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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Heartland Mid Cap Value Fund 2025 Q1 Investor Letter | Buyside Digest

Back to Fund Profile (Heartland Mid Cap Value Fund)

Primary Source Intelligence • Q1 2025 Letter Analysis

Heartland Mid Cap Value Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Heartland Mid Cap Value Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+67%

YTD+67%

Annualized+8.61%

Positioning StanceConstructive

Market CapMid Cap

GeographyUS

Digest Analysis

Quick Take

"Heartland Mid Cap Value outperformed in Q1 2025 as market volatility created attractive value opportunities. Their two-bucket approach targets quality companies like Teledyne Technologies and deep value plays like Middleby Corporation."

Executive Summary

Heartland Mid Cap Value Fund delivered positive returns of 0.67% in Q1 2025, outperforming the Russell Midcap Value Index which fell 2.11%, as market sentiment shifted dramatically amid federal policy uncertainties. The fund's disciplined value approach proved effective as risk aversion returned and focus on downside protection was rewarded. Their two-bucket strategy targets both quality value companies trading at bargains and deeply discounted deep value businesses, with market volatility creating more attractive entry points. Key holdings include Teledyne Technologies (TDY), their largest position representing quality value in sensing technologies, Middleby Corporation (MIDD) benefiting from activist involvement and planned spin-offs, and Perrigo (PRGO) positioned for self-care industry expansion. While uncertainties around tariffs, spending cuts, and government contracts are creating economic headwinds, the managers view current market pessimism as historically contrarian indicator for future equity performance. They remain confident their disciplined approach will capitalize on opportunities as many businesses are priced for meaningful economic slowdown.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

72%

CautiousHigh

High Conviction (72%)

High conviction evident through concentrated portfolio discussion with three named positions representing significant allocations (TDY as largest holding at 4.56%, PRGO at 2.13%, MIDD at 1.72%). Managers provide detailed thesis for each holding with specific valuation targets and catalysts, demonstrating strong conviction in their picks.

Growth Outlook

38%

BearishBullish

Neutral (38%)

The manager acknowledges meaningful economic slowdown concerns and recession pricing but frames current pessimism as historically contrarian indicator for future positive equity results. Mixed cautious outlook with underlying optimism about opportunities.

Risk Appetite

25%

DefensiveAggressive

Defensive (25%)

The fund is actively finding opportunities to increase exposure to parts of the market that have fallen victim to shifting narrative. They are selectively adding to positions while maintaining disciplined approach, showing mild risk-on positioning.

Capital Deployment

35%

De-riskingDeploying

Net Neutral (35%)

The fund is finding opportunities to increase exposure to parts of the market and actively looking for prospective holdings in both buckets. While no specific cash level changes are mentioned, the language suggests moderate deployment activity as they capitalize on market volatility.

Forward Guidance

25%

CautiousExpansionary

Cautious (25%)

Managers express confidence in capitalizing on opportunities ahead and expect to benefit from volatile markets presenting fertile opportunities for both quality value and deep value investments. Constructive deployment bias evident.

Language Signal

0%

BearishBullish

Bearish (0%)

Language is balanced between acknowledging risks (recession, policy uncertainties, economic slowdown) and identifying opportunities (attractive entry points, compelling valuations, contrarian indicator). Neither bullish nor bearish language dominates.

Perceived Risk

65%

Low RiskElevated

Elevated Risk (65%)

Managers identify specific macro risks including federal policy uncertainties, tariffs, spending cuts, government contract cancellations, and businesses being priced for meaningful economic slowdown or recession. Credit spreads widening and sentiment dropping to crisis levels indicate meaningful risk perception.

Opportunity Density

70%

ScarceAbundant

Abundant (70%)

Managers see growing opportunities as market volatility creates attractive entry points and more businesses are priced for economic slowdown. They describe a growing list of attractive deep value options and fertile opportunities in both quality value and deep value buckets.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

The fund emphasizes patience and long-term approach, referencing their commitment to fundamental bottom-up research and expectation that patience and conviction will pave the way for superior long-term returns. They focus on companies that can grow intrinsic value throughout market cycles, indicating multi-year investment horizon.