Get to Know the Heartland Mid Cap Value Team & The Fund

The Heartland Mid Cap Value Fund, which invests in an asset class that’s faring well in the current market, is team-led by:

Heartland Mid Cap Value Fund Portfolio Manager Colin McWey
Colin McWey, CFA, Lead Portfolio Manager

  • 14 years of industry experience
  • 7 years at Heartland

Investment Experience

  • Heartland Advisors, 2009-present
  • Banc of America Securities, 2001-2009

Education

  • B.S. in Economics and History, Vanderbilt University, 2001

Certification and Licensing

  • CFA Charterholder

Insider Ownership

  • $500,000-1 million owned in the Heartland Funds as of June 30, 2016

Heartland Mid Cap Value Fund Portfolio Manager Will Nasgovitz
Will Nasgovitz, Portfolio Manager

  • 16 years of industry experience
  • 12 years at Heartland

Investment Experience

  • Heartland Advisors, 2003-present
  • Cambridge Associates, 2000-2002

Education

  • B.B.A. in Business, University of Wisconsin–Madison, 2000

Community Service

  • Milwaukee Urban Ecology Center, Board Member

Insider Ownership

  • $1 million+ owned in the Heartland Funds as of June 30, 2016

Interview with the Team

How does the Mid Cap Value Fund fit into Heartland’s Fund family?

Nasgovitz: The Fund fits squarely within Heartland’s value-oriented discipline and Investment Team resources. In fact, we’ve managed mid-cap portfolios going back to 1996, applying the same time-tested and consistent 10 Principles of Value Investing™ as other Heartland products. Our team’s robust research effort is a key differentiator relative to other mid-cap managers. 

McWey: Fewer analysts typically cover mid-cap companies than their larger counterparts. This creates opportunities for active managers, like Heartland, to identify unloved and underfollowed companies with upside potential.

How would you characterize mid-cap opportunities at present?

McWey: Our portfolio decisions are primarily driven by valuations and bottom-up fundamental research.

At a high level, however, we’re currently attracted to companies in more economically sensitive areas of the market.

Although we do not seek to play certain themes, our focus on the stocks themselves can lead to an industry focus.

For example, many stocks within Industrials look appealing right now. They have attractive valuations, good future prospects, and a range for catalysts for wider recognition in the marketplace. There are several examples where our commitment to companies with compelling valuations has recently been rewarded, particularly in Industrials—and also in Materials.

Nasgovitz: I think it’s also worth noting the role market volatility has had on the portfolio. We saw it as an opportunity to upgrade the quality of our holdings. We think the current portfolio is pretty high quality, and we’re maintaining that high quality profile.

What do you look at beyond valuations when putting together the portfolio?

McWey: Our primary focus is always on security selection and the merits of each individual stock, but we also consider each company as a piece of a bigger puzzle.

We’re thinking about things like currency or geography risk in the case of companies that have business operations across borders, as well as how sensitive the stock is to changes in interest rates, the credit markets, inflation, or commodities.

What role do dividends play in your investment process?

McWey: Around 88% of the Fund’s assets were in dividend-paying companies as of June 30, 2016.

Companies that pay dividends may signal to investors some level of confidence around their financial strength and the stability of their earnings and cash flows.

Dividends also provide a check on a company’s balance sheet and indicate management’s willingness to deploy capital for shareholders.

Nasgovitz: Beyond the upfront income, these dynamics can lead to greater long-term capital appreciation from enhanced valuations and prudent reinvestment of dividend streams. The positive impact can be magnified when companies steadily grow their dividends.

McWey: The power of dividends does not apply exclusively to mid-caps, but the mid-cap universe is fertile hunting ground for companies that can generally maintain and consistently grow their dividends.

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©2018 Heartland Advisors | 789 N. Water Street, Suite 500, Milwaukee, WI 53202 | Business Office: 414-347-7777 | Financial Professionals: 888-505-5180 | Individual Investors: 800-432-7856

Past performance does not guarantee future results.

The Mid Cap Value Fund invests in a smaller number of stocks (generally 30 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. There can be no assurance that the Fund will grow to or maintain an economically viable size, in which case the Board of Directors may determine to liquidate the Fund.

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

The statements and opinions expressed in the articles or appearances are those of the presenter. Any discussion of investments and investment strategies represents the presenters' views as of the date created and are subject to change without notice. The opinions expressed are for general information only and are not intended to provide specific advice or recommendations for any individual. Any forecasts may not prove to be true.

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

Dividends are not guaranteed and a company's future abilities to pay dividends may be limited. A company currently paying dividends may cease paying dividends at any time.

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

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

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.

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