Harbor Capital Appreciation Fund

Investor Summary

Harbor Capital Appreciation Fund is managed by the experienced team at Jennison Associates LLC, which has overseen the fund since May 1990. The current portfolio management team includes Kathleen A. McCarragher as head of growth equity (9.25 years tenure), Blair A. Boyer and Natasha Kuhlkin (both with 3.25 years tenure), and Owuraka Koney. The team operates within Jennison's $220 billion platform, specifically managing $96 billion in flagship Large Cap Growth Equity strategies. This management depth is supported by Harbor Capital Advisors' institutional infrastructure as a subsidiary of ORIX Corporation, providing operational stability and resources for the fund's $28.6 billion in assets under management.

Fund Strategy

Employs a disciplined, bottom-up, research-intensive investment approach targeting companies with durable competitive advantages and above-average growth prospects. The strategy focuses on equity securities of U.S. companies with market capitalizations of at least $1 billion, utilizing a 3 to 5 year investment horizon to identify companies with strong earnings potential, skilled management, and robust balance sheet strength. The concentrated portfolio approach with approximately 56% of assets in top 10 holdings reflects high conviction in research-driven investment decisions, while maintaining moderate turnover of 28% to support long-term capital appreciation through patient capital deployment.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
11.55%	-11.02%	-11.02%

Executive Summary

Harbor Capital Appreciation Fund returned -10.94% in Q1 2026, underperforming the Russell 1000 Growth Index (-9.78%) amid geopolitical escalation and energy-driven inflation. The Iran conflict disrupted global oil supply, driving energy price surges and market rotation away from growth stocks, particularly in Information Technology and AI-related names. Multiple compression affected elevated valuations as skepticism around AI near-term returns persisted. Stock selection in Industrials and Information Technology drove underperformance, while Consumer Discretionary, Financials, and Consumer Staples contributed positively. The fund initiated positions in Palantir Technologies, Cloudflare, and Airbnb, while selling Inditex, ServiceNow, and DexCom. Despite macro uncertainties including potential Fed leadership changes, tariff policy shifts, and upcoming elections, corporate earnings fundamentals remain resilient. The portfolio maintains its disciplined, long-term approach focused on high-quality growth companies with durable competitive advantages, unique products, and market leadership positions capable of generating attractive revenue and earnings growth over the investment horizon.

