Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 4.34% | 0% |
| 2025 | 2024 |
|---|---|
| 42.1% | 13.4% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 4.34% | 0% |
| 2025 | 2024 |
|---|---|
| 42.1% | 13.4% |
Hardman Johnston International Equity delivered positive absolute returns of 4.34% net in Q4 2025 but modestly underperformed benchmarks, primarily due to stock selection. Healthcare and Financials led sector performance, with Sandoz benefiting from biosimilar growth and regulatory tailwinds, AstraZeneca securing favorable U.S. pricing agreements, and Standard Chartered driving strong earnings through wealth management expansion. Defense holdings like Rheinmetall faced short-term pressure from Ukraine peace deal speculation despite unchanged long-term fundamentals. The manager initiated Weir Group to capitalize on the improving mining cycle while exiting Nexans and Deutsche Telekom due to competitive and regulatory uncertainties. Looking forward, the team remains confident in their fundamental approach to identify growth opportunities while avoiding value traps. They see persistence in positive themes like global defense spending but remain cautious about AI concentration risk across portfolios. Despite unprecedented geopolitical turbulence, they view the current environment as rich with opportunity for companies with visible, predictable growth and durable competitive advantages.
Focus on high-quality international businesses with durable competitive advantages and attractive long-term risk-adjusted return potential, leveraging fundamental analysis to identify resilient companies capable of delivering outperformance across market cycles in an environment of global turbulence and geopolitical uncertainty.
The manager expresses confidence in their ability to identify growth and avoid value traps to deliver long-term outperformance. They see persistence in positive themes like increased global defense spending while remaining cautious around AI concentration risk. Despite unprecedented global turbulence and geopolitical uncertainty, they view this as an environment rich with opportunity, focusing on fundamentals and visible, predictable growth to identify resilient companies capable of delivering outperformance across market cycles.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 14 2026 | 2025 Q4 | 0700.HK, 7011.T, AMZN, AZN, DTE.DE, GE, LDO.MI, MELI, NEX.PA, NVO, PRX.AS, PRY.MI, RHM.DE, SDZ, SIE.DE, STAN.L, TMUS, VZ, WEIR.L | AI, Asia, defense, Europe, financials, healthcare, international, Mining |
SDZ SW AZN STAN LN RHM GR 7011 JP MELI WEIR LN NEX FP DTE GR |
Hardman Johnston delivered solid Q4 returns despite modest benchmark underperformance, driven by Healthcare and Financials strength offset by Industrial weakness. The manager maintains conviction in defense spending themes and mining cycle recovery while managing AI concentration risk. Portfolio activity focused on quality businesses with durable advantages, viewing current geopolitical turbulence as creating rich opportunities for fundamental stock pickers. |
| Oct 21 2025 | 2025 Q3 | 6501.T, 7011.T, 7269.T, AIR.PA, ASML, AZN, CBK.DE, DTE.DE, HDB, IBN, IFX.DE, LDO.MI, MC.PA, MELI, NEX.PA, NVO, PRX.AS, PRY.MI, RHM.DE, SAF.PA, SDZ, STAN.L, STM, TEAM, TSM, UCB.BR | AI, defense, emerging markets, Europe, healthcare, international, semiconductors, Trade Policy |
UCB SDZ PROS SUZUKI |
Strong Q3 performance driven by healthcare winners UCB and Sandoz, plus semiconductor recovery positioning. Defense and AI infrastructure themes supported by quality holdings. Manager maintains constructive 3-5 year outlook despite macro headwinds, emphasizing bottom-up stock selection advantages in international markets with attractive valuations versus US peers. |
| Jul 17 2025 | 2025 Q2 | 6501.T, 7011.T, 7269.T, 8411.T, AIR.PA, ASML, AZN.L, CBK.DE, DTE.DE, GMAB, HDFCBANK.NS, ICICIBANK.NS, IFX.DE, LDO.MI, MC.PA, MELI, NEX.PA, NVO, PRX.AS, PRY.MI, RHM.DE, SAF.PA, SDZ.SW, STAN.L, TEAM, TSM, UCB.BR | defense, Europe, industrials, international, Japan, semiconductors, technology |
CBK GR 8750 JP DTE GR IFX GR RHM GR 7269 JP TSM RHM.DE 7011.T TSM IFX.DE CBK.DE LDO.MI 6501.T |
Strong Q2 performance driven by defense contractors and semiconductor leaders as Europe rearms and AI demand surges. NATO's 5% GDP defense target by 2035 creates structural tailwinds despite near-term macro headwinds. Portfolio positioned for secular growth themes through bottom-up stock selection, with opportunities emerging from market dislocation and institutional flows toward cheaper international valuations. |
