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Watsco Dragged on Heartland Fund Amid HVAC Slump
Heartland's mid-cap fund said Watsco weighed most on quarterly performance as residential HVAC demand and margins remained under pressure.
Key takeaways
- Heartland's fund named Watsco its biggest detractor in Q3 2026.
- The letter linked HVAC weakness to lower construction activity, weaker consumer finances and demand pulled forward by a 2025 refrigerant change.
Heartland Advisors' Mid Cap Value Fund said Watsco was its biggest detractor in Q3 2026, amid a lull in residential HVAC demand.
The fund attributed industry weakness to lower new construction activity, weaker consumer finances and demand pulled forward ahead of a 2025 refrigerant change. It also cited disappointing second-quarter results and margin pressure linked to limited volume growth and tariff-related cost volatility.
As of 13:55 UTC on Oct. 13, Watsco shares traded at $283.15, down 1.11% since the previous close.
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This article was produced with the help of AI technology. Source: Yahoo Finance
