Heartland Advisors

Heartland Value Fund

  • Overview
  • Materials
  • Portfolio Management Team
  • Performance
  • Commentary
  • Portfolio Composition
  • Risk Analysis
  • Distributions

HRTVX, HNTVX

Overview

Investment Focus

Pursues long-term capital appreciation by investing in micro- and small-cap companies

Distinguishing Characteristics

  • Invests in stocks with a market capitalization of less than $2 billion and can have a significant allocation to micro-cap names
  • Designed for investors who seek a portfolio with micro-cap exposure and additional liquidity provided by small cap stocks
  • Benchmarked to the Russell 2000® Value Index
  • Typically holds 100-150 stocks
  • Inception date: 1984

Investment Process

All stocks are evaluated based on our proprietary, consistent, and time-tested 10 Principles of Value Investing™. These criteria are central to Heartland’s value investing philosophy and provide a framework for evaluating securities.

The Investment Team applies a bottom-up research approach, combining traditional fundamental analysis and meetings with more than 1,000 company management teams in a typical year. The 10 Principles™ are designed to help the Team assess a company's valuation, but also focus on metrics associated with financial soundness, management team strength, and future outlook.

Learn more about our process

  • Basics
  • Minimums
  • Fees
  • Expenses

3/31/2018

Benchmark: Russell 2000® Value Index

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Investor Class Institutional Class
Ticker HRTVXHNTVX
CUSIP 422359109422352831
Inception Date 12/28/198405/01/2008
Assets $700 million$71 million

Investor
Class ($)		Institutional
Class ($)
Initial Investment1,000500,000
IRA Initial Investment500500,000
Subsequent Investments100100

Shareholder Fees

Paid directly from total investment

  Investor
Class (%)		 Institutional
Class (%)
Load 0 0
Sales Charge 0 0
Exchange Fee 0 0
Redemption Fee* 2 2


*If shares are redeemed or exchanged within 10 days of purchase

Annual Fund Operating Expenses

Paid annually as a percentage of total investment value*

  Investor
Class (%)		 Institutional
Class (%)
Management Fee 0.75 0.75
12b-1 Distribution Fee 0.25 0.00
Other Expenses 0.09 0.16
Total Annual Fund Operating Expenses 1.09 0.91


*As stated in the prospectus (pdf) dated 5/1/2018

Overall Morningstar Rating™ in Small Value Category

  • Investor Class
  • Institutional Class
2Overall Morningstar Rating™ as of 5/31/2018, out of 353 Small Value funds, based on risk-adjusted performance for investor class shares
2Overall Morningstar Rating™ as of 5/31/2018, out of 353 Small Value funds, based on risk-adjusted performance for institutional class shares

Value Fund Quick Links

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Portfolio Management Team

Heartland Value Fund Portfolio Management Team

73 years of industry experience
49 years of experience at Heartland

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Bill Nasgovitz

Nasgovitz is Chairman and Portfolio Manager of the Value Fund and its corresponding separately managed account strategy. He also is President and Director of Heartland Funds. He has 49 years of industry experience, 35 at Heartland.

Eric Miller

Miller is Vice President and Portfolio Manager of the Heartland Value Fund and its corresponding separately managed account strategy. He has 24 years of industry experience, 14 at Heartland.

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Investing Perspectives

Video
5/18 - 2:06
Heartland Advisors Value Investing Portfolio Manager Eric Miller

Finding a Spark in Utilities

Why we see opportunities in the usually sleepy Utilities sector.

PM Perspective
3/18
Heartland Value Fund Portfolio Manager Bill Nasgovitz

How Micro-Caps Add Value to a Small-Cap Value Strategy

Micro-caps can be an overlooked source of opportunities in a small-cap strategy. Portfolio Manager Bill Nasgovitz explores the advantages and our approach to the group.

Heartland in the News
3/17/18
Heartland Advisors Value Investing Portfolio Manager Bill Nasgovitz

Barron’s Talks With Heartland About Value Investing Getting Its Due

Has the prolonged slow-growth, low-interest rate economy created a launching pad for value investors? Heartland Founder Bill Nasgovitz weighs in.

Video
11/17 - 2:58
Heartland Advisors Portfolio Manager Bill Nasgovitz

Digging Deeper With Each New High

Opportunity exists for investors willing to roll up their sleeves. Portfolio Manager Bill Nasgovitz shares two examples from the small- and micro-cap portfolio.

Heartland in the News
10/19/17
Heartland Advisors Value Investing Portfolio Manager Bill Nasgovitz

InvestmentNews Recognizes Value Fund for Decades of Strong Results

Fund highlighted for its exceptional performance during the 30 years following the ‘87 crash.