| Mar 31 2025 | 2025 Q1 | 7011.T, 7269.T, 8750.T, AIR.PA, ASML, AZN, DTE.DE, GMAB, HDB, IBN, IFX.DE, MC.PA, MELI, NEX.PA, NVO, PRX.AS, PRY.MI, RHM.DE, SAF.PA, SDZ.SW, STAN.L, TEAM, TSM, UCB.BR | AI, defense, Europe, industrials, international, semiconductors, tariffs, technology | - | Strong Q1 performance driven by defense contractors amid geopolitical tensions and increased spending commitments. Technology holdings pressured by AI sentiment shift but creating attractive entry points. Trump tariffs create trade uncertainty requiring focus on quality fundamentals. Secular themes intact including defense, demographics, and AI productivity. International diversification benefits emerging through market dislocations. |
| Dec 31 2024 | 2024 Q4 | 7011.T, 7269.T, 8750.T, AIR.PA, ASML, AZN, DTE.DE, FTI, GMAB, GRFS, HDB, IBN, MC.PA, MELI, NEX.PA, NVO, PRX.AS, PRY.MI, RHM.DE, SAF.PA, SDZ, STAN.L, TEAM, TSM, UCB.BR | emerging markets, Europe, financials, healthcare, international, stock selection, technology | - | Hardman Johnston's international equity strategy significantly outperformed benchmarks in Q4 2024 through superior stock selection, particularly in Technology and Financials. TSMC and Atlassian drove tech gains while Standard Chartered led financials. Despite Consumer Discretionary headwinds from MercadoLibre and LVMH, the portfolio's bottom-up approach and quality focus position it well for navigating 2025's expected policy-driven volatility and market opportunities. |
| Sep 30 2024 | 2024 Q3 | 1299.HK, 3690.HK, 7011.T, 7269.T, 8750.T, 8795.T, AIR.PA, ASML, AZN, DTE.DE, FTI, GMAB, GRFS, HDFCBANK.NS, ICICIBANK.NS, MC.PA, MELI, NEX.PA, NOD.OL, NVO, PRX.AS, PRY.MI, RHM.DE, SAF.PA, STAN.L, TEAM, TSM, UCB.BR | AI, defense, Energy Transition, Equity, international, Japan, semiconductors, volatility |
7011.T PRY.MI MELI PRX.AS NOD.OL ASML NVO NEXN.PA |
Hardman Johnston International Equity underperformed in Q3 due to volatility, returning 5.74% versus 7.26% for MSCI EAFE. Defense and energy transition themes drove outperformance through Mitsubishi Heavy and Prysmian, while semiconductor concerns weighed on Nordic and ASML. Despite election and geopolitical uncertainties ahead, the manager maintains conviction in secular growth themes over a three-to-five-year horizon. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIManager believes current AI investment cycle differs from dot.com bubble due to existing demand for compute capacity. Views AI infrastructure buildout as most secure part of the AI food chain, explaining continued investment in Nvidia and ASML. Acknowledges volatility but remains committed to AI revolution thesis. |
Artificial Intelligence Data Centers Compute Infrastructure GPUs |
Trade PolicyDiscusses tariff-driven uncertainty around Liberation Day and subsequent market recovery. Notes potential Supreme Court ruling on Trump tariff legality could invalidate tariffs imposed under IEEPA, though similar tariffs would likely be reimposed under other legal frameworks. |
Tariffs Trade IEEPA Supreme Court | |
TechnologyPortfolio concentrated in technology names including Alphabet, Service Now, Snowflake, and semiconductor infrastructure plays. Manager sees technology as beneficiary of AI revolution and maintains conviction in platform companies over individual applications. |
Enterprise Software Platforms Semiconductors | |
RatesFederal Reserve continued easing cycle with Fed Funds rate reaching parity with 2-year bond at 3.5%. Manager believes they are within 25-50 basis points of neutral rate. Skeptical that further rate cuts would meaningfully reduce government borrowing costs. |
Federal Reserve Interest Rates Monetary Policy | |
| 2025 Q3 |
SemiconductorsThe portfolio holds significant exposure to semiconductor companies including TSMC, Infineon, STMicroelectronics, and ASML. TSMC remains a key enabler of AI infrastructure with strong Q2 earnings and raised guidance. The analog semiconductor sector is showing signs of recovery after a cyclical trough, with evidence of growing customer backlogs and improved order signals. |
AI Foundries Analog Semiconductors Semi Equipment Memory |
PharmaceuticalsHealthcare holdings include UCB, Sandoz, and AstraZeneca. UCB strengthened following successful data on Bimzelx for hidradenitis suppurativa with accelerating prescription trends. Sandoz delivered strong results with additional biosimilar launches planned and filed for generic semaglutide representing significant opportunity. The biosimilar market benefits from streamlined regulatory development. |
Biotechnology Generics Specialty Pharma Immunology Biosimilars | |
DefenseThe portfolio maintains exposure to defense and aerospace companies including Rheinmetall, Airbus, Leonardo, Mitsubishi Heavy Industries, and Safran. These companies benefit from increased defense spending and aerospace recovery trends. Rheinmetall was highlighted as a top contributor over the last twelve months. |
