Hennessy Advisors

What Hennessy Advisors does

Hennessy Advisors, Inc. is a publicly traded investment management firm (NASDAQ: HNNA) headquartered in Novato, California, founded in 1989 by Neil J. Hennessy. The firm manages $4.3 billion in assets under management across 17 mutual funds and one ETF, organized into domestic equity (Cornerstone series, Focus), multi-asset (Balanced, Total Return, Equity and Income), sector (Energy Transition, Midstream, Gas Utility, Financial, Technology), specialty (Japan, Japan Small Cap), and ESG (Hennessy Sustainable ETF) categories. All products are managed under a consistent, qualitative buy-and-hold investment philosophy that explicitly rejects market timing.

The firm generates revenue through investment management fees calculated as a percentage of AUM, a recurring, asset-based revenue stream. Q2 FY2026 quarterly revenue was $8.32 million with a 26.52% net margin; FY2025 delivered 20% revenue growth, 40% net income growth, and 38% EPS growth. Distribution occurs through financial intermediaries (broker-dealers, banks, trust companies), a direct channel via Computershare transfer agent (stock purchase and dividend reinvestment plan), and Nasdaq listing of HNNA common stock and HNNAZ notes. Customer segments include individual investors (primary), financial advisors/wealth managers, and institutional shareholders.

Hennessy has executed 11+ strategic acquisitions since 1996 to build its fund lineup, most recently acquiring STF Management in March 2025. The firm has paid consistent quarterly dividends since 2005, with a current $0.60 annual indicated dividend (6.15% yield as of March 31, 2026), and operates with high workforce stability (14-year average employee tenure) across a lean team of 11-50 employees. A $40.25M 4.875% notes offering in October 2021 was designated for future acquisitions and share repurchases.

Name

Hennessy Advisors

Legal name

Hennessy Advisors, Inc.

Website

https://hennessyadvisors.com

Company type

Public

Founded year

1989

Operating status

Operating

Headcount range

11–50 employees

Short description

Hennessy Advisors is a publicly traded investment manager (NASDAQ: HNNA) that runs $4.3B AUM across 17 mutual funds and ETFs under a disciplined buy-and-hold philosophy, serving individual investors, financial advisors, and institutional shareholders through intermediary and direct channels.

Ownership category

akta.pro rank

Product category

Investment Management

NAICS

Portfolio Management and Investment Advice (523940), Open-End Investment Funds (525910)

SIC

Investment Advice (6282)

akta.pro primary industry

Advisory Portfolio Management (Non-Discretionary) (FSAAABAD)

akta.pro secondary industry

ESG Integration / Responsible Investment Funds (Broad ESG) (FSANAJAL)

Keywords

• Mutual fund management
• Investment advisory
• Asset management
• Equity funds
• Fund distribution

Headquarters

HQ city

Novato

HQ country

United States

HQ region

North America

Offices4 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Investment Management Fees: Hennessy Advisors generates revenue through management fees calculated as a percentage of assets under management (AUM). The company reported quarterly revenue of $8.32 million with a net margin of 26.52% and quarterly earnings of $0.24 per share. Fiscal 2025 showed 20% increase in total revenue.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels5 records

Core offering

Hennessy Advisors is an investment manager that sponsors and manages a family of 17 mutual funds and ETFs across domestic equity, multi-asset, sector, specialty, and ESG categories. Revenue is earned through investment management fees calculated as a percentage of approximately $4.3 billion in assets under management. The firm also provides shareholder services including a Stock Purchase and Dividend Reinvestment Plan administered through Computershare.

Product overview

Hennessy Advisors operates as a publicly traded investment manager offering a broad range of 17 mutual funds and exchange-traded funds (ETFs). The product suite spans three main categories: Domestic Equity funds (Cornerstone Growth, Focus, Cornerstone Mid Cap 30, Cornerstone Large Growth, Cornerstone Value) targeting various market capitalizations and investment styles; Multi-Asset funds (Total Return, Equity and Income, Balanced) for income and balanced allocation strategies; and Sector & Specialty funds (Energy Transition, Midstream, Gas Utility, Japan, Japan Small Cap, Large Cap Financial, Small Cap Financial, Technology) focused on specific industries and geographies. The company also offers the Hennessy Sustainable ETF, an ESG-focused ETF that resulted from the acquisition and integration of multiple impact funds. All products are managed with a consistent buy-and-hold philosophy, rejecting market timing.

