Value fund uses dividend payers and ‘self-help’ stocks to beat its benchmark
The Charging Bull or Wall Street Bull is pictured in the Manhattan neighborhood of New York City on January 16, 2019.
Carlo Allegri | Reuters
To help a value fund stand out at a key point in investment strategy, one top manager said the key has been to focus on finding companies that can help themselves.
the Heartland Mid Cap Value Fund, led by portfolio manager Colin McWey, is up about 24% year-to-date, and its institutional-grade stocks have comfortably beaten both the Russell Mid Cap Value Index and its Morningstar Category Average since early 2020 and over the past five years. The Milwaukee-based fund is rated five stars by Morningstar.
The fund’s success, McWey said, doesn’t just come from finding the cheapest names in their category, but also identifying reasons why a stock may go up.
“We see investing as a trade-off between price and quality versus fundamental forecast. It’s not just about price, although we are value investors,” said McWey. “I think it’s the marriage and the balance of the three things.”