Heartland Advisors, an investment management company, released its “Heartland Value Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. During the quarter the fund outperformed the Russell 2000 Value Index returning -1.02% versus -2.96% for the benchmark. The Fund generated gains in Energy, Utilities, and Financials owing largely to stock selection despite a difficult market. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Heartland Value Fund highlighted stocks like Mohawk Industries, Inc. (NYSE:MHK) in the third quarter 2023 investor letter. Headquartered in Calhoun, Georgia, Mohawk Industries, Inc. (NYSE:MHK) designs and manufactures flooring products. On October 12, 2023, Mohawk Industries, Inc. (NYSE:MHK) stock closed at $79.55 per share. One-month return of Mohawk Industries, Inc. (NYSE:MHK) was -15.03%, and its shares lost 17.35% of their value over the last 52 weeks. Mohawk Industries, Inc. (NYSE:MHK) has a market capitalization of $5.066 billion.
Heartland Value Fund made the following comment about Mohawk Industries, Inc. (NYSE:MHK) in its Q3 2023 investor letter:
“Consumer Discretionary. Mohawk Industries, Inc. (NYSE:MHK), the leading manufacturer of flooring products such as carpet, tile, wood, and vinyl products for the residential and commercial markets, ran into stiff headwinds in recent years as inflation increased costs on source materials. This compressed MHK’s margins, and the stock price was nearly cut in half between June 2021 and early this year. We believe the worst of those pricing pressures are behind the business, which stands to benefit from the ongoing growth in home remodeling and office space conversions as the commercial real estate market struggles with hybrid work.
After initiating a position in Mohawk this Spring, we added to it during the quarter as the market sold off. While it’s not ideal that MHK continued to fall, the slide has allowed us to build an over 2% allocation in a name our research indicates is a long-term alpha generator at a compelling valuation.
Mohawk is priced at half of sales, less than tangible book value, and 9X our estimate of ‘23 earnings. With ample free cash flow and active share buybacks, we believe MHK possesses favorable risk-reward characteristics.”
An aerial view of a house filled with beautiful flooring products. Editorial photo for a financial news article. 8k. –ar 16:9
Mohawk Industries, Inc. (NYSE:MHK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Mohawk Industries, Inc. (NYSE:MHK) at the end of second quarter which was 30 in the previous quarter.
We discussed Mohawk Industries, Inc. (NYSE:MHK) in another article and shared Heartland Value Fund’s views on the company in the previous company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 12 Biggest Dividend Cuts and Suspensions of 2023
- Retirement Stock Portfolio: 10 Low Risk Investments
- 25 Most Peaceful Places to Live in the U.S.
Disclosure: None. This article is originally published at Insider Monkey.
