Heartland Advisors

Heartland Mid Cap Value Fund

HRMDX, HNMDX

Overview

Investment Focus

Seeks long-term appreciation by investing in mid-cap, dividend paying companies

Distinguishing Characteristics

The Heartland Mid Cap Value Fund is designed to provide mid cap value exposure by investing in two distinct baskets of stocks (40-60 holdings), value and deep value. This approach helps potentially mitigate the risk of underperformance resulting from the inherent cyclicality of each basket and may increase the likelihood of potential consistent outperformance relative to the Russell Midcap®  Value Index. A collection of rules and tools are used to construct the overall portfolio such that stock selection is the primary driver of relative performance. The narrow focus on specific catalysts that may unlock value adds discipline and consistency.

Mid-sized companies are defined as companies with a market cap range consistent with the Russell Midcap® Value Index.

Investment Process

The 10 Principles of Value Investing™

Learn more about our process

  • Basics
  • Minimums
  • Fees
  • Expenses

12/31/2023

Benchmark: Russell Midcap® Value Index

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Investor Class Institutional Class
Ticker HRMDXHNMDX
CUSIP 422352815422352799
Inception Date 10/31/201410/31/2014
Assets $245 million$383 million

Investor
Class ($)
Institutional
Class ($)
Initial Investment1,000500,000
IRA Initial Investment500500,000
Subsequent Investments100100

Shareholder Fees

Paid directly from total investment

  Investor
Class (%)
Institutional
Class (%)
Load 0 0
Sales Charge 0 0
Exchange Fee 0 0
Redemption Fee* 2 2


*If shares are redeemed or exchanged within 10 days of purchase

Annual Fund Operating Expenses

Paid annually as a percentage of total investment value*

  Investor Class (%) Institutional
Class (%)
Management Fee 0.75 0.75
12b-1 Distribution Fee 0.25 0.00
Other Expenses 0.16 0.29
Total Annual Fund Operating Expenses 1.16 1.04
Fee Waiver and/or Expense Reimbursement -0.06 -0.19
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement** 1.10 0.85


*As stated in the prospectus dated 5/1/2023
**Pursuant to an operating expense limitation agreement between Heartland Advisors and Heartland Group, Inc., on behalf of the Fund, Heartland Advisors has agreed to waive its management fees and/or pay expenses of the Fund to ensure that the Fund’s total annual fund operating expenses (excluding frontend or contingent deferred sales loads, taxes, leverage, interest, brokeragecommissions, expenses incurred in connection with any merger or reorganization, dividends or interest expenses on short positions, acquired fund fees and expenses, or extraordinary expenses) do not exceed 1.10% of the Fund’s average daily net assets for the Investor Class Shares and 0.85% for the Institutional Class Shares through at least April 5, 2025, and subject to the annual renewal of the agreement by the Board of Directors thereafter. This operating expense limitation agreement can be terminated only with the consent of the Board of Directors.

Overall Morningstar Rating™ in Mid-Cap Value Category

  • Investor Class
  • Institutional Class
4Overall Morningstar Rating™ as of 2/29/2024, out of 377 Mid-Cap Value funds, based on risk-adjusted performance for investor class shares
4Overall Morningstar Rating™ as of 2/29/2024, out of 377 Mid-Cap Value funds, based on risk-adjusted performance for institutional class shares

 

 

 

Performance

Average Annual Total Returns
  • Month-End
  • Quarter-End
  • Annual
2/29/2024

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Since Inception (%)20-Year (%)15-Year (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD* (%)QTD* (%)
Mid Cap Value
Investor Class
9.18---10.669.197.950.070.07
Mid Cap Value
Institutional Class
9.45---10.939.488.240.070.07
Russell Midcap® Value7.90---8.946.8010.872.902.90
*Not annualized
12/31/2023

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Since Inception (%)20-Year (%)15-Year (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD* (%)QTD* (%)
Mid Cap Value
Investor Class
9.34---13.5512.1013.3713.377.55
Mid Cap Value
Institutional Class
9.61---13.8212.3913.7213.727.58
Russell Midcap® Value7.72---11.168.3612.7112.7112.11
*Not annualized
  2023 (%) 2022 (%) 2021 (%) 2020 (%) 2019 (%) 2018 (%) 2017 (%) 2016 (%) 2015 (%) 2014* (%)
Mid Cap Value Investor Class 13.37 -3.01 28.12 6.93 25.30 -8.58 8.11 28.67 -7.08 1.61
Mid Cap Value Institutional Class 13.72 -2.78 28.39 7.18 25.58 -8.28 8.37 28.97 -6.89 1.73
Russell Midcap® Value 12.71 -12.03 28.34 4.96 27.06 -12.29 13.34 20.00 -4.78 2.54

*Performance is from 10/31/2014 to 12/31/2014 and is not annualized

Growth of a Hypothetical $10,000 Investment

12/31/2023

Heartland Mid Cap Value Fund Growth of 10000 Chart

 

