Heartland Advisors' Q3 2025 Opportunistic Value Equity Strategy Analysis

Instructions

This report details the performance and strategic adjustments of Heartland Advisors' Opportunistic Value Equity Strategy during the third quarter of 2025, offering a concise overview of key investment decisions and their impact on the portfolio.

Navigating Market Dynamics: A Strategic Review of Opportunistic Value Investments

Key Portfolio Changes in the Quarter

During the recent financial period, a significant move for the strategy involved establishing an initial stake in the prominent e-commerce and cloud computing corporation, Amazon. This introduction reflects a proactive approach to capitalize on emerging opportunities within the technology sector.

Enhanced Holdings in Tech Giants

The strategy further reinforced its commitment to Alphabet, acquiring additional shares in both 2022 and April of the current year. This decision was driven by the assessment that Alphabet's stock was substantially undervalued, presenting an attractive entry point for increased investment.

Underperformance of a Core Holding

In contrast to other portfolio elements, Centene recorded the most substantial decline in performance throughout the quarter. This outcome underscores the inherent risks and variable returns associated with even carefully selected holdings within a diversified investment strategy.

Quarterly Performance Insights

For the third quarter, the strategy's overall return was 4.65%. While positive, this figure trailed the performance of the Russell 3000\u00ae Value Index, which posted a 5.63% gain over the same period. The analysis indicated that favorable stock selection contributed positively across five distinct areas of the portfolio.

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