Heartland Advisors, an investment management company, released its “Heartland Mid Cap Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. A growing number of businesses appear to be priced for a significant slowdown in the first quarter, if not a recession, due to the uncertainty surrounding federal policy. The fund returned 0.67% in the quarter compared to 2.11% fall for the Russell Midcap® Value Index. As risk aversion returned and a focus on downside risk was rewarded, stock selection, which was difficult in a more speculative climate last year, rebounded in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, Heartland Mid Cap Value Fund highlighted stocks such as The Middleby Corporation (NASDAQ:MIDD). The Middleby Corporation (NASDAQ:MIDD) manufactures and services foodservice, food processing, and residential kitchen equipment. The one-month return of The Middleby Corporation (NASDAQ:MIDD) was -17.55%, and its shares lost 10.00% of their value over the last 52 weeks. On April 17, 2025, The Middleby Corporation (NASDAQ:MIDD) stock closed at $126.91 per share with a market capitalization of $6.81 billion.
Heartland Mid Cap Value Fund stated the following regarding The Middleby Corporation (NASDAQ:MIDD) in its Q1 2025 investor letter:
“Industrials. Another opportunity we see in quality value is The Middleby Corporation (NASDAQ:MIDD), which designs and manufactures commercial food prep, residential kitchen, and food processing equipment. The company’s commercial foodservice segment, which makes convection ovens, blast chillers, ranges, and fryers, accounts for around 62% of sales, with the remaining 38% equally derived from its food processing and residential business, which operates under high-end brands such as Viking, Masterbuilt, and Rangemaster.
