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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 borough of New New York, January 16, 2019.

Carlo Allegri | Reuters

To help a value fund stand out in a banner moment for the investing strategy, one top-rated manager said the key has been to focus on finding the companies who can help themselves.

The Heartland Mid Cap Value Fund, led by portfolio manager Colin McWey, is up roughly 24% so far this year, and its institutional class shares have comfortably beaten both the Russell Mid Cap Value Index and its Morningstar category average since the start of 2020 and over the past five years. The Milwaukee-based fund has a five-star rating from Morningstar.

The fund’s success, McWey said, comes not just from finding the cheapest names in their category but in identifying the reasons a stock can move higher.

“We think of investing as the price versus the quality versus the fundamental forecasting trade off. It’s not just about the price, even if we are value investors,” McWey said. “I think it’s the marriage and the balancing of all three things.”

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