Hennessy Cornerstone Value Fund (HFCVX)

Objective and Overview

The Hennessy Cornerstone Value Fund seeks total return, consisting of capital appreciation and current income, by investing in 50 large, high dividend-yielding companies that we believe to be undervalued.

Investment Strategy

The Hennessy Cornerstone Value Fund formula identifies large, widely-held companies with strong sales and cash flow. Stocks for the portfolio are selected from the universe of stocks in the S&P Capital IQ Database (excluding utility companies) by strict adherence to the following time-tested, quantitative formula:

Market capitalization that exceeds the average of the Database

Number of shares outstanding that exceeds the average of the Database

12-month sales that are 50% greater than the average of the Database

Cash flow that exceeds the average of the Database

Select the 50 stocks with the highest dividend yield

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.

Cash flow measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) and interest expense to pretax income. Dividend Yield is calculated as the annual dividends paid by a company divided by the price of a share of their stock.