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.
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:
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.