N-Q 1 dnq.htm HEARTLAND GROUP, INC. Heartland Group, Inc.

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-04982

 

 

Heartland Group, Inc.

(Exact name of registrant as specified in charter)

 

 

 

789 N. Water Street, Suite 500, Milwaukee, WI   53202
(Address of principal executive offices)   (Zip code)

Heartland Group, Inc., 789 N. Water Street, Suite 500, Milwaukee, WI 53202

(Name and address of agent for service)

Conrad Goodkind; Quarles & Brady LLP, 411 East Wisconsin Avenue, Milwaukee, WI 53202

(With a copy to:)

Registrant’s telephone number, including area code: (414) 347-7777

Date of fiscal year end: December 31, 2008

Date of reporting period: March 31, 2009

 

 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 


Item 1 – Schedule of Investments.

File the schedules as of the close of the reporting period as set forth in§§ 210.12-12—12-14 of Regulation S-X [17 CFR 210.12-12—12-14]. The schedules need not be audited.


HEARTLAND SELECT VALUE - SCHEDULE OF INVESTMENTS

March 31, 2009 (Unaudited)

 

COMMON STOCKS (96.1%)

   SHARES    VALUE

Aerospace & Defense (3.9%)

     

Goodrich Corp.

   168,000    $ 6,365,520

General Dynamics Corp.

   85,000      3,535,150
         
        9,900,670

Auto Components (2.6%)

     

Johnson Controls, Inc.

   300,000      3,600,000

Gentex Corp.

   300,000      2,988,000
         
        6,588,000

Capital Markets (7.2%)

     

The Bank of New York Mellon Corp.

   263,000      7,429,750

Raymond James Financial, Inc.

   353,000      6,954,100

Franklin Resources, Inc.(c)

   75,000      4,040,250
         
        18,424,100

Chemicals (3.8%)

     

Agrium, Inc.

   150,000      5,368,500

PPG Industries, Inc.

   120,000      4,428,000
         
        9,796,500

Commercial Banks (4.2%)

     

Investors Bancorp, Inc.(a)

   555,426      4,704,458

Marshall & Ilsley Corp.

   650,000      3,659,500

PNC Financial Services Group, Inc.

   80,000      2,343,200
         
        10,707,158

Communications Equipment (2.3%)

     

ADTRAN, Inc.

   365,000      5,916,650

Diversified Consumer Services (2.9%)

     

H&R Block, Inc.

   400,000      7,276,000

Diversified Telecommunication Services (2.0%)

     

AT&T, Inc.

   207,000      5,216,400

Electrical Equipment (3.5%)

     

ABB, Ltd. (ADR)

   640,000      8,921,600

Electronic Equipment & Instruments (7.6%)

     

Avnet, Inc.(a)

   330,000      5,778,300

Benchmark Electronics, Inc.(a)

   450,000      5,040,000

Plexus Corp.(a)

   350,000      4,837,000

Tyco Electronics, Ltd.

   350,000      3,864,000
         
        19,519,300

Energy Equipment & Services (3.1%)

     

ShawCor Ltd. (Class A) (CAD)(b)

   300,000      4,608,978

Helmerich & Payne, Inc.

   150,000      3,415,500
         
        8,024,478

Food & Staples Retailing (5.1%)

     

Walgreen Co.

   280,000      7,268,800

Safeway, Inc.

   290,000      5,855,100
         
        13,123,900

Food Products (4.2%)

     

Hormel Foods Corp.

   200,000      6,342,000

Smithfield Foods, Inc.(a)

   450,000      4,257,000
         
        10,599,000

Health Care Equipment & Supplies (7.0%)

     

Covidien, Ltd.

   210,000      6,980,400

Hospira, Inc.(a)

   200,000      6,172,000

Stryker Corp.

   135,000      4,595,400
         
        17,747,800

Health Care Providers & Services (1.8%)

     

Humana, Inc.(a)

   175,000      4,564,000

Insurance (2.8%)

     

Unum Group

   425,000      5,312,500

Brown & Brown, Inc.

   100,000      1,891,000
         
        7,203,500

Machinery (1.6%)

     

Timken Co.

   300,000      4,188,000

Metals & Mining (3.4%)

     

IAMGOLD Corp. (CAD)(b)

   550,000      4,746,193

Alcoa, Inc.

   550,000      4,037,000
         
        8,783,193

Multiline Retail (2.8%)

     

Kohl’s Corp.(a) (c)

   170,000      7,194,400


Multi-Utilities (3.8%)

        

MDU Resources Group, Inc.

      330,000      5,326,200

Integrys Energy Group, Inc.

      165,000      4,296,600
            
           9,622,800

Oil, Gas & Consumable Fuels (8.4%)

        

Southern Union Co.

      440,000      6,696,801

Anadarko Petroleum Corp.

      150,000      5,833,500

Frontier Oil Corp.

      350,000      4,476,500

ConocoPhillips Co.

      70,000      2,741,200

St. Mary Land & Exploration Co.

      125,000      1,653,750
            
           21,401,751

Pharmaceuticals (5.0%)

        

Wyeth

      150,000      6,456,000

Johnson & Johnson

      119,000      6,259,400
            
           12,715,400

Professional Services (0.5%)

        

Manpower, Inc.

      43,000      1,355,790

Road & Rail (2.7%)

        

Werner Enterprises, Inc.

      450,000      6,804,000

Semiconductors (3.9%)

        

Intel Corp.

      350,000      5,267,500

MEMC Electronic Materials, Inc.(a)

      280,000      4,617,200
            
           9,884,700
            

TOTAL COMMON STOCKS

(Cost $318,617,073)

         $ 245,479,090

 

SHORT-TERM INVESTMENTS (3.1%)

   INTEREST
RATE
   PAR
AMOUNT
   VALUE
        

U.S. Treasury Bills (3.1%)

        

U.S. Treasury Bills, Discount Notes, 5/15/09

   0.080%-0.163%    $ 8,000,000    $ 7,998,560
            

TOTAL SHORT-TERM INVESTMENTS

(Cost $7,998,876)

           7,998,560
            

TOTAL INVESTMENTS - (99.2%)

(Cost $326,615,949)

           253,477,650

Other assets and liabilities, net - (0.8%)

           1,928,619
            

NET ASSETS - (100.0%)

         $ 255,406,269
            

 

(a) Non-income producing security. Includes securities which did not pay at least one dividend in the year preceding the date of this statement.
(b) Foreign-denominated security.
(c) All or a portion of the Security is pledged as collateral on written options. See Note 2(g) in Notes to Quarterly Schedule of Investments.

