The Heartland Mid Cap Value Fund concluded the fourth quarter of 2025 with a return of -1.92%, lagging behind the Russell Midcap Value Index's 1.42% gain. This period saw varied performance across different sectors, with some areas indicating positive momentum for future growth. The fund's strategic decisions during this quarter reflect a cautious yet opportunistic approach to market dynamics.
A notable highlight was the performance within the Industrials sector, where J.B. Hunt Transport Services emerged as the primary positive influence for both the sector and the overall portfolio. This demonstrates the fund's ability to identify and capitalize on strong performers even within a challenging market environment. Additionally, the fund initiated a new position in MarketAxess Holdings, a company recognized for its robust e-trading platform for corporate bonds, underscoring a commitment to quality value investments.
While the past quarter presented headwinds, the disciplined investment strategy and selective acquisitions position the fund for potential recovery and growth. Focusing on companies with solid fundamentals and competitive advantages, such as MarketAxess, helps build a resilient portfolio capable of navigating market fluctuations and generating long-term value for investors. This forward-looking approach is crucial for achieving sustained success in the evolving investment landscape.