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Overview
Hennessy Focus Fund
Actively managed, the Fund maintains a highly concentrated, best ideas portfolio.
Why Invest
- Highly concentrated portfolio of approximately 20 exceptional investment ideas, conviction weighted with 60-80% of assets in the top 10
- In-depth, rigorous research process developed by a management team who has worked together for nearly two decades
- Expectation to hold companies five to 10 years or longer, leading to low portfolio turnover
Investment Approach
The Hennessy Focus Fund seeks to identify secular growth businesses that have the potential to produce a sustained mid-teens or higher rate of earnings growth, purchased at a mid-teens or lower multiple of earnings.
The Portfolio Managers employ independent, fundamental research, with a primary focus on five key investment criteria:
- High-Quality Business
- Large Growth Opportunity
- Excellent Management
- Low "Tail Risk"
- Discount Valuation
Portfolio Managers
The Fund is sub-advised by Broad Run Investment Management, LLC, an independent, employee-owned investment adviser headquartered in Arlington, Virginia.
“Simply put, we seek to own a small collection of truly great businesses.”
- David Rainey
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Insights & News
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Performance
Daily Pricing & Performance
as of 11/22/24-
Investor Class (HFCSX)
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NAV
$52.76
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$ Change
$0.68
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% Change
1.31%
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YTD
21.88%
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Institutional Class (HFCIX)
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NAV
$55.47
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$ Change
$0.71
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% Change
1.30%
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YTD
22.26%
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Average Annualized Total Return
as of 10/31/24Name 1 Mo YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Investor Class (HFCSX) -3.74% 16.56% 37.93% 2.06% 8.66% 9.32% 12.21% Institutional Class (HFCIX) -3.72% 16.91% 38.44% 2.44% 9.06% 9.72% 12.45% Russell 3000® Index -0.73% 19.75% 37.86% 7.64% 14.60% 12.44% 9.52% Russell Midcap® Growth Index 1.75% 14.88% 38.67% 0.61% 11.46% 11.19% 9.56% as of 9/30/24Name QTR YTD 1 yr 3 yr 5 yr 10 yr Since Inception (1/3/97) Investor Class (HFCSX) 18.84% 21.09% 36.04% 5.64% 9.90% 10.28% 12.41% Institutional Class (HFCIX) 18.96% 21.42% 36.56% 6.04% 10.31% 10.69% 12.64% Russell 3000® Index 6.23% 20.63% 35.19% 10.29% 15.26% 12.83% 9.58% Russell Midcap® Growth Index 6.54% 12.91% 29.33% 2.32% 11.48% 11.30% 9.53% Hypothetical Growth of $10,000
as of 10/31/2024Value of $10,000 invested between 10/31/2023 and 10/31/2024
Focus Fund (HFCSX) $13,793 Focus Fund (HFCIX) $13,844 Russell 3000® Index $13,786 Russell Midcap® Growth Index $13,867 Value of $10,000 invested between 10/31/2021 and 10/31/2024
Focus Fund (HFCSX) $10,630 Focus Fund (HFCIX) $10,749 Russell 3000® Index $12,473 Russell Midcap® Growth Index $10,184 Value of $10,000 invested between 10/31/2019 and 10/31/2024
Focus Fund (HFCSX) $15,147 Focus Fund (HFCIX) $15,428 Russell 3000® Index $19,770 Russell Midcap® Growth Index $17,200 Value of $10,000 invested between 10/31/2014 and 10/31/2024
Focus Fund (HFCSX) $24,373 Focus Fund (HFCIX) $25,284 Russell 3000® Index $32,298 Russell Midcap® Growth Index $28,880 Value of $10,000 invested between 1/3/1997 and 10/31/2024
