Dipping into the Value Well with 2 Buckets

We use our 10 Principles of Value Investing™ to populate a mid-cap portfolio with two buckets of stocks:

Value Bucket

Companies with strong prospects, trading at below market valuations, often for reasons we consider cyclical or temporary

Deep Value Bucket

Companies with deeply discounted valuations—somewhat more marginal companies—but with strong balance sheets

Our Map for Navigating the Depths of Value

2:32

View transcript of above video 

In the mid-cap portfolio, we have four general investment categories that spread across the value and deep value buckets:

Scenario 1: Self-Help Story

Company improving its fate through efforts and initiatives largely within its control

1:49

View transcript of above video

Scenario 2: Cyclically Depressed Story 

Company that offers attractive valuations based on normalized outcomes

1:47

View transcript of above video

Scenario 3: Duration Call

The market has already priced in the bad news for this company

1:28

View transcript of above video

Scenario 4: Transition Story 

Company that is significantly reshaping its product/service offerings

1:34

Please wait while we gather your results.

Presenter

Heartland Advisors Value Investing Portfolio Manager Colin McWey

Colin McWey

McWey, CFA, is Vice President and Portfolio Manager of the Select Value and Mid Cap Value Funds and their corresponding separately managed account strategies. He has 16 years of industry experience, 9 at Heartland.

Email Sign Up

  • I am a financial professional or institutional investor
  • I am an individual investor

©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 Strategy 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.

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.

As of 9/30/2018, Heartland Advisors on behalf of its clients held approximately 0.12%, 0.00%, <0.01%, 0.02%, 0.00%, 0.00%, 0.00%, and 0.05% of the total shares outstanding of Avent Inc. (AVT), Arrow Electronics Inc (ARW), National Oilwell Varco, Inc. (NOV), Express Scripts Holding Co. (ESRX), UnitedHealthcare Corporation (UNH), Amazon.com Inc (AMZN), Cigna Corporation (CI), and FirstEnergy Corp. (FE), respectively.

Portfolio holdings are subject to change without notice. Current and future portfolio holdings are subject to risk.

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.

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.

top