Heartland Advisors, an investment management company, released its “Heartland Mid Cap Value Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the portfolio returned 4.78% compared to a 3.86% gain for the Russell Midcap Value Index. Stock selection mainly in the Technology, Consumer Discretionary, and Utilities sectors led the fund to outperform in the quarter. The fund’s consistent performance was due to the positive stock selection in seven of the eleven sectors. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Heartland Mid Cap Value Fund highlighted stocks like Hasbro, Inc. (NASDAQ:HAS) in the second quarter 2023 investor letter. Headquartered in Pawtucket, Rhode Island, Hasbro, Inc. (NASDAQ:HAS) is a play and entertainment company. On July 12, 2023, Hasbro, Inc. (NASDAQ:HAS) stock closed at $64.89 per share. One-month return of Hasbro, Inc. (NASDAQ:HAS) was 4.81%, and its shares lost 19.76% of their value over the last 52 weeks. Hasbro, Inc. (NASDAQ:HAS) has a market capitalization of $9.097 billion.
Heartland Mid Cap Value Fund made the following comment about Hasbro, Inc. (NASDAQ:HAS) in its second quarter 2023 investor letter:
“Consumer Discretionary. Hasbro, Inc. (NASDAQ:HAS) is one of the world’s leading toy and game manufacturers with key franchises such as Peppa Pig, Play-Doh, My Little Pony, and Playskool. For several years, Hasbro’s returns on invested capital have been going the wrong way. That said, we believe the shares possess compelling turnaround and self-help potential.
The company has made progress working down excess inventory at retailers. This progress comes in front of an impressive slate of new products and entertainment releases, including movies, which should help catalyze better sales. Hasbro is streamlining operations and strategic focus across its products/gaming/entertainment segments by allocating more resources to growing its larger brands, while simultaneously de-emphasizing smaller brands that have created unnecessary distraction in recent years. Additionally, we expect management to complete a partial divestiture of noncore assets in its entertainment segment to reduce expenses and relieve the burden of inefficiently deployed capital. Furthermore, we are encouraged by Hasbro’s undertaking of a $250-300 million multi-year cost saving initiative and a necessary supply chain management overhaul.
Our purchase of Hasbro shares was motivated by these operational/strategic changes, our confidence in the company’s ability to significantly expand operating margins, and compelling multiples of earnings, cashflow and invested capital.”
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Hasbro, Inc. (NASDAQ:HAS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Hasbro, Inc. (NASDAQ:HAS) at the end of first quarter 2023 which was 32 in the previous quarter.
We discussed Hasbro, Inc. (NASDAQ:HAS) in another article and shared The London Company Mid Cap Strategy’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.
