Quarterly Letters to Shareholders

Communicating from the Heartland

Our quarterly letters provide a review of recent fund performance and market insight. Our philosophy and process for value investing, and often contrarian views, are frequently featured in these letters.

Most Recent Shareholder Letter

• Stronger U.S. Economic Data - 1st Quarter 2012
  The first quarter of 2012 ended March 30 with 26 consecutive weeks of stronger U.S. economic data. We highlight why we believe these factors have conspired to drive prices of real assets and equities higher.

Archived Shareholder Letters

• Safety in the Stock of Quality Companies? - 4th Quarter 2011 
  As fund flows return from bonds to equities as they have historically, we believe the patient, value-oriented investors will be compensated for their perseverance.
   
• Staying True to Value Investing - 3rd Quarter 2011 
  We strongly believe there is no substitute for active management, grounded in intensive fundamental research.

• Focusing in on Fundamentals - 2nd Quarter 2011 
  Amongst the market chaos, we believe there is opportunity for value investors.
  

• Finding Opportunities in Difficult Markets - 1st Quarter 2011 
  At Heartland, we continue to adhere to our 10 Principles of Value Investing™ to find great businesses selling at value prices.
  

• Following 2010, What are the Investment Implications for the New Year? - 4th Quarter 2010 
  We offer reasons for an optimistic outlook, as well as issues that concern us.
  

• Active Stock Pickers Can Flourish in Closely Correlated Market - 3rd Quarter 2010 
  A closely correlated market can create more opportunities for research minded investors.
  

• Why We Believe Today is a Great Time to be Hunting for Value - 2nd Quarter 2010 
  Historically, one of the most reliable economic indicators has been the yield curve, or the difference between long and short-term interest rates. Investors may be pessimistic, but in our opinion today is a great time to be hunting for value.

• Is Now the Time to Invest in Equities? - 1st Quarter 2010 
  Withdrawing from the market, or sitting on cash, may cause an investor to miss those critical few days of market vibrancy. Our chart shows S&P 500 performance if you take a long-term investment approach vs. withdrawing from the market during bear markets.

• Panic Presented Opportunity for the Heartland Shareholder - 4th Quarter 2009 
  Through in-depth research and meetings with hundreds of management teams each year, Heartland strives to uncover solid businesses selling at a fraction of their true worth, as we believe these companies will not only survive, but thrive in difficult economic environments.
  

• Heartland Funds Outpace the S&P - 3rd Quarter 2009 
  At Heartland, we interpret cash on the sidelines and fund flow data as bullish for stocks, as investor avoidance of equities is, in our view, a contrarian indicator of future flows.
  

• National Attention for the Heartland Funds - 2nd Quarter 2009 
  Forbes names Heartland as a top-performing fund family; Morningstar writes "Heartland Value remains solid"; and the Heartland Select Value Fund received 3 Lipper awards.
  

• Reasons to Maintain a Long-Term Perspective - 1st Quarter 2009 
  Among a minefield of inexpensive stocks, we rely on our time-tested 10 Principles of Value Investing™ to find what we consider worthy investments. We encourage you to maintain a long-term perspective. Read more.