| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11% | 0.57% | 0.57% |
Hardman Johnston's Large Cap Equity strategy delivered a 0.57% net return in Q1 2026, outperforming the S&P 500's -4.33% decline by focusing on companies with strong order backlogs rather than cyclical exposures. The firm's core thesis centers on fundamental analysis and avoiding macro speculation, instead identifying resilient businesses capable of earnings growth across economic scenarios. Key contributors included Vertiv Holdings, Advanced Energy Industries, and Curtiss-Wright Corporation, all benefiting from strong customer order growth in computing infrastructure and aerospace. Detractors included Estee Lauder, IQVIA Holdings, and Universal Display Corporation, pressured by geopolitical impacts on consumer spending and sector-specific headwinds. The portfolio faces near-term risks from the Iran war driving elevated energy prices, potential economic slowdown, and consumer spending pressures. However, long-term catalysts include returning US manufacturing capabilities, AI-driven productivity demand, healthcare growth from aging demographics, and aerospace industry prospects. The firm maintains a patient, fundamentals-focused approach while monitoring for both risks and opportunities in mispriced securities.
Hardman Johnston focuses on companies with strong fundamentals and resilient business models that can generate earnings growth across economic scenarios, emphasizing those with strong order backlogs and essential customer relationships while avoiding macro speculation.
The firm expects economic activity to slow in the near term due to elevated energy prices and geopolitical tensions, but believes the underpinnings for solid long-term growth remain intact. They maintain optimism about manufacturing capabilities returning, AI-driven productivity tools, healthcare demand from aging demographics, and aerospace industry prospects.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 12 2026 | 2026 Q1 | AEIS, CW, EL, EOG, IQV, OLED, VRT | aerospace, AI, energy, Geopolitical, infrastructure, large cap, value | - | Hardman Johnston outperformed by 4.9% in Q1 2026 by focusing on companies with strong order backlogs over cyclical exposures. Computing infrastructure and aerospace holdings drove performance while consumer-facing names lagged due to geopolitical pressures. Despite near-term energy price and economic headwinds, the firm sees long-term opportunities in AI productivity tools, manufacturing reshoring, and aerospace demand. |
| Jan 14 2026 | 2025 Q4 | 7269.T, AMZN, AZN, BDX, CCO.TO, CMCSA, EL, EW, GOOGL, HDB, ILMN, IQV, MA, META, MMC, PYPL, SCHW, SLB, SN, TMUS | AI, Genomics, growth, healthcare, large cap, Lithium, technology |
ALB ILMN AEIS OLED |
Hardman Johnston delivered strong Q4 performance, outperforming the S&P 500 with 4.27% net returns. The firm sees opportunities rather than bubbles, benefiting from early AI investments while diversifying into transportation and consumer products. Key winners included Albemarle on lithium surge and Illumina positioned for life sciences recovery. Economic backdrop remains favorable despite political volatility. |
| Oct 21 2025 | 2025 Q3 | 7269.T, AAPL, ADBE, ADP, AEIS, ALB, AMZN, ASML, AZN, BDX, CMCSA, CTVA, CW, EL, EW, FMC, GOOGL, HWM, HXL, IBN, ILMN, IQV, MA, MDT, META, MMC, MRVL, MSFT, NVDA, OLED, PRY.MI, PYPL, SCHW, SLB, SN, SWK, TMUS, UBER, VRT, VRTX | aerospace, AI, healthcare, industrials, large cap, technology, value |
AEIS PRY VRT CTVA |
Hardman Johnston underperformed in Q3 due to S&P 500's AI concentration but remains bullish on the productivity revolution while finding value in neglected sectors. AI infrastructure holdings like Vertiv and Advanced Energy drove gains, while company-specific issues hurt Corteva and Vertex. The firm is cautiously optimistic on 2026 economic prospects despite political uncertainty. |
| Jul 17 2025 | 2025 Q2 | 7269.T, AMZN, AZN, CMCSA, CW, GOOGL, HWM, IBN, MA, META, MMC, PYPL, SCHW, SLB, SN, TMUS, UBER, UNH, VRT, VRTX | aerospace, Data centers, healthcare, large cap, nuclear, technology, Trade Policy | - | Hardman Johnston delivered solid Q2 returns despite trade policy volatility, with nuclear power, aerospace, and data center infrastructure driving outperformance. While healthcare faced government pricing pressure and elevated rates constrained housing, the manager maintains long-term conviction in demographic and productivity trends, positioning for structural growth in energy efficiency and technology infrastructure. |
| Mar 31 2025 | 2025 Q1 | AMZN, AZN, BDX, CMCSA, GOOGL, HWM, HXL, IBN, MA, META, MMC, MRVL, PYPL, SCHW, SLB, SN, STAN.L, TMUS, VRT, VRTX | aerospace, AI, growth, tariffs, technology, volatility | - | Growth-focused large cap strategy underperformed in Q1 2025 due to AI volatility and tariff disruption. DeepSeek's emergence pressured tech holdings Marvell and Vertiv, while new administration trade policies created broad market uncertainty. Manager maintains conviction in portfolio quality and growth thesis, emphasizing the importance of staying invested through volatility as market turns can be swift. |
