Those who threw in the towel might be licking their wounds as growth stocks continue to outperform value dramatically.
Instead, it builds a simple filter based on backtested factors dating decades to determine the key variables that have worked over time, says Ryan Kelley, CIO of the fund.
For the Hennessy Cornerstone Mid Cap 30 Fund, that filter has been boiled down to a four-step process used for 21 years.
"We absolutely just let the numbers dictate what we own, and it takes some discipline and it takes some trust in the process," Kelley said.
By the time the filter process is complete, thousands of US stocks have been filtered down to about 125 to 150, which is still too much.
Persons:
Hennessy, Ryan Kelley, Russell Midcap, Kelley, we've, You'll, it's
Organizations:
Funds, Hennessy, 30