Heartland Advisors, an investment management company, released its second-quarter 2026 investor letter for "Heartland Mid Cap Value Fund". A copy can be downloaded here. Mid-cap stocks sharply rose in the second quarter, driven by perceived AI beneficiaries, particularly in Technology. The Fund returned 9.90% in the quarter, compared to the Russell Midcap® Value Index's 13.40% return. The underperformance was driven by negative stock selection despite Tech being one of the top absolute return contributors. In the challenging environment, the Fund remains focused on its disciplined approach to security selection. 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 Mid Cap Value Fund highlighted International Flavors & Fragrances Inc. (NYSE:IFF). International Flavors & Fragrances Inc. (NYSE:IFF) is a specialty chemical company that manufactures products across food, beverage, health and biosciences, scent, pharma solutions, and complementary adjacent products. On July 14, 2026, International Flavors & Fragrances Inc. (NYSE:IFF) closed at $74.67 per share, reflecting a market capitalization of $19.06 billion. International Flavors & Fragrances Inc. (NYSE:IFF) posted a one-month return of -1.81%, while its shares gained 0.61% over the past 52 weeks.
Heartland Mid Cap Value Fund stated the following regarding International Flavors & Fragrances Inc. (NYSE:IFF) in its Q2 2026 investor update:
"Materials. A new deep-value holding is International Flavors & Fragrances Inc. (NYSE:IFF), a specialty ingredient producer that sells flavors, fragrances, and enzymes to food, beverage, personal care, household products, and human health product manufacturers. This is an example of identifying a self-help opportunity through bottom-up research.
For more than two years, management has worked on streamlining IFF's portfolio and operations to focus on higher-margin businesses where it enjoys leading market share, better pricing power, attractive growth, and significantly enhanced capital allocation flexibility. This strategy follows years of wayward capital allocation executed by prior management. Today, IFF's revenue is evenly split across three segments. Taste accounts for 30% of profits, Health & Biosciences generates 37%, and Scent contributes 32%. In the Scent segment, IFF's pioneering of encapsulated fragrance technology secured its leadership in fabric care, a position now expanding into scent boosters, shampoos, and body washes.
In its Q2 2026 investor letter, Heartland Mid Cap Value Fund highlighted International Flavors & Fragrances Inc. (NYSE:IFF). International Flavors & Fragrances Inc. (NYSE:IFF) is a specialty chemical company that manufactures products across food, beverage, health and biosciences, scent, pharma solutions, and complementary adjacent products. On July 14, 2026, International Flavors & Fragrances Inc. (NYSE:IFF) closed at $74.67 per share, reflecting a market capitalization of $19.06 billion. International Flavors & Fragrances Inc. (NYSE:IFF) posted a one-month return of -1.81%, while its shares gained 0.61% over the past 52 weeks.
Heartland Mid Cap Value Fund stated the following regarding International Flavors & Fragrances Inc. (NYSE:IFF) in its Q2 2026 investor update:
"Materials. A new deep-value holding is International Flavors & Fragrances Inc. (NYSE:IFF), a specialty ingredient producer that sells flavors, fragrances, and enzymes to food, beverage, personal care, household products, and human health product manufacturers. This is an example of identifying a self-help opportunity through bottom-up research.
For more than two years, management has worked on streamlining IFF's portfolio and operations to focus on higher-margin businesses where it enjoys leading market share, better pricing power, attractive growth, and significantly enhanced capital allocation flexibility. This strategy follows years of wayward capital allocation executed by prior management. Today, IFF's revenue is evenly split across three segments. Taste accounts for 30% of profits, Health & Biosciences generates 37%, and Scent contributes 32%. In the Scent segment, IFF's pioneering of encapsulated fragrance technology secured its leadership in fabric care, a position now expanding into scent boosters, shampoos, and body washes.
3 months ago
