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Overview
Hennessy Technology Fund
Quantitatively managed, the Fund maintains a relatively concentrated portfolio of Technology stocks.
Why Invest
- Opportunity to participate in the potential growth of technology companies
- Focus on minimizing volatility in a relatively volatile sector
- Potential high-growth companies purchased at attractive valuations
Investment Approach
Holdings are selected from the Information Technology sector as well as other sub-industries, including internet and direct marketing, interactive home entertainment, and interactive media and services.
Analyzing several metrics, the Hennessy Technology Fund selects 60 stocks which demonstrate:
- Sector-leading cash flows and profits, with the ability to sustain profitability
- A history of delivering returns in excess of the cost of capital
- Attractive balance sheet risk profile
- Attractive relative valuation
- Ability to generate cash
Portfolio Managers
“We believe a carefully selected, concentrated portfolio provides the best opportunity to outperform the overall Technology sector.”
- Ryan Kelley
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Insights & News
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Performance
Daily Pricing & Performance
as of 8/7/20-
Investor Class (HTECX)
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NAV
$20.73
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$ Change
$0.03
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% Change
0.14%
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YTD
5.28%
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Institutional Class (HTCIX)
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NAV
$21.30
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$ Change
$0.02
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% Change
0.09%
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YTD
5.39%
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Average Annualized Total Return
as of 7/31/20Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (2/1/02) Investor Class (HTECX) 3.16% 1.02% 10.26% 12.89% 10.53% 10.01% 7.27% Institutional Class (HTCIX) 3.23% 1.14% 10.50% 13.17% 10.85% 10.32% 7.43% NASDAQ Composite Index 6.85% 20.40% 32.78% 20.44% 17.25% 18.29% 10.95% S&P 500® Index 5.64% 2.38% 11.96% 12.01% 11.49% 13.84% 8.12% as of 6/30/20Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (2/1/02) Investor Class (HTECX) 26.01% -2.08% 10.45% 13.02% 10.36% 10.30% 7.12% Institutional Class (HTCIX) 26.03% -2.03% 10.65% 13.29% 10.67% 10.60% 7.28% NASDAQ Composite Index 30.95% 12.67% 26.94% 19.14% 16.36% 18.30% 10.60% S&P 500® Index 20.54% -3.08% 7.51% 10.73% 10.73% 13.99% 7.84% Hypothetical Growth of $10,000
as of 7/31/2020Value of $10,000 invested between 7/31/2019 and 7/31/2020
Technology Fund (HTECX) $11,026 Technology Fund (HTCIX) $11,050 NASDAQ Composite Index $13,278 S&P 500® Index $11,196 Value of $10,000 invested between 7/31/2017 and 7/31/2020
Technology Fund (HTECX) $14,388 Technology Fund (HTCIX) $14,494 NASDAQ Composite Index $17,472 S&P 500® Index $14,053 Value of $10,000 invested between 7/31/2015 and 7/31/2020
Technology Fund (HTECX) $16,496 Technology Fund (HTCIX) $16,736 NASDAQ Composite Index $22,156 S&P 500® Index $17,223 Value of $10,000 invested between 7/31/2010 and 7/31/2020
Technology Fund (HTECX) $25,965 Technology Fund (HTCIX) $26,696 NASDAQ Composite Index $53,632 S&P 500® Index $36,558 Value of $10,000 invested between 2/1/2002 and 7/31/2020
