May 21, 2010 Dear Fellow Value Investor, Once again, emotion seems to be driving market direction. Investors are pre-occupied with sovereign debt default, the economy, unemployment, and no one wants to re-live 2008. Stock owners appear quick to sell on any negative headlines. Despite these concerns, many companies are in better shape:
These factors have traditionally been positive for stocks. Investors, however, may be overlooking them, as the recent sell-off has been indiscriminant and broad-based. Our investment process is based on bottom-up research, not market sentiment. We remain confident in the Funds’ holdings, and our team is finding numerous companies we believe are financially sound, have compelling catalysts, and are trading at attractive valuations. Volatility can generate buying opportunities. As a long-term investor, your confidence in Heartland’s discipline may turn this market to your advantage. We’re here to help. Call us at 800-432-7856. Sincerely, Your Investment Team
Past performance does not guarantee future results. To obtain performance information current to the most recent month end, please visit the Funds' Returns pages of our website, or call 1-800-432-7856.
Value based investments are subject to the risk that the broad market may not recognize their intrinsic values.
Free cash flow is the amount of cash a company has after expenses, debt service, capital expenditures and dividends.
Yield curve graph shows the term structure of interest rates by plotting the yields of all bonds of the same quality with maturities ranging from the shorts to the longest available.
INVESTING THROUGH THE HIGHS AND LOWS
Remove the tendency to discontinue investing in a down market or only purchase when prices are rising.
See the video (1:14)