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Information
on the Hennessy Focus 30 Fund
|
|
| Hennessy
Focus 30 Fund
Fund
Objective
The objective of the Hennessy Focus 30 is long-term growth of capital.
The Fund invests its assets in mid-cap growth oriented companies,
screening for stocks with above-average earnings growth potential
that is not reflected in their current market prices. The Fund is
rebalanced once a year.
Investor
Profile
The Focus 30 Fund utilizes a combination of growth and value characteristics
in the selection of stocks that may be suitable for investors who
are willing to have an investment horizon of five years or more.
In addition, investors should be willing to accept higher short-term
risk along with higher potential for long-term growth of capital
since the Fund primarily invests in mid cap stocks.
Stock
Selection Process
1.
Begin with the Standard & Poor's Compustat Database. Why?
It is the most robust and comprehensive source of data on publicly
traded companies.
2.
Eliminate American depository receipts (ADR's), which are non
US-based stocks. Why?
To focus purely on domestic equities.
3.
Market capitalization of between $1 and $10 billion. Why?
To select stocks of more mature companies with defined and defendable
market positions
4.
Price-to-sales ratio below 1.5. Why? To find relative bargains.
We won't spend more than $1.50 for $1 of sales. We use sales as
our guide because sales figures are difficult for companies to
manipulate and provide the clearest picture of a company's potential
and value.
5.
Annual earnings higher than the previous year. Why? While
sales are the best indicator of a company's value, we also believe
that long-term earnings improvement insures that the company's
growth is managed in the best interest of its shareholders.
6.
Positive 3 and 6-month relative strength, or price appreciation.
Why? To select those companies trending up, not down.
7.
Select the 30 stocks with the best 12-month relative strength.
Why? We believe relative strength is the single best indicator
of future returns. Historically it has been the most influential
growth variable in predicting which stocks will outperform the
market over time. Limiting the fund to 30 stocks allows just the
top performers in the mid-cap sector to be included, while still
providing ample diversification.
The
fund is then rebalanced once a year.
Historical
Performance
| Average
Annual Total Returns as of 06/30/08 |
| |
YTD |
1
Yr |
3
Yr |
Since Inception
9/17/03 |
|
|
| HFTFX |
9.22% |
-0.87% |
14.94% |
16.73% |
|
|
| S&P
500 Index |
-11.91% |
-13.12% |
4.41% |
6.70% |
|
|
| 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. Performance
data current to the most recent month end may be obtained
by clicking here. Performance
shown does not include a 1.5% redemption fee on shares held
less than 90 days. If it did, total returns would be reduced. |
| |
| Year
by Year Total Returns |
| |
2004 |
2005 |
2006 |
2007 |
|
|
| HFTFX |
14.10% |
32.74% |
11.91% |
6.69% |
|
|
| S&P
500 Index |
10.88% |
4.91% |
15.80% |
5.49% |
|
|
| |
| Fund
Information (as of 06/30/08) |
| Total
Net Assets |
$252
million |
| Beta
(vs. S&P 500) |
0.97 |
| Expense
Ratio |
1.23% |
| CUSIP |
425
888 302 |
| Ticker |
HFTFX |
| SEC
Fund Identifier |
Series
S000000839; Class C000002454 |
| Inception |
9/17/03 |
| Min
Investment |
$2500 |
| Min
Investment (IRAs) |
$250 |
| Dividends
Paid |
Annually |
| Portfolio
Composition |
|
| Equity |
95.6% |
| Cash |
4.2% |
Equity
Sector Weighting (as
of 06/30/08)
| Industry |
Weight |
| Consumer
Discretionary |
8.2% |
| Consumer
Staples |
3.3% |
| Energy |
17.4% |
| Health
Care |
4.8% |
| Industrials |
28.6% |
|
Information Technology |
8.2% |
| Materials |
29.5% |
Top
10 Fund Holdings (as
of 06/30/08)
| Company
Name |
Percentage
of Assets |
| ALPHA NATURAL RESOURCES INC. |
|
12.5% |
|
5.4% |
| SCHNITZER STEEL INDS. (CL A) |
|
5.0% |
|
4.5% |
|
4.3% |
|
4.3% |
|
4.2% |
| PAREXEL INTERNATIONAL CORP. |
|
3.6% |
|
3.4% |
|
3.3% |
International
Holdings
|
|
|
| |
|
|
The
performance returns assume all dividends and capital gains were reinvested in
the Fund.
Short term performance,
in particular, is not a good indication of the fund's future performance, and
an investment should not be made based solely on returns. Investment performance
reflects voluntary fee waivers in effect. In the absence of such waivers, total
return would be reduced.
*While the Hennessy
Funds are no-load, management fees and other expenses apply. Please refer to
the prospectus for details.
The Fund's composition
and sector weightings are shown as a percentage of the Fund's total net assets.
Portfolio composition and sector weightings are subject to change at any time
and should not be considered a recommendation to buy or sell a particular security.
The S&P 500
Index is a broad based unmanaged index of 500 stocks which is widely recognized
as representative of the equity market in general. The S&P 400 Index is
a recognized mid-cap index of securities. The Index figures do not reflect any
fees or expenses. You cannot invest directly in an index.
The advisor had
an agreement in place to limit expenses through June 2005. The expense levels
were not been exceeded during this time.
Small-
and Medium-capitalization companies tend to have limited liquidity and greater
price volatility than large-capitalization companies.
** Beta is
a measure of a portfolio's sensitivity to market movements (as represented by
the S&P 500). The index has a beta of 1.0. A beta of more (less) than 1.0
indicates that a fund's historical returns have fluctuated more (less) than
the index.
Please refer to
the prospectus for important information about
the investment company including investment objectives, risks, charges and expenses.
The prospectus should be read carefully before investing. Please call 800-966-4354
to request a hard copy of the prospectus.
Quasar Distributors,
LLC, Distributor.
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