Hennessy Advisors Inc (NASDAQ: HNNA)

Hennessy Advisors, Inc. is a publicly traded investment management firm that provides advisory services to sixteen open end mutual funds and one exchange traded fund collectively known as the Hennessy Funds. The company follows a buy and hold investment philosophy that rejects market timing and relies on disciplined quantitative and actively managed approaches. Its product lineup spans domestic equity, multi-asset and sector and specialty categories, offering investors a range of risk and return profiles. As of the end of fiscal year 2025, the firm reported average assets under management of $4.5 billion and year end assets under management of $4.2 billion. The Hennessy Funds are available for purchase primarily by U. S. residents and, in certain circumstances, by U. S. citizens living abroad.

The company earns the majority of its revenue from investment advisory fees that are calculated as a percentage of the average daily net asset values of each Hennessy Fund. In fiscal year 2025, investment advisory fees totaled $33.2 million while shareholder service fees contributed $2.4 million. Sub advisory fees paid to external portfolio managers amounted to $4.1 million, resulting in net revenue of $31.4 million after these expenses. The advisory fee percentages vary by fund ranging from 0.40 percent to 1.25 percent, whereas the shareholder service fee is a uniform 0.10 percent of Investor Class net assets. Additionally, the firm waives a portion of its fees on certain funds to comply with contractual expense ratio limits, with total waivers of $0.20 million in fiscal year 2025.

Hennessy Advisors, Inc. operates as a relatively small investment advisory firm in a highly competitive industry that includes large global asset managers, commercial banks, broker dealers, insurance companies and numerous boutique firms. Competitive success depends on factors such as the investment performance of the Hennessy Funds, the breadth and distinctiveness of the product lineup, industry rankings, the quality of client service and the strength of the firm’s brand. The company differentiates itself through a consistent buy and hold philosophy, a blend of quantitative and actively managed strategies, and an extensive marketing and distribution program that reaches investors through multiple channels. Its commitment to placing investor interests first and maintaining a transparent disciplined approach supports long term relationships with clients. While many competitors benefit from greater scale and resources, Hennessy Advisors focuses on niche strategies and personalized service to carve out a market position.

The company serves individual investors, financial advisors and institutional clients who invest in the Hennessy Funds family of mutual funds and the exchange traded fund. Shares are made available through fund supermarkets such as Schwab, Fidelity, Ameriprise and Pershing, as well as through national wirehouses, broker dealers, independent and regional broker dealers and registered investment advisors. Investors may also purchase shares directly via the firm’s website or by calling the toll free number or the administrator U. S. Bank Global Fund Services. Specific distribution partners named in the filing include Schwab, Fidelity, Ameriprise and Pershing. The investor base consists primarily of retail shareholders seeking equity exposure, income generation or sector specific opportunities, alongside institutional accounts that allocate assets to the Hennessy Funds as part of broader portfolio strategies.