Aerospace Defense Electronics Defense Components Military Security | |
AIAI is discussed as a major theme with significant productivity potential but questions around current valuations and capital investment returns. The technology drives demand for semiconductors, data centers, and electrical grid infrastructure. Markets oscillate between fear and fear of missing out regarding AI investments, with broad portfolio exposure particularly in the US. |
Data Centers Cloud Infrastructure GPUs Machine Learning Automation | |
Trade PolicyTariffs and trade policy are significant concerns affecting portfolio companies. The Liberation Day tariff announcement initially shocked markets but subsequent trade deal agreements restored confidence. Tariffs are viewed as regressive, disproportionately impacting lower-income households. Companies like UCB are expanding US manufacturing to reduce tariff exposure. |
Tariffs Trade Wars Protectionism Supply Chain Manufacturing | |
| 2025 Q2 |
Defense SpendingNATO countries agreed to invest 5% of GDP in defense by 2035, representing a step change in spending levels. European nations are taking security upon themselves as US military support is not guaranteed, particularly under a Trump administration. Defense is not solely a European theme, with Japan and South Korea also increasing spending targets against China and North Korea threats. |
Defense NATO Geopolitical Military Security |
SemiconductorsTaiwan Semiconductor's dominance in leading edge semiconductor manufacturing continues to expand, with shortfalls at Samsung and Intel reinforcing a current state of monopoly. Strong results are primarily related to unmitigated demand for AI accelerators, where TSMC is effectively the sole foundry supplier. Infineon continues to gain share across the entire auto semis landscape, officially reporting 13.5% market share as the global leader. |
Semiconductors AI Foundries Auto Manufacturing | |
Energy TransitionThe shift in ESG policy in the US has impacted sales and performance of companies in the electric vehicle value chain. However, EVs typically require at least two to three times more semiconductors than vehicles with internal combustion engines, which means long-term demand for companies with the right products and defensible market position. |
Electric Vehicles ESG Semiconductors Clean Energy Automotive | |
| 2025 Q1 |
Defense SpendingGermany changed its Constitution to release fiscal debt brakes enabling unlimited defense spending, while Europe announced massive defense and infrastructure spending framework. Japan is committed to achieving 2% of GDP defense spending with speculation of upward revision to 3% and beyond. |
Defense Rheinmetall Mitsubishi Heavy Geopolitical Spending |
AIDeepSeek's launch as a Chinese AI competitor to ChatGPT demonstrated lower cost operations and disrupted the LLM market. Tencent increased AI investments to drive productivity in software development and content creation while capitalizing on enterprise demand for customer service chatbots. |
DeepSeek Tencent LLM Enterprise Productivity | |
Trade PolicyTrump administration unveiled sweeping tariffs on April 2nd on dozens of countries worldwide affecting virtually all US imports. This will provoke retaliation and renegotiation from trading partners, with negative GDP impact on already slowing global growth. |
Tariffs Trade Retaliation GDP Global | |
Semiconductor CycleInventories in both end markets and semiconductor supply chain are peaking and entering depletion phase. Semiconductor stocks typically price inventory inflection and return to growth approximately 2 quarters in advance. |
Inventories Cycle TSMC ASML Infineon | |
E-commerceProsus announced deals to bolster global services e-commerce operations including Despegar and Just Eat Takeaway. MercadoLibre demonstrated strong leverage throughout business with advertising remaining key upside option as revenue percentage of GMV grows. |
Prosus MercadoLibre Advertising GMV Leverage | |
| 2024 Q4 |
AITSMC performed strongly as AI processor demand supported sales growth despite underwhelming recoveries in legacy end markets. TSMC's dominance in leading edge semiconductor manufacturing expanded as competitors demonstrated shortfalls. The manager sees AI as a long-term play creating opportunities throughout its value chain globally. |
Semiconductors Processors Manufacturing Supply Chain |
SemiconductorsTSMC continued to post strong sales and gross margin figures with improving utilization rates across advanced nodes. The company remains the most attractively valued semiconductor company relative to its mission criticality in the AI and advanced semiconductor supply chain. |