Common Abbreviations:

(ADR) American Depositary Receipt.

(CAD) Canadian issuer.

Industry and sector classifications for each security held are generally determined by referencing the Global Industry Classification Standard Codes (GICS) developed by Standard & Poor’s and Morgan Stanley Capital International.

The accompanying Notes to Quarterly Schedule of Investments are an integral part of these Statements.


HEARTLAND VALUE PLUS FUND - SCHEDULE OF INVESTMENTS

March 31, 2009 (Unaudited)

 

COMMON STOCKS (93.2%)

   SHARES    VALUE

Aerospace & Defense (3.2%)

     

Triumph Group, Inc.

   500,000    $ 19,100,000

Auto Components (0.9%)

     

Superior Industries International, Inc.

   450,000      5,332,500

Capital Markets (0.9%)

     

BGC Partners, Inc. (Class A)(b)

   2,500,000      5,525,000

Chemicals (7.8%)

     

Sensient Technologies Corp.

   900,000      21,150,000

American Vanguard Corp.(b)

   1,425,000      18,382,500

Olin Corp.

   400,000      5,708,000

Spartech Corp.

   585,544      1,440,438
         
        46,680,938

Commercial Banks (3.5%)

     

Marshall & Ilsley Corp.

   3,200,000      18,016,000

IBERIABANK Corp.

   50,000      2,297,000

Old National Bancorp

   86,400      965,088
         
        21,278,088

Construction & Engineering (1.6%)

     

KBR, Inc.

   700,000      9,667,000

Containers & Packaging (1.6%)

     

Packaging Corp. of America

   750,000      9,765,000

Diversified Financial Services (1.1%)

     

Asset Acceptance Capital Corp.(a)

   1,250,000      6,637,500

Electronic Equipment & Instruments (3.8%)

     

Park Electrochemical Corp.

   700,000      12,096,000

AVX Corp.

   1,000,000      9,080,000

CTS Corp.

   500,000      1,805,000
         
        22,981,000

Energy Equipment & Services (1.7%)

     

Unit Corp.(a)

   500,000      10,460,000

Food & Staples Retailing (1.6%)

     

Weis Markets, Inc.

   300,000      9,312,000

Health Care Equipment & Supplies (16.4%)

     

Teleflex, Inc.

   400,000      15,636,000

STERIS Corp.

   650,000      15,132,000

Invacare Corp.

   900,000      14,427,000

CONMED Corp.(a)

   1,000,000      14,410,000

Analogic Corp.

   425,000      13,608,500

The Cooper Companies, Inc.

   500,000      13,220,000

Hill-Rom Holdings, Inc.

   1,250,000      12,362,500
         
        98,796,000

Health Care Providers & Services (5.5%)

     

Chemed Corp.

   550,000      21,395,000

Universal Health Services, Inc. (Class B)

   300,000      11,502,000
         
        32,897,000

Health Care Technology (4.0%)

     

IMS Health, Inc.

   975,000      12,158,250

Omnicell, Inc.(a)

   1,500,000      11,730,000
         
        23,888,250

Insurance (5.4%)

     

Brown & Brown, Inc.

   1,000,000      18,910,000

Arthur J. Gallagher & Co.

   800,000      13,600,000
         
        32,510,000

IT Services (4.3%)

     

MAXIMUS, Inc.

   650,000      25,909,000
     

Machinery (7.7%)

     

Pall Corp.

   750,000      15,322,500

FreightCar America, Inc.(b)

   750,000      13,147,500

Briggs & Stratton Corp.

   700,000      11,550,000

Federal Signal Corp.

   1,250,000      6,587,500
         
        46,607,500

Metals & Mining (1.3%)

     

Kaiser Aluminum Corp.

   350,000      8,092,000
     

Multiline Retail (1.5%)

     

Fred’s, Inc. (Class A)(c)

   800,000      9,024,000


Oil, Gas & Consumable Fuels (8.2%)

     

Frontier Oil Corp.

   1,200,000      15,348,000

Cimarex Energy Co.

   700,000      12,866,000

St. Mary Land & Exploration Co.

   950,000      12,568,500

Plains Exploration & Production Co.(a)

   500,000      8,615,000
         
        49,397,500

Professional Services (3.9%)

     

Navigant Consulting, Inc.(a)

   1,450,000      18,951,500

CDI Corp.

   446,600      4,340,952
         
        23,292,452

Road & Rail (2.0%)

     

Werner Enterprises, Inc.

   800,000      12,096,000
     

Semiconductors (3.9%)

     

Micrel, Inc.

   2,000,000      14,080,000

Actel Corp.(a)

   475,000      4,807,000

Cohu, Inc.(c)

   600,000      4,320,000
         
        23,207,000

Thrifts & Mortgage Finance (1.4%)

     

First Niagara Financial Group, Inc.

   750,000      8,175,000
         

TOTAL COMMON STOCKS

(Cost $777,009,506)

      $ 560,630,728

 

SHORT-TERM INVESTMENTS (6.6%)

   INTEREST
RATE
    PAR
AMOUNT
   VALUE
       

Time Deposits (0.0%)

       

Brown Brothers Harriman(d)

   0.070 %   $ 266,813    $ 266,813

U.S. Treasury Bills (6.6%)

       

U.S. Treasury Bills, Discount Notes, 5/15/09

   0.041% -0.163%       39,500,000      39,492,890
           

TOTAL SHORT-TERM INVESTMENTS

(Cost $39,761,028)

          39,759,703
           

TOTAL INVESTMENTS - (99.8%)

(Cost $816,770,534)

          600,390,431

Other assets and liabilities, net - (0.2%)

          1,165,092
           

NET ASSETS - (100.0%)

        $ 601,555,523
           

 

(a) Non-income producing security. Includes securities which did not pay at least one dividend in the year preceding the date of this statement.
(b) Affiliated company. See Note 4 in Notes to Quarterly Schedule of Investments.
(c) All or a portion of the Security is pledged as collateral on written options. See Note 2(g) in Notes to Quarterly Schedule of Investments
(d) Time deposits are considered short-term obligations and are payable on demand. Interest rates change periodically on specified dates. The rate listed is the 7-day yield as of March 31, 2009.

