Summary

• During the quarter, Heartland Opportunistic Value Equity Strategy returned 3.66%, outperforming the Russell 3000® Value Index, which rose 2.23%.
• 2026 began with a healthy broadening market in January and February, a trend abruptly interrupted by geopolitical instability in the Middle East.
• Beneath the surface, the market continued to reward perceived artificial intelligence winners with extreme valuations while it punished perceived losers.
• Rather than speculating on the duration of the conflict or the direction of crude oil, we remain anchored in bottom-up fundamental analysis.

First Quarter Market Discussion

Through February, the market showed encouraging signs of broadening. The ISM New Orders Index moved into expansionary territory —a classic indicator of improving prospects for cyclical parts of the market and a rotation

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