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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: richinmd   😊 😞
Number: of 6131 
Subject: Trading Once a Year
Date: 05/30/24 3:15 PM
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No. of Recommendations: 8

I've read about this fund before but Morningstar has an article about it.
morningstar.com - This stock fund is trouncing marketand trading just once year

With this process, the $1 billion Hennessy Cornerstone Mid Cap 30 Fund (HFMDX) has beaten its benchmark, the Russell Midcap Index, over one-, three-, five-, and 10-year trailing periods. It ranks in the top percentile of funds in its Morningstar Category over all those periods. It has also beaten the S&P 500 over the 20 years since its inception in September 2003, with its investor share class returning 12.3% annually compared with 10.5% for the S&P 500 over that period.

Fund managers Ryan Kelley, L. Joshua Wein, and Neil Hennessy look for investments among US stocks with market capitalizations between $1 billion and $10 billion, then screen for names with a price/sales ratio below 1.5.

To avoid so-called value traps—stocks that look cheap but essentially should be because their fundamentals are worsening—the team then screens for companies with an annual earnings growth of any level and whose stock price has risen over the past three- and six-month periods. The team is generally left with roughly 100 stocks, from which it chooses the 30 with the highest 12-month trailing price increase, and it invests 1/30th of the fund in each.

Despite the limited trading it still has a lofty 1.34% expense ration.

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