Heartland Advisors

Heartland Small Cap Value Strategy


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 the largest securities in the Russell 2000® Value Index 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 30-50 stocks
  • Inception date: 1988

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

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Portfolio Management Team

Heartland Advisors Small Cap Value Strategy Portfolio Management Team

76 years of industry experience
59 years of experience at Heartland

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Will Nasgovitz

CEO and Portfolio Manager

Bill Nasgovitz

Chairman and Portfolio Manager

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News & Investing Perspectives

Heartland in the News
Heartland Advisors CEO and Portfolio Manager Will Nasgovitz

The Best of Both Worlds

CEO Will Nasgovitz explains the attractiveness of small and mid-caps as well as the upside that education service stocks might have for investors in a recent interview with Reuters.

Heartland in the News
Heartland Advisors CEO and Portfolio Manager Will Nasgovitz

Value Investing in 2023 and Beyond

CEO Will Nasgovitz and Chairman Bill Nasgovitz assess current market conditions to help answer questions on value investor’s minds.

10/22 - 1:32
Heartland Advisors Value Investing CEO and Portfolio Manager Will Nasgovitz

Insider Ownership

A glance at insider buying and how it opens investment opportunities for clients and shareholders.


Average Annual Total Returns
  • Quarter-End
  • Annual

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Since Inception (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD (%)QTD (%)
Small Cap Value Composite (Net of Advisory Fees)**10.684.297.2427.28-2.815.965.96
Small Cap Value Composite (Net of Bundled Fees)9.173.786.9326.91-3.105.885.88
Russell 2000® Value9.777.224.5521.01-12.96-0.66-0.66


2022 (%) 2021 (%) 2020 (%) 2019 (%) 2018 (%) 2017 (%) 2016 (%)

2015 (%)

2014 (%)

2013 (%)

2012 (%)

2011 (%)

2010 (%)

2009 (%)

2008 (%)

2007 (%)

2006 (%)

2005 (%)

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

-11.13 18.85 20.09 24.46 -14.74 -2.20 11.51












Small Cap Value Composite (Net of Bundled Fees)

-11.40 18.50 19.74 24.10 -15.01 -2.49 11.19 -14.27











Russell 2000® Value

-14.48 28.27 4.63 22.39 -12.86 7.84 31.74 -7.47












*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 10/1/1988.
**Shown as supplemental information.

Portfolio Composition


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Weighted Average Market Cap ($)Median Market Cap ($)Trailing 1-Year Turnover (%)
Small Cap Value Composite1.6 billion885 million58.6
Russell 2000® Value2.4 billion811 million-

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

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


Heartland Advisors Small Cap Value Strategy Valuation Analysis Charts 2

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

Sector Allocation


Heartland Advisors Small Cap Value 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

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TickerHolding% of AccountIndustry
PRGOPerrigo Co. PLC4.48Pharmaceuticals
RDNRadian Group Inc.3.45Financial Services
CGAUCenterra Gold, Inc3.36Metals & Mining
PRMWPrimo Water Corp.3.19Beverages
OROsisko Gold Royalties Ltd3.13Metals & Mining
PLABPhotronics, Inc.3.10Semiconductors & Semiconductor Equipment
ARAYAccuray, Inc.3.09Health Care Equipment & Supplies
PESIPerma-Fix Environmental Services Inc. 3.06Commercial Services & Supplies
THRThermon Group Holdings, Inc2.85Electrical Equipment
EZPWEzcorp, Inc. (Class A)2.77Consumer Finance
% of Total Net Assets32.48

5-Year Risk Analysis


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Alpha*Standard Deviation (%)*BetaInfo RatioSharpe RatioUpside Capture (%)*Downside Capture (%)*R-
Squared (%)
Active Share
Small Cap Value Composite (Net of Advisory Fees)3.2323.360.880.290.2587.8682.3485.2698.04
Russell 2000® Value0.0024.491.000.000.13100.00100.00100.000.00

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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©2023 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 Strategy is 10/1/1988.

The Small Cap Value 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.

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.

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.