Forward Outlook

The growth outlook for corporate profits over the balance of the year remains healthy, even as financial conditions have become more volatile. Fundamentals are proving resilient in the face of macro challenges—for now. The fund maintains focus on high-quality growth companies with enduring competitive advantages and continues to monitor the evolving environment for new opportunities while emphasizing long-term growth and risk management.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Apr 21 2026	2026 Q1	AAPL, ABNB, APP, CEG, HLT, MRK, MSFT, NET, PLTR, SHOP, SNOW, TSM, WMT	AI, Energy Prices, Geopolitical Risk, growth, large cap, technology	-	Harbor Capital Appreciation Fund declined 10.94% in Q1 2026 as geopolitical tensions and energy inflation drove rotation from growth stocks. AI and tech names faced multiple compression despite adding quality positions in Palantir, Cloudflare, and Airbnb. Corporate fundamentals remain resilient, supporting the fund's focus on high-quality growth companies with enduring competitive advantages.
Jan 21 2026	2025 Q4	AAPL, AMD, AMZN, APH, AVGO, CDNS, GOOG, GOOGL, ITX.MC, LLY, LPLA, META, MRK, MSFT, NFLX, NKE, NOW, NVDA, TSLA, TSM	AI, growth, healthcare, large cap, semiconductors, technology	APH MRK	Harbor Capital Appreciation Fund underperformed in Q4 2025 amid AI infrastructure spending concerns and valuation pressures. Health Care selections led by Eli Lilly's GLP-1 recovery contributed positively while tech holdings faced headwinds. The fund added Amphenol and Merck while exiting Nike. Management expects continued policy-driven unpredictability in 2026 but maintains focus on high-quality growth companies.
Oct 17 2025	2025 Q3	AAPL, ABNB, AMD, AMZN, APP, AVGO, CDNS, DIS, DXCM, GOOG, GOOGL, ISRG, META, MSFT, NFLX, NVDA, NVO, ORCL, SHOP, TOST, TSLA, TSM, TTD, TXN, VRTX	AI, Cloud, E-Commerce, growth, large cap, semiconductors, technology	AMD US TOST US ORCL US	Harbor Capital Appreciation Fund underperformed in Q3 2025 despite strong market gains driven by AI momentum and Fed rate cuts. Technology sector leadership and corporate earnings growth supported markets reaching record highs. The fund maintains disciplined focus on high-quality large-cap companies with competitive advantages, particularly technology leaders positioned for long-term growth in expanding markets.
Jul 22 2025	2025 Q2	AAPL, ABNB, AMD, AMZN, APP, AVGO, CDNS, DIS, DXCM, GOOG, GOOGL, ISRG, META, MSFT, NFLX, NVDA, NVO, ORCL, SHOP, TOST, TSLA, TSM, TTD, TXN, VRTX	AI, Cloud, E-Commerce, growth, large cap, semiconductors, technology	HUBS SHOP BSX AMD TOST ORCL	Harbor Capital Appreciation Fund underperformed in Q3 2025 despite strong market gains driven by AI momentum and Fed rate cuts. Technology sector underweight hurt relative returns while stock selection across multiple sectors detracted. Fund added AI-focused positions in AMD and Oracle while trimming underperformers. Manager maintains disciplined approach focused on high-quality growth companies with competitive advantages.
Mar 31 2025	2025 Q1	AAPL, AMZN, AVGO, CEG, DDOG, GE, IOT, LLY, MA, META, MSFT, NFLX, NVDA, ORLY, PGR, SBUX, SPOT, TSLA, TSM, TTD, UBER, V, VRT, VRTX	AI, Cloud, growth, large cap, semiconductors, Streaming, technology, Trade Policy	-	Harbor Capital Appreciation Fund declined 10.07% in Q1 2025 as AI-related stocks faced pressure from China's DeepSeek model launch and Trump policy uncertainty created market volatility. The fund reduced technology exposure while adding healthcare and financials positions. Despite near-term headwinds, management sees technology spending stabilizing and expects broader AI adoption to drive future growth across industries.
Jun 30 2024	2024 Q2	AAPL, ADI, AMD, AMZN, AVGO, CRM, DIS, GOOG, GOOGL, LLY, LULU, MA, MDB, META, MSFT, NFLX, NKE, NVDA, SNOW, V	AI, consumer, growth, large cap, semiconductors, technology	-	Harbor Capital Appreciation Fund returned 6.50% in Q2, underperforming its benchmark due to stock selection in technology and communication services. NVIDIA and Apple drove performance on AI momentum while AMD and Salesforce detracted. The fund added Analog Devices and sold UnitedHealth Group. Markets continue rewarding growth companies despite increasing concentration risks.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Apr 21 2026

2026 Q1

AAPL, ABNB, APP, CEG, HLT, MRK, MSFT, NET, PLTR, SHOP, SNOW, TSM, WMT

AI, Energy Prices, Geopolitical Risk, growth, large cap, technology

Harbor Capital Appreciation Fund declined 10.94% in Q1 2026 as geopolitical tensions and energy inflation drove rotation from growth stocks. AI and tech names faced multiple compression despite adding quality positions in Palantir, Cloudflare, and Airbnb. Corporate fundamentals remain resilient, supporting the fund's focus on high-quality growth companies with enduring competitive advantages.