Focus Fund (HFCSX) $246,813 Focus Fund (HFCIX) $261,464 Russell 3000® Index $125,472 Russell Midcap® Growth Index $127,007 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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Investor Class (HFCSX) 10.20% 2.88% 7.16% 19.27% -10.47% 34.86% 5.49% 31.55% -24.99% 20.85% Institutional Class (HFCIX) 10.55% 3.25% 7.55% 19.71% -10.12% 35.34% 5.88% 32.02% -24.71% 21.31% Russell 3000® Index 12.56% 0.48% 12.74% 21.13% -5.24% 31.02% 20.89% 25.66% -19.21% 25.96% Russell Midcap® Growth Index 11.90% -0.20% 7.33% 25.27% -4.75% 35.47% 35.59% 12.73% -26.72% 25.87% Year Investor Class (HFCSX) Institutional Class (HFCIX) Russell 3000® Index Russell Midcap® Growth Index 2013 35.33% 35.70% 33.55% 35.74% 2012 16.64% 16.98% 16.42% 15.81% 2011 3.63% 3.97% 1.03% -1.65% 2010 24.55% 24.79% 16.93% 26.38% 2009 34.80% 35.70% 28.34% 46.29% 2008 -33.85% -33.81% -37.31% -44.32% 2007 2.30% 2.30% 5.14% 11.43% 2006 28.49% 28.49% 15.72% 10.66% 2005 2.32% 2.32% 6.12% 12.10% 2004 30.65% 30.65% 11.95% 15.48% 2003 45.77% 45.77% 31.06% 42.71% 2002 2.63% 2.63% -21.54% -27.41% 2001 32.63% 32.63% -11.46% -20.15% 2000 -8.79% -8.79% -7.46% -11.75% 1999 19.62% 19.62% 20.90% 51.29% 1998 -3.52% -3.52% 24.14% 17.86% Returns-Based Statistics
Relative to Russell 3000® Indexas of 9/30/24Investor Class (HFCSX)Type 3 yr 5 yr 10 yr Alpha -4.68 -6.54 -3.19 Beta 1.21 1.24 1.14 Upside Capture 106.93 108.51 100.77 Downside Capture 129.03 137.18 115.66 Institutional Class (HFCIX)Type 3 yr 5 yr 10 yr Alpha -4.31 -6.17 -2.82 Beta 1.21 1.24 1.14 Upside Capture 107.67 109.25 101.71 Downside Capture 128.38 136.56 114.94 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 9/30/24Type 3 yr 5 yr 10 yr Investor Class (HFCSX) 0.19 0.41 0.51 Institutional Class (HFCIX) 0.20 0.42 0.53 Russell 3000® Index 0.43 0.73 0.74 Mid-Cap Blend Category Average 0.25 0.50 0.48 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 9/30/24Type 3 yr 5 yr 10 yr Investor Class (HFCSX) 23.89 25.26 19.66 Institutional Class (HFCIX) 23.90 25.27 19.67 Russell 3000® Index 17.80 18.60 15.67 Mid-Cap Blend Category Average 18.70 20.35 16.93 Standard deviation is a statistical measure of the historical volatility of a mutual fund or portfolio.
Fund Expenses
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Investor Class (HFCSX)
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Gross expense ratio
1.50%
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Institutional Class (HFCIX)
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Gross expense ratio
1.13%
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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.
Each Morningstar category average represents a universe of funds with similar objectives. The Morningstar Style Box reveals the fund's investment style as of 9/30/24. 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 shares / HFCIX prior to 5/30/08 represents the performance of Investor Class shares of the Fund and includes expenses that are not applicable to and are higher than those of Institutional Class shares.
The performance shown for periods prior to 10/26/12 is that of the predecessor FBR Fund.
The Russell 3000® Index is an unmanaged index commonly used to measure the performance of U.S. stocks. The Russell Midcap® Growth Index is an unmanaged index commonly used to measure the performance of U.S. medium-capitalization growth stocks. One cannot invest directly in an index
Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Russell. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes or Russell ratings or underlying data, and no party may rely on any Russell Indexes or Russell ratings or underlying data contained in this communication. No further distribution of Russell data is permitted without Russell’s express written consent. Russell does not promote, sponsor, or endorse the content of this communication.
Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security.