Since inception of the investor class, 10/31/2014 to 12/31/2023
Chart represents a hypothetical example of an investment in the Mid Cap Value Fund representing historical returns

Morningstar Ratings™ in Mid-Cap Value Category
  • Investor Class
  • Institutional Class
Morningstar Ratings TM
2/29/2024
RatingTotal Funds
Overall4377
10-Year--
5-Year4358
3-Year4377
Morningstar Ratings TM
2/29/2024
RatingTotal Funds
Overall4377
10-Year--
5-Year4358
3-Year4377

Past performance does not guarantee future results. Performance represents past performance; current returns may be lower or higher. Performance for institutional class shares prior to their initial offering is based on the performance of investor class shares. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. All returns reflect reinvested dividends and capital gains distributions, but do not reflect the deduction of taxes that an investor would pay on distributions or redemptions. Subject to certain exceptions, shares of a Fund redeemed or exchanged within 10 days of purchase are subject to a 2% redemption fee. Performance does not reflect this fee, which if deducted would reduce an individual's return. To obtain performance through the most recent month end, call 800-432-7856 or visit heartlandadvisors.com.

In the prospectus dated 5/1/2023, the Net Fund Operating Expenses for the investor and institutional classes of the Mid Cap Value Fund are 1.10% and 0.85%, respectively. The Advisor has contractually agreed to waive its management fees and/or reimburse expenses of the Fund to ensure that Net Fund Operating Expenses for the Fund do not exceed 1.10% of the Fund’s average net assets for the investor class shares and 0.85% for the institutional class shares, through at least 4/5/2025, and subject thereafter to annual reapproval of the agreement by the Board of Directors. Without such waiver and/or reimbursements, the Gross Fund Operating Expenses would be 1.16% for the investor class shares and 1.04% for the institutional class shares.

The inception date for the Mid Cap Value Fund is 10/31/2014 for the investor and institutional class.

Heartland Advisors Value Investing Team IconHistorical NAVs

Contact a Relationship Manager for historical NAVs.

Historical NAVs also are available from third party websites, such as Bloomberg, Yahoo! Finance, or Google Finance.

Portfolio Composition

Characteristics

12/31/2023

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CharacteristicMid Cap ValueRussell Midcap® Value
Holdings 48-
Assets $628 million-
Assets in Dividend-Paying Companies 75.5% -
Median Market Cap $13.5 billion$10.1 billion
Weighted Average Market Cap $18.5 billion$23.0 billion
Trailing 1-Year Turnover 84.0% -


Please note that the elevated Trailing 1-Year Turnover Percentage is the result of a recent merger of another fund into the Mid Cap Value Fund.


Capitalization Breakdown
12/31/2023
Cap Range% of Equities in Portfolio
>$15 billion46.2
$2.5-15 billion50.0
$500 million-2.5 billion3.8
<$500 million0.0

The above breakdown does not include short-term investments.

Sector Allocation

12/31/2023

 

Source: FactSet Research Systems Inc., Russell Investment Group.

Top 10 Holdings
2/29/2024

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TickerHolding% of Net AssetsIndustry
NTRSNorthern Trust Co4.39Capital Markets
CNCCentene Corporation4.14Health Care Providers & Services
JBHTJ B Hunt Transport Services Inc3.82Ground Transportation
NOVNOV Inc.3.79Energy Equipment & Services
DGXQuest Diagnostics, Inc.3.53Health Care Providers & Services
QRVOQorvo, Inc.3.28Semiconductors & Semiconductor Equipment
PSAPublic Storage3.21Specialized REITs
FAFFirst American Financial Corporation3.00Insurance
FEFirstEnergy Corp.2.97Electric Utilities
LDOSLeidos Holdings, Inc.2.84Professional Services
% of Total Net Assets34.97

5-Year Risk Analysis

  • Investor Class
  • Institutional Class
12/31/2023

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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)
Active Share
Mid Cap Value2.7721.180.940.480.5599.3191.6894.8793.74
Russell Midcap® Value0.0021.961.000.000.42100.00100.00100.000.00

*Annualized
Source: FactSet Research Systems Inc., Russell Investment Group, and Standard & Poor's
Alpha, beta, and information ratio are versus the Russell Midcap® Value. Depiction is for investor class shares.

12/31/2023

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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)
Active Share
Mid Cap Value3.0221.180.940.540.5699.7891.3194.9193.74
Russell Midcap® Value0.0021.961.000.000.42100.00100.00100.000.00

*Annualized
Source: FactSet Research Systems Inc., Russell Investment Group, and Standard & Poor's
Alpha, beta, and information ratio are versus the Russell Midcap® Value. Depiction is for institutional class shares.