Industry and sector classifications for each security held are generally determined by referencing the Global Industry Classification Standard Codes (GICS) developed by Standard & Poor’s and Morgan Stanley Capital International.

The accompanying Notes to Quarterly Schedule of Investments are an integral part of these Statements.


HEARTLAND VALUE FUND - SCHEDULE OF INVESTMENTS

March 31, 2009 (Unaudited)

 

COMMON STOCKS (98.9%)

   SHARES    VALUE

Aerospace & Defense (1.6%)

     

Spirit AeroSystems Holdings, Inc.(a)

   800,000    $ 7,976,000

Herley Industries, Inc.(a)(f)

   332,719      3,979,319
         
        11,955,319

Airlines (1.7%)

     

Copa Holdings S.A. (Class A)(f)

   400,000      11,468,000

AirTran Holdings, Inc.(a)

   300,000      1,365,000
         
        12,833,000

Auto Components (0.4%)

     

Tongxin International, Ltd.(a)(b)(d)

   1,064,000      2,010,960

Hy-Drive Technologies, Ltd. (CAD)(a)(b)(c)(d)

   5,000,000      872,462

Wonder Auto Technology, Inc.(a)

   161,238      577,232
         
        3,460,654

Biotechnology (1.1%)

     

Sangamo Biosciences, Inc.(a)

   1,541,716      6,521,459

China-Biotics, Inc.(a)(d)

   200,000      1,700,000

Isolagen, Inc.(a)

   1,648,913      280,315
         
        8,501,774

Building Products (2.3%)

     

Ameron International Corp.(f)

   300,000      15,798,000

Maezawa Kasei Industries Co., Ltd. (JPY)(c)

   200,000      1,802,293

Patrick Industries, Inc.(a)(d)

   275,376      134,934
         
        17,735,227

Capital Markets (0.8%)

     

Cowen Group, Inc.(a)

   623,697      3,037,404

BGC Partners, Inc. (Class A)

   750,000      1,657,500

FirstCity Financial Corp.(a)(b)(d)

   621,400      1,149,590
         
        5,844,494

Chemicals (1.4%)

     

American Vanguard Corp.

   500,000      6,450,000

Omnova Solutions, Inc.(a)(b)

   2,500,000      4,350,000

Chemtura Corp.

   7,000,000      332,500
         
        11,132,500

Commercial Banks (1.2%)

     

StellarOne Corp.

   174,760      2,081,392

Eastern Virginia Bankshares, Inc.(d)

   182,000      1,526,980

Marshall & Ilsley Corp.

   250,000      1,407,500

Hawthorn Bancshares, Inc.(d)

   116,240      1,272,828

Tamalpais Bancorp(b)

   200,000      1,100,000

Southern Community Financial Corp.

   300,000      1,068,000

Pacific Premier Bancorp, Inc.(a)

   233,267      1,003,048
         
        9,459,748

Commercial Services & Supplies (2.4%)

     

Intersections, Inc.(a)(b)

   1,500,000      7,995,000

Perma-Fix Environmental Services, Inc.(a)(b)

   3,200,000      6,240,000

TRC Cos., Inc.(a)(b)(d)

   1,750,000      4,200,000
         
        18,435,000

Communications Equipment (7.3%)

     

InterDigital, Inc.(a)

   1,250,000      32,275,000

Cogo Group, Inc.(a)(f)

   1,250,000      8,350,000

Extreme Networks, Inc.(a)

   3,500,000      5,320,000

Lantronix, Inc.(a)(b)(d)

   5,740,000      2,640,974

Digi International, Inc.(a)

   250,000      1,917,500

EF Johnson Technologies, Inc.(a)(b)

   2,314,675      1,736,006

Globecomm Systems, Inc.(a)

   250,000      1,447,500

Hemisphere GPS, Inc. (CAD)(a)(c)

   1,500,000      1,415,768

Westell Technologies, Inc.(a)(b)

   3,000,000      840,000
         
        55,942,748

Construction & Engineering (1.4%)

     

KBR, Inc.

   500,000      6,905,000

URS Corp.(a)(f)

   100,000      4,041,000
         
        10,946,000

Diversified Financial Services (1.5%)

     

Encore Capital Group, Inc.(a)(b)

   1,500,000      6,795,000

Asset Acceptance Capital Corp.(a)

   622,500      3,305,475

Collection House, Ltd. (AUD)(c)(d)

   4,620,000      1,381,387
         
        11,481,862

Electrical Equipment (3.8%)

     

HLS Systems International, Ltd.(a)(b)

   3,575,300      11,619,725

FuelCell Energy, Inc.(a)

   3,000,000      7,200,000

Magnetek, Inc.(a)(b)

   2,900,000      5,220,000

UQM Technologies, Inc.(a)(b)(d)

   2,555,000      4,190,200

C&D Technologies, Inc.(a)

   500,000      925,000

China Ritar Power Corp.(a)

   200,000      330,000
         
        29,484,925

 

  


Electronic Equipment & Instruments (1.5%)

     

Richardson Electronics, Ltd.(b)

   1,400,000    4,732,000

Wireless Ronin Technologies, Inc.(a)(b)

   1,380,000    2,760,000

O.I. Corp.(b)

   245,900    1,996,708

MOCON, Inc.(d)

   200,000    1,716,000

Napco Security Technologies, Inc.(a)

   580,905    604,141
       
      11,808,849

Energy Equipment & Services (3.5%)

     

Newpark Resources, Inc.(a)(b)

   5,000,000    12,650,000

Unit Corp.(a)

   500,000    10,460,000

China Natural Gas, Inc.(a)(b)(d)

   1,500,000    3,975,000
       
      27,085,000

Food Products (3.4%)

     

Riken Vitamin Co., Ltd. (JPY)(c)(d)

   343,600    8,504,521

Origin Agritech, Ltd.(a)(b)

   2,000,000    5,460,000

Hanover Foods Corp. (Class A)(d)(e)

   49,250    3,807,025

Agria Corp. (ADR)(a)(b)

   3,246,606    3,668,665

The Inventure Group, Inc.(a)(b)

   1,900,622    2,603,852

Monterey Gourmet Foods, Inc.(a)(b)

   1,590,000    1,987,500
       
      26,031,563

Health Care Equipment & Supplies (12.2%)

     

Analogic Corp.(b)

   950,000    30,419,000

Accuray, Inc.(a)(b)

   3,651,529    18,367,191

STERIS Corp.

