Heartland Advisors
Heartland Advisors Mid Cap Value Strategy
US Mid-cap Value
Dec 2024 → Sep 2026
Our archive holds 9 letters from this strategy, behind 12 investment theses and positions in 14 companies. Every quote below is copied verbatim from the letter it came from.
9 letters in 3 years · follow all of Heartland Advisors for every strategy.
Performance
as of Sep 30, 2026 · net of fees · USD · Mid Cap Value Composite (Net of Advisory Fees)
- YTD+9.1%index +15.3%
- 1Y+7.0%index +16.9%
- 3Y · /yr+7.0%index +17.5%
- 5Y · /yr+6.0%index +9.3%
- 10Y · /yr+9.4%index +9.9%
- Inception · /yr+10.8%index +10.5%
Index: Russell Midcap® Value
| YTD | 1Y | 3Yper year | 5Yper year | 10Yper year | Since inceptionper year | |
|---|---|---|---|---|---|---|
| Heartland Advisors Mid Cap Value Strategy | +9.1% | +7.0% | +7.0% | +6.0% | +9.4% | +10.8% |
| Russell Midcap® Value | +15.3% | +16.9% | +17.5% | +9.3% | +9.9% | +10.5% |
Disclaimer
These figures are copied from the manager’s latest letter, as of Sep 30, 2026. They were extracted automatically, have not been verified by HF Best Ideas and may contain errors. They cover a single share class, in the currency and fee basis stated above; other share classes and your own returns will differ. This is not investment advice, nor an offer to buy or sell any fund. Past performance does not predict future returns.
Read full disclosures →What it bought and sold
Bentley Systems (BSY) , a newly initiated position during the quarter, is an example of a stock getting heavily discounted by a negative top-down industry narrative, with defensible and compelling long-term prospects.
While ON was one of the Fund's top contributor last quarter, the biggest detractor to our Strategy's performance was MarketAxess Holdings (MKTX) , a position we initiated in the first quarter and built in the second quarter.
A new deep-value holding is International Flavors and Fragrances (IFF) , a specialty ingredient producer that sells flavors, fragrances, and enzymes to food, beverage, personal care, household products, and human health product manufacturers.
After more than doubling in price by early June, the stock reached our price target, and we reduced our weighting.
Also held
Its investment theses
- Bentley SystemsSep 2026Bentley Systems provides critical infrastructure engineering software and is viewed as having a strong moat, high switching costs, and long-term sales and free cash flow upside.
- WatscoSep 2026Watsco is the largest U.S. HVAC and refrigeration distributor, with management-driven technology investments, acquisition growth, and margin expansion potential.
- MarketAxess HoldingsSep 2026MarketAxess Holdings operates a leading corporate bond e-trading platform and was attractive due to operating leverage, market share gains, and takeout value.
- ON Semiconductor CorporationJun 2026ON Semiconductor is a power-management and image-sensing semiconductor company benefiting from silicon-carbide leadership, margin improvement, EV share gains, and AI datacenter tailwinds.
- MarketAxess HoldingsJun 2026MarketAxess operates the largest U.S. corporate bond e-trading platform and offers operating leverage, market-share gains, scale advantages, and an attractive valuation.
- International Flavors & Fragrances Inc.Jun 2026International Flavors & Fragrances is a specialty ingredient producer undergoing portfolio streamlining, margin improvement, and valuation re-rating potential versus Givaudan.
- J.B. Hunt Transport Services, Inc.Dec 2025J.B. Hunt Transport Services is a scaled intermodal freight operator with cost and scale advantages, improving margins, strong cash flow and balance sheet, active buybacks, and a valuation discount to the industrial sector.
- MarketAxess Holdings Inc.Dec 2025MarketAxess Holdings is the leading U.S. electronic corporate bond trading platform with strong margins, renewed share gains under new leadership, international growth opportunities, and a valuation discount relative to exchange peers.
- Lam Research CorporationSep 2025Lam is well-positioned to capitalize on the structurally profitable SemiCap industry, leveraging its dominance in the Etch market and strong relationships with Memory customers to gain market share amid a recent upcycle.
- Everest Group LTDJun 2025Everest Group LTD is a Deep Value global insurer trading at a heavily discounted valuation due to previous management's poor underwriting decisions, now being repositioned by new leadership through a shrink-to-grow strategy.