Heartland Small Cap Value Plus Strategy

Overview

Investment Focus

Invests in undervalued small companies and seeks to reduce volatility through strong balance sheets and dividends

Distinguishing Characteristics

  • Invests in companies with market capitalizations consistent with the capitalization range of the Russell 2000 Value lndex, with majority of its assets invested in companies that pay dividends
  • Designed for investors who seek a portfolio of small company stocks that may produce modest dividend income
  • Benchmarked to the Russell 2000® Value Index
  • Typically holds 40-70 stocks
  • Inception date: 2007

Investment Minimum & Standard Fee Schedule

Minimum: $1 million

Account Size Annual Rate (%)
First $5 million 1.00
Next $10 million 0.85
Above $15 million Negotiable

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

Small Cap Value Plus Strategy Quick Links

Factsheet

 

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Commentary

 

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Attribution & Contribution Reports

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Holdings

 

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Portfolio Management Team

Heartland Advisors Small Cap Value Plus Strategy Portfolio Management Team

39 years of industry experience
33 years of experience at Heartland

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Andrew J. Fleming

Vice President and Portfolio Manager

Bradford A. Evans

Senior Vice President and Portfolio Manager

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News & Investing Perspectives

5/11/2022

The Case for Quality Stocks Now

Historically, stocks exhibiting "quality" factors such as low leverage are likely to outperform in a rising-rate environment.

4/13/22

Balance Sheets: The End All Be All?

Portfolio Manager Bradford A. Evans, CFA, tells Bloomberg Radio how he navigates his investment strategy during these uncertain times.

Performance*

Average Annual Total Returns
  • Quarter-End
  • Annual
6/30/2022

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Since Inception (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD (%)QTD (%)
Small Cap Value Plus Composite (Net of Advisory Fees)**7.468.379.0510.29-10.96-11.40-7.90
Small Cap Value Plus Composite (Net of Bundled Fees)6.637.788.519.75-11.41-11.62-8.02
Russell 2000® Value6.709.054.896.18-16.28-17.31-15.28

 

2021 (%) 2020 (%) 2019 (%) 2018 (%) 2017 (%) 2016 (%)

2015 (%)

2014 (%)

2013 (%)

2012 (%)

2011 (%)

2010 (%)

2009 (%)

2008 (%)

Small Cap Value Plus Composite (Net of Advisory Fees)**

24.95 13.72 26.07 -13.16 9.79 26.76 -16.28

-2.85

33.03

14.79

-5.17

28.61

24.59

-20.81

Small Cap Value Plus Composite (Net of Bundled Fees)

24.34 13.15 25.47 -13.61 9.23 26.13 -16.71

-3.34

32.39

13.10

-6.57

27.13

23.13

-21.78

Russell 2000® Value

28.27 4.63 22.39 -12.86 7.84 31.74 -7.47

4.22

34.52

18.05

-5.50

24.50

20.58

-28.92

 

*Source: FactSet Research Systems Inc., Russell Investment Group, and Heartland Advisors, Inc. Performance data is preliminary. YTD and QTD returns are not annualized. The Strategy's inception date is 11/30/2007.
**Shown as supplemental information.

Portfolio Composition

Characteristics
7/31/2022

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Weighted Average Market Cap ($)Median Market Cap ($)Trailing 1-Year Turnover (%)
Small Cap Value Plus Composite2.4 billion1.6 billion43.2
Russell 2000® Value2.2 billion809 million-

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

Valuation Analysis
Equity securities only, weighted harmonic average unless otherwise noted

6/30/2022

Heartland Advisors Small Cap Value Plus Strategy Valuation Analysis Charts 2

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

Sector Allocation

6/30/2022

Heartland Advisors Small Cap Value Plus Strategy Sector Charts 2

Source: FactSet Research Systems Inc., and Russell Investment Group
Composite statistics shown as percentage of equity investmentsty investments

Top 10 Holdings in a Representative Account
6/30/2022

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TickerHolding% of AccountIndustry
PORPortland General Electric Co.4.04Electric Utilities
HAEHaemonetics Corporation3.90Health Care Equipment & Supplies
CHXChampionx Corporation 3.83Energy Equipment & Services
PAHCPhibro Animal Health Corp. (Class A)3.63Pharmaceuticals
AVDAmerican Vanguard Corp.3.29Chemicals
ATNIATN International, Inc.3.25Diversified Telecommunication Services
SBCFSeacoast Banking Corp. of Florida2.92Banks
THGThe Hanover Insurance Group Inc.2.91Insurance
RGPResources Connection, Inc.2.79Professional Services
THSTreeHouse Foods Inc2.66Food Products
% of Total Net Assets33.22

5-Year Risk Analysis

7/31/2022

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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)
Active Share
Small Cap Value Plus Composite (Net of Advisory Fees)4.6319.820.820.510.4097.1484.4187.2995.66
Russell 2000® Value0.0022.491.000.000.17100.00100.00100.000.00

*Annualized
Source: FactSet Research Systems Inc., Russell Investment Group
Alpha, beta, and information ratio are versus the Russell 2000® Value Index.

The above performance, portfolio composition, and risk analysis data is preliminary.

 

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©2022 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. Performance represents past performance, and current returns may differ.

Heartland Advisors, Inc. (the "Firm") claims compliance with the Global Investment Performance Standards (GIPS®). The Firm is a wholly owned subsidiary of Heartland Holdings, Inc., and is registered with the Securities and Exchange Commission. For a complete list and description of Heartland Advisors composites and/or a presentation that adheres to the GIPS® standards, contact the Institutional Sales Team at Heartland Advisors, Inc. at the address listed below.

The U.S. dollar is the currency used to express performance.

The inception date for the Small Cap Value Plus Strategy is 11/30/2007.

The Small Cap Value Plus Strategy 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.

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

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.

Representative account chosen based on composite membership, not on performance-based criteria. Other accounts within the strategy may have different holdings.

Representative account holdings are preliminary, may not be reconciled, and may be updated when reconciled.

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

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

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

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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