| Dec 31 2024 | 2024 Q4 | AMZN, AZN, BDX, CMCSA, ELAN, EW, FTI, GOOGL, IBN, LEN, MA, MELI, MMC, PYPL, SCHW, SLB, SN, STAN.L, SUZKY, TMUS | Data centers, healthcare, interest rates, large cap, technology, Trade Policy |
SN MRVL LEN |
Hardman Johnston underperformed in Q4 but delivered strong full-year returns of 17.29%. The manager expects US policy changes to drive growth while managing headwinds from inflation and trade uncertainty. Portfolio repositioning included exiting healthcare due to policy pressures and adding data center exposure through Marvell Technology, plus housing play Lennar Corporation. |
| Sep 30 2024 | 2024 Q3 | 7269.T, AMZN, AZN, BDX, CMCSA, ELAN, EW, FTI, GOOGL, IBN, ILMN, MA, MELI, MMC, PYPL, SCHW, SLB, STAN.L, TMUS, XRAY | aerospace, AI, healthcare, large cap, rates, technology | - | Hardman Johnston posted 4.86% net returns in Q3 as Fed rate cuts signal improved economic prospects. Technology concentration has driven market returns but creates opportunities in undervalued sectors. The firm expects near-term softness without recession, remains confident in aerospace and healthcare holdings, and seeks additional quality growth opportunities at attractive prices. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIThe firm continues to see demand for productivity tools, particularly AI driven tools to offset the tightness in the labor market. They view AI as a key driver for long-term growth despite near-term economic headwinds. |
Productivity Labor Automation Technology Growth |
EnergyThe war in Iran and closure of the Strait of Hormuz have caused energy prices to increase, which the firm expects to remain elevated for the foreseeable future. This will dampen consumer spending and limit the Federal Reserve's ability to bring interest rates down. |
Oil Geopolitical Iran Prices Consumer | |
AerospaceLonger term demand for air travel and the quest for more fuel efficiency keeps the firm bullish on the aerospace industry. Companies like Curtiss-Wright Corporation and Howmet Aerospace saw strong performance due to customer order growth in aerospace. |
Travel Efficiency Defense Orders Backlogs | |
InfrastructureThe firm sees strong backlogs in computing infrastructure with companies like Vertiv Holdings performing well. They continue to see manufacturing capabilities return and demand for infrastructure investments. |
Computing Data Centers Manufacturing Backlogs Growth | |
| 2025 Q4 |
AIThe fund extensively analyzes whether there is a bubble in artificial intelligence, comparing current AI hype to previous market bubbles like the late 1990s internet boom. They discuss the uncertainty around AI investment returns, GPU depreciation schedules, and datacenter power demands, while noting their position in Google which has shifted from AI laggard to leader. |
Artificial Intelligence Bubble Technology Valuations Investment |
BiotechnologyThe short book faced headwinds particularly within biotech during the quarter. The fund discusses their approach to shorting biotech companies that go public via reverse mergers and spend capital on stock promotion rather than lab research. |
Biotech Short Selling Reverse Merger Stock Promotion | |
| 2025 Q3 |
AIThe firm is debating how far artificial intelligence has to run and whether AI-related holdings are bargains, over-extended, or fairly valued. They believe they are at the beginning of a new productivity revolution and suspect current forecasts are too low for companies enabling this revolution. Both Vertiv and Advanced Energy sell power conditioning and management tools into the computing sector and are seeing a surge in business related to the AI buildout. |
Productivity Computing Power Buildout Revolution |
Data CentersCompanies like Vertiv Holdings and Advanced Energy Industries are benefiting from the AI buildout by selling power conditioning and management tools into the computing sector. These companies are experiencing a surge in business related to data center infrastructure needs. |
Power Infrastructure Computing Management Tools | |
Grid UpgradePrysmian manufactures and installs power transmission cables essential to the continued strengthening of the electrical grid. The company was a strong contributor to performance in the quarter as grid infrastructure investments continue. |
Transmission Cables Infrastructure Electrical Strengthening | |
| 2025 Q2 |
NuclearCurtiss-Wright Corp performed well as the market expects demand for their nuclear power components to improve over the coming years. The company is positioned to benefit from the growing nuclear power sector. |
Nuclear Power Components |
