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9h ago

Heartland Advisors' Q4 Letters Detail Value Repositioning, New Stakes in WESCO and MarketAxess

Managers responded to a market rotation toward smaller value shares by leaning into overlooked catalysts.

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Overview

  • The firm reported that small value stocks outpaced the Magnificent 7 as AI-driven momentum cooled in November.
  • The Heartland Value, Value Plus, and Mid Cap Value funds modestly trailed their respective benchmarks in the quarter.
  • New positions included WESCO International, expected to recover growth and expand EBITDA margins, and MarketAxess, a high‑margin corporate bond trading platform built on scale.
  • The team added to Integer after a selloff exceeding 30% and a $200 million stock repurchase authorization that reinforced its undervaluation thesis.
  • Exposure increased in Columbus McKinnon after weaker results and a $2.7 billion Kito Crosby deal led to a drop of more than 40%, while the Kimberly‑Clark holding was trimmed following its $48.7 billion Kenvue acquisition announcement.