SEC Filing Summary: Form 13F-HR
Business Context and Reporting Period
Reporting Manager: Hennessy Advisors, Inc. (filing on behalf of Hennessy Funds)
Reporting Period: Quarter ended December 31, 2003
Filing Date: January 8, 2004
Location: Novato, CA
Signatory: Teresa M. Nilsen, Executive Vice President and Chief Financial Officer
This filing is a Form 13F Holdings Report, disclosing the long-only equity positions held by the institutional investment manager. It does not contain financial performance data (revenue, profit, cash flow) for Hennessy Advisors itself, but rather a snapshot of its managed portfolio.
Key Financial Metrics
Total Portfolio Value: $983,334,000 (Reported in thousands)
Total Number of Holdings: 138 entries
Investment Discretion: Sole discretion for the vast majority of holdings; some shared discretion noted.
Voting Authority: Primarily sole voting authority, with specific instances of shared or none.
Top 10 Holdings by Value (in thousands):
- Nam Tai Electronics ADR: $35,819
- Harman International Inds: $30,657
- Pacificare Health Sys: $30,352
- Engineered Support Systems: $27,395
- Select Comfort Corp: $26,191
- Avid Technology Inc: $26,078
- Hunt (JB) Transprt Svcs: $23,612
- Tractor Supply Co: $23,326
- Flagstar Bancorp Inc: $23,086
- Chicago Bridge & Iron Co: $21,083
Material Changes and Portfolio Composition
Comparison to Prior Period: The filing text does not provide data for the prior quarter (September 30, 2003); therefore, material changes in holdings or value cannot be calculated from this document alone.
Portfolio Characteristics: The portfolio is heavily concentrated in mid-cap and small-cap equities. The top 10 holdings represent approximately 26% of the total reported value. The holdings span diverse sectors including technology, healthcare, industrials, retail, and financials.
Notable Holdings: The portfolio includes positions in Enron Corp ($536,000) and Gateway Inc ($977,000), which were significant companies at the time of the report.
Guidance, Outlook, and Risks
Management Commentary: Form 13F filings are statutory disclosures of holdings and do not contain management commentary, forward-looking guidance, or strategic outlooks.
Risks and Contingencies: No specific risks or contingencies are disclosed in this form. The filing represents a static snapshot of equity ownership as of the period end.
Unusual Items: The filing includes a position in Enron Corp, which was in the process of bankruptcy proceedings during this period, representing a potential concentration risk or distressed asset holding.
Key Facts for Investor Verification
- Portfolio Size: Verify the total managed assets under management (AUM) for Hennessy Advisors, as this filing only covers the specific "Hennessy Funds" portfolio totaling ~$983 million.
- Concentration Risk: Review the top 10 holdings, which account for a significant portion of the portfolio value, to assess concentration risk.
- Distressed Assets: Investigate the status and valuation of the Enron Corp holding ($536,000) given the company's financial collapse in 2001-2002.
- Turnover: Compare this list with the Q3 2003 filing to determine the manager's trading activity and turnover rate.
- Discretion Type: Note that while most holdings are "Sole" discretion, some (e.g., Rockwell Automation, SBC Communications) have shared voting authority, which may indicate co-investment or specific fund structures.