As analysts and PMs, we meet with a lot of management teams. To no one's surprise, management teams are generally pretty optimistic in these meetings, for good reason, as they're trying to either retain existing shareholders or attract new shareholders to their companies. For this reason, when we're trying to identify good entry points for different companies, we need to focus less on what management teams are saying and more on the actions they are taking. While there are various different actions that we could focus on, for the value plus fund, we have chosen to focus on what we call the big three. The big three are insider buying, active buybacks, and dividend increases. All three represent situations where management teams are really putting their money where their mouth is, either in the form of insider buying, which is personal investment, or dividend increases, and buybacks, which represent situations where companies are opting to return more capital to us as shareholders. All 3 represent positive signals that management teams are confident in the future cash flows of their company. The Value Plus Fund has a lot of exposure to these three signals. Currently, approximately 30% of our holdings have insider buying, over 89% have an active buyback, and close to 64% have had dividend increases in the last 12 months. And this gives us a lot of confidence in the future cash flow of the holdings of the Value Plus Fund.
©2025 Heartland Advisors | 790 N. Water Street, Suite 1200, 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.
Investing involves risk, including the potential loss of principal.
There is no guarantee that a particular investment strategy will be successful.
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.
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.
An investor should consider the Funds’ investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information can be found in the Funds’ prospectus. To obtain a prospectus, please call 800-432-7856 or visit heartlandadvisors.com. Please read the prospectus carefully before investing.
Heartland’s investing glossary provides definitions for several terms used on this page.
ALPS Distributors, Inc., is not affiliated with Heartland Advisors.
The Heartland Funds are distributed by ALPS Distributors, Inc.
