Heartland Value Fund

   Overall Morningstar Rating™ as of 7/31/10, out of 310 small value funds  (read more...)

Morningstar Proprietary Ratings™ reflect historical risk-adjusted performance as of July 31, 2010. The overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year Morningstar Rating™ metrics.

Investment objective

The Value Fund seeks long-term capital appreciation by investing in micro- and small-cap companies.

Strategy & distinguishing characteristics

The small and micro-cap segment of the stock market is robust with thousands of publicly traded issues, many of which lack traditional Wall Street research coverage. Thus, we believe this market is often inefficient, mispricing businesses and offering opportunities for fundamental research-minded investors such as Heartland. The Fund utilizes our disciplined and time-tested 10 Principles of Value Investing™ framework to identify companies with the potential for appreciation and a potential margin of safety to limit downside risk.

Reasons to invest in the Heartland Value Fund: 

  • Small and micro-cap stocks have proven time-tested investment results
  • Consistently apply a common sense and understandable investment process
  • A 25 year history of long-term results for shareholders
  • Seasoned investment team

The power of diversification*

The Value Fund has a broadly diversified portfolio of small and micro-cap stocks. As an actively managed, broadly diversified small and micro-cap fund, you obtain exposure to unique stocks. The addition of unique stocks can produce higher returns with similar risk due to the power of diversification. 

The value of actively managed portfolios

We argue that including active management is a responsible approach to building a more efficient, or better, portfolio. Passive management by definition limits an investor to index performance minus expenses. Read more about  how active management and non-correlated returns can reduce risk in Heartland Fund's Value Essay #5.

Over the long-term, the Value Fund has outperformed its benchmark, the Russell 2000 Value Index. Our performance indicates that over the long-term, an actively managed portfolio can beat an index fund. We invite you to review our Heartland Value Fund Results. 

Heartland’s 10 Principles of Value Investing™

Based on the proprietary Heartland’s 10 Principles of Value Investing,™ the Fund managers focus on finding companies that they consider to be well-managed with sound fundamental value and excellent long-term appreciation potential. 

Value Fund Portfolio Managers: More Than 64 Years of Value Investing Experience

Will Nasgovitz, Brad Evans, CFA & Bill Nasgovitz

"In today's volatile and uncertain times, I believe value investing is the most intelligent way to build your net worth."

                                                                         — Bill Nasgovitz

 

The above individuals are Registered Representatives of ALPS Distributors, Inc.

* Diversification does not eliminate the risk of experiencing investment losses.

©2010 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance, rankings and ratings are no guarantee of future results. Rankings and ratings change monthly. Investment return and principal value will fluctuate so that your shares, when redeemed may be worth more or less than their original purchase price.

The Overall Morningstar Rating™ for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year Morningstar Rating™ metrics. As of 7/31/10 the Value Fund was rated against 310, 246 and 126 small value funds over the 3-, 5-, and 10-year periods, respectively and has received Morningstar's 3-star rating for the 5- and 10-year periods, and a 2-star rating for the 3-year period. For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating™ based on Morningstar's risk-adjusted return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in a category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately which may cause slight variations in the distribution percentages.) The Morningstar Ratings™ are for the specified share class; other classes may have different performance characteristics. 

The Value Fund invests primarily in small companies selected on a value basis. Such securities generally are more volatile and less liquid than those of larger companies and there is risk that their intrinsic values may not be recognized by the broad market.

The Value Fund seeks long-term capital appreciation by investing in small companies.

Russell 2000 Value Index measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. All indices are unmanaged. It is not possible to invest directly in an index.

Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-value ratios and higher forecasted growth values. All indices are unmanaged. It is not possible to invest directly in an index.

The Heartland Value Fund, a series of Heartland Group, Inc., commenced operations on December 28, 1984.

CFA is a trademark owned by CFA Institute.

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© 2010 Heartland Funds
789 N. Water Street, Suite 500, Milwaukee, WI 53202 • 1-800-432-7856
The Heartland Funds are distributed by ALPS Distributors, Inc.
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