Technology Fund (HTECX) $36,618 Technology Fund (HTCIX) $37,648 NASDAQ Composite Index $68,283 S&P 500® Index $42,358 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 (HTECX) 12.73 -10.77 8.67 29.75 1.73 3.46 2.03 20.20 -1.82 39.10 Institutional Class (HTCIX) 12.93 -10.67 8.93 30.12 1.99 3.90 2.39 20.56 -1.60 39.48 NASDAQ Composite Index 18.13 -0.79 17.75 40.11 14.75 6.96 8.87 29.64 -2.84 36.69 S&P 500® Index 15.06 2.11 16.00 32.39 13.69 1.38 11.96 21.83 -4.38 31.49 Year Investor Class (HTECX) Institutional Class (HTCIX) NASDAQ Composite Index S&P 500® Index 2009 54.93% 54.93% 45.34% 26.46% 2008 -42.89% -42.89% -39.98% -37.00% 2007 9.36% 9.36% 10.66% 5.49% 2006 9.25% 9.25% 10.89% 15.79% 2005 11.80% 11.80% 2.12% 4.91% 2004 6.75% 6.75% 10.27% 10.88% 2003 52.86% 52.86% 50.77% 28.68% Returns-Based Statistics
Relative to NASDAQ Composite Indexas of 6/30/20Investor Class (HTECX)Type 3 yr 5 yr 10 yr Alpha -6.53 -6.14 -8.29 Beta 1.10 1.08 1.10 Upside Capture 94.64 89.59 90.48 Downside Capture 118.95 112.61 129.29 Institutional Class (HTCIX)Type 3 yr 5 yr 10 yr Alpha -6.30 -5.87 -8.01 Beta 1.10 1.08 1.10 Upside Capture 95.25 90.31 91.04 Downside Capture 118.82 112.26 128.57 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 6/30/20Type 3 yr 5 yr 10 yr Investor Class (HTECX) 0.59 0.55 0.60 Institutional Class (HTCIX) 0.60 0.56 0.62 NASDAQ Composite Index 0.94 0.91 1.13 Technology Category Average 0.91 0.94 0.99 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 6/30/20Type 3 yr 5 yr 10 yr Investor Class (HTECX) 21.95 19.34 18.03 Institutional Class (HTCIX) 21.96 19.35 18.03 NASDAQ Composite Index 18.81 16.96 15.49 Technology Category Average 20.28 18.16 16.85 Standard deviation is a statistical measure of the historical volatility of a mutual fund or portfolio.
Fund Expenses
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Investor Class (HTECX)
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Gross expense ratio
3.85%
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Net expense ratio
1.24%
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Institutional Class (HTCIX)
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Gross expense ratio
3.48%
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Net expense ratio
0.99%
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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 6/30/20. 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 197, 175 and 150 Technology 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 6/30/20. 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 / HTCIX shares periods prior to 3/12/10 represents the performance of Investor Class shares of the Fund and includes expenses that are not applicable to and are higher than those of the Institutional Class shares.
The performance shown for periods prior to 10/26/12 is that of the predecessor FBR Fund.
NASDAQ Composite Index is a broad-based capitalization-weighted index of all the NASDAQ National Market and Small Cap stocks. The S&P 500® Index is an unmanaged index commonly used to measure the performance of U.S. stocks. One cannot invest directly in an index.
The Fund’s investment manager has contractually agreed to limit expenses until 2/28/2021.
Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security.
Active share was calculated versus the Fidelity NASDAQ Composite Index Fund (FNCMX), which differs from the Fund's primary benchmark. References to other investment products should not be interpreted as an offer of these securities.
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Portfolio
Portfolio Characteristics
as of 6/30/20Inception Date (HTECX) 2/1/02 Inception Date (HTCIX) 3/12/10 Total Fund Assets $6 Million Active Share vs. Fidelity NASDAQ Composite Index Fund (FNCMX) 84% Portfolio Turnover 169% Median Market Cap $14.0 Billion Median Price/Earnings 22.4x Median Price/Book 10.3x 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 reflect the trailing 12-month period.