   550,000    12,804,000

Nissui Pharmaceutical Co., Ltd. (JPY)(c)(d)

   938,000    6,936,566

Fukuda Denshi Co., Ltd. (JPY)(c)(d)

   300,000    5,803,910

Osteotech, Inc.(a)(b)

   1,449,157    5,057,558

CONMED Corp.(a)

   250,000    3,602,500

National Dentex Corp.(a)(b)

   524,682    2,041,013

STARR Surgical Co.(a)(b)

   2,000,000    2,000,000

Digirad Corp.(a)(b)

   1,800,000    1,926,000

Home Diagnostics, Inc.(a)

   300,000    1,701,000

Trinity Biotech Plc, (ADR)(a)

   923,000    1,606,020

Palomar Medical Technologies, Inc.(a)

   100,000    726,000

Natus Medical, Inc.(a)

   50,000    425,500
       
      93,416,258

Health Care Providers & Services (6.2%)

     

America Service Group, Inc.(a)(b)

   850,000    11,050,000

Ensign Group, Inc.

   700,000    10,822,000

BioScrip, Inc.(a)(b)

   3,830,000    8,962,200

Virtual Radiologic Corp.(a)

   750,100    5,243,199

PDI, Inc.(a)(b)

   1,096,323    3,332,822

Hooper Holmes, Inc.(a)(b)

   6,500,000    2,925,000

Animal Health International, Inc.(a)(b)

   2,300,000    2,875,000

Health Grades, Inc.(a)

   1,000,000    2,040,000

SRI/Surgical Express, Inc.(a)(b)(d)

   500,000    500,000

Medical Staffing Network Holdings, Inc.(a)

   1,239,500    185,925
       
      47,936,146

Household Durables (0.1%)

     

Flexsteel Industries, Inc.

   100,000    516,000

Household Products (1.1%)

     

Oil-Dri Corp. of America(b)(d)

   562,500    8,296,875

Insurance (1.9%)

     

Presidential Life Corp.

   1,000,000    7,790,000

Specialty Underwriters Alliance, Inc.(a)(b)

   1,370,000    4,973,100

Meadowbrook Insurance Group, Inc.

   350,000    2,135,000
       
      14,898,100

Internet & Catalog Retail (0.9%)

     

Expedia, Inc.(a)

   800,000    7,264,000

IT Services (2.3%)

     

Computer Task Group, Inc.(a)(b)

   1,500,000    5,175,000

TechTeam Global, Inc.(a)(b)

   1,042,600    5,087,888

Tier Technologies, Inc., (Class B)(a)

   950,000    4,398,500

StarTek, Inc.(a)(b)

   750,000    2,325,000

Analysts International Corp.(a)(b)(d)

   2,365,000    1,064,250
       
      18,050,638

Life Sciences Tools & Services (0.6%)

     

Cambrex Corp.(a)

   1,250,000    2,850,000

MEDTOX Scientific, Inc.(a)

   250,000    1,695,000

CNS Response, Inc.(a)(b)(d)

   1,800,000    18,000
       
      4,563,000

Machinery (8.3%)

     

Force Protection, Inc.(a)(b)(f)

   5,578,595    26,777,256

Federal Signal Corp.

   1,869,375    9,851,606

Flanders Corp.(a)(b)

   1,501,663    6,066,719

Pall Corp.

   250,000    5,107,500

Portec Rail Products, Inc.(b)(d)

   700,000    4,445,000

 

  


Mueller Water Products, Inc. (Class A)

   1,250,000    4,125,000

Met-Pro Corp.

   366,781    2,989,265

MFRI, Inc.(a)(b)

   400,000    2,540,000

Basin Water, Inc.(a)(b)

   1,280,300    1,126,664

Supreme Industries, Inc. (Class A)

   553,831    498,448
       
      63,527,458

Media (0.9%)

     

Horipro, Inc. (JPY)(c)(d)

   700,000    6,329,242

SPAR Group, Inc.(a)(b)

   1,228,000    577,160

Saga Communications, Inc.(a)

   100,000    376,000
       
      7,282,402

Metals & Mining (4.0%)

     

IAMGOLD Corp. (CAD)(c)(f)

   2,000,000    17,258,883

First Majestic Silver Corp. (CAD)(a)(c)

   2,000,000    3,299,492

PolyMet Mining Corp. (CAD)(a)(c)

   3,500,000    2,664,975

Horsehead Holding Corp.(a)

   400,000    2,200,000

U.S. Silver Corp. (CAD)(a)(b)(c)

   15,000,000    1,487,151

Midway Gold Corp. (CAD)(a)(c)

   3,000,000    1,332,487

North American Tungsten Corp. (CAD)(a) (c)

   5,050,700    781,160

Amerigo Resources, Ltd. (CAD)(c)

   3,308,000    760,882

Baffinland Iron Mines Corp. (CAD)(a)(c)

   2,000,000    666,244
       
      30,451,274

Multiline Retail (1.9%)

     

Fred’s, Inc. (Class A)(f)

   1,000,000    11,280,000

Duckwall-ALCO Stores, Inc.(a)(b)(d)

   380,400    3,419,796
       
      14,699,796

Oil, Gas & Consumable Fuels (6.4%)

     

Comstock Resources, Inc.(a)

   400,000    11,920,000

Clayton Williams Energy, Inc.(a)

   380,209    11,117,311

Rosetta Resources, Inc.(a)

   2,000,000    9,900,000

Swift Energy Co.(a)

   1,000,000    7,300,000

Sherritt International Corp. (CAD)(c)

   3,000,000    7,019,353

TXCO Resources, Inc.(a)(b)

   2,500,000    1,030,000

Fairborne Energy, Ltd. (CAD)(a)(c)

   400,000    954,949
       
      49,241,613

Pharmaceuticals (4.3%)

     

Discovery Laboratories, Inc.(a)(b)

   7,185,000    8,765,700

Fuji Pharmaceutical Co., Ltd. (JPY)(c)

   455,300    5,823,204

ASKA Pharmaceutical Co., Ltd. (JPY)(c)

   500,000    4,298,631

Cangene Corp. (CAD)(a)(c)

   1,000,000    4,005,393

Questcor Pharmaceuticals, Inc.(a)

   500,000    2,460,000

Noven Pharmaceuticals, Inc.(a)

   250,000    2,370,000

Caraco Pharmaceutical Laboratories, Ltd.(a)

   600,000    2,112,000

Obagi Medical Products, Inc.(a)

   350,000    1,883,000

Matrixx Initiatives, Inc.(a)

   66,163    1,085,073
       
      32,803,001

Professional Services (2.9%)

     

Navigant Consulting, Inc.(a)

   750,000    9,802,500

LECG Corp.(a)(b)

   2,400,000    6,096,000

Barrett Business Services, Inc.