AerospaceHowmet Aerospace Inc outperformed as the company's prospects continue to brighten as a key supplier to the commercial aircraft market. As Boeing and Airbus normalize their production schedules, Howmet's engine components will be in greater demand. |
Aerospace Aircraft Components Boeing Airbus | |
Data CentersVertiv Holdings Co rebounded after an AI scare surrounding Deepseek in the first quarter. Vertiv is the trusted supplier of data center infrastructure required to sustain the AI build out. |
Data Centers Infrastructure AI | |
Trade PolicyThe Trump administration's unconventional approach to trade negotiations left investors uncertain about the future, prompting a rapid sell-off. Later in the quarter, it became clear that the trade threats were largely posturing to get trading partners to address the issues. |
Trade Tariffs Negotiations | |
| 2025 Q1 |
AIThe portfolio was significantly impacted by AI-related volatility following DeepSeek's R1 model release, which pressured AI compute and networking supply chains. Despite the selloff in holdings like Marvell and Vertiv, the manager believes the immediate reaction was an overreaction and that reasoning models should drive greater hardware demand over time. |
DeepSeek Compute Networking Hardware Models |
Data CentersData center investments faced pressure amid concerns of a capex bubble following DeepSeek's emergence. Vertiv, a core beneficiary of data center investment with its thermal and electrical equipment suite, saw order deceleration but the manager views this as expected given the blistering pace of prior growth. |
Capex Orders Thermal Electrical Investment | |
Trade PolicyNew administration tariffs have been disruptive and upended business investment plans and consumer confidence. The magnitude and breadth of tariffs surprised investors, with potential disruption to virtually every economic sector, though the manager expects eventual negotiations and agreements. |
Tariffs Disruption Negotiations Supply Investment | |
AerospaceAerospace exposure through Howmet continues to show resilient growth driven by core aerospace positioning and increasing contribution from industrial gas turbine components. Supply chain issues present both challenges and opportunities for market share gains, with high-margin aftermarket sales providing offset potential. |
Aftermarket Turbine Supply Chain Fasteners Share | |
| 2024 Q4 |
Data CentersData center buildout remains strong with companies like Marvell and Vertiv playing key roles. Investment in data centers for artificial intelligence applications was strong during the quarter. Marvell has a strong position in data networking chips in data centers. |
AI Infrastructure Networking Cloud |
HealthcareHealthcare generally weakened as much of the industry came under attack from policy makers on both sides of the aisle. The portfolio lightened healthcare exposure by exiting positions in Johnson & Johnson, Dentsply Sirona, and Novo Nordisk. Healthcare exposure was a drag on performance in the quarter. |
Policy Regulation Pharmaceuticals Medical Devices | |
Trade PolicyMuddy outlooks for trade policy and immigration are chilling business investment decisions. The manager wonders about disruptive trade actions but understands that the world continues to invest to rebalance its supply chain footprint, which should spur investment and economic growth. |
Immigration Supply Chain Investment Policy | |
| 2024 Q3 |
RatesThe Federal Reserve cut interest rates by 0.5% in September, signaling a change in direction for major parts of the economy. After years of rapidly rising rates, this change will affect mortgage rates, credit card balances, savings, and business operations. Major sectors that have been moribund, especially housing, will have a chance to help the next expansion cycle get underway. |
Interest Rates Federal Reserve Monetary Policy Housing Economic Growth |
AIAfter the breathtaking surge in artificial intelligence spending over the last 18 months, it is natural to wonder where the next drivers of market performance will come from. The outperformance of the largest information technology companies is well chronicled, with the flip side being the underperformance of the vast majority of other companies. |
Artificial Intelligence Technology Market Performance Information Technology |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | ALB | Albemarle Corporation | Materials | Specialty Chemicals | Bull | New York Stock Exchange | Batteries, energy, EVs, Lithium, Pricing | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | ILMN | Illumina, Inc. | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Funding, Genomics, marketshare, research, Sequencing | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | AEIS | Advanced Energy Industries, Inc. | Information Technology | Electronic Equipment, Instruments & Components | Bull | NASDAQ | AI, Computing, datacenters, infrastructure, Power | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | OLED | Universal Display Corporation | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | Demand, Displays, Intellectualproperty, materials, OLED | Login |