Heartland in the News
8/10/17
Heartland Advisors Value Investing Bill Nasgovitz and Jeffrey Strong

Looking Under the Hood for Investment Opportunities

Portfolio Manager Bill Nasgovitz and Research Analyst Jeffrey Strong, CFA, discuss two under-the-radar, attractively valued companies playing a role in building the cars of the future.

Performance

Average Annual Total Returns
  • Month-End
  • Quarter-End
  • Annual
5/31/2018

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Since Inception (%)20-Year (%)15-Year (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD* (%)QTD* (%)
Value
Investor Class
11.848.298.495.617.596.2516.434.545.10
Value
Institutional Class
11.918.398.635.817.776.4316.614.655.15
Russell 2000® Value11.398.6010.008.7110.9611.0416.354.817.65
*Not annualized
3/31/2018

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Since Inception (%)20-Year (%)15-Year (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD* (%)QTD* (%)
Value
Investor Class
11.747.909.896.476.923.499.11-0.53-0.53
Value
Institutional Class
11.808.0010.036.687.103.659.32-0.48-0.48
Russell 2000® Value11.208.0410.858.619.967.875.13-2.64-2.64
*Not annualized
  2017 (%) 2016 (%) 2015 (%) 2014 (%) 2013 (%) 2012 (%) 2011 (%) 2010 (%) 2009 (%) 2008 (%)
Value Investor Class 8.42 16.31 -11.04 2.22 32.11 13.83 -6.92 21.28 44.49 -39.53
Value Institutional Class 8.59 16.52 -10.90 2.38 32.37 13.98 -6.73 21.50 44.86 -39.38
Russell 2000® Value 7.84 31.74 -7.47 4.22 34.52 18.05 -5.50 24.50 20.58 -28.92

 

Growth of a Hypothetical $10,000 Investment

3/31/2018

Since inception of the investor class, 12/28/1984 to 3/31/2018
Chart represents a hypothetical example of an investment in the Value Fund representing historical returns

Heartland Value Fund Growth of 10000 Chart

Morningstar Ratings™ in Small Value Category
  • Investor Class
  • Institutional Class
Morningstar Ratings TM
5/31/2018
RatingTotal Funds
Overall2353
10-Year2219
5-Year2315
3-Year2353
Morningstar Ratings TM
5/31/2018
RatingTotal Funds
Overall2353
10-Year2219
5-Year2315
3-Year2353

Based on risk-adjusted performance

Past performance does not guarantee future results. Performance represents past performance; current returns may be lower or higher. Performance information for institutional class shares of Funds that existed prior to their initial public 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 (90 days for the International Value Fund) of purchase are subject to a 2% redemption fee. Performance does not reflect this fee, which if deducted would reduce an individual's return.

In the prospectus (pdf) dated 5/1/2018, the Gross Fund Operating Expenses for the investor and institutional classes of the Value Fund are 1.09% and 0.91%, respectively. The Advisor has voluntarily agreed to waive fees and/or reimburse expenses with respect to the institutional class, to the extent necessary to maintain the institutional class’ “Net Annual Operating Expenses” at a ratio not to exceed 0.99% of average daily net assets. This voluntary waiver/ reimbursement may be discontinued at any time. Without such waivers and/or reimbursements, total returns may have been lower.

The inception date for the Value Fund is 12/28/1984 for the investor class and 5/1/2008 for the institutional class.

Heartland Advisors Value Investing Team IconHistorical NAVs

Contact a Relationship Manager for historical NAVs.

Historical NAVs also are available from third party websites, such as Bloomberg, Yahoo! Finance, or Google Finance.

Commentary

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3/31/18
Heartland Value Fund Portfolio Manager Commentary

Heartland Value Fund 1Q18 Portfolio Manager Commentary

Investors responded to a murky economic outlook by gravitating toward growth-oriented names, defensive areas, and larger businesses.

Portfolio Composition

Characteristics

3/31/2018

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CharacteristicValueRussell 2000® Value
Holdings 103-
Assets $771 million-
Median Market Cap $596 million$727 million
Weighted Average Market Cap $1.6 billion$2.0 billion
Trailing 1-Year Turnover 33.1% -

Capitalization Breakdown
3/31/2018
Cap Range% of Equities in Portfolio
>$15 billion0.0
$2-15 billion23.2
$300 million-2 billion54.5
<$300 million22.3

The above breakdown does not include short-term investments.

