Fund Evaluator:
Hennessy Focus Investor (HFCSX)
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Best Performing in Mid-Cap Blend Over the Last Year
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Fund Details
Hennessy Focus Investor Overview
Hennessy Focus Investor (HFCSX) is an actively managed U.S. Equity Mid-Cap Blend fund. Hennessy launched the fund in 1997.
The investment seeks capital appreciation. The fund invests in (i) domestic companies whose securities are listed on U.S. national securities exchanges, (ii) foreign companies listed on U.S. national securities exchanges, (iii) foreign companies through American Depositary Receipts (“ADRs”), which are U.S. dollar-denominated securities of foreign issuers listed on U.S. national securities exchanges, and (iv) foreign companies traded on foreign exchanges. The fund is non-diversified.
About Hennessy Focus Investor (HFCSX)
There are 3 members of the management team with an average tenure of 17.04 years: David Rainey (2009), Ira Rothberg (2009), Brian Macauley (2009). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Russell Mid Cap Growth TR USD index with a weighting of 100%. Hennessy Focus Investor has 25 securities in its portfolio. The top 10 holdings constitute 76.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Hennessy Focus Investor is part of the Equity global asset class and is within the U.S. Equity fund group. Hennessy Focus Investor has 14.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 82.3%. There is 14.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Hennessy Focus Investor has 2.8% of the portfolio in cash.
Assets Under Management
The fund has $308 million in total assets, which is below the $1 billion average for the Mid-Cap Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
HFCSX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Hennessy Focus Investor expense ratio is high compared to funds in the Mid-Cap Blend category. Hennessy Focus Investor has an expense ratio of 1.48%, which is 51% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Hennessy Focus Investor has a portfolio turnover rate of 1%, indicating that holds its assets around 1.0 years. By way of comparison, the average portfolio turnover is 53% for the Mid-Cap Blend category.
Recently, in the month of August 2026, Hennessy Focus Investor returned -2.3%, which earned it a grade of F, as the Mid-Cap Blend category had an average return of 0.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Hennessy Focus Investor has a trailing yield of 0.00%, which is below the 0.48% category average. The fund normally distributes its income annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Hennessy Focus Investor Grades
Year to date, the fund has returned -2.9%, 16.5 percentage points worse than the category, which translates into a grade of F. The fund has returned 5.3% over the past year (grade of F), 13.7% over the past three years (grade of C) and 5.9% per year over the past five years (grade of D) and 10.1% per year over the past 10 years (grade of D).
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HFCSX Trailing NAV Total Returns Data as of 8/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| HFCSX Return (NAV) | -2.3% | -12.6% | 5.3% | 13.7% | 5.9% | 10.1% |
| HFCSX Grade | F | F | F | C | D | D |
| +/- Category | -3.0% | -15.4% | -10.1% | -0.1% | -1.3% | -0.3% |
| Mid-Cap Blend Avg | 0.7% | 2.8% | 15.4% | 13.8% | 7.2% | 10.4% |
| HFCSX Tax Cost Ratio | na | na | 7.8% | 5.3% | 4.5% | 3.6% |
HFCSX Annual NAV Total ReturnsData as of 8/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| HFCSX Return (NAV) | -2.9% | 26.7% | 14.8% | 20.8% | -25.0% | 31.5% | 5.5% | 34.9% | -10.5% | 19.3% | 7.2% |
| HFCSX Grade | F | A | B | A | F | A | F | A | C | B | F |
| +/- Category | -16.5% | 18.8% | 1.2% | 4.4% | -9.8% | 7.3% | -7.9% | 6.3% | -0.2% | 3.1% | -7.3% |
| Mid-Cap Blend Avg | 13.6% | 7.9% | 13.5% | 16.4% | -15.2% | 24.2% | 13.4% | 28.6% | -10.2% | 16.2% | 14.5% |
| Risk Measures | |
| Standard Deviation: | 25.4% |
| Total Risk Index: | 2.09 - High |
| Category Risk Index: | 1.62 - High |
| Category Risk Grade: | F (102% Rank) |
| Beta: | 1.21 |
| R-Squared: | 38% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Mid-Cap Growth |
| Bond Investment Style: | na |
| Yield: | 0.0% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $442 Mil |
| Fund Total Assets: | $ 309 Mil |
| Share Class Type: | Inv |
| Portfolio Turnover: | 1% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 17.0 years | |||
| Average Tenure: 17.0 years | |||
| Managers (Year): Rainey David (2009), Rothberg Ira (2009), Macauley Brian (2009) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 25 |
| % in Top 10 Holdings: | 76.0% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 14.8% |
Portfolio Allocation |
|
| Domestic Stock: | 82.3% |
| Foreign Stock: | 14.8% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 2.8% |
Purchase Information
| Fund Family: | Hennessy |
| Phone Number: | 800-966-4354 |
| Website: | www.hennessyfunds.com |
| Status: | Open |
| Inception Date: | January 3, 1997 |
| Min. Initial Purchase: | $2,500 |
| Min. Initial IRA Purchase: | $ 250 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.15% |
Expenses and Fees | |
| Expense Ratio (%): | 1.48% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.98% |
| Share Class: | Hennessy Focus Investor |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
