Making Fundamentals a Focal Point

Heartland Advisors Value Investing CEO Will NasgovitzWe are providing a link to Business Insider because it features the article, “3 value investors break down why they expect the bargain-hunting investing strategy to outperform in the year ahead - and handpick 10 cheap stocks to scoop up in this downturn," because it features Portfolio Manager Colin McWey, CFA. The article highlights the Mid Cap Value Fund, which returned 28.21% in 2021, as well as the Firm's 10 Principles of Value Investing™ and bottom-up approach.

Neither Heartland Advisors, nor ALPS Distributers, Inc., control the website hosting this article, its content, or its privacy practices.

 

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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.

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.

Heartland Advisors’ 10 Principles of Value Investing™ consist of the following criteria for selecting securities: (1) catalyst for recognition; (2) low price in relation to earnings; (3) low price in relation to cash flow; (4) low price in relation to book value; (5) financial soundness; (6) positive earnings dynamics; (7) sound business strategy; (8) capable management and insider ownership; (9) value of company; and (10) positive technical analysis.

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 guarantee that a particular investment strategy will be successful.

As of 2/9/2022, the Mid Cap Value Fund on behalf of its clients held approximately 2.96%, 2.30%, 2.24%, 2.43%, and 1.89% of the total shares outstanding of Encompass Health (EHC), First Interstate BancSystem (FIBK), Pioneer Natural Resources (PXD), Skyworks Solutions (SWKS), Spectrum Brands (SPB), respectively. Bio-Rad Laboratories (BIO), Regency Centers (REG), State Street (STT), Steelcase (SCS), and Unilever (UL) were unowned. 

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

Information about Morningstar Ratings™ are ©2022 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 4/30/2022 Morningstar Ratings™: The Heartland Mid Cap Value Fund investor class was rated against -, 360, and 393 U.S.-domiciled Mid-Cap Value funds over the 10-, 5-, and 3-year periods and received -, 4, and 4 stars, respectively.
As of 4/30/2022 Morningstar Ratings™: The Heartland Mid Cap Value Fund institutional class was rated against -, 360, and 393 U.S.-domiciled Mid-Cap Value funds over the 10-, 5-, and 3-year periods and received -, 4, and 4 stars, respectively.

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

The Heartland Funds are distributed by ALPS Distributors, Inc.

The above individual is a registered representative of ALPS Distributors, Inc.

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