Heartland Counselors, an investment management company, has published a letter from the Heartland Value Fund investor for the second quarter of 2021, a copy of which can be downloaded here… In the letter, Heartland mentioned double-digit growth in the first half of the year, and its 10 Values Investing Principles ™ continue to lead them to well-managed and financially sustainable businesses. You can take a look at the top 5 fund assets to get an idea of their maximum rates for 2021.
In the second quarter of 2021, in a letter to investor Heartland Advisors, the fund mentioned Monmouth Real Estate Investment Corporation (NYSE: MNR) and discussed his position in relation to the firm. Monmouth Real Estate Investment Corporation is a real estate investment trust company located in Holmdel, New Jersey with a market capitalization of $ 1.8 billion. MNR’s profitability since the beginning of the year was 8.89%, and its 12-month profitability increased by 32.54%. The stock closed at $ 19.10 per share on August 17, 2021.
Here’s what Heartland Advisors reports about Monmouth Real Estate Investment Corporation in their letter to an investor for the second quarter of 2021:
“The recently announced acquisition of one of our holdings seems to support our investment thesis that attractive valuation is the foundation of a good investment.
Portfolio holding Monmouth Real Estate Investment (MNR) announced in early May that it had agreed to acquire Equity Commonwealth (EQC), an office real estate trust chaired by legendary investor Sam Zell. We originally acquired a stake in Monmouth, which specializes in warehouses and distribution centers, last year as the sector was still recovering from the sharp sell-off of COVID-19.
Our confidence came from management’s history of prudent capital allocation, a growing list of Fortune 500 clients, and a focus on warehouse real estate, which demand is likely to grow to meet the growing needs of online retailers. Possibly due to its smaller market capitalization, the business was priced at a significant discount compared to its larger competitors, with a high capitalization rate and well-funded dividends.
In mid-December 2020, Monmouth turned down a buyout offer offered by another partner, instead offering a better offer that came this spring.
With interest rates close to historic lows, we believe the search for undervalued assets and sustainable dividends will intensify. The portfolio must be the beneficiary. “
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According to our calculations, Monmouth Real Estate Investment Corporation (NYSE: MNR) was unable to take a single spot on our list. 30 most popular stocks among hedge funds… MPR was in 18 of hedge fund portfolios at the end of the 1st half of 2021 versus 13 funds in the previous quarter… Monmouth Real Estate Investment Corporation (NYSE: MNR) has posted a return of -0.58% over the past 3 months.
The reputation of hedge funds as discerning investors has been tarnished over the past decade as their hedged returns have been unable to keep up with the unhedged returns of market indices. Our research found that small-cap hedge fund companies managed to beat the market every year in double-digit terms between 1999 and 2016, but in recent years, lead margins have been declining. However, we did manage to pre-identify a select group of hedge fund holdings that have outperformed the S&P 500 index funds by 115 percentage points since March 2017 (details here). We were also able to pre-identify a selected group of hedge fund holdings that were 10 percentage points behind the market annually from 2006 to 2017. Interestingly, the margins of these shares have been increasing in recent years. Investors who are long in the market and sell these shares were expected to return more than 27% per annum between 2015 and 2017. We have been tracking and publishing a list of these stocks since February 2017 in our quarterly newsletter.
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