Advisors of the heartan investment management firm, released its Q1 2026 investor letter for the “Heartland Value Fund.” A copy of the letter can be downloaded here. At the beginning of the year, small caps outperformed large caps by a wide margin; However, rising geopolitical risks in March led investors to favor larger capitalization companies perceived as safer. The company is optimistic about the long-term prospects for small value stocks. The Fund appreciated 7.35% in the first quarter compared to the Russell 2000® Value Index’s return of 4.96%. Stock selection contributed to the Fund’s outperformance for the quarter and over the past one, three and five years. Additionally, you can check out the Fund’s top five holdings to determine your best picks for 2026.
In its Q1 2026 investor letter, Heartland Value Fund highlighted Calavo Growers, Inc. (NASDAQ:CVGW). Calavo Growers, Inc. (NASDAQ:CVGW) is a leading distributor of avocados, prepared avocados and other perishable foods. On April 15, 2026, Calavo Growers, Inc. (NASDAQ:CVGW) closed at $26.64 per share. Calavo Growers, Inc. (NASDAQ:CVGW)’s monthly performance was 9.17% and its stock gained 1.87% in the past 52 weeks. Calavo Growers, Inc. (NASDAQ:CVGW) has a market capitalization of $476.523 million.
Heartland Value Fund stated the following regarding Calavo Growers, Inc. (NASDAQ:CVGW) in its Q1 2026 investor letter:
“During the first trimester, for example, Calavo Growers, Inc. (NASDAQ:CVGW), a marketer and distributor of avocados and guacamole, has agreed to be acquired by its largest public rival. We began accumulating shares of this company in early 2025, which we have previously highlighted as an example of the types of shares our process identifies. That was shortly after its former CEO returned to stabilize operations. Before that, the company went through a prolonged period of mismanagement by several CEOs.
At Heartland, our stock selection system is guided by our 10 Principles of Value Investing™, and one of those precepts directs us to companies with capable management and insider ownership. Calavo demonstrated how important effective management can be in creating value for shareholders, as evidenced by our brief but fruitful investment in the stock.”
Calavo Growers, Inc. (NASDAQ:CVGW) is not on our list of the 40 most popular stocks among hedge funds heading into 2026. According to our database, 18 hedge fund portfolios owned Calavo Growers, Inc. (NASDAQ:CVGW) at the end of the fourth quarter, the same as the previous quarter. While we recognize the potential of Calavo Growers, Inc. (NASDAQ:CVGW) as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.