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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
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Buyside Digest is not affiliated with, and does not endorse, Hennessy Cornerstone Growth Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"The Hennessy Cornerstone Growth Fund employs a rigorous, rules-based quantitative strategy to invest in 50 equal-weighted growth stocks, currently showing high concentration in the Financials sector and a 99% turnover rate."
The Hennessy Cornerstone Growth Fund is a formulaic mutual fund managed by Hennessy Advisors, Inc. that seeks long-term capital growth. Using the quantitative Cornerstone Growth Strategy, the Fund screens the S&P Capital IQ Database for public companies with market caps above $175 million, selecting the 50 stocks with the highest one-year price appreciation that also meet strict value (Price-to-Sales < 1.5) and earnings growth criteria. The portfolio is rebalanced annually to equal 2% weightings. As of December 31, 2025, the Investor Class shares posted a 1-year return of 4.78% and a 10-year annualized return of 11.08%. The Fund is currently heavily concentrated in the Financials sector and carries a high portfolio turnover rate of 99%.
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Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
The score of 0.25 reflects a systematic, non-discretionary formulaic strategy. Rather than taking concentrated, high-conviction active bets on specific businesses, the fund holds a highly diversified portfolio of exactly fifty equally weighted stocks.
Growth Outlook
A neutral score of 0.50 is assigned because the summary prospectus does not provide discretionary market forecasts, instead committing to adhere to its formulaic strategy regardless of market conditions.
Risk Appetite
The fund maintains a constructive risk appetite of 0.75 as it is fully invested in equities, including significant exposure to more volatile small- and medium-sized companies.
Capital Deployment
The capital deployment score is 0.90 since the fund remains systematically fully invested, targeting equal 2% weightings across fifty distinct positions with minimal cash holdings.
Forward Guidance
Forward guidance is scored at 0.50 because the fund's portfolio adjustments are strictly driven by the annual formulaic screening process rather than discretionary active outlooks.
Language Signal
The language signal is balanced at 0.50, which is typical for a regulated prospectus that details investment parameters alongside extensive disclosures of potential risks.
Perceived Risk
The perceived risk is scored at 0.65 due to explicit highlights on financials sector concentration, small-cap volatility, and potential tax headwinds arising from the One Big Beautiful Bill Act.
Opportunity Density
Opportunity density is evaluated at 0.50. The fund selects its holdings from a broad, persistent database of equities exceeding $175 million in market capitalization, always filling exactly fifty slots.
Time Horizon
The fund targets long-term growth of capital, indicating a multi-year investment horizon, though individual holdings are screened and updated on an annual basis.
