SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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Fund Sale FAQ's
ARE THE FUNDS' STRATEGIES GOING TO CHANGE WITH THE NEW MANAGEMENT?
No. The Funds' strategies are not going to change. Neil Hennessy has committed
to running the Funds in the same manner in which they are currently run.
WHY DOESN'T JIM O'SHAUGHNESSY WANT TO MANAGE THE MUTUAL FUNDS ANYMORE? DOES HE
NOT BELIEVE IN THE STRATEGIES?
We are not giving up on our strategies. We do believe, however, that one of the
current vehicles of delivering our strategies, the mutual fund, is no longer the
most effective way to deliver them. Remember, Jim's books were not about mutual
funds they were about strategies.
We believe that the future of investing lies in more flexible investment
vehicles that will allow for greater personalization, customization and tax
management than a mutual fund can.
We are excited about delivering a vehicle like this and, in fact, will still be
using the exact same strategies that our mutual funds employ--because we believe
in these strategies. Shareholders interested in accessing our time-tested
approach will soon be able to do so in a manner that will have far more benefits
than in a mutual fund.
SO WHY SHOULD I STAY INVESTED IN THE CORNERSTONE FUNDS?
While we believe that separately managed accounts are the future of investing,
we do acknowledge that some investors might still believe that the mutual fund
vehicle is more appropriate for them. Neil Hennessy shares this view. So for
those investors who like our strategies and the mutual fund vehicle, the
Cornerstone Funds present an available vehicle.
DO I HAVE A SAY IN THE CHANGE IN MANAGEMENT?
Yes you do. You should have or will shortly receive a proxy ballot in the mail,
which provides you the option of voting for or against the change in management.
CAN I HAVE O'SHAUGHNESSY CAPITAL PRIVATELY MANAGE MY ACCOUNT?
Yes you can. Currently our private account minimum is $250,000. We are working
very aggressively however, to get that minimum down to a level of $5,000. We
will have information available in the upcoming months. If you are interested in
our private accounts please contact us at 800-782-5855.
WHO IS NEIL HENNESSEY?
Neil Hennessy has been in the industry for almost 30 years now. He received his
education at the University of San Diego, worked for Paine Webber, then served
as chair of one of the National Association of Securities Dealers' District
Business Conduct Committees, serving as a security industry expert witness in
over 400 cases.
Edward J. Hennessy Inc. was established in 1989, and the Hennessy Funds were
established in 1996. They are a Securities and Exchange Commission Registered
Investment Advisor and members of the National Association of Securities Dealers
Inc. Edward J. Hennessy Inc. is general partner to 3 limited partnerships and
currently manages approximately $55 million in assets.
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WHY WAS EDWARD HENNESSY CHOSEN TO MANAGE THE FUNDS?
A top concern of ours was finding a manager who believes in Strategy Indexing
and would be committed and capable of running the Funds in the exact same way in
which they are managed now. Neil currently manages two mutual funds that follow
Strategy Indexing--the Hennessy Balanced Fund and the Hennessy Leveraged Dogs
Fund. Neil Hennessy also has no plans to propose a change in the management
fees.
CAN I CONTACT EDWARD J. HENNESSY INC. TO GET MORE INFORMATION ON THEIR
MANAGEMENT?
Yes you can. The toll free number is 800-966-4654 and their website address is
www.Hennessy-Funds.com.
