Data Mining
There's gold in them thar numbers.
OK. OK. Even though it's been a horrible year for growth
funds, don't count all of them down and out. Especially the
ones that let computers pick their stocks.
The Hennessy Cornerstone Growth fund (HFCGX) is a quantitative
fund (a computer screening program does all the hard work) with a
lot going for it. First, it's a small-cap fund, and they've
been hot lately. Second, it's got a value bent-another winning
investment style these days.
"There's absolutely no room for emotions here,"
says portfolio manager Neil Hennessy. "After our screening
process, what we end up with is essentially a value-oriented
investment strategy with momentum."
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That combo has proved positive. Through June 24, the fund was up
10.13 percent (while the average small cap value fund was up only 3
percent); last year, up 12.1 percent; in 2000, up 5.3 percent; and
in 1999, up 37.7 percent. In fact, the fund hasn't had a down
year since it began in 1977.
The Hennessy Cornerstone Growth fund portfolio holds 50 stocks,
but be careful not to fall in love with any of them: Once a year,
the portfolio gets "refreshed," which means the
fund's turnover rate is typically 100 percent. So expect to see
an annual tax bill. Unless, of course, you hold the fund in one of
your qualified retirement accounts.
Toll-free number: (800) 966-4345
Web site:www.hennessyfunds.com
Dian Vujovich is an author, syndicated columnist and
publisher of fund site www.diansfundfreebies.com.