Opinions expressed by BIZ Experiences contributors are their own.
OK. OK. Even though it's been a horrible year for growthfunds, don't count all of them down and out. Especially theones that let computers pick their stocks.
The Hennessy Cornerstone Growth fund (HFCGX) is a quantitativefund (a computer screening program does all the hard work) with alot going for it. First, it's a small-cap fund, and they'vebeen hot lately. Second, it's got a value bent-another winninginvestment style these days.
"There's absolutely no room for emotions here,"says portfolio manager Neil Hennessy. "After our screeningprocess, what we end up with is essentially a value-orientedinvestment strategy with momentum."
That combo has proved positive. Through June 24, the fund was up10.13 percent (while the average small cap value fund was up only 3percent); last year, up 12.1 percent; in 2000, up 5.3 percent; andin 1999, up 37.7 percent. In fact, the fund hasn't had a downyear 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 thefund's turnover rate is typically 100 percent. So expect to seean annual tax bill. Unless, of course, you hold the fund in one ofyour qualified retirement accounts.
Toll-free number: (800) 966-4345
Web site:www.hennessyfunds.com
Dian Vujovich is an author, syndicated columnist andpublisher of fund site www.diansfundfreebies.com.