TSMC Manufacturing Advanced Nodes Valuation | |
Energy TransitionNexans is positioned to benefit from ongoing electrification trends, particularly renewable energy transition and grid fortification. More energy will be needed to fuel growing electricity demand, feeding into the green energy trend despite concerns about climate objectives. |
Electrification Renewables Grid Cables | |
DefenseMany countries have been historically underinvested in defense and now accept it as a priority. While peace in Ukraine would challenge defense-related industrials short-term, long-term structural drivers remain intact as defense becomes an unavoidable priority. |
Defense Spending Structural Geopolitical Investment | |
GLP1Novo Nordisk faced disappointing clinical results in its CagriSema trial but achieved parity with Eli Lilly's Zepbound. Additional trials and drug combinations coming in 2025 could prove positive catalysts. Sandoz has longer-term opportunity in GLP-1 space as drugs come off patent. |
Weight Loss Clinical Trials Competition Patents | |
CloudAtlassian recovered sharply driven by strong Cloud and Data Center revenue growth and operating margins exceeding guidance. Paid seat expansion and cloud migrations led the earnings beat as the collaborative software maker demonstrated strong innovation pace. |
Revenue Growth Migrations Software Margins | |
| 2024 Q3 |
Defense SpendingDefense has generated strong returns for investors this year and is likely to continue to perform given the international focus on increased spending in a more volatile and uncertain world. The Japanese government is significantly expanding its defense budget to counter national security threats, benefiting companies like Mitsubishi Heavy Industries. |
Defense Military Security Government Spending |
Energy TransitionPrysmian is experiencing secular growth from the proliferation of renewable energy and grid fortification, which are high-margin end-markets. Nexans is poised to benefit from ongoing electrification trends, particularly the renewable energy transition and grid fortification. |
Renewable Grid Electrification Cables Infrastructure | |
AIAI has driven huge returns and, while far from cheap, still appears to show enormous growth potential that can justify lofty valuations. There are many companies investing in AI to boost productivity, enhance their offerings to businesses and consumers, and boost their market positions. |
Artificial Intelligence Technology Growth Productivity Innovation | |
E-commerceMercadoLibre posted excellent second quarter results, demonstrating the effectiveness of the company's ecosystem. Fintech and Commerce created a flywheel of growth as Total Payment Volume and Gross Merchandise Value both substantially exceeded investor expectations. |
Online Digital Payments Platform Growth | |
SemiconductorsASML faces risks from Intel's capex cuts and concerns about China procurement strength, but maintains its structural position in the semiconductor manufacturing value chain. Nordic Semiconductor remains a market leader in low-power connectivity despite near-term growth concerns. |
Chips Equipment Manufacturing Technology Cyclical |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | SDZ SW | Sandoz Group Ltd. | Health Care | Pharmaceuticals | Bull | Swiss Exchange | Biosimilars, Generics, Glp1, pipeline, Regulation | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | AZN | AstraZeneca PLC | Health Care | Pharmaceuticals | Bull | New York Stock Exchange | growth, Oncology, Phase3, pipeline, Policy | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | STAN LN | Standard Chartered PLC | Financials | Diversified Banks | Bull | New York Stock Exchange | buybacks, emergingmarkets, Fees, ROE, Wealth | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | RHM GR | Rheinmetall AG | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | backlog, Defense, growth, Procurement, visibility | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | 7011 JP | Mitsubishi Heavy Industries Ltd. | Industrials | Industrial Conglomerates | Bull | New York Stock Exchange | Defense, energy, Orders, Policy, Turbines | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | MELI | MercadoLibre Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | Competition, Fintech, Logistics, Margins, Reinvestment | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | WEIR LN | Weir Group PLC | Industrials | Industrial Machinery | Bull | New York Stock Exchange | aftermarket, Copper, Margins, Mining, Software | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | NEX FP | Nexans SA | Industrials | Electrical Equipment | Bear | Euronext Stock Exchange | Delays, Electrification, Execution, Projects, valuation | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | DTE GR | Deutsche Telekom AG | Communication Services | Integrated Telecommunication Services | Bear | Xetra | ARPU, cashflow, Competition, Margins, Telecom | Login |