Valuation Analysis
Equity securities only, weighted median unless otherwise noted

3/31/2018

Source: FactSet Research Systems Inc., Russell Investment Group, and Heartland Advisors, Inc.
*Weighted average

Heartland Value Fund Valuation Analysis Charts 1Heartland Value Fund Valuation Analysis Charts 2

Sector Allocation

3/31/2018

Source: FactSet Research Systems Inc., and Russell Investment Group

Heartland Value Fund Sector Charts 1Heartland Value Fund Sector Charts 2

Top 10 Holdings
3/31/2018

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TickerHolding% of Net AssetsIndustry
BBSIBarrett Business Services, Inc.2.69Professional Services
KWKennedy-Wilson Holdings, Inc.2.60Real Estate Management & Development
CG CNCenterra Gold Inc.2.23Metals & Mining
VSTVistra Energy Corp. 2.16Independent Power and Renewable Electricity Producers
MTGMGIC Investment Corporation2.15Thrifts & Mortgage Finance
TSCTristate Capital Holdings, Inc.2.11Banks
TBBKThe Bancorp, Inc.2.10Banks
RDNRadian Group Inc.2.10Thrifts & Mortgage Finance
AESThe AES Corporation2.06Independent Power and Renewable Electricity Producers
FNFabrinet2.04Electronic Equipment Instruments & Components
% of Total Net Assets22.24

View full holdings


Sector-Level Attribution

3/31/2018

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Sector-Level Attribution Reports

Security-Level Attribution & Contribution

3/31/2018

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5-Year Risk Analysis

  • Investor Class
  • Institutional Class
3/31/2018

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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)		Active Share
Value-1.6613.570.89-0.500.4988.36101.8881.4796.82
Russell 2000® Value0.0013.771.000.000.70100.00100.00100.000.00

*Annualized
Source: FactSet Research Systems Inc., Russell Investment Group
Alpha, beta, and information ratio are versus the Russell 2000® Value. Depiction is for investor class shares.

3/31/2018

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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)		Active Share
Value-1.4913.570.89-0.470.5088.90101.5881.4296.82
Russell 2000® Value0.0013.771.000.000.70100.00100.00100.000.00

*Annualized
Source: FactSet Research Systems Inc., Russell Investment Group
Alpha, beta, and information ratio are versus the Russell 2000® Value. Depiction is for institutional class shares.

Distributions

  • Investor Class
  • Institutional Class
Record
Date		 Payable
Date		     Ordinary Dividend
($/share)		 Short-Term Capital
Gain ($/share)		 Long-Term Capital
Gain ($/share)
12/27/2017 12/28/2017   0.04117 - 2.60800
12/28/2016 12/29/2016   - - 1.43802
12/28/2015 12/29/2015   0.13994 - 2.82914
12/29/2014 12/30/2014   0.22288 1.11429 4.12240
12/26/2013 12/27/2013   0.42958 1.17103 3.98433
12/26/2012 12/27/2012   - 0.17740 2.74405
12/28/2011 12/29/2011   - 0.675954 1.798273
12/28/2010 12/29/2010   - 0.058470 -
  3/28/2008   3/31/2008   - - 0.084234
12/26/2007 12/27/2007   0.239182 0.710262 5.923943

No distributions were paid in 2009.
 

Record
Date		 Payable
Date		     Ordinary Dividend
($/share)		 Short-Term Capital
Gain ($/share)		 Long-Term Capital
Gain ($/share)
12/27/2017 12/28/2017   0.12267 - 2.60800
12/28/2016 12/29/2016   - - 1.43802
12/28/2015 12/29/2015   0.20977 - 2.82914
12/29/2014 12/30/2014   0.30599 1.11429 4.12240
12/26/2013 12/27/2013   0.50608 1.17103 3.98433
12/26/2012 12/27/2012   - 0.17740 2.74405
12/28/2011 12/29/2011   - 0.675954 1.798273
12/28/2010 12/29/2010   - 0.058470 -

No distributions were paid in 2008 and 2009.
 

 
Heartland Advisors Value Investing Team IconAdditional Historical Distributions

Contact a Relationship Manager for historical NAVs.

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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

The Value Fund primarily invests in small companies selected on a value basis. Such 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.

Sector and industry classifications as determined by Heartland Advisors may reference data from sources such as FactSet Research Systems Inc.

The portfolio may lose value in various market conditions and an investor could have a loss of principal.

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

Portfolio holdings exclude cash, cash equivalents, options, and futures.

Certain security valuations and forward estimates are based on Heartland Advisors' calculations. Any forecasts may not prove to be true.

Information about Morningstar Ratings™ are ©2018 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 5/31/2018 Morningstar Ratings™: The Heartland Value Fund investor class was rated against 219, 315, and 353 U.S.-domiciled Small Value funds over the 10-, 5-, and 3-year periods and received 2, 2, and 2 stars, respectively.
As of 5/31/2018 Morningstar Ratings™: The Heartland Value Fund institutional class was rated against 219, 315, and 353 U.S.-domiciled Small Value funds over the 10-, 5-, and 3-year periods and received 2, 2, and 2 stars, respectively.

There is no guarantee that a particular investment strategy will be successful.

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

Unless noted with an asterisk (*), 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.

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