Heartland Advisors, an investment management company, released its “Heartland Value Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Russell 2000® Value Index generated a return of 3.26% in the fourth quarter, outperforming 2.66% gains for the S&P 500. After the year-end surge, small stocks nearly caught up to large caps in 2025, their greatest performance since the pandemic. Due to an increase in the small-cap stock’s earnings, the investors are acknowledging their compelling valuations. The fund gained 2.61% in the quarter, compared to a 3.26% return for the Russell 2000® Value Index. The underperformance in the quarter was attributed to stock selection, mainly in the healthcare sector. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its fourth-quarter 2025 investor letter, Heartland Value Fund highlighted stocks such as Columbus McKinnon Corporation (NASDAQ:CMCO). Columbus McKinnon Corporation (NASDAQ:CMCO) is a heavy construction machinery manufacturer. On January 12, 2026, Columbus McKinnon Corporation (NASDAQ:CMCO) stock closed at $19.68 per share. One-month return of Columbus McKinnon Corporation (NASDAQ:CMCO) was 11.88%, and its shares lost 44.50% of their value over the last 52 weeks. Columbus McKinnon Corporation (NASDAQ:CMCO) has a market capitalization of $565.372 million.
Heartland Value Fund stated the following regarding Columbus McKinnon Corporation (NASDAQ:CMCO) in its fourth quarter 2025 investor letter:
“Another position we increased was Columbus McKinnon Corporation (NASDAQ:CMCO), which designs, manufactures, and distributes materials, handling products, and systems used in a variety of industrial applications, including lifting, automation, and precision conveyance. Early this year, CMCO reported slower-than-expected Q3 results, citing slowing industry demand driven by U.S. policy uncertainty. By itself, that would have likely triggered a mid-single digit to high-single-digit selloff based on historic price reactions. However, management also announced a $2.7 billion acquisition of a competitor, Kito Crosby, which sent the stock plummeting more than 40% due to concerns surrounding execution and an increased leverage profile upon closing.