Jan 21 2026

2025 Q4

AAPL, AMD, AMZN, APH, AVGO, CDNS, GOOG, GOOGL, ITX.MC, LLY, LPLA, META, MRK, MSFT, NFLX, NKE, NOW, NVDA, TSLA, TSM

AI, growth, healthcare, large cap, semiconductors, technology

APH
MRK

Harbor Capital Appreciation Fund underperformed in Q4 2025 amid AI infrastructure spending concerns and valuation pressures. Health Care selections led by Eli Lilly's GLP-1 recovery contributed positively while tech holdings faced headwinds. The fund added Amphenol and Merck while exiting Nike. Management expects continued policy-driven unpredictability in 2026 but maintains focus on high-quality growth companies.

Oct 17 2025

2025 Q3

AAPL, ABNB, AMD, AMZN, APP, AVGO, CDNS, DIS, DXCM, GOOG, GOOGL, ISRG, META, MSFT, NFLX, NVDA, NVO, ORCL, SHOP, TOST, TSLA, TSM, TTD, TXN, VRTX

AI, Cloud, E-Commerce, growth, large cap, semiconductors, technology

AMD US
TOST US
ORCL US

Harbor Capital Appreciation Fund underperformed in Q3 2025 despite strong market gains driven by AI momentum and Fed rate cuts. Technology sector leadership and corporate earnings growth supported markets reaching record highs. The fund maintains disciplined focus on high-quality large-cap companies with competitive advantages, particularly technology leaders positioned for long-term growth in expanding markets.

Jul 22 2025

2025 Q2

AAPL, ABNB, AMD, AMZN, APP, AVGO, CDNS, DIS, DXCM, GOOG, GOOGL, ISRG, META, MSFT, NFLX, NVDA, NVO, ORCL, SHOP, TOST, TSLA, TSM, TTD, TXN, VRTX

AI, Cloud, E-Commerce, growth, large cap, semiconductors, technology

HUBS
SHOP
BSX
AMD
TOST
ORCL

Harbor Capital Appreciation Fund underperformed in Q3 2025 despite strong market gains driven by AI momentum and Fed rate cuts. Technology sector underweight hurt relative returns while stock selection across multiple sectors detracted. Fund added AI-focused positions in AMD and Oracle while trimming underperformers. Manager maintains disciplined approach focused on high-quality growth companies with competitive advantages.

Mar 31 2025

2025 Q1

AAPL, AMZN, AVGO, CEG, DDOG, GE, IOT, LLY, MA, META, MSFT, NFLX, NVDA, ORLY, PGR, SBUX, SPOT, TSLA, TSM, TTD, UBER, V, VRT, VRTX

AI, Cloud, growth, large cap, semiconductors, Streaming, technology, Trade Policy

Harbor Capital Appreciation Fund declined 10.07% in Q1 2025 as AI-related stocks faced pressure from China's DeepSeek model launch and Trump policy uncertainty created market volatility. The fund reduced technology exposure while adding healthcare and financials positions. Despite near-term headwinds, management sees technology spending stabilizing and expects broader AI adoption to drive future growth across industries.

Jun 30 2024

2024 Q2

AAPL, ADI, AMD, AMZN, AVGO, CRM, DIS, GOOG, GOOGL, LLY, LULU, MA, MDB, META, MSFT, NFLX, NKE, NVDA, SNOW, V

AI, consumer, growth, large cap, semiconductors, technology

Harbor Capital Appreciation Fund returned 6.50% in Q2, underperforming its benchmark due to stock selection in technology and communication services. NVIDIA and Apple drove performance on AI momentum while AMD and Salesforce detracted. The fund added Analog Devices and sold UnitedHealth Group. Markets continue rewarding growth companies despite increasing concentration risks.

QUARTER	THEMES	TAGS
2026 Q1	AI AI-related stocks faced multiple compression and rotation away from growth during the quarter. Continued skepticism around AI near-term investment returns left AI stocks exposed. The fund initiated positions in Palantir Technologies and Cloudