Heartland Advisors, an investment management company, released its first-quarter 2026 investor letter for “Heartland Mid Cap Value Fund”. A copy of the letter can be downloaded here. Mid-cap stocks experienced initial gains due to improved market breadth; however, increasing geopolitical risks led investors to favor larger-cap companies perceived as safer. The firm remains committed to a valuation-driven strategy to navigate short-term risks while seeking long-term opportunities. The fund returned 4.09% in the quarter, outpacing the Russell Midcap® Value Index’s 3.68% return. Stock selection drove the outperformance, with notable contributions from Financials, Consumer Discretionary, and Information Technology. In addition, you can check the Fund’s top 5 holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Heartland Mid Cap Value Fund highlighted Exelon Corporation (NASDAQ:EXC). Exelon Corporation (NASDAQ:EXC) is a US-based utility services holding company that provides energy distribution and transmission businesses. On April 14, 2026, Exelon Corporation (NASDAQ:EXC) closed at $48.66 per share. One-month return of Exelon Corporation (NASDAQ:EXC) was -1.20%, and its shares gained 4.62% over the past 52 weeks. Exelon Corporation (NASDAQ:EXC) has a market capitalization of $49.78 billion.
Heartland Mid Cap Value Fund stated the following regarding Exelon Corporation (NASDAQ:EXC) in its Q1 2026 investor letter:
“Utilities. Exelon Corporation (NASDAQ:EXC), a transmission and distribution focused utility operating across multiple U.S. regions, represents a Deep Value utility holding that inflected positively versus peers during the quarter.
Exelon, which operates in Delaware, Illinois, Maryland, New Jersey, Pennsylvania, and Washington, D.C., doesn’t generate power. It owns and manages the transmission lines, local wires, and control systems that distribute that electricity. Thanks to its geography, it must work with PJM Interconnection, a regional transmission organization that runs wholesale markets and directs the flow of power for a large part of the Eastern United States. In our opinion, PJM is a flawed market where consumers are being squeezed with high prices. However, we believe that part of the solution represents a growing opportunity set for EXC in the form of higher transmission investment and eventually more state-regulated generation growth.
The company’s updated 5-year outlook provided the clearest evidence yet of this prospect becoming reality. Despite recent share price appreciation, the stock continues to trade at a discount to peers of comparable quality, and we consider the re-rating opportunity versus peers to be in the early stages.”
Exelon Corporation (NASDAQ:EXC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 45 hedge fund portfolios held Exelon Corporation (NASDAQ:EXC) at the end of the fourth quarter, up from 41 in the previous quarter. While we acknowledge the risk and potential of Exelon Corporation (NASDAQ:EXC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Exelon Corporation (NASDAQ:EXC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Exelon Corporation (NASDAQ:EXC) and shared the list of utility stocks with highest dividends. In addition, please check out our hedge fund investor letters Q1 2026 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.
