Heartland Advisors

Heartland Small Cap Value Plus

Overview

Investment Focus

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

Distinguishing Characteristics

The Heartland Value Plus Strategy seeks long-term capital appreciation by investing in a high-conviction portfolio (40-70 holdings) of undervalued small cap stocks with strong balance sheets, the majority of which pay dividends. 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. The narrow focus on specific catalysts to unlock value adds discipline and consistency.

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 Plus Composite (Net of Advisory Fees)**7.176.328.641.129.161.998.05
Small Cap Value Plus Composite (Net of Bundled Fees)6.375.798.110.628.621.617.92
Russell 2000® Value7.428.229.293.7725.889.2210.15

 

2023 (%)

2022 (%)

2021 (%)

2020 (%)

2019 (%)

2018 (%)

2017 (%)

2016 (%)

2015 (%)

2014 (%)

2013 (%)

2012 (%)

2011 (%)

2010 (%)

2009 (%)

2008 (%)

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

2.22 -4.56 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)

1.71 -5.03 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

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

 

*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 11/30/2007.

**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 Plus Composite5.3 billion4.2 billion-
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 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
9/30/2024

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TickerHolding% of AccountIndustry
MHKMohawk Industries, Inc.5.95Household Durables
PCHPotlatchDeltic Corp. 4.74Specialized REITs
SBCFSeacoast Banking Corp. of Florida4.74Banks
GBCIGlacier Bancorp, Inc.4.73Banks
FBKFB Financial Corp.4.64Banks
CPTCamden Property Trust3.39Residential REITs
TCBITexas Capital Bancshares, Inc.3.33Banks
CTSCTS Corp.3.29Electronic Equipment Instruments & Components
THGThe Hanover Insurance Group, Inc.3.19Insurance
MTRNMaterion Corp.3.13Metals & Mining
% of Total Net Assets41.13

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 Plus Composite (Net of Advisory Fees)1.1320.260.76-0.070.3181.1483.2787.4495.96
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 Plus Strategy Portfolio Management Team

15 years of industry experience
12 years of experience at Heartland

 

 

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Andrew J. Fleming

Director of Research, Vice President, and Portfolio Manager

 

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News & Investing Perspectives

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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 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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