Heartland Advisors, an investment management company, released its “Heartland Value Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the Value Investor Class of the fund returned 3.14% and the Value Institutional Class returned 3.18% compared to 3.18% for the Russell 2000 Value Index. Although the fund performed in line with the benchmark, it lagged in the tech-heavy broader markets. 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 Q2 2023 investor letter. Headquartered in Calhoun, Georgia, Mohawk Industries, Inc. (NYSE:MHK) designs, manufactures, and distributes flooring products. On July 12, 2023, Mohawk Industries, Inc. (NYSE:MHK) stock closed at $113.77 per share. One-month return of Mohawk Industries, Inc. (NYSE:MHK) was 12.57%, and its shares lost 8.70% of their value over the last 52 weeks. Mohawk Industries, Inc. (NYSE:MHK) has a market capitalization of $7.458 billion.
Heartland Value Fund made the following comment about Mohawk Industries, Inc. (NYSE:MHK) in its second quarter 2023 investor letter:
“Consumer Discretionary. Mohawk Industries, Inc. (NYSE:MHK) is a new position that represents a perfect example of a stock that has “come to us.” A leading manufacturer of flooring including carpets, tiles, and wood and vinyl products for the residential and commercial markets, Mohawk ran into stiff headwinds in recent years owing to high inflation in its source materials. This compressed their 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 largely behind the business, which stands to benefit from several trends, including ongoing growth in home remodeling; the anticipated reacceleration of existing home sales once rates begin to stabilize; and office space conversions as the commercial real estate market struggles with hybrid work. We purchased the shares when they were selling at around 6 times our estimated 2024 earnings, even though the stock has historically traded at a P/E of 15.”
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Mohawk Industries, Inc. (NYSE:MHK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Mohawk Industries, Inc. (NYSE:MHK) at the end of first quarter which was 22 in the previous quarter.
We discussed Mohawk Industries, Inc. (NYSE:MHK) in another article and shared Ariel Investment’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
