Fund Evaluator:
Hennessy Midstream Investor (HMSFX)
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Best Performing in Energy Limited Partnership Over the Last Year
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Fund Details
Hennessy Midstream Investor Overview
Hennessy Midstream Investor (HMSFX) is an actively managed Sector Equity Energy Limited Partnership fund. Hennessy launched the fund in 2013.
The investment seeks capital appreciation through distribution growth and current income. Under normal circumstances, the fund invests at least 80% of its net assets in midstream energy infrastructure companies. Investments consist primarily of master limited partnerships (“MLPs”) and common stocks. The fund may also invest in securities such as preferred stocks, warrants, equity-like instruments, and debt instruments. It is non-diversified.
About Hennessy Midstream Investor (HMSFX)
There are 2 members of the management team with an average tenure of 6.73 years: L. Wein (2022), Benton Cook (2017). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Alerian US Midstream Energy TR USD index with a weighting of 100%. Hennessy Midstream Investor has 16 securities in its portfolio. The top 10 holdings constitute 80.6% 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 Midstream Investor is part of the Equity global asset class and is within the Sector Equity fund group. Hennessy Midstream Investor has 3.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 85.1%. There is 3.3% 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 Midstream Investor has 11.6% of the portfolio in cash.
Assets Under Management
The fund has $29 million in total assets, which is below the $278 million average for the Energy Limited Partnership 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.
HMSFX 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 Midstream Investor expense ratio is high compared to funds in the Energy Limited Partnership category. Hennessy Midstream Investor has an expense ratio of 1.76%, which is 3% higher than its category average, making the fund expense ratio grade a D. 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 Midstream Investor has a portfolio turnover rate of 6%, indicating that holds its assets around 0.2 years. By way of comparison, the average portfolio turnover is 39% for the Energy Limited Partnership category.
Recently, in the month of June 2026, Hennessy Midstream Investor returned 2.3%, which earned it a grade of B, as the Energy Limited Partnership category had an average return of 1.9%. 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 Midstream Investor has a trailing yield of 7.94%, which is above the 5.42% category average. The fund normally distributes its income quarterly.
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 Midstream Investor Grades
Year to date, the fund has returned 16.6%, 5.2 percentage points worse than the category, which translates into a grade of F. The fund has returned 14.9% over the past year (grade of F), 20.3% over the past three years (grade of F) and 19.2% per year over the past five years (grade of C) and 7.7% per year over the past 10 years (grade of F).
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HMSFX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| HMSFX Return (NAV) | 2.3% | 0.5% | 14.9% | 20.3% | 19.2% | 7.7% |
| HMSFX Grade | B | D | F | F | C | F |
| +/- Category | 0.5% | -0.4% | -7.3% | -3.9% | -1.1% | -1.5% |
| Energy Limited Partnership Avg | 1.9% | 0.9% | 22.1% | 24.2% | 20.2% | 9.3% |
| HMSFX Tax Cost Ratio | na | na | 3.3% | 3.5% | 3.9% | 3.8% |
HMSFX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| HMSFX Return (NAV) | 16.6% | -0.7% | 35.9% | 23.4% | 28.8% | 35.9% | -31.3% | 11.8% | -21.2% | -5.0% | 21.6% |
| HMSFX Grade | F | F | C | A | B | F | F | C | F | B | D |
| +/- Category | -5.2% | -5.2% | -0.4% | 6.5% | 4.0% | -3.5% | -5.0% | -0.1% | -5.3% | 1.6% | -7.0% |
| Energy Limited Partnership Avg | 21.8% | 4.5% | 36.3% | 16.9% | 24.8% | 39.4% | -26.3% | 11.9% | -15.9% | -6.6% | 28.5% |
| Risk Measures | |
| Standard Deviation: | 15.3% |
| Total Risk Index: | 1.26 - Above Average |
| Category Risk Index: | 1.05 - Above Average |
| Category Risk Grade: | D (78% Rank) |
| Beta: | 0.26 |
| R-Squared: | 5% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Mid-Cap Value |
| Bond Investment Style: | na |
| Yield: | 7.9% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | |
| Total Assets: | $77 Mil |
| Fund Total Assets: | $ 29 Mil |
| Share Class Type: | A |
| Portfolio Turnover: | 6% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 9.1 years | |||
| Average Tenure: 6.7 years | |||
| Managers (Year): Cook Benton (2017), Wein L. (2022) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 16 |
| % in Top 10 Holdings: | 80.6% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 3.3% |
Portfolio Allocation |
|
| Domestic Stock: | 85.1% |
| Foreign Stock: | 3.3% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 11.6% |
Purchase Information
| Fund Family: | Hennessy |
| Phone Number: | 800-966-4354 |
| Website: | www.hennessyfunds.com |
| Status: | Open |
| Inception Date: | December 31, 2013 |
| 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 (%): | 1.76% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.72% |
| Share Class: | Hennessy Midstream Institutional |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