Sector Weighting
as of 6/30/20Fund Information Technology 82.3% Consumer Discretionary 8.6% Communication Services 6.6% Cash & Other 2.4% Sub-Industry Weighting % of Net Assets Application Software 17.2% Data Processing & Outsourced Services 12.4% Semiconductors 9.8% Internet & Direct Marketing Retail 8.6% Systems Software 8.2% Technology Hardware, Storage & Peripherals 7.7% Semiconductor Equipment 6.9% IT Consulting & Other Services 6.2% Electronic Manufacturing Services 6.0% Interactive Media & Services 5.0% Technology Distributors 3.4% Interactive Home Entertainment 1.7% Electronic Equipment & Instruments 1.6% Communications Equipment 1.6% Electronic Components 1.4% Portfolio Holdings
Top 10 Holdings
as of 6/30/20Top 10 Holdings % of Net Assets Digital Turbine, Inc. 2.4% Teradyne, Inc. 1.9% Lam Research Corp. 1.9% eBay, Inc. 1.9% Match Group, Inc. 1.8% Amazon.com, Inc. 1.8% Vipshop Holdings, Ltd. 1.8% Microsoft Corp. 1.8% SYNNEX Corp. 1.7% Apple, Inc. 1.7% Total as % of Net Assets 18.6% Total Holdings: 60
as of 6/30/20Equity Holdings % of Net Assets Digital Turbine, Inc. 2.4% Teradyne, Inc. 1.9% Lam Research Corp. 1.9% eBay, Inc. 1.9% Match Group, Inc. 1.8% Amazon.com, Inc. 1.8% Vipshop Holdings, Ltd. 1.8% Microsoft Corp. 1.8% SYNNEX Corp. 1.7% Apple, Inc. 1.7% NVIDIA Corp. 1.7% SINA Corp. 1.7% Adobe Inc. 1.7% Cadence Design Systems, Inc. 1.7% VMware, Inc. 1.7% Accenture PLC 1.7% ShotSpotter, Inc. 1.7% KLA Corp. 1.7% Qurate Retail, Inc. 1.7% Citrix Systems, Inc. 1.7% Xilinx, Inc. 1.7% QUALCOMM, Inc. 1.7% ServiceNow, Inc. 1.7% Sciplay Corp. 1.7% Fair Isaac Corp. 1.7% Paychex, Inc. 1.6% Intuit, Inc. 1.6% CDW Corp. 1.6% Maxim Integrated Products Inc 1.6% Paycom Software, Inc. 1.6% Vishay Precision Group, Inc. 1.6% Texas Instruments, Inc. 1.6% Atlassian Corp., PLC 1.6% Automatic Data Processing, Inc. 1.6% Visa, Inc. 1.6% Sykes Enterprises, Inc. 1.6% Mastercard, Inc. 1.6% Ubiquiti, Inc. 1.6% Hewlett Packard Enterprise Co. 1.6% EVERTEC, Inc. 1.6% Celestica, Inc. 1.6% Intel Corp. 1.5% Fortinet, Inc. 1.5% Methode Electronics, Inc. 1.5% NetApp, Inc. 1.5% Teradata Corp. 1.5% Dropbox, Inc. 1.5% DXC Technology Co. 1.5% IBM Corp. 1.5% Booz Allen Hamilton Holding Co. 1.5% SolarEdge Technologies, Inc. 1.5% NIC, Inc. 1.5% Booking Holdings, Inc. 1.5% Kimball Electronics, Inc. 1.5% Sanmina Corp. 1.5% Seagate Technology PLC. 1.5% Cardtronics, PLC. 1.4% Vishay Intertechnology, Inc. 1.4% Momo, Inc. 1.4% NCR Corp. 1.4% Total as % of Net Assets 97.6% Cash & Other Holdings % of Net Assets Cash & Other 2.4% Total as % of Net Assets 2.4% Country Allocation
as of 6/30/20-
United States
83.4%
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Foreign
14.1%
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Cash & Other
2.4%
United States 83.4% Cayman Islands 4.9% Ireland 3.1% United Kingdom 3.0% Puerto Rico 1.6% Canada 1.5% Cash & Other 2.4% -
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Distributions
The Hennessy Technology 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 12/06/2019 -- $0.21868 $0.30216 $0.52084 $19.15 12/07/2018 -- $1.57251 $0.68615 $2.25866 $15.07 12/07/2017 -- -- $1.63413 $1.63413 $16.76 12/14/2007 -- $0.86749 $0.36093 $1.22842 $11.60 12/15/2006 -- $0.20290 $0.19125 $0.39415 $11.77 12/16/2005 -- $0.17257 $0.40606 $0.57864 $11.10 12/17/2004 -- $0.76921 $0.85416 $1.62337 $10.15 12/17/2003 -- $0.18108 $0.01552 $0.19661 $10.82 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 $0.00921 -- -- $0.00921 $20.30 12/06/2019 -- $0.22446 $0.31014 $0.53460 $19.65 12/07/2018 -- $1.60970 $0.70239 $2.31209 $15.43 12/07/2017 -- -- $1.66909 $1.66909 $17.11 Past performance is not a guarantee of future results.
Download historical distributions and NAVs -
Fund Documents
Download PDF View Online Fund Documents Technology Fund Fact Sheet Technology Fund Portfolio Perspective View Shareholder Reports Technology Fund Summary Prospectus Full Prospectus Statement of Additional Information Technology Fund Semi-Annual Report Technology Fund Annual Report
