Hennessy Funds' Josh Wein Highlights Mid-Cap Value and Projects Further 5–10% Market Upside

Josh Wein, portfolio manager at Hennessy Cornerstone Growth Fund, discussed market positioning with TheStreet's Conway Gittens (), outlining why excessive mega-cap concentration creates compelling risk-reward opportunities in undervalued mid-cap equities.
Key takeaways and market perspectives include:
• Valuation Disconnect: Extended multiples in mega-cap leaders make mid-cap equities increasingly attractive on a relative-value basis, offering growth potential at more grounded price-to-sales and P/E ratios.
• Quantitative Stock Selection: The Cornerstone strategy emphasizes disciplined screening—focusing on companies with demonstrated year-over-year earnings growth, low price-to-sales multiples (below 1.5), and sustained 3- to 6-month relative price momentum.
• Broader Market Upside: Wein projects an additional 5% to 10% upside for the broader market through year-end, driven by broadening market breadth, solid corporate balance sheets, and resilience outside narrow mega-cap leadership.
• Sector Opportunities: Capital rotation favors sectors with tangible earnings momentum and pricing power, including financials, industrials, and mid-tier consumer and communications plays.