Heartland Advisors, an investment management company, released its “Heartland Mid Cap Value Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the portfolio was 2.4% down compared to a 4.46% fall in the Russell Midcap Value Index. The performance was attributed to strong stock selection mainly in the Utilities and Industrials sectors. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Heartland Mid Cap Value Fund highlighted stocks like NOV Inc. (NYSE:NOV) in the Q3 2023 investor letter. Headquartered in Houston, Texas, NOV Inc. (NYSE:NOV) provides equipment and technologies for oil and gas drilling and production. On October 12, 2023, NOV Inc. (NYSE:NOV) stock closed at $19.87 per share. One-month return of NOV Inc. (NYSE:NOV) was -5.06%, and its shares gained 11.13% of their value over the last 52 weeks. NOV Inc. (NYSE:NOV) has a market capitalization of $7.824 billion.
Heartland Mid Cap Value Fund made the following comment about NOV Inc. (NYSE:NOV) in its Q3 2023 investor letter:
“Energy. NOV Inc. (NYSE:NOV), our largest holding, is a deep value company benefiting from a self-help business strategy. NOV is a leading oilfield services company that provides technical expertise, advanced equipment, and operational support for the oil and gas industry.
The company survived a prolonged bear market for oil prices that lasted from 2014 through COVID-19 related demand destruction in 2020. During this time, the industry went into capital starvation mode. NOV used the industry downturn to streamline its cost structure and retire debt in order to maintain an industry-leading balance sheet. The company has eliminated $850 million in structural fixed costs since the start of 2019.
Despite heavy cost-cutting, NOV never stopped developing new value-added product applications, which strengthened its position as weaker competitors went away and the industry outlook subsequently improved. This should allow NOV to generate strong returns on capital as the energy upcycle unfolds, with offshore wind and other renewables providing capital-efficient ancillary growth for the company.”
An engineer inspecting a complete set of oil and gas components. Editorial photo for a financial news article. 8k. –ar 16:9
NOV Inc. (NYSE:NOV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held NOV Inc. (NYSE:NOV) at the end of the second quarter, which was 34 in the previous quarter.
We discussed NOV Inc. (NYSE:NOV) in another article and shared the list of best oil stocks under $20. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