| Oct 21, 2025 | Fund Letters | Cassandra A. Hardman | SDZ | Sandoz Group Ltd. | Health Care | Pharmaceuticals | Bull | Swiss Exchange | Biosimilars, Generics, GLP-1, growth, pharmaceuticals, pipeline | Login |
| Oct 21, 2025 | Fund Letters | Cassandra A. Hardman | PROS | Prosus N.V. | Other | Internet & Direct Marketing Retail | Bull | Euronext Stock Exchange | AI, Ecosystem, Internet, NAV discount, restructuring, Tencent | Login |
| Oct 21, 2025 | Fund Letters | Cassandra A. Hardman | SUZUKI | Suzuki Motor Corp. | Other | Automobiles | Bull | NYSE | automotive, Consumption, Gst cuts, Margins, Policy stimulus | Login |
| Oct 21, 2025 | Fund Letters | Cassandra A. Hardman | UCB | UCB S.A. | Financials | Biotechnology | Bull | Shanghai Stock Exchange | Bimzelx, Biotech, capacity expansion, Hs, Immunology, pipeline | Login |
| Jul 17, 2025 | Fund Letters | Cassandra A. Hardman | RHM GR | Rheinmetall AG | Industrials | Aerospace & Defense | Bull | XETRA | Ammunition, Defense, Europe, Joint venture, Rearmament | Login |
| Jul 17, 2025 | Fund Letters | Cassandra A. Hardman | 7269 JP | Suzuki Motor Corporation | Consumer Discretionary | Automobiles | Bull | New York Stock Exchange | Conservative, consumer, guidance, India, Macro | Login |
| Jul 17, 2025 | Fund Letters | Cassandra A. Hardman | TSM | Taiwan Semiconductor Manufacturing Co., Ltd. | Information Technology | Semiconductors | Bull | New York Stock Exchange | AI, Foundry, manufacturing, Monopoly, semiconductors | Login |
| Jul 17, 2025 | Fund Letters | Cassandra A. Hardman | CBK GR | Commerzbank AG | Financials | Diversified Banks | Bull | XETRA | banking, dividends, Europe, turnaround, valuation | Login |
| Jul 17, 2025 | Fund Letters | Cassandra A. Hardman | 8750 JP | Dai-ichi Life Holdings, Inc. | Financials | Life & Health Insurance | Bull | New York Stock Exchange | Insurance, Interestrates, Japan, M&A, Rotation | Login |
| Jul 17, 2025 | Fund Letters | Cassandra A. Hardman | DTE GR | Deutsche Telekom AG | Communication Services | Integrated Telecommunication Services | Bull | XETRA | cashflow, dividends, infrastructure, rerating, Telecom | Login |
| Jul 17, 2025 | Fund Letters | Cassandra A. Hardman | IFX GR | Infineon Technologies AG | Information Technology | Semiconductors | Bull | XETRA | Autos, Cyclicality, Electrification, marketshare, semiconductors | Login |
| Jun 30, 2025 | Fund Letters | Hardman Johnston International Equity | 7011.T | Mitsubishi Heavy Industries, Ltd. | Industrials | Machinery | Bull | Tokyo Stock Exchange | Defense, energy transition, Gas turbines, infrastructure, Japanese, Nuclear, Pricing power | Login |
| Jun 30, 2025 | Fund Letters | Hardman Johnston International Equity | RHM.DE | Rheinmetall AG | Industrials | Aerospace & Defense | Bull | XETRA | Aerospace, Ammunition, Defense, European, joint ventures, margin expansion, Military Equipment, NATO | Login |
| Jun 30, 2025 | Fund Letters | Hardman Johnston International Equity | 6501.T | Hitachi, Ltd. | Industrials | Industrial Conglomerates | Bull | Tokyo Stock Exchange | AI, energy transition, Grid Equipment, industrial conglomerate, Japanese, Lumada, Nuclear, Software | Login |
| Jun 30, 2025 | Fund Letters | Hardman Johnston International Equity | TSM | Taiwan Semiconductor Manufacturing Company Limited | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NYSE | AI, Foundry, Geographic Diversification, Leading Edge, Monopoly, semiconductors, Taiwan | Login |
| Jun 30, 2025 | Fund Letters | Hardman Johnston International Equity | CBK.DE | Commerzbank AG | Financials | Banks | Bull | XETRA | banking, capital returns, Digitalization, Export Sector, German, Interest rates, turnaround | Login |
| Jun 30, 2025 | Fund Letters | Hardman Johnston International Equity | IFX.DE | Infineon Technologies AG | Information Technology | Semiconductors & Semiconductor Equipment | Bull | XETRA | automotive, Cyclical Recovery, Electrification, German, Industrial, market share, semiconductors | Login |
| Jun 30, 2025 | Fund Letters | Hardman Johnston International Equity | LDO.MI | Leonardo SpA | Industrials | Aerospace & Defense | Bull | Borsa Italiana | Aerospace, Aerostructures, CEO Turnaround, Defense, Italian, NATO, Simplification | Login |
| Sep 30, 2024 | Fund Letters | Hardman Johnston International Equity | PRX.AS | Prosus NV | Consumer Discretionary | Broadline Retail | Bull | Euronext Amsterdam | Broadline Retail, China, Emerging markets, Equity, food delivery, India, Internet, portfolio optimization, Tencent, Value | Login |
