Heartland Advisors, an investment management company, released its “Heartland Value Plus Fund” first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, the strategy returned 1.5% underperforming the Russell 2000 Small-Cap Value Index’s 2.9% returns. The underperformance was due to the stock selection in Health Care, Information Technology, and Materials sectors. On the other hand, the selection effect helped the Strategy to outperform the benchmark in the Consumer Discretionary, Consumer Staples, and Financials sectors. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Heartland Value Plus Fund featured stocks like Mohawk Industries, Inc. (NYSE:MHK) in the first quarter 2024 investor letter. Headquartered in Calhoun, Georgia, Mohawk Industries, Inc. (NYSE:MHK) designs and manufactures flooring products. On April 12, 2024, Mohawk Industries, Inc. (NYSEMHK) stock closed at $113.17 per share. One-month return of Mohawk Industries, Inc. (NYSEMHK) was -4.39%, and its shares gained 14.96% of their value over the last 52 weeks. Mohawk Industries, Inc. (NYSEMHK) has a market capitalization of $7.281 billion.
Heartland Value Plus Fund stated the following regarding Mohawk Industries, Inc. (NYSEMHK) in its first quarter 2024 investor letter:
“We remain committed to Heartland’s 10 Principles of Value Investing™, which favors companies with low leverage, strong free cash flow, and a successful track record of capital allocation. We also look for companies that are deploying self-help strategies to improve their competitive standing and profitability through strategic and operational improvements.
Lately, we’ve been finding opportunities in companies that have been through their own mini recessions and have proactively adjusted so that even if the economy doesn’t improve, their outlooks hopefully will. And should demand rebound, these companies that have already course corrected and taken costs out are likely to emerge stronger with higher operating leverage.
Here are two good examples of such opportunities: Consumer Discretionary. In the first quarter, we initiated a position in Mohawk Industries, Inc. (NYSEMHK), the leading manufacturer of flooring including carpets, tiles, and wood and vinyl products for the residential and commercial markets. In recent years, Mohawk has run into difficulties owing to rising interest rates, which affects its end markets, and inflation in source materials, which cuts into margins. Between May 2021 and October 2023, the stock lost nearly two thirds of its value…” (Click here to read the full text)
A person standing in a showroom admiring the range of laminate flooring.
Mohawk Industries, Inc. (NYSEMHK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Mohawk Industries, Inc. (NYSE:MHK) was held by 40 hedge fund portfolios, compared to 36 in the previous quarter, according to our database.
We previously discussed Mohawk Industries, Inc. (NYSE:MHK) in another article, where we shared Ariel Focus Fund’s perspective on the company. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