Differentiator

Problem solved

Functional benefit

Brands

• Hennessy Funds: Family of mutual funds and ETFs managed by Hennessy Advisors, covering domestic equity, multi-asset, sector, specialty, and ETF categories

Products and services

• Hennessy Cornerstone Growth Fund
• Hennessy Focus Fund
• Hennessy Cornerstone Mid Cap 30 Fund
• Hennessy Cornerstone Large Growth Fund
• Hennessy Cornerstone Value Fund
• Hennessy Total Return Fund
• Hennessy Equity and Income Fund
• Hennessy Balanced Fund
• Hennessy BP Energy Transition Fund
• Hennessy BP Midstream Fund
• Hennessy Gas Utility Fund
• Hennessy Japan Fund
• Hennessy Japan Small Cap Fund
• Hennessy Large Cap Financial Fund
• Hennessy Small Cap Financial Fund
• Hennessy Technology Fund
• Hennessy Sustainable ETF
• Stock Purchase and Dividend Reinvestment Plan

Quantifiable outcome

• 38% increase in earnings per share in fiscal 2025
• +4 more outcomes

Named customers4 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Two partnerships are on record, tiered minor and core.

• Kaseya (for cybersecurity incident response)minorOthersHennessy Advisors was mentioned as one of the affected parties in a Kaseya breach news report. This was a cybersecurity incident affecting approximately 12,000 individuals at Hennessy Advisors, not a business partnership.
• ComputersharecoreImplementation/ SI/ Consulting PartnerComputershare serves as the transfer agent for Hennessy Advisors, maintaining shareholder records, processing transactions, and offering a stock purchase and dividend reinvestment plan.

Scale indicators12 records

Recent moves11 records

Expansion highlights5 records

Broad incumbents

• BlackRock: Largest global asset manager with broad active and index capabilities including iShares ETFs. While not a direct competitor at the strategy level, it competes for the same advisor wallet share and exerts fee pressure on mid-tier active managers like Hennessy.
• First Trust Advisors: Privately held issuer of sector, specialty, and thematic ETFs and unit trusts. Overlaps with Hennessy's sector and specialty funds and competes for the same advisor-led model portfolio allocations.
• Federated Hermes: Publicly traded multi-affiliate asset manager (NYSE: FHI) offering active equity, fixed income, money market, and ESG strategies. Comparable for its active fund lineup and increasing ESG exposure, though at much greater scale.

Direct peers

• Westwood Holdings Group: Small-cap publicly traded asset manager (NYSE: WHG) offering equity and income strategies to institutional and intermediary clients. Closely comparable in size, public-market profile, and AUM-driven fee model.
• Manning & Napier: Publicly traded (formerly NYSE: MN) multi-strategy active manager built around a long-term, fundamentals-driven philosophy and advisor distribution — closely comparable in philosophy, distribution mix, and AUM-driven revenue model.
• WisdomTree Investments: Publicly traded asset manager (NYSE: WT) known for thematic and sector ETFs including ESG/sustainable strategies. Comparable to Hennessy's mix of sector and specialty funds and its more recent Hennessy Sustainable ETF.
• Cohen & Steers: Publicly traded specialty asset manager (NYSE: CNS) focused on liquid and alternative real assets with a buy-and-hold, fundamentals-driven culture — closely comparable to Hennessy's specialist, fundamentals-driven multi-fund approach and AUM-based fee model.
• Artisan Partners Asset Management: Publicly traded multi-boutique active manager (NYSE: APAM) running several distinct investment teams and equity/sector strategies. Directly comparable given its active, multi-team fund structure and reliance on AUM-based fees.
• Pzena Investment Management: Publicly traded value-equity asset manager (NYSE: PZN) running institutional and intermediary strategies with a fundamentals-first approach. Comparable in active management style and reliance on advisor/intermediary channels.
• Victory Capital Holdings: Publicly traded multi-franchise asset manager (Nasdaq: VCTR) that grows primarily through acquiring specialized investment teams — directly analogous to Hennessy's strategy of acquiring distinct funds and franchise brands under the Hennessy umbrella.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles11 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Hennessy Advisors