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Portfolio
Portfolio Characteristics
as of 9/30/24Inception Date (HFCSX) 1/3/97 Inception Date (HFCIX) 5/30/08 Total Fund Assets $708 Million Active Share vs. Russell 3000® Index 98% Portfolio Turnover 11% Median Market Cap $21.0 Billion Median Price/Earnings 30.2x Median Price/Book 6.5x 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 9/30/24Fund Russell 3000® Index Difference Financials 28.4% 13.6% +14.7% Consumer Discretionary 23.3% 10.4% +12.9% Communication Services 18.4% 8.4% +9.9% Industrials 9.5% 9.8% -0.3% Information Technology 8.9% 29.0% -20.1% Real Estate 7.4% 2.8% +4.6% Health Care 2.8% 11.8% -9.0% Consumer Staples 0.0% 5.6% -5.6% Energy 0.0% 3.5% -3.5% Materials 0.0% 2.7% -2.7% Utilities 0.0% 2.4% -2.4% Cash & Other 1.4% Portfolio Holdings
Top 10 Holdings
as of 9/30/24% of Net Assets Top 10 Holdings Ticker Current Vs. 2Q24 Vs. 3Q23 10-Year Holdings History (%) Time Held AST SpaceMobile, Inc. ASTS 11.01% +5.39% +9.77% 3 Years Brookfield Corp. BN 7.33% +0.30% -0.10% 2 Years Ashtead Group, PLC AHT 6.73% +0.05% -0.77% 6 Years O'Reilly Automotive, Inc. ORLY 6.48% -0.35% -0.83% 19 Years American Tower Corp. AMT 6.33% -0.42% -0.54% 26 Years Aon PLC AON 6.18% -0.32% -1.98% 4 Years Encore Capital Group, Inc. ECPG 6.18% -0.12% -1.86% 17 Years CarMax, Inc. KMX 6.03% -0.60% -1.28% 22 Years Markel Group, Inc. MKL 5.53% -1.38% -2.69% 27 Years Cogent Communications Holdings CCOI 5.28% +0.77% +0.61% 2 Years Total as % of Net Assets 67.08% Total Holdings: 23
as of 9/30/24% of Net Assets Equity Holdings Current Vs. 2Q24 Vs. 3Q23 10-Year Holdings History (%) Time Held AST SpaceMobile, Inc. 11.01% +5.39% +9.77% 3 Years Brookfield Corp. 7.33% +0.30% -0.10% 2 Years Ashtead Group, PLC 6.73% +0.05% -0.77% 6 Years O'Reilly Automotive, Inc. 6.48% -0.35% -0.83% 19 Years American Tower Corp. 6.33% -0.42% -0.54% 26 Years Aon PLC 6.18% -0.32% -1.98% 4 Years Encore Capital Group, Inc. 6.18% -0.12% -1.86% 17 Years CarMax, Inc. 6.03% -0.60% -1.28% 22 Years Markel Group, Inc. 5.53% -1.38% -2.69% 27 Years Cogent Communications Holdings 5.28% +0.77% +0.61% 2 Years CDW Corp. 4.59% -0.63% -0.48% 4 Years Applied Materials, Inc. 4.26% -1.67% +0.49% 3 Years RH 3.74% +0.60% +0.01% 4 Years NVR, Inc. 3.25% +0.31% +1.05% 7 Years Brookfield Asset Management, Ltd. 3.04% +0.23% +0.99% 2 Years TransDigm Group, Inc. 2.78% -0.08% +1.56% 2 Years Danaher Corp 2.78% -0.09% +1.94% 2 Years Hilton Worldwide Holdings, Inc. 2.74% -0.24% +1.77% 2 Years Shenandoah Telecommunications 1.59% -0.52% -1.09% 2 Years Altus Group Ltd. 1.10% -0.05% +1.10% 1 Year Floor & Decor Holdings, Inc. 1.09% +0.09% +1.09% < 1 Year Warner Music Group Corp. 0.48% -0.34% -0.37% 2 Years Brookfield Wealth Solutions, Ltd. 0.12% +0.12% +0.12% < 1 Year Total as % of Net Assets 98.6% Cash & Other Holdings % of Net Assets Cash & Other 1.4% Total as % of Net Assets 1.4% Country Allocation
as of 9/30/24-
United States
74.1%
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International
24.5%
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Cash & Other
1.4%
United States 74.1% Canada 11.5% United Kingdom 6.7% Ireland 6.2% Bermuda 0.1% Cash & Other 1.4% -
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Distributions
The Hennessy Focus Fund pays capital gains (if any) once annually, usually in December. Ordinary income distributions (if any) are paid annually, usually in late December.
