Hennessy Cornerstone Large Growth Fund (HFLGX)

Objective and Overview

The Hennessy Cornerstone Large Growth Fund seeks long-term growth of capital by investing in 50 larger, growth-oriented companies, screening for undervalued stocks with above-average growth potential.

Investment Strategy

The Hennessy Cornerstone Large Growth Fund formula marries value with momentum, seeking growth at a reasonable price. Stocks for the portfolio are chosen from the universe of stocks in the S&P Capital IQ Database (excluding American Depositary Receipts, or “ADR's”), by strict adherence to the following time-tested, quantitative formula:

Market capitalization that exceeds the average of the Database

The Fund focuses on larger cap companies.

Price to cash flow ratio less than the median of the Database

This value metric helps to uncover relative bargains among large cap companies.

Positive total capital

This insures that a company’s assets outweigh its liabilities.

Select the 50 stocks with the highest one-year return on total capital

Return on total capital signifies how effective a company is at turning capital into profits.

The portfolio is rebalanced once annually, generally in the Winter





The S&P Capital IQ Database is a robust source of data on the universe of publicly traded companies.

Price to cash flow ratio is a stock valuation measure calculated by dividing a firm's cash flow per share into the current stock price.