Heartland Advisors, an investment management company, released its “Heartland Mid Cap Value Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the portfolio moved up more than 7.5% compared to a 12.1% increase in the Russell Midcap Value Index. Due in part to the large increase in value that highly leveraged and speculative equities have seen since late October, part of the underperformance was due to the companies that the fund doesn’t own. The Fund posted 13.4% in 2023 versus 12.7% gains for the benchmark. Stock selection led the outperformance in the full year. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Heartland Mid Cap Value Fund featured stocks such as Cable One, Inc. (NYSE:CABO) in the Q4 2023 investor letter. Headquartered in Phoenix, Arizona, Cable One, Inc. (NYSE:CABO) is a data, video, and voice services provider. On January 10, 2024, Cable One, Inc. (NYSE:CABO) stock closed at $554.12 per share. One-month return of Cable One, Inc. (NYSE:CABO) was 0.69%, and its shares lost 26.81% of their value over the last 52 weeks. Cable One, Inc. (NYSE:CABO) has a market capitalization of $3.112 billion.
Heartland Mid Cap Value Fund stated the following regarding Cable One, Inc. (NYSE:CABO) in its fourth quarter 2023 investor letter:
“Below are several examples of quality-value businesses we own that are trading at deep-value-like valuations. Most of the time, the market appropriately rewards high return businesses with premium valuations, but the following companies trade at low valuations because there are fundamental questions about the industry or because there is a company-specific overhang.
Communications. In theory,Cable One, Inc. (NYSE:CABO), a broadband provider with a focus on rural markets in the Midwest, Northwest, and Southeast, should have rallied in the fourth quarter as long-term interest rates began to fall. But 2023 turned out to be a challenging year for broadband providers all around, including CABO, whose shares are down more than 15% since mid-October.
Thanks to rising rates between January and late October, the number of families moving fell to a multi-year low, as existing home sales sank to 2010 levels. This is an important metric since every move creates an opportunity for companies like CABO to win new customers. The fact that mortgage rates have fallen from nearly 8% at the start of November to approximately 7% today provides some relief but borrowing costs have not fallen enough to trigger a recovery in moves…” (Click here to read the full text)
Close up view of a technician using specialized tools to install a fiber optic cable line.
Cable One, Inc. (NYSE:CABO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Cable One, Inc. (NYSE:CABO) at the end of third quarter which was 27 in the previous quarter.
We discussed Cable One, Inc. (NYSE:CABO) in another article and shared Artisan Value Income Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2023 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.