Distributions

  • Investor Class
  • Institutional Class
Record
Date
Payable
Date
             Ordinary Dividend
($/share)
Short-Term Capital
Gain ($/share)
Long-Term Capital
Gain ($/share)
12/26/2023 12/27/2023   0.09453 0.00757 0.16370
12/27/2022 12/28/2022   0.06945 - 0.60608
12/28/2021 12/29/2021   0.12058 1.00490 2.10121
12/28/2020 12/29/2020   0.05786 - -
12/26/2019 12/27/2019   0.09830 - 0.17885
12/27/2018 12/28/2018   0.13413 0.28817 0.54456
12/27/2017 12/28/2017   0.09048 0.19499 0.50601
12/28/2016 12/29/2016   0.08174 - -
12/28/2015 12/29/2015   0.06589 0.09823 0.00205
12/29/2014 12/30/2014   0.03173 - -

 

Record
Date
Payable
Date
             Ordinary Dividend
($/share)
Short-Term Capital
Gain ($/share)
Long-Term Capital
Gain ($/share)
12/26/2023 12/27/2023   0.12707 0.00757 0.16370
12/27/2022 12/28/2022   0.09909 - 0.60608
12/28/2021 12/29/2021   0.15995 1.00490 2.10121
12/28/2020 12/29/2020   0.06968 - -
12/26/2019 12/27/2019   0.10873 - 0.17885
12/27/2018 12/28/2018   0.15843 0.28817 0.54456
12/27/2017 12/28/2017   0.12172 0.19499 0.50601
12/28/2016 12/29/2016   0.08442 - -
12/28/2015 12/29/2015   0.12479 0.09823 0.00205
12/29/2014 12/30/2014   0.02329 - -

 

Portfolio Management Team

Heartland Mid Cap Value Fund Portfolio Management Team

59 years of industry experience
43 years of experience at Heartland

Please wait while we gather your results.

Will Nasgovitz

CEO and Portfolio Manager

Colin McWey

Vice President and Portfolio Manager

Troy McGlone

Vice President and Portfolio Manager

Please wait while we gather your results.

News & Investing Perspectives

Heartland in the News
2/25/2024
Heartland Advisors Vice President and Portfolio Manager Colin McWey

Don't Overlook the Potential for Mid Caps

Vice President and Portfolio Manager Colin McWey shines light on his predictions for success in mid cap stocks in an article published by Kiplinger.

 

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©2024 Heartland Advisors | 790 N. Water Street, Suite 1200, Milwaukee, WI 53202 | Business Office: 414-347-7777 | Financial Professionals: 888-505-5180 | Individual Investors: 800-432-7856

The Mid Cap Value Fund invests in a smaller number of stocks (generally 40 to 60) than the average mutual fund. The performance of these holdings generally will increase the volatility of the Fund’s returns. The Fund also invests in mid–sized companies on a value basis. Mid-sized securities generally are more volatile and less liquid than those of larger companies. 

Value investments are subject to the risk that their intrinsic value may not be recognized by the broad market.

There is no assurance that dividend-paying stocks will mitigate volatility.

Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.

Portfolio holdings exclude cash, cash equivalents, options, and futures.

Certain security valuations and forward estimates are based on Heartland Advisors' calculations. Certain outliers may be excluded. Any forecasts may not prove to be true.

Information about Morningstar Ratings™ are ©2024 Morningstar, Inc. All rights reserved. The information contained herein is (1) proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed, and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. 

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

As of 2/29/2024 Morningstar Ratings™: The Heartland Mid Cap Value Fund investor class was rated against -, 358, and 377 U.S.-domiciled Mid-Cap Value funds over the 10-, 5-, and 3-year periods and received -, 4, and 4 stars, respectively.
As of 2/29/2024 Morningstar Ratings™: The Heartland Mid Cap Value Fund institutional class was rated against -, 358, and 377 U.S.-domiciled Mid-Cap Value funds over the 10-, 5-, and 3-year periods and received -, 4, and 4 stars, respectively.

Heartland Advisors defines market cap ranges by the following indices: micro-cap by the Russell Microcap®, small-cap by the Russell 2000®, mid-cap by the Russell Midcap®, large-cap by the Russell Top 200®.

Economic predictions are based on estimates and are subject to change.

Heartland’s investing glossary provides definitions for several terms used on this page.

Sector and Industry classifications are sourced from GICS®.  The Global Industry Classification Standard (GICS®) is the exclusive intellectual property of MSCI Inc. (“MSCI”) and S&P Global Market Intelligence (“S&P”).  Neither MSCI, S&P, their affiliates, nor any of their third party providers (“GICS Parties”) makes any representations or warranties, express or implied, with respect to GICS or the results to be obtained by the use thereof, and expressly disclaim all warranties, including warranties of accuracy, completeness, merchantability and fitness for a particular purpose.  The GICS Parties shall not have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of such damages.

Unless noted with an asterisk (*), the above individuals are registered representatives of ALPS Distributors, Inc.

CFA® is a registered trademark owned by the CFA Institute.

The Heartland Funds are distributed by ALPS Distributors, Inc.

Separately managed accounts and related investment advisory services are provided by Heartland Advisors, Inc., a federally registered investment advisor. ALPS Distributors, Inc., is not affiliated with Heartland Advisors, Inc.

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