| Sep 30, 2024 | Fund Letters | Hardman Johnston International Equity | NVO | Novo Nordisk A/S | Health Care | Pharmaceuticals | Neutral | NYSE | CagriSema, Equity, Europe, GLP-1, growth, obesity treatment, pharmaceuticals, supply constraints, Wegovy | Login |
| Sep 30, 2024 | Fund Letters | Hardman Johnston International Equity | NEXN.PA | Nexans SA | Industrials | Electrical Equipment | Bull | Euronext Paris | electrical equipment, Electrification, Equity, Europe, Grid Infrastructure, growth, High-Voltage Cables, Installation Services, renewable energy | Login |
| Sep 30, 2024 | Fund Letters | Hardman Johnston International Equity | NOD.OL | Nordic Semiconductor ASA | Information Technology | Semiconductors & Semiconductor Equipment | Bear | Oslo Stock Exchange | Equity, Europe, growth, IoT, Low-Power Connectivity, market share, nRF54, semiconductors, wireless technology | Login |
| Sep 30, 2024 | Fund Letters | Hardman Johnston International Equity | ASML | ASML Holding N.V. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | 2nm Node, AI, Equity, Europe, EUV lithography, growth, Leading Edge, semiconductor equipment, Taiwan Semiconductor | Login |
| Sep 30, 2024 | Fund Letters | Hardman Johnston International Equity | 7011.T | Mitsubishi Heavy Industries, Ltd. | Industrials | Machinery | Bull | Tokyo Stock Exchange | Cyclical, Defense, energy, Equity, Gas turbines, Japan, Japanese Government, machinery, Nuclear | Login |
| Sep 30, 2024 | Fund Letters | Hardman Johnston International Equity | PRY.MI | Prysmian S.p.A. | Industrials | Electrical Equipment | Bull | Borsa Italiana | electrical equipment, Electrification, energy transition, Equity, Europe, Grid Infrastructure, growth, High-Voltage Cables, renewable energy | Login |
| Sep 30, 2024 | Fund Letters | Hardman Johnston International Equity | MELI | MercadoLibre, Inc. | Consumer Discretionary | Broadline Retail | Bull | NASDAQ | Broadline Retail, digital payments, e-commerce, Emerging markets, Equity, Fintech, growth, Latin America, marketplace | Login |
| TICKER | COMMENTARY |
|---|---|
| 7011.T | Mitsubishi Heavy Industries Ltd. underperformed during the quarter after the company reported a headline earnings miss. However, this included some one-off provisions and excluding these items, results were in line. More importantly, the company revised up its full year order guidance driven by the energy and A&D businesses. Some of the stock weakness was due to profit-taking given shares had been a very strong outperformer due to trends in the gas turbine and defense segments. Meanwhile, the implications from Investor Days at GE Vernova and Siemens Energy only confirmed the strong medium-term outlook for the company. Lastly, the election of Takaichi as Japan's next Prime Minister is supportive of continued defense spending, given her historically hawkish stance on national security. |
| AMZN | The weakness in MercadoLibre Inc. during the fourth quarter reflected increasing competitive pressure from Amazon and the company's commitment to re invest and the corresponding impact on margins. During the quarter, Amazon launched two new initiatives to attract new merchants to the platform, including promotions around fulfillment fees for merchants and reduced commissions for new merchants. Competition from Amazon cannot be taken lightly but we do not believe that Amazon's activity erodes the moat around MercadoLibre's business in Brazil given the ecosystem strengths around MercadoLibre's best-in-class logistics network in the region, and the synergistic ecosystem effects of their commerce, fintech, advertising, loyalty, and content distribution offerings. |
| AZN | AstraZeneca signed a deal with the U.S. administration to offer most-favored-nation (MFN) drug pricing to Medicaid patients and to participate in TrumpRx, a direct-to-consumer platform for purchasing prescription drugs. As part of the agreement, AstraZeneca received a three-year exemption from tariffs while committing to increased investment in its U.S. footprint. In our view, this outcome represents a best-case scenario for AstraZeneca and does not impact either near-term guidance or the company's 2030 financial targets. The company reiterated guidance, supported by broad-based strength across oncology, cardiology & renal, and rare disease despite macro headwinds throughout 2025. 2025 was a strong year of clinical success with more than 15 positive phase III trial readouts at major medical conferences. This data further underpins AstraZeneca's $80B revenue target for 2030. AstraZeneca is well positioned heading into 2026, with numerous additional Phase III readouts expected, providing continued momentum and further visibility toward achieving the 2030 $80B revenue goal. |
