Heartland Advisors, an investment management company, released its second-quarter 2026 investor letter for "Heartland Value Fund". A copy of the letter can be downloaded here. The AI trend continues to drive the market in the quarter. Small-cap stocks continue to outperform, with the Russell 2000® Index rising 21.49% in the quarter. The Heartland Value Fund gained 17.05% in the quarter, compared with the 17.19% return for the Russell 2000® Value Index. In addition, you can check the Fund's top 5 holdings to determine its best picks for 2026.
In its Q2 2026 investor letter, Heartland Value Fund highlighted Unitil Corporation (NYSE:UTL). Unitil Corporation (NYSE:UTL) is a public utility holding company that engages in the distribution of electricity and natural gas. On July 14, 2026, Unitil Corporation (NYSE:UTL) closed at $53.62 per share, reflecting a market capitalization of $964.67 million. Unitil Corporation (NYSE:UTL) posted a one-month return of 5.00%, while its shares gained 5.20% over the past 52 weeks.
Heartland Value Fund stated the following regarding Unitil Corporation (NYSE:UTL) in its Q2 2026 investor update:
"Another example of us splitting from the herd is in Utilities. The sector was one of our detractors when it came to security selection during the quarter. But many of these companies have been indirect beneficiaries of the AI infrastructure buildout and have seen their valuations climb. In our opinion, it does not make sense to take on AI related risks in this part of the market especially given current Utility valuations.
An example of a traditional Utility that we favor and that is not related to AI play is Unitil Corporation (NYSE:UTL), an interstate gas and electric company that serves the northern East Coast. Maine and New Hampshire are the two largest markets for homes heated by fuel oil in the U.S. In Maine, the high cost of powering homes is weighing on consumers, many of whom are considering switching to natural gas. If consumers switch, they could reduce their energy bills by around 45% or more..." (Click here to read the full text)
In its Q2 2026 investor letter, Heartland Value Fund highlighted Unitil Corporation (NYSE:UTL). Unitil Corporation (NYSE:UTL) is a public utility holding company that engages in the distribution of electricity and natural gas. On July 14, 2026, Unitil Corporation (NYSE:UTL) closed at $53.62 per share, reflecting a market capitalization of $964.67 million. Unitil Corporation (NYSE:UTL) posted a one-month return of 5.00%, while its shares gained 5.20% over the past 52 weeks.
Heartland Value Fund stated the following regarding Unitil Corporation (NYSE:UTL) in its Q2 2026 investor update:
"Another example of us splitting from the herd is in Utilities. The sector was one of our detractors when it came to security selection during the quarter. But many of these companies have been indirect beneficiaries of the AI infrastructure buildout and have seen their valuations climb. In our opinion, it does not make sense to take on AI related risks in this part of the market especially given current Utility valuations.
An example of a traditional Utility that we favor and that is not related to AI play is Unitil Corporation (NYSE:UTL), an interstate gas and electric company that serves the northern East Coast. Maine and New Hampshire are the two largest markets for homes heated by fuel oil in the U.S. In Maine, the high cost of powering homes is weighing on consumers, many of whom are considering switching to natural gas. If consumers switch, they could reduce their energy bills by around 45% or more..." (Click here to read the full text)
4 months ago