   484,400    4,659,928

Hudson Highland Group, Inc.(a)

   1,000,000    1,110,000

RCM Technologies, Inc.(a)(b)(d)

   1,000,000    1,030,000
       
      22,698,428

Road & Rail (0.7%)

     

Marten Transport, Ltd.(a)(f)

   300,000    5,604,000

Semiconductors (3.1%)

     

Micrel, Inc.

   1,250,000    8,800,000

TriQuint Semiconductor, Inc.(a)

   3,000,000    7,410,000

Actel Corp.(a)

   600,000    6,072,000

Kopin Corp.(a)

   555,411    1,288,554
       
      23,570,554

Software (1.8%)

     

Dynamics Research Corp.(a)(b)

   784,516    5,679,895

ePlus, Inc.(a)

   327,882    3,832,941

Catapult Communications Corp.(a)

   400,000    2,788,000

CallWave, Inc.(a)(b)(d)

   2,000,000    1,740,000
       
      14,040,836

Specialty Retail (0.8%)

     

Shoe Carnival, Inc.(a)

   300,000    3,105,000

Brown Shoe Co., Inc.

   800,000    3,000,000
       
      6,105,000

Textiles, Apparel & Luxury Goods (0.8%)

     

Lakeland Industries, Inc.(a)(b)

   500,000    2,705,000

Hampshire Group, Ltd.(a)(b)(e)

   365,291    1,917,778

LaCrosse Footwear, Inc.

   137,590    1,110,351

Phoenix Footwear Group, Inc.(a)(b)(d)

   796,000    127,360
       
      5,860,489


Thrifts & Mortgage Finance (0.5%)

  

B of I Holding, Inc.(a)(d)

   400,000      2,120,000

HF Financial Corp.

   144,057      1,836,727
         
     3,956,727

Trading Companies & Distributors (0.2%)

     

Titan Machinery, Inc.(a)

   100,000      899,000

Aceto Corp.

   101,900      607,324
         
     1,506,324

Transportation Infrastructure (0.2%)

     

Quixote Corp.(b)

   550,000      1,908,500

Water Utilities (1.5%)

     

Companhia de Saneamento Básico do Estado de São Paulo (ADR)

   550,000      11,742,500
         

TOTAL COMMON STOCKS

(Cost $1,222,787,796)

      $ 762,078,582

 

WARRANTS (0.0%)

   SHARES    VALUE

Energy Equipment & Services (0.0%)

     

China Natural Gas, Inc.(b)(e)

   225,000    $ —  

Life Sciences Tools & Services (0.0%)

     

CNS Response, Inc.(b)(e)

   540,000      —  

Metals & Mining (0.0%)

     

Polymet Mining Corp – A Warrants (CAD)(c)(e)

   500,000      —  

Polymet Mining Corp - B Warrants (CAD)(c)(e)

   500,000      —  
         

TOTAL WARRANTS

(Cost $–)

      $ —  
         

 

SHORT-TERM INVESTMENTS (0.7%)

   INTEREST
RATE
    PAR
AMOUNT
   VALUE
       

Time Deposits (0.3%)

       

Brown Brothers Harriman(g)

   0.070 %   $ 2,203,051    $ 2,203,051

U.S. Treasury Bills (0.4%)

       

U.S. Treasury Bills, Discount Notes, 5/15/09

   0.080 %     3,000,000      2,999,460
           

TOTAL SHORT-TERM INVESTMENTS

(Cost $5,202,757)

          5,202,511
           

TOTAL INVESTMENTS - (99.6%)

(Cost $1,227,990,553)

          767,281,093

Other assets and liabilities, net - (0.4%)

          2,867,962
           

NET ASSETS - (100.0%)

        $ 770,149,055
           

 

(a) Non-income producing security. Includes securities which did not pay at least one dividend in the year preceding the date of this statement.
(b) Affiliated company. See Note 4 in Notes to Quarterly Schedule of Investments.
(c) Foreign-denominated security.
(d) Illiquid security, pursuant to guidelines established by the Board of Directors. See Note 2(h) in Notes to the Quarterly Schedule of Investments.
(e) Valued at fair value using methods determined by the Board of Directors. See Note 2(a) in Notes to the Quarterly Schedule of Investments.
(f) All or a portion of the Security is pledged as collateral on written options. See Note 2(g) in Notes to the Quarterly Schedule of Investments.
(g) Time deposits are considered short-term obligations and are payable on demand. Interest rates change periodically on specified dates. The rate listed is the 7-day yield as of March 31, 2009.

Common Abbreviations:

(ADR) American Depositary Receipt.

(AUD) Australian issuer.

(CAD) Canadian issuer.

(JPY) Japanese issuer.

Industry and sector classifications for each security held are generally determined by referencing the Global Industry Classification Standard Codes (GICS) developed by Standard & Poor's and Morgan Stanley Capital International.

The accompanying Notes to Quarterly Schedule of Investments are an integral part of these Statements.


NOTES TO QUARTERLY SCHEDULES OF INVESTMENTS

March 31, 2009 (Unaudited)

 

(1) Organization

Heartland Group, Inc. (the “Corporation”) is registered as an open-end management (investment) company under the Investment Company Act of 1940, as amended. The capital shares of the Select Value Fund, Value Plus Fund and Value Fund (collectively, the “Funds”; 100,000,000, 100,000,000, and 150,000,000 shares authorized respectively), each of which is a diversified fund, are issued by the Corporation. The Funds offer Investor Class and Institutional Class shares. The Institutional Class commenced operations on May 1, 2008.

Under the Corporation’s organizational documents, its Officers and Directors are indemnified against certain liabilities arising out of the performance of their duties to the Corporation. In addition, in the normal course of business, the Corporation enters into contracts with their vendors and others that provide for general indemnifications. The Corporation’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Corporation.