| DTE.DE | Deutsche Telekom delivered solid near-term results, including a modest earnings beat and a guidance upgrade, while subsidiary T-Mobile US posted strong subscriber growth and another EPS beat, however, competitive pricing pressures raised concerns about ARPU stability, and management's 2026 outlook pointed to slower profit and cash flow growth. Rising competitive risks—particularly in the U.S., where leadership changes at Verizon introduced uncertainty around future pricing dynamics—added to our caution. In Germany, mild wireless softness and higher cost pressures further weighed on margin expectations. While we continue to view Deutsche Telekom as a high-quality operator with a strong long-term track record, growing competitive uncertainty and emerging cost headwinds led us to exit the position. |
| MELI | The weakness in MercadoLibre Inc. during the fourth quarter reflected increasing competitive pressure from Amazon and the company's commitment to re invest and the corresponding impact on margins. During the quarter, Amazon launched two new initiatives to attract new merchants to the platform, including promotions around fulfillment fees for merchants and reduced commissions for new merchants. Competition from Amazon cannot be taken lightly but we do not believe that Amazon's activity erodes the moat around MercadoLibre's business in Brazil given the ecosystem strengths around MercadoLibre's best-in-class logistics network in the region, and the synergistic ecosystem effects of their commerce, fintech, advertising, loyalty, and content distribution offerings. We view the increased competitive pressure as an acknowledgement of both the fertile opportunity in Brazilian ecommerce and MercadoLibre's leadership position. Separately, MercadoLibre continues to reinvest in its core offerings through lower free shipping thresholds, greater social commerce spend, and expansion of its credit card portfolio. MercadoLibre's spending intentions weigh on the near-term margin outlook and led to modest negative revisions. Historically, higher investment has strengthened MercadoLibre's competitive position. |
| NEX.PA | We exited our position in Nexans, as we see increasing uncertainty around near-term catalysts and a less favorable risk-reward relative to peers. While Q3 sales were reassuring overall, led by strong growth in Transmission (+33% y/y) and Grid (+9% y/y), the weaker-than-expected performance in the Connect (low voltage) segment (+4% y/y) raised questions given prior guidance for a second-half acceleration. The ongoing overhang from the Great Sea Interconnector (GSI) project remains a key concern. Although Nexans has received €250mm of cash payments through September in line with prior guidance and continues to produce and invoice as normal, the absence of additional payments in October and discussions around milestone adjustments increase the risk of delays. While we agree cancellation is unlikely given the project's strategic importance to EU energy security, any delay would disproportionately impact higher-margin earnings. Additionally, the abrupt CEO transition introduced incremental uncertainty, and we have detected a subtle shift in management's tone regarding orders, with commentary increasingly pointing to a potential pause in 2026 before re-acceleration. Given these factors, and despite Nexans' attractive long-term exposure to grid and electrification themes, we chose to reallocate capital toward industry leader Prysmian which is a major section 232 tariff beneficiary. |
| PRX.AS | After nine months of strong performance, Prosus gave back some gains during the fourth quarter and was a modest detractor. Earnings were largely in line with expectations and reflected continued strong momentum in e-commerce profitability, alongside progress toward building an AI-enabled lifestyle commerce platform anchored by food delivery. During the quarter, Prosus signaled that its approach to capital allocation will become more dynamic. While reiterating strong conviction in Tencent as a long-term holding and a leading AI platform in China, management indicated a slower pace of Tencent share sales and greater reliance on non-core asset disposals and cash reserves to fund its $6–7 billion buyback program. Under this framework, Tencent share sales are expected to fund only around half of buybacks in the coming year. We interpret this shift as a sign of growing management confidence in its ability to deploy retained earnings productively, efficiently, and responsibly. In our view, any future moderation in share buybacks would be driven by demonstrated success in reinvesting capital at attractive returns, with a clear focus on long-term shareholder value creation as Prosus continues to build a differentiated, AI-focused platform. |