| Oct 21, 2025 | Fund Letters | Cassandra A. Hardman | AEIS | Advanced Energy Industries Inc. | Industrials | Electronic Equipment, Instruments & Components | Bull | NASDAQ | AI, data centers, Free Cash Flow, Power systems, Precision equipment, semiconductors | Login |
| Oct 21, 2025 | Fund Letters | Cassandra A. Hardman | PRY | PRYSMIAN S.p.A. | Industrials | Electrical Equipment | Bull | - | Electrification, Grid modernization, infrastructure, Power cables, renewable energy, tariffs | Login |
| Oct 21, 2025 | Fund Letters | Cassandra A. Hardman | VRT | Vertiv Holdings Co. | Industrials | Electrical Equipment | Bull | NYSE | AI, data centers, Digitalization, infrastructure, Margins, Power management | Login |
| Oct 21, 2025 | Fund Letters | Cassandra A. Hardman | CTVA | Corteva Inc. | Materials | Agricultural Chemicals | Bear | NYSE | agriculture, Crop protection, Pricing, Regulation, Seeds, Yields | Login |
| Dec 31, 2024 | Fund Letters | Hardman Johnston Large Cap Equity | SN | SharkNinja, Inc. | Consumer Discretionary | Household Durables | Bull | NYSE | Consumer products, household appliances, innovation, market share gains, Social Media Marketing, value proposition, Younger Demographics | Login |
| Dec 31, 2024 | Fund Letters | Hardman Johnston Large Cap Equity | MRVL | Marvell Technology, Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | AI infrastructure, Cloud computing, data center, Datacenter Buildout, networking chips, semiconductors, technology infrastructure | Login |
| Dec 31, 2024 | Fund Letters | Hardman Johnston Large Cap Equity | LEN | Lennar Corporation | Consumer Discretionary | Household Durables | Bull | NYSE | Contrarian Investment, Entry Opportunity, homebuilder, Housing shortage, mortgage rates, Real Estate, Supply-Demand Imbalance | Login |
| TICKER | COMMENTARY |
|---|---|
| VRT | The best contributors were led by Vertiv Holdings Co., Advanced Energy Industries, Inc., and Curtiss-Wright Corporation. All three saw customer order growth adding to already strong backlogs in their respective fields of computing infrastructure, and aerospace/nuclear power. We continue to monitor their business closely for cracks in the foundation but remain confident that they are essential to customers and the prospects for growth are solid. |
| AEIS | The best contributors were led by Vertiv Holdings Co., Advanced Energy Industries, Inc., and Curtiss-Wright Corporation. All three saw customer order growth adding to already strong backlogs in their respective fields of computing infrastructure, and aerospace/nuclear power. We continue to monitor their business closely for cracks in the foundation but remain confident that they are essential to customers and the prospects for growth are solid. |
| CW | The best contributors were led by Vertiv Holdings Co., Advanced Energy Industries, Inc., and Curtiss-Wright Corporation. All three saw customer order growth adding to already strong backlogs in their respective fields of computing infrastructure, and aerospace/nuclear power. We continue to monitor their business closely for cracks in the foundation but remain confident that they are essential to customers and the prospects for growth are solid. |
| EL | Detractors were led by Estee Lauder Companies Inc. While there remains a strong case for accelerating profit growth based on better execution and a more efficient operation, the combination of the war and its impact on consumer spending, along with a proposed merger with a competitor caused the stock price to reset. We will evaluate whether our 3-5 year thesis is affected by these events. |
| IQV | Also detracting was IQVIA Holdings Inc. A critical partner to the biotech and pharmaceutical industries, the stock has been under pressure from both fears of AI disruption (they argue that it will help both them and their customers) and a turn-up in interest rates slowing spending for some of their smaller customers. While there may be something to the second point, we continue to think that the collection of capabilities and assets this company holds makes them a powerful player in their industry. |
| OLED | Finally, Universal Display Corporation continued to lag. Here again, two factors were involved. Higher computer memory prices are driving up the price of mobile phones and slowing demand in one of the company's most important end markets, and the war's effect on consumption may hurt end markets more broadly. We remain confident in their longer-term prospects and look forward to their technology enjoying widespread adoption. |
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