 

(2) Summary of Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Funds in the preparation of the Schedules of Investments:

 

  (a) Portfolio securities traded on a national securities exchange or in the over-the-counter market are valued at the closing price on the principal exchange or market as of the close of regular trading hours on the day the securities are being valued, or, lacking any sales, at the latest bid price. Foreign securities are valued on the basis of quotations from the primary market in which they are traded, and are translated from the local currency into U.S. dollars using exchange rates as of the close of the New York Stock Exchange. Debt securities are stated at fair value as furnished by an independent pricing service based upon modeling techniques utilizing information concerning market transactions and dealer quotations for similar securities or by dealers who make markets in such securities. Debt securities having maturities of 60 days or less may be valued at acquisition cost, plus or minus any amortized discount or premium. Securities and other assets for which quotations are not readily available or deemed unreliable are valued at their fair value using methods determined by the Board of Directors. The Pricing Committee for the Corporation may also make a fair value determination if it reasonably determines that a significant event, which materially affects the value of a security, occurs after the time at which the market price for the security is determined but prior to the time at which a Fund’s net asset value is calculated. Fair valuation of a particular security is an inherently subjective process, with no single standard to utilize when determining a security’s fair value. As such, different mutual funds could reasonably arrive at a different fair value price for the same security. In each case where a security is fair valued, consideration is given to the facts and circumstances relevant to the particular situation. This consideration includes reviewing various factors set forth in the pricing procedures adopted by the Board of Directors and other factors as warranted. In making a fair value determination, factors that may be considered, among others, include: the type and structure of the security; unusual events or circumstances relating to the security’s issuer; general market conditions; prior day’s valuation; fundamental analytical data; size of the holding; cost of the security on the date of purchase; nature and duration of any restriction on disposition; trading activities and prices of similar securities or financial instruments. At March 31, 2009, 0.7% of the Value Fund’s net assets were valued at their fair value using methods determined by the Board of Directors.

 

  (b) The Funds disclose the classification of their fair value measurements following the three-tier hierarchy established by the Financial Accounting Standards Board. The basis of the tiers is dependent upon the various “inputs” used to determine the value of the Funds’ investments. These inputs are summarized in the three broad levels listed below:

 

   

Level 1 - quoted prices in active markets for identical assets.

 

   

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.) Includes short term investments in time deposits, treasury bills and warrants held by the Funds.

 

   

Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments.)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.


The following is a summary of the inputs used to value the Funds’ investments as of March 31, 2009:

 

     LEVEL 1     LEVEL 2    LEVEL 3    TOTAL  
     Quoted Prices     Other Significant
Observable Inputs
   Significant
Unobservable Inputs
  

Fund Name

   Investments
in Securities
   Other Financial
Investments*
    Investments
in Securities
   Other Financial
Investments*
   Investments
in Securities
   Other Financial
Investments*
   Investments
in Securities
   Other Financial
Investments*
 

Select Value Fund

   $ 245,479,090    $ (1,039,500 )   $ 9,770,804    $ —      $ —      $ —      $ 255,249,894    $ (1,039,500 )

Value Plus Fund

     560,630,728      (350,000 )     39,759,703      —        —        —        600,390,431      (350,000 )

Value Fund

     762,078,582      (4,153,174 )     5,202,511      —        —        —        767,281,093      (4,153,174 )

 

* Other financial investments include instruments such as covered calls, covered puts and futures which are valued at unrealized appreciation/(depreciation).

 

  (c) The Funds’ policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of their taxable income to their shareholders. The Funds accordingly paid no Federal income taxes, and no Federal income tax provision is recorded.

 

  (d) The Funds record security transactions no later than one business day after trade date. For financial reporting purposes, transactions are accounted for on trade date on the last business day of the reporting period. Net realized gains and losses on investments are computed on the identified cost basis. The portion of security gains and losses resulting from changes in foreign exchange rates is included with net realized and unrealized gains or losses from investments. Dividend income is recognized on the ex-dividend date, and interest income is recognized on an accrual basis. The Funds amortize premium and accrete discount on investments utilizing the effective interest method.

 

  (e) Each Fund may enter into futures contracts for hedging purposes, such as to protect against anticipated declines in the market value of its portfolio securities or to manage exposure to changing interest rates. The Fund receives from or pays to the broker, on a daily basis, an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as “variation margin,” and are recorded by the Fund as unrealized gains or losses. When the futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

The use of futures contracts involves, to varying degrees, elements of market risk. The predominant risk is that the movement of a futures contract’s price may result in a loss, which could render a Fund’s hedging strategy unsuccessful. The Value Fund held the following futures position at March 31, 2009:

 

TYPE

POSITIONS

   NUMBER OF
CONTRACTS
   EXPIRATION
DATE
   UNREALIZED
APPRECIATION
   NOTIONAL
VALUE
 

S&P 500 Futures

SHORT

   80    June 2009    $ 203,603    $ (15,896,000 )

 

  (f) A short sale is a transaction in which a Fund sells a security it does not own (but has borrowed) in anticipation of a decline in the market value of that security. To complete a short sale, a Fund must borrow the security to deliver to the buyer. A Fund then is obligated to replace the security borrowed by purchasing it in the open market at a later date. A Fund could incur a loss, which could be substantial and potentially unlimited, if the market price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. A Fund will realize a gain if the security declines in value between those dates. A Fund must pay any dividends or interest payable to the lender of the security. All short sales must be collateralized in accordance with the applicable exchange or broker requirements. A Fund maintains the collateral in a segregated account with its custodian or broker, consisting of cash, obligations of the U.S. Government, its agencies or instrumentalities, or equity securities sufficient to collateralize its obligation on the short positions. The Funds did not hold any short positions during the three-month period ended or at March 31, 2009.


  (g) The Funds may write covered call/put options for which premiums received are recorded as liabilities and are subsequently adjusted to the current value of the options written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options, which are either exercised or closed, are offset against the proceeds received or amount paid on the transaction to determine realized gains or losses. The Funds may enter into options transactions for hedging purposes and will not use these instruments for speculation. The Funds had the following transactions in written covered call/put options during the three-month period ended March 31, 2009:

 

     VALUE FUND  
     NUMBER OF
CONTRACTS
    PREMIUMS  

Balance at December 31, 2008

   11,500     $ 749,061  

Options written

   132,655       7,650,605  

Options expired

   (48,155 )     (3,167,122 )

Options closed

   (21,000 )     (1,196,275 )

Options exercised

   (8,500 )     (600,197 )
              

Balance at March 31, 2009

   66,500     $ 3,436,072  
              

VALUE FUND

   NUMBER OF
CONTRACTS
    VALUE  

Ameron International Corp., $50.00, 04/18/09 (covered call)

