Why Value Investing Isn't Going the Way of Bellbottoms and Tie Dye

12/2014 - 2:58
Long-term value investing seems to be out of fashion in today's market. Yet, as the Heartland Value Fund celebrates its 30th year, its founding Portfolio Manager Bill Nasgovitz discusses his commitment to the style and to small- and micro-cap stocks.

Contrarian Investors Focused on Value

Heartland Advisors, known as America’s Value Investor®, is a boutique, independent investment firm in Milwaukee, WI. Our value-focused, actively managed product suite includes distinct U.S. and international investing strategies, which are offered through five mutual funds and five separately managed account strategies.

Our disciplined, contrarian value investing philosophy is designed to deliver superior long-term investment results. We strive to capture upside potential while limiting downside risk.

Heartland defines value by our proprietary, consistent, and time-tested 10 Principles of Value Investing™. Our Investment Team applies a bottom-up approach that marries traditional fundamental analysis and meetings with more than 1,000 company management teams each year.

We managed about $5.5 billion and our team collectively owned approximately $40 million in our products as of September 30, 2014.

©2014 Heartland Funds
789 N. Water Street, Suite 500, Milwaukee, WI 53202
Business Office: 414-347-7777
The Heartland Funds are distributed by ALPS Distributors, Inc.

The Heartland Funds are only offered for sale in the U.S. and certain U.S. territories. Heartland does not mail prospectuses and other Fund information to, nor will new account applications from, addresses outside the U.S. and certain U.S. territories. 

An investor should consider the Funds’ investment objectives, risks, and charges and expenses carefully before investing. This and other important information may be found in the Heartland Funds prospectus (pdf) or Heartland Mid Cap Value Fund prospectus (pdf). To obtain a print prospectus, call 800-432-7856.

Value investments are subject to the risk that their intrinsic value may not be recognized by the broad market.

Separately managed accounts and related investment advisory services are provided by Heartland Advisors, a federally registered investment adviser.

ALPS Distributors, Inc., is not affiliated with Heartland Advisors.

Additional Video Disclosures:

As of 9/30/2014, the Heartland Value Fund's cumulative return was 3,332.49% since the Fund's inception. Over the same time period, the Russell 2000® Value Index returned 2,361.85%.

View full performance as of the most recent month end     

In the prospectus (pdf) dated 5/1/2014, the gross expense ratio for the Value Fund was 1.08% for investor class shares and 0.91% for institutional class shares. 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 and/or reimbursement may be discontinued at any time.

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.

Past performance does not guarantee future results. Performance represents past performance; current returns may be lower or higher. Performance information for institutional class shares prior to 5/1/2008, 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.

The statements and opinions expressed herein are those of the presenter. Any discussion of investments and investment strategies represents the Funds' investments and portfolio managers' views as of the date produced, and are subject to change without notice. All information is historical, not indicative of future results, and subject to change. The audience should not assume that an investment in the securities mentioned was or would be profitable in the future. This information is not a recommendation to buy or sell.

Security valuations are based on Heartland Advisors’ estimates as calculations.

As of 9/30/2014, Badger Meter Inc. represented 0.00% of the Value Fund's total net assets.

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

Heartland Advisors considers large-caps to be larger than $15 billion in market cap, mid-caps to be $2 billion to $15 billion, small-caps to be $300 million to $2 billion, and micro-caps to be less than $300 million. This breakdown does not include short-term investments. Portfolio holdings are subject to change without notice.

Economic predictions are based on estimates and are subject to change.

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

The above individual is a Registered Representative of ALPS Distributors, Inc.


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