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HFCSX Hennessy Focused Fund had a distribution of $22 on a reinvestment price of $61 Price before distribution was $83, so that's a distribution of over 25%. I had a very small holding, so hadn't checked ahead of time --- but I'll be liquidating in 30 days. They don't deserve to have my funds.
My worst offender this year is BCSIX despite M* saying its turnover is only 17%. My other two Brown Capital funds are really light on the distributions, however.
Permanent Portfolio Aggressive Portfolio has estimated a $10+ distribution; some of T. Rowe Price Funds (New Horizon and New America Growth) have estimated large distributions also. Grandeur Peak Micro Cap Fund has estimated a total payout of about $1.50.
Here is M*'s November article with fund families and their largest offenders:
It looks like HFCSX has a history of not being tax efficient. Its tax cost ratio, not counting the current distribution (figures are through Nov. 30th) is 2.29% for one year and 2.18% for three years. Though funds in its category, MCG, are typically not tax efficient. On average they lost 1.85% to taxes annually over the past three years.
Last year HFCSX distributed about 10% of its NAV (click on 2019 box here). 2020 was a great year for growth funds, so one would not be surprised to see cap gains distributions double or triple that of last year's.
"They don't deserve to have my funds." Is it because of their cap gains distribution this year, though last year's 10% was tolerable? Or is it at least in part because of the fund's recent anemic performance of 4.45% YTD? None of the MCG funds with MC blend portfolios did better than average for the category; still HFCSX's performance was way under that of its peers.
"I'll be liquidating in 30 days." If you're worried about wash sales, your net gain (or loss) will come out the same regardless since you're liquidating. Or are you thinking about postponing any remaining gain in your shares until 2021? (That would be 23-24 days.)
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Derf
Here is M*'s November article with fund families and their largest offenders:
https://www.morningstar.com/articles/1009922/capital-gains-roundup-2020-edition
Last year HFCSX distributed about 10% of its NAV (click on 2019 box here). 2020 was a great year for growth funds, so one would not be surprised to see cap gains distributions double or triple that of last year's.
For example, one of the handful of other mid cap growth funds with mid cap blend portfolios, HMDYX, had a cap gains distribution in 2019 of 2.28%, while its estimate for 2020 is 10.62%.
"They don't deserve to have my funds."
Is it because of their cap gains distribution this year, though last year's 10% was tolerable? Or is it at least in part because of the fund's recent anemic performance of 4.45% YTD? None of the MCG funds with MC blend portfolios did better than average for the category; still HFCSX's performance was way under that of its peers.
"I'll be liquidating in 30 days."
If you're worried about wash sales, your net gain (or loss) will come out the same regardless since you're liquidating. Or are you thinking about postponing any remaining gain in your shares until 2021? (That would be 23-24 days.)