Hennessy Equity and Income Fund Sold Equitable Holdings (EQH) Position Amid Inconsistent Earnings

In its Q2 2026 investor letter, the Hennessy Equity and Income Fund announced the sale of its position in Equitable Holdings (EQH). The letter highlighted the fund's focus on high-quality companies with durable advantages, despite an overall reversal in U.S. equities driven by AI spending and strong earnings. The firm noted that Equitable Holdings had triggered its soft stop-loss review, and without insider buying to reinforce conviction, the position was subsequently sold.

While the company continues to generate strong cash flow and return capital, the fund expressed concern over the inconsistency in its earnings quality and flows. Despite the stock's attractive valuation, the fund's confidence in the company's ability to deliver consistent results and successfully execute a turnaround was lowered.