MLP general partners have the power to take actions that adversely affect the interests of unit holders. Most MLPs do not pay U.S. federal income tax at the partnership level, but an adverse change in tax laws could result in MLPs being treated as corporations for federal income tax purposes, which could reduce or eliminate distributions paid by MLPs to the Fund. If the BP Energy Fund’s MLP investments exceed 25% of its assets, it may not qualify for treatment as a regulated investment company (“RIC”) under the Internal Revenue Code (“Code”), and the Fund would be taxed as an ordinary corporation, which could substantially reduce its net assets and its distributions to shareholders. The BP Midstream Fund is treated as a regular corporation, or “C” corporation, for U.S. federal income tax purposes, and therefore, is subject to U.S. federal income tax on its taxable income at the graduated rates applicable to corporations (currently a maximum rate of 21%) as well as state and local income taxes. The BP Midstream Fund will not benefit from current favorable federal income tax rates on long-term capital gains, and Fund income and losses will not be passed on to shareholders. The BP Midstream Fund accrues deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax-deferred return of capital and for any net operating gains as well as capital appreciation of its investments. This deferred tax liability is reflected in the daily NAV, and as a result, the Fund’s after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked.

Glossary of Terms contains definitions and additional information.

To view the top 10 holdings of a Fund, please click the Fund name: Cornerstone Growth, Focus, Cornerstone Mid Cap 30, Cornerstone Large Growth, Cornerstone Value, Total Return, Equity and Income, Balanced, BP Energy, BP Midstream, Gas Utility, Japan, Japan Small Cap, Large Cap Financial, Small Cap Financial, Technology. Fund holdings are subject to change and not recommendations to buy or sell any security.

Opinions expressed are subject to change at any time, are not guaranteed, and should not be considered investment advice.

To view the Morningstar ratings for the Japan Fund, please click here. (Media - TD Ameritrade) JPSIX received Overall Morningstar rating of 5 Stars based on risk-adjusted returns among 42 Japan Stock funds, as of 3/31/19.

To view the Morningstar ratings, please click here.

The Hennessy Funds are offered only to United States residents, and information on this web site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of any Hennessy Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

Quasar Distributors, LLC, Distributor.

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