SEC Filing Summary: Form 13F-HR
Business Context and Reporting Period
Reporting Manager: Hennessy Advisors, Inc.
Filing Type: Form 13F Holdings Report
Reporting Period: Quarter ended June 30, 2006
Submission Date: July 24, 2006
Signatory: Teresa M. Nilsen, Executive Vice President and Chief Financial Officer
This filing discloses the equity securities held by Hennessy Advisors, Inc. at the end of the second quarter of 2006. The report covers 165 individual holdings with sole or shared investment discretion.
Key Financial Metrics
Total Portfolio Value: $2,171,424,000 (Reported in thousands as $2,171,424)
Total Number of Holdings: 165
Investment Discretion: Primarily Sole Discretion; limited Shared Discretion noted in specific entries.
Largest Holdings by Value (Top 5):
- Hennessy Advisors Inc: $53,446,000
- Frontier Oil Corp: $59,085,000
- Holly Corp: $58,563,000
- Allegheny Technologies Inc: $60,287,000
- Alaris International Inc: $32,200,000
Note: The filing does not provide data on revenue, profit, cash flow, margins, debt, or liquidity for the reporting manager or the underlying portfolio companies. It strictly reports market value of equity positions.
Material Changes and Portfolio Composition
Comparison to Prior Period: The filing text does not provide data for the prior comparable period (March 31, 2006); therefore, material changes in holdings or value cannot be calculated from this document alone.
Portfolio Characteristics:
- Concentration: The portfolio is diversified across 165 issuers, with no single holding exceeding approximately 2.8% of the total reported value.
- Sector Exposure: Significant exposure to Energy (e.g., Frontier Oil, Holly Corp, Valero Energy), Industrials (e.g., Allegheny Technologies, Quanta Services), and Retail (e.g., Dress Barn, Circuit City).
- Self-Holding: The manager holds a significant position in its own common stock ($53.4 million).
Guidance, Risks, and Unusual Items
Guidance and Outlook: Form 13F filings do not contain management guidance, earnings outlook, or forward-looking commentary.
Risks and Contingencies: No specific risk factors or contingencies are disclosed in this form.
Unusual Items:
- Zero Value Holdings: Two entries for Telefonica de Argentina Cont ADR are listed with a market value of $0 despite holding 12,900 shares each.
- Voting Authority: While most holdings have "Sole" voting authority, several large positions (e.g., A T & T Inc, Bank of America Corp, General Electric Co) show split voting authority between "Sole" and "Shared."
Investor Verification Checklist
- Verify the total portfolio value of $2.17 billion against the firm's latest 10-Q or 10-K to assess asset growth or contraction.
- Compare the top 10 holdings in this filing against the previous quarter's 13F to identify significant buy/sell activity.
- Investigate the $0 valuation for Telefonica de Argentina holdings to determine if this reflects a data error or a specific market condition.
- Confirm the extent of "Shared" voting authority in major positions to understand potential co-investment structures.
- Review the concentration in the Energy sector (Frontier Oil, Holly Corp, Valero) relative to market benchmarks for Q2 2006.