Galeanu Mihai/iStock via Getty Images The intoxication with Artificial Intelligence (AI) related companies continued in 2025, in conjunction with a low-quality “junk” rally that added fuel to the fire. Investors who were willing to extend out along the risk curve were rewarded. The Russell 2000 (RUT), S&P 500 (SP500), Msci Eafe (Local/USD), and MSCI World (MSCI WORLD) gained 12.81%, 17.88%, 20.60%/31.22%, and 21.09%, respectively. Many Wall Street strategists are now penciling in greater than 10% return ...

Heartland Advisors, an investment management company, released its “Heartland Mid Cap Value Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. As the overall stock market continues to widen, mid-caps are not experiencing the same. The high-quality value stocks continue to underperform, while speculative, low-quality, and momentum-driven sections of the market have received significant attention, and the valuation gaps are widening further. Against this backdrop, the Fund ...