   3,000     $ 1,200,000  

Cogo Group, Inc., $7.50, 04/18/09 (covered call)

   12,500       125,000  

Copa Holdings S.A., $30.00, 04/18/09 (covered call)

   4,000       340,000  

Force Protection, Inc., $7.50, 09/19/09 (covered call)

   10,000       500,000  

Fred’s, Inc., $15.00, 08/22/09 (covered call)

   10,000       700,000  

Herley Industries, Inc., $15.00, 04/18/09 (covered call)

   3,000       75,000  

Marten Transport, Ltd., $22.50, 06/20/09 (covered call)

   3,000       225,000  

URS Corp., $40.00, 04/18/09 (covered call)

   1,000       240,000  

IAMGOLD Corp.(CAD), $12.00, 05/15/09 (covered call)

   20,000       951,777  
              
   66,500     $ 4,356,777  
              
     VALUE PLUS FUND  
     NUMBER OF
CONTRACTS
    PREMIUMS  

Balance at December 31, 2008

   2,000     $ 223,999  

Options written

   25,000       2,126,647  

Options expired

   (13,000 )     (917,515 )

Options closed

   (5,000 )     (101,999 )

Options exercised

   (1,000 )     (830,815 )
              

Balance at March 31, 2009

   8,000     $ 500,317  
              


VALUE PLUS FUND

   NUMBER OF
CONTRACTS
   VALUE

Cohu, Inc., $7.50, 04/18/09 (covered call)

   6,000    $ 210,000

Fred's, Inc., $15.00, 08/22/09 (covered call)

   2,000      140,000
           
   8,000    $ 350,000
           
     SELECT VALUE FUND
     NUMBER OF
CONTRACTS
   PREMIUMS

Balance at December 31, 2008

   —      $ —  

Options written

   2,450      501,147

Options expired

   —        —  

Options closed

   —        —  

Options exercised

   —        —  
           

Balance at March 31, 2009

   2,450    $ 501,147
           

SELECT VALUE FUND

   NUMBER OF
CONTRACTS
   VALUE

Franklin Resources, Inc., $50.00, 04/18/09 (covered call)

   750    $ 427,500

Kohl's Corp., $50.00, 10/17/09 (covered call)

   1,700      612,000
           
   2,450    $ 1,039,500
           

 

  (h) At March 31, 2009, 10.5% of the Value Fund’s net assets were illiquid as defined pursuant to guidelines established by the Board of Directors of the Corporation.

 

  (i) A restricted security is a security that has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (the “Act”) or pursuant to the resale limitations provided by Rule 144 under the Act, or an exemption from the registration requirements of the Act. Whether a restricted security is illiquid is determined pursuant to guidelines established by the Board of Directors. Not all restricted securities are considered to be illiquid. The Funds held restricted securities at March 31, 2009.

 

  (j) The Funds invest in foreign equity securities, whose values are subject to change in market conditions, as well as changes in political and regulatory environments. Realized and unrealized gains or losses from investments include the effects of foreign exchange rates on investments. The Funds may utilize forward currency exchange contracts for the purpose of hedging foreign currency risk. Under these contracts, the Funds are obligated to exchange currencies at specific future dates. Risks arise from the possible inability of counterparties to meet the terms of their contracts and from movements in currency values. The Funds did not hold any forward currency exchange contracts during the three-month period ended or at March 31, 2009.

 

  (k) Each Fund may own shares of real estate investment trusts (“REITS”) which report information on the source of their distributions annually. Certain distributions from REITS during the year, which are known to be a return of capital, are recorded as a reduction to the cost of the individual REIT.


  (l) The preparation of the Statement of Investments is in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts at the date of the Schedule of Investments. Actual results could differ from those estimates.

 

  (m) In March 2008, the Financial Accounting Standards Board issued the Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods (for which a statement of financial position is presented), beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about the Funds’ derivative and hedging activities, including how such activities are accounted for and their effect on the Funds’ financial position, performance and cash flows. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Funds’ financial statements and related disclosures.

 

(3) Investment Transactions and Income Tax Basis Information

During the three-month period ended March 31, 2009, the cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition), are noted below. During the same period, there were no purchases or sales of long-term U.S. Government securities.

 

FUND

   COST OF
PURCHASES
   PROCEEDS FROM
SALES

Select Value Fund

   $ 37,858,233    $ 36,444,142

Value Plus Fund

     129,065,349      144,353,443

Value Fund

     82,334,286      90,478,545

 

FUND

   TAX COST OF
INVESTMENTS
   GROSS UNREALIZED
APPRECIATION
   GROSS UNREALIZED
DEPRECIATION
    NET UNREALIZED
DEPRECIATION
ON INVESTMENTS
 

Select Value Fund

   $ 326,621,868    $ 8,146,209    $ (81,290,427 )   $ (73,144,218 )

Value Plus Fund

     820,289,383      13,192,968      (233,091,920 )     (219,898,952 )

Value Fund

     1,230,979,003      99,640,074      (563,337,984 )     (463,697,910 )

 

(4) Transactions with Affiliates

The following investments are in companies deemed “affiliated” (as defined in Section (2)(a)(3) of the Investment Company Act of 1940) with the Value and Value Plus Funds; that is, the Funds held 5% or more of the companies’ outstanding voting securities at anytime during the three-month period ended March 31, 2009:

Heartland Value Fund

As of March 31, 2009

 

SECURITY NAME

   SHARE
BALANCE AT
JANUARY 1,
2009
   PURCHASES    SALES    SHARE
BALANCE AT
MARCH 31,
2009
   DIVIDENDS    REALIZED
GAINS

(LOSSES)
 

Accuray, Inc.

   2,692,220    959,309    —      3,651,529    $ —      $ —    

Agria Corp.

   2,000,000    1,246,606    —      3,246,606      —        —    

America Service Group, Inc.

   885,000    —      35,000    850,000      —        (112,119 )

Analogic Corp.

   700,000    250,000    —      950,000      95,000      —    

Analysts International Corp.

   2,365,000    —      —      2,365,000      —        —    

Animal Health International, Inc.

   1,892,525    407,475    —      2,300,000      —        —    

Basin Water, Inc.

   1,280,300    —      —      1,280,300      —        —    

BioScrip, Inc.

   3,640,000    190,000    —      3,830,000      —        —    

CallWave, Inc.

   1,000,000    1,000,000    —      2,000,000      —        —    

China Natural Gas, Inc.

