Using Quantitative Strategies to Pick Winning Mid-Cap Stocks

by Charles Rotblut, CFA and Brian Peery

Brian Peery is a co-portfolio manager for Hennessy Funds, and co-manages the Hennessy Focus 30 fund (HFTFX). I spoke with him about incorporating stocks screens into the portfolio management process.

—Charles Rotblut

Charles Rotblut (CR): You are using a quantitative strategy to identify stocks for the Hennessy Focus 30 fund (HFTFX), correct?

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Charles Rotblut, CFA is a vice president at AAII and editor of the AAII Journal. Follow him on Twitter at
Brian Peery is a co-portfolio manager for Hennessy Funds and co-manages the Focus 30 Fund (HFTFX).


Ralph Rice from New Jersey posted about 1 year ago:

Appears that the individual investor can not purchase a stock and is to leave it to experts.???

James Grant from Ohio posted about 1 year ago:

Mr. Peery’s second sentence is, “Our whole goal is to design model portfolios that will outperform the relative benchmark.”

Now, does this mean that if I were to invest my money in his fund and the “relative benchmark” dropped 25% and my funds dropped only 20%, I should be happy?

Aleksander Beljavskij from Illinois posted about 1 year ago:

to Ralf Rice
1)the individual investor has not to report her/his performance exactly on the 1 of January
2)he/she may adopt Short positions as well as a Long one.
3)he/she may use options and single stock futures both long and short to enhance performance.
And finally and most important,the individual investor should get fan of investing and education.Otherwise he/she have to leave it to experts.

Scott Wachsler from Texas posted about 1 year ago:

Interesting article. What I find so incredible about the article is the funds performance vs the expense ratio.

It seems to me the longer you hold the fund the worse your performance becomes. Sort of a buy high and sell low attitude.

While I have not owned a mutual fund for almost 30 years, it seems obvious to me that Mr. Peery and the Hennessy Fund need a new stock screener, something an expense ratio of 1.36% should be able to cover without a second thought.


Rod Baldwin from California posted 4 months ago:

Fund is beaten by MDY Mid Cap

RAted 3 Stars by Morningstar.

Nice People. Ho Hum Fund

"Loose it ! "

Vernon Roberts from Florida posted 4 months ago:

I have no idea how you delete a message (comment) on here, but Mr. Haynes or someone needs to delete his membership number off the public forum. :-)

I enjoyed the article - several of the selection criteria for the fund agree with several other relative strength and performance research reports I have read.

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