| RHM.DE | Shares of Rheinmetall underperformed as renewed news flow around a potential Ukraine–Russia peace deal weighed on the broader defense sector, pressuring sentiment despite unchanged long-term fundamentals. At the company's Investor Day in November, management reinforced confidence in Rheinmetall's superior earnings growth outlook through 2030 and beyond, with a EUR 50bn 2030 sales target above consensus estimates. While there were some government procurement delays pushing orders into later periods, this appears to be a timing issue, with a strong surge of orders toward year-end. |
| SDZ | Sandoz's strong biosimilar growth supported a modest increase to 2025 guidance, reflecting continued execution across key launches. The U.S. Department of Health and Human Services released streamlined guidance for biosimilar regulatory requirements, moving the U.S. framework closer to the EU regulatory model and reducing complexity for developers. This regulatory shift is expected to lower development costs, enabling Sandoz to reinvest savings into pipeline expansion and accelerate future biosimilar programs. Biosimilar launches during 2025 performed in line with investor expectations, supporting confidence in the company's launch cadence and commercial execution. The generics business remains stable with 180 launches expected throughout 2025 – management is successfully managing any price erosion pressures. Sandoz plans to launch generic semaglutide (NovoNordisk's GLP-1) in Canada in 2026, using the market as a test case ahead of larger global opportunities as semaglutide patents expire in subsequent years. |
| STAN.L | Standard Chartered has continued to deliver strong earnings growth that has beaten consensus expectations over the past year and consistently raised its guidance and share buyback goals over that period. A major business driver has been their Wealth Management platform that has taken share from competitors and is benefiting from expanding AUM. This business is contributing to rising fee income that diversifies the bank away from traditional net interest income as the major profit driver. Given the rising wealth in key markets in Asia, the Middle East, and Africa – regions with rising incomes and strong demographic growth, the trajectory of Standard Chartered is bright. In addition, Standard Chartered is benefiting as a global bank providing services to major global customers for cross-border services to facilitate business in their markets. Strong management and a focus on cost discipline, alongside the integration of cutting-edge technology, are driving profitability. Given the strong cash flow and exceptionally strong balance sheet, the bank should continue to return capital to shareholders in the form of buybacks and increasing dividends while raising their ROE over the coming years. |
| WEIR.L | Weir is a leading global mining equipment company known for its high exposure to aftermarket (75% of sales), driving resilience through the cycle, with recurring demand from upstream ground engaging tools (excavator bucket 'teeth') and mid-stream processing solutions such as slurry pumps which have a high replacement rate given its extreme usage. The global mining cycle remains supportive, with capex momentum improving after several years of troughing, underpinned by elevated commodity prices. In particular, the company's largest exposures are to copper (where demand drivers are secular) and gold (which tends to be found in similar deposits and where demand is also increasing due to geopolitics). Share price performance has historically been correlated with copper prices. While there is some debate on the split of capex between greenfield or brownfield, Weir is well positioned in any scenario. If greenfield capex materializes, it may represent a temporary OE mix margin headwind, but this only serves to grow the installed base, while sustained brownfield activity has positive earnings implications given Weir's high aftermarket exposure (which is higher-margin). Structural margin expansion continues, following the divestment of the more volatile Oil & Gas business in 2021. While the main cost-cutting program is largely complete, incremental efficiency gains persist, and the acquisition of MicroMine (software) is margin-accretive and improves revenue quality. Indeed, the software business of Weir is its fastest growing and highest margin business. Improved business mix supports higher-quality returns through the cycle, combining strong aftermarket exposure, software content, and disciplined capital allocation, positioning Weir well for sustained earnings growth. |
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