   1,500,000    —      —      1,500,000      —        —    

China Natural Gas, Inc. (Warrants)

   225,000    —      —      225,000      —        —    

CNS Response, Inc.

   1,800,000    —      —      1,800,000      —        —    

CNS Response, Inc. (Warrants)

   540,000    —      —      540,000      —        —    

Computer Task Group, Inc.

   1,340,806    159,194    —      1,500,000      —        —    

Digirad Corp.

   1,800,000    —      —      1,800,000      —        —    

Discovery Laboratories, Inc.

   7,185,000    —      —      7,185,000      —        —    

Duckwall-ALCO Stores, Inc.

   380,400    —      —      380,400      —        —    

Dynamics Research Corp.

   784,516    —      —      784,516      —        —    

EF Johnson Technologies, Inc.(a)

   2,314,675    —      —      2,314,675      —        —    

Encore Capital Group, Inc.

   1,500,000    —      —      1,500,000      —        —    

FirstCity Financial Corp.

   621,400    —      —      621,400      —        —    

Flanders Corp.

   1,501,663    —      —      1,501,663      —        —    

Force Protection, Inc.

   6,000,000    —      421,405    5,578,595      —        132,287  

Hampshire Group, Ltd.

   450,920    —      85,629    365,291      —        (161,547 )

hi/fn, Inc.

   1,342,526    —      1,342,526    —        —        (2,559,458 )

HLS Systems International, Ltd.

   3,149,000    426,300    —      3,575,300      —        —    

Hooper Holmes, Inc.

   6,500,000    —      —      6,500,000      —        —    

Hy-Drive Technologies, Ltd. (CAD)

   5,000,000    —      —      5,000,000      —        —    

Intersections, Inc.

   1,500,000    —      —      1,500,000      —        —    

Lakeland Industries, Inc.

   500,000    —      —      500,000      —        —    

Lantronix, Inc.

   5,740,000    —      —      5,740,000      —        —    

LECG Corp.

   2,400,000    —      —      2,400,000      —        —    

Magnetek, Inc.

   2,850,000    50,000    —      2,900,000      —        —    

MFRI, Inc.

   300,000    100,000    —      400,000      —        —    

Monterey Gourmet Foods, Inc.

   1,000,000    590,000    —      1,590,000      —        —    

National Dentex Corp.

   524,682    —      —      524,682      —        —    

Newpark Resources, Inc.

   5,000,000    —      —      5,000,000      —        —    

O.I. Corp.

   245,900    —      —      245,900      12,295      —    

Oil-Dri Corp. of America

   562,500    —      —      562,500      78,750      —    

Omnova Solutions, Inc.

   1,956,793    543,207    —      2,500,000      —        —    

Origin Agritech, Ltd.

   2,000,000    —      —      2,000,000      —        —    

Osteotech, Inc.

   1,449,157    —      —      1,449,157      —        —    

PDI, Inc.

   1,045,421    50,902    —      1,096,323      —        —    

Perma-Fix Environmental Services, Inc.

   2,500,000    700,000    —      3,200,000      —        —    

Phoenix Footwear Group, Inc.

   796,000    —      —      796,000      —        —    

Portec Rail Products, Inc.

   700,000    —      —      700,000      42,000      —    

Quixote Corp.

   550,000    —      —      550,000      —        —    

RCM Technologies, Inc.

   1,000,000    —      —      1,000,000      —        —    

Richardson Electronics, Ltd.

   1,400,000    —      —      1,400,000      28,000      —    

SPAR Group, Inc.

   1,228,000    —      —      1,228,000      —        —    

Specialty Underwriters Alliance, Inc.

   1,370,000    —      —      1,370,000      —        —    

SRI/Surgical Express, Inc.

   500,000    —      —      500,000      —        —    

STARR Surgical Co.

   2,000,000    —      —      2,000,000      —        —    

StarTek, Inc.

   750,000    —      —      750,000      —        —    

Tamalpais Bancorp(b)

   200,000    —      —      200,000      12,000      —    

TechTeam Global, Inc.

   1,042,600    —      —      1,042,600      —        —    

The Inventure Group, Inc.

   1,900,622    —      —      1,900,622      —        —    

Tongxin International, Ltd.(c)

   1,064,000    —      —      1,064,000      —        —    

TRC Cos., Inc.

   1,750,000    —      —      1,750,000      —        —    

TXCO Resources, Inc.

   2,500,000    —      —      2,500,000      —        —    

U.S. Silver Corp. (CAD)

   10,189,000    4,811,000    —      15,000,000      —        —    

UQM Technologies, Inc.

   2,555,000    —      —      2,555,000      —        —    

Westell Technologies, Inc.

   1,401,000    1,599,000    —      3,000,000      —        —    

Wireless Ronin Technologies, Inc.

   1,380,000    —      —      1,380,000      —        —    
                           
               $ 268,045    $ (2,700,837 )
                           

 

(a) Formerly EFJ, Inc.
(b) Formerly EPIC Bancorp
(c) Formerly Asia Automotive Acquisition Co.

Heartland Value Plus Fund

As of March 31, 2009

 

SECURITY NAME

   SHARE
BALANCE AT
JANUARY 1,
2009
   PURCHASES    SALES    SHARE
BALANCE AT
MARCH 31,
2009
   DIVIDENDS    REALIZED
GAINS

(LOSSES)
 

American Vanguard Corp.

   1,425,000    —      —      1,425,000    $ 71,250    $ —    

BGC Partners, Inc.

   2,500,000    —      —      2,500,000      100,000      —    

FreightCar America, Inc.

   750,000    —      —      750,000      45,000      —    

Quixote Corp.

   525,000       525,000    —        —        (6,129,102 )
                           
               $ 216,250    $ (6,129,102 )
                           


Item 2. Controls and Procedures.

 

(a) Disclose the conclusions of the registrant’s principal executive and principal financial officers, or persons performing similar functions, regarding the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).

The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

(b) Disclose any change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

There were no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)). Certifications pursuant to Rule 30a-2(a) are attached hereto.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Heartland Group, Inc.

 

By (Signature and Title)

  

/s/    David C. Fondrie

   David C. Fondrie, Chief Executive Officer

Date May 21, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)

  

/s/    David C. Fondrie

   David C. Fondrie, Chief Executive Officer

Date May 21, 2009

 

By (Signature and Title)   

/s/    Christine A. Johnson

   Christine A. Johnson, Treasurer and Principal
Accounting Officer

Date May 21, 2009