Overview

• Heartland reported Q3 returns of 10.04% for the Value Fund versus 12.60% for the Russell 2000 Value, 1.63% for Mid Cap Value versus 6.18% for the Russell Midcap Value, and 8.51% for Value Plus versus 12.60% for the Russell 2000 Value.
• Dentsply Sirona was flagged after CEO Simon Campion stepped down and Daniel Scavilla took over, with the fund monitoring what it views as a deeply discounted valuation at about 6.7x estimated earnings.
• Centene was the worst performer in Mid Cap Value after an ACA exchange risk-pool shift led to a pre-announced earnings cut, with management’s pricing actions and a September update helping the shares start to recover.
• Lam Research was highlighted as a standout holding given its etch leadership and benefits from SemiCap industry consolidation, with the position added on a downturn and supported by a new upcycle and share gains.
• PHINIA drew confidence from notable insider purchases by the CEO and two directors, reinforcing Heartland’s thesis of undervaluation and potential market-share gains in its fuel-systems niche.