Heartland Advisors, an investment management company, released its first-quarter 2026 investor letter for “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, increasing geopolitical risks in March led investors to favor larger-cap companies perceived as safer. The firm is optimistic about the long-term prospects ahead for small value stocks. The Fund appreciated 7.35% in the first quarter compared with the 4.96% return for the Russell 2000® Value Index. Stock selection contributed to the Fund’s outperformance in the quarter and across the past one, three, and five years. 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 Value Fund highlighted Allegiant Travel Company (NASDAQ:ALGT) as a newly established position. Allegiant Travel Company (NASDAQ:ALGT) is a travel company that provides travel and leisure services and products to residents of under-served cities. On April 15, 2026, Allegiant Travel Company (NASDAQ:ALGT) closed at $88.24 per share. One-month return of Allegiant Travel Company (NASDAQ:ALGT) was 10.94%, and its shares gained 99.05% over the past 52 weeks. Allegiant Travel Company (NASDAQ:ALGT) has a market capitalization of $1.63 billion.
Heartland Value Fund stated the following regarding Allegiant Travel Company (NASDAQ:ALGT) in its Q1 2026 investor letter:
“When identifying companies that fit our process, it is important that management demonstrate the ability to course correct, even if they have hit certain hurdles in the past. Case in point: Allegiant Travel Company (NASDAQ:ALGT). We initiated a position in the ultra low cost airline last year, when the shares were depressed and its story was obscured by a non core hotel project that consumed capital and complicated the narrative.
The airline ultimately sold the hotel asset, took the financial hit, and refocused on the core business—a prime example of management taking its lumps and working to improve capital allocation. The stock subsequently rallied significantly from the lows, driven by this refocus, improved execution, and the carrier’s low cost model…” (Click here to read the full text)
Allegiant Travel Company (NASDAQ:ALGT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 24 hedge fund portfolios held Allegiant Travel Company (NASDAQ:ALGT) at the end of the fourth quarter, up from 22 in the previous quarter. While we acknowledge the potential of Allegiant Travel Company (NASDAQ:ALGT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
