Hennessy Advisors Expands ETF Portfolio with Acquisition of STF Management

Hennessy Advisors Expands ETF Portfolio

In a significant move to enhance its investment offerings, Hennessy Advisors, Inc. (Nasdaq: HNNA) has entered into a definitive agreement to acquire assets from STF Management, LP (STFM). This strategic acquisition is poised to significantly expand Hennessy’s Exchange-Traded Fund (ETF) offerings, specifically incorporating the STF Tactical Growth ETF (TUG) and the STF Tactical Growth Income ETF (TUGN).

Details of the Acquisition

The agreement will see Hennessy Advisors purchase assets totaling approximately $220 million from STFM. Following the transaction, expected to close in the third quarter of 2025, both ETFs will transition to the Hennessy Funds Trust series and will be rebranded as the Hennessy Tactical Growth ETF and the Hennessy Tactical Growth and Income ETF. Hennessy Advisors will assume the role of investment advisor for these new funds.

President and COO of Hennessy Advisors, Teresa Nilsen, expressed enthusiasm about this development. "This transaction is a logical extension of our long-term growth strategy through acquisitions," she said. "We are excited about fortifying our position in the ETF marketplace and look forward to the significant expertise Jonathan Molchan brings as our new Portfolio Manager."

The Expertise of Jonathan Molchan

Joining Hennessy as part of this acquisition is Jonathan Molchan, a distinguished portfolio manager with two decades of experience in the finance industry. He is lauded for his expertise in derivatives strategies, trading, research, and risk management. Molchan commented, "Hennessy has a stellar reputation for prioritizing shareholder interests and delivering high-quality asset management. I am eager to join this respected firm and enhance the performance of our ETFs."

Molchan will be responsible for the day-to-day management of the acquired portfolios, ensuring a smooth transition for existing shareholders of the STFM ETFs. The merger is designed as a tax-free reorganization under the Internal Revenue Code, meaning shareholders will not incur any immediate tax liabilities as a consequence of the transaction.

Strategic Vision and Future Outlook

The acquisition is aligned with Hennessy Advisors' commitment to provide investors with long-term solutions. By expanding its ETF lineup, the company aims to cater to a broader range of investment strategies, thus creating more tailored opportunities for their clients. This strategic enhancement not only showcases Hennessy's dedication to growth but also reinforces the company’s vision of delivering exceptional service and innovative investment products.

This acquisition underscores Hennessy Advisors’ ongoing mission to grow through strategic partnerships, enhancing its reputation in the competitive investment management landscape. The smooth integration of these funds and the focus on investor service will be paramount as Hennessy welcomes the STFM ETF shareholders into the fold.

As the completion of the transaction approaches, stakeholders and investors alike are keenly observing how this strategic maneuver will influence Hennessy’s market positioning and drive future performance. Investors will soon have the opportunity to benefit from the disciplined portfolio management and innovative strategies that Hennessy Advisors promises to deliver through this newly acquired ETF suite.