Milwaukee—January 15, 2021—The Heartland Mid Cap Value Fund’s strong track record in both up and down markets has caught the notice of Morningstar, which has awarded the Fund a 5-star Overall Morningstar Rating. The Mid Cap Value Fund Ranks in the top quintile on a 1-, 3- and 5-year basis in Morningstar’s Mid-Cap Value category.
The Fund’s track record reflects the team’s dedication to Heartland’s time-tested process of seeking attractively valued companies that we believe should succeed over the course of a full economic cycle. This approach helped the Mid Cap Value Fund outperform the Russell Midcap® Value Index by more than 200 basis points annualized for the five-year period through the end of 2020.
Lead Portfolio Manager of the Mid Cap Value Fund Colin McWey, CFA, believes the track record reflects the team’s disciplined approach and following a clear-eyed assessment of risk and reward to drive purchase and sell decisions. “We’re not trying to express our views of the market. Instead, we’re focused on taking what the market gives us—that starts with valuations, which Is the market’s way of compensating us for risk,” McWey said.
Will Nasgovitz, co-manager of the Mid Cap Value Fund said a thorough understanding of different sources of risk is essential to the team’s process. “What could happen at the company, and specifically what could go wrong? To dampen that or alleviate that component of risk, we buy businesses that we think are trading at historically low levels of valuation.”
Nasgovitz added that leverage is another source of risk that needs to be scrutinized. “We just think that debt can be toxic. We try to keep the overall portfolio financial risk low relative to the value universe.”
Colin McWey, CFA, and Will Nasgovitz have served as Portfolio Managers on the Fund since 2015. Troy McGlone, CFA, was promoted to co-portfolio Manager in January 2021. Learn more about the Fund at heartlandadvisors.com.
Established in 1983, Heartland Advisors, Inc. is an independently owned equity value investment manager based in Milwaukee, Wisconsin. As of December 31, 2020, the Firm managed approximately $1.5 billion. The Heartland family of value-driven, actively managed portfolios includes distinct domestic strategies, offered through three mutual funds and four separately managed accounts. Learn more at heartlandadvisors.com.
Investment Team Available to the Media
Investment Team members typically are available to the media. To schedule an interview, contact Emily Stoermer with BackBay Communications by phone at 617-391-0790 x105 or by email.