Date Paid Income Short-Term Gain Long-Term Gain Total Per Share Reinvest Price 12/07/2023 -- -- $10.60940 $10.60940 $40.61 12/08/2022 -- -- $6.84360 $6.84360 $46.59 12/07/2021 -- -- $11.87407 $11.87407 $69.00 12/08/2020 -- -- $22.03448 $22.03448 $60.94 12/06/2019 -- -- $8.56199 $8.56199 $80.23 12/07/2018 -- -- $14.47031 $14.47031 $67.71 12/07/2017 -- -- $0.00534 $0.00534 $87.76 12/09/2015 -- -- $0.13953 $0.13953 $70.33 12/31/2014 $0.01684 -- -- $0.01684 $67.35 12/08/2014 -- $0.12621 $5.11315 $5.23936 $65.89 12/10/2013 -- -- $1.06512 $1.06512 $64.42 12/07/2012 -- -- $4.32119 $4.32119 $49.36 12/15/2011 -- -- $5.24345 $5.24345 $44.72 12/15/2010 -- -- $1.72061 $1.72061 $49.14 12/16/2008 -- -- $5.19180 $5.19180 $30.11 12/31/2007 $0.12018 -- -- $0.12018 $54.45 12/14/2007 -- $0.02147 $0.48914 $0.51061 $53.60 12/15/2006 -- -- $0.12387 $0.12387 $52.62 07/31/2006 -- -- $0.05348 $0.05348 $44.47 12/16/2005 -- -- $0.71639 $0.71639 $42.02 10/31/2005 -- -- $0.00384 $0.00384 $40.36 12/17/2004 -- $0.34281 $0.22818 $0.57099 $40.66 12/17/2003 -- -- $0.02779 $0.02779 $31.75 12/20/2001 -- -- $0.16925 $0.16925 $21.12 12/20/2000 -- -- $0.64495 $0.64495 $15.56 12/11/1998 -- $0.21190 $0.22240 $0.43430 $14.30 12/12/1997 -- $0.48740 -- $0.48740 $16.54 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 12/07/2023 -- -- $11.11527 $11.11527 $42.55 12/08/2022 -- -- $7.14363 $7.14363 $48.63 12/07/2021 -- -- $12.34819 $12.34819 $71.75 12/08/2020 -- -- $22.82989 $22.82989 $63.14 12/06/2019 -- -- $8.83830 $8.83830 $82.82 12/07/2018 -- -- $14.98779 $14.98779 $69.66 12/07/2017 -- -- $0.00549 $0.00549 $90.04 12/09/2015 -- -- $0.14191 $0.14191 $71.63 12/31/2014 $0.04974 -- -- $0.04974 $68.36 12/08/2014 -- $0.12815 $5.19208 $5.32023 $66.90 12/10/2013 -- -- $1.06512 $1.06512 $65.20 12/07/2012 -- -- $4.32119 $4.32119 $49.80 12/15/2011 -- -- $5.24345 $5.24345 $44.96 12/15/2010 -- -- $1.72061 $1.72061 $49.23 12/31/2009 $0.02053 -- -- $0.02053 $2.30 12/16/2008 -- -- $5.19180 $5.19180 $1.68 Past performance is not a guarantee of future results.
Download historical distributions and NAVs -
Fund Documents
Download PDF View Online Focus Fund Documents Fact Sheet Portfolio Perspective View Portfolio Updates Focus Fund Portfolio Update - July 2024 View Focus Fund Portfolio Update - April 2024 View Focus Fund Portfolio Update - February 2024 View Focus Fund Portfolio Update - May 2023 View Summary Prospectus Full Prospectus Statement of Additional Information Focus Fund Shareholder Reports and Quarterly Holdings Q1 Holdings Semi-Annual Report Q3 Holdings Annual Report Currently, paper copies of the annual and semi-annual reports are not sent by mail unless shareholders specifically request paper copies. You may elect to receive paper copies free of charge by calling U.S. Bank Global Fund Services at 1-800-261-6950 or, if you own shares through a financial intermediary, by contacting your financial intermediary.
**Please note the upcoming change to shareholder report delivery.**
After July 24, 2024, shareholder reports will be sent by mail unless a shareholder has elected or elects to receive reports electronically via e-delivery. To sign up for e-delivery, please visit My Account. https://www.hennessyfunds.com/account or by calling U.S. Bank Global Fund Services at 1-800-261-6950 or, if you own shares through a financial intermediary, by contacting your financial intermediary.
