Heartland Advisors

Heartland Small Cap Value

Overview

Investment Focus

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

Distinguishing Characteristics

The Heartland Small Cap Value Strategy seeks long-term capital appreciation by investing in undervalued micro and small cap stocks. The Strategy utilizes Heartland’s 10 Principles of Value Investing™ for stock analysis along with a collection of rules and tools designed to construct the overall portfolio such that stock selection is the primary driver of relative performance. This approach helps navigate the asset class and may increase the likelihood of potential outperformance relative to the Russell 2000® Value Index.

Investment Process

The 10 Principles of Value Investing™

Learn more about our process

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

Performance*

Average Annual Total Returns
  • Quarter-End
  • Annual
9/30/2024

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Since Inception (%)10-Year (%)5-Year (%)3-Year (%)1-Year (%)YTD (%)QTD (%)
Small Cap Value Composite (Net of Advisory Fees)**10.775.2212.267.1323.8615.2211.60
Small Cap Value Composite (Net of Bundled Fees)9.314.8311.946.8223.5014.9711.52
Russell 2000® Value10.058.229.293.7725.889.2210.15

 

2023 (%)

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)**

10.31 -11.13 18.85 20.09 24.46 -14.74 -2.20 11.51

-13.41

-2.96

19.72

6.51

-4.32

23.54

73.03

-44.18

-10.54

20.09

1.99

Small Cap Value Composite (Net of Bundled Fees)

9.99 -11.40 18.50 19.74 24.10 -15.01 -2.49 11.19 -14.27

-3.92

18.54

5.45

-5.27

22.37

71.35

-44.75

-11.78

17.77

-0.01

Russell 2000® Value

14.65 -14.48 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

-9.78

23.48

4.71

 

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

YTD and QTD returns are not annualized. The Strategy's inception date is 10/1/1988.

**Shown as supplemental information.

Portfolio Composition

Characteristics
9/30/2024

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Weighted Average Market Cap ($)Median Market Cap ($)Trailing 1-Year Turnover (%)
Small Cap Value Composite1.7 billion896 million70.0
Russell 2000® Value2.8 billion784 million-

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

Sector Allocation

9/30/2024

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
9/30/2024

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TickerHolding% of AccountIndustry
CGAUCenterra Gold, Inc4.82Metals & Mining
LEUCentrus Energy Corp (Class A)4.62Oil Gas & Consumable Fuels
PRGOPerrigo Co. PLC4.42Pharmaceuticals
ARAYAccuray, Inc.4.39Health Care Equipment & Supplies
GTLSChart Industries, Inc.4.18Machinery
BWBabcock & Wilcox Enterprises Inc3.90Electrical Equipment
SIMOSilicon Motion Technology Corp. (ADR)3.84Semiconductors & Semiconductor Equipment
IIIVi3 Verticals, Inc. Class A3.59Financial Services
PINEAlpine Income Property Trust, Inc.3.37Diversified REITs
CSVCarriage Services, Inc.3.32Diversified Consumer Services
% of Total Net Assets40.45

5-Year Risk Analysis

9/30/2024

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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)3.9423.610.880.320.4293.9386.2985.8998.18
Russell 2000® Value0.0024.821.000.000.28100.00100.00100.000.00

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

Certain performance, portfolio composition, and/or risk analysis data may be preliminary.

Portfolio Management Team

Heartland Advisors Small Cap Value Strategy Portfolio Management Team

80 years of industry experience
61 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
6/20/2024
Heartland Advisors CEO and Portfolio Manager Will Nasgovitz

Small Caps: Ready to Rise?

CEO and Portfolio Manager Will Nasgovitz recently joined Nasdaq Trade Talks to discuss Heartland’s portfolio management strategies in the context of today’s narrow market environment.

Heartland in the News
2/22/2024
Heartland Advisors CEO and Portfolio Manager Will Nasgovitz

Small Caps: Underloved and Undervalued

Heartland's CEO and Portfolio Manager Will Nasgovitz shared his insights on small caps and their attractive valuation setup on MarketWatch.

Heartland in the News
1/18/24
Heartland Advisors CEO and Portfolio Manager Will Nasgovitz

Opportunities in Small Cap and Mid Cap Value

CEO and Portfolio Manager Will Nasgovitz discussed his thoughts on the market outlook for 2024, as well as provide some commentary on Heartland's investing process on Bloomberg Radio.

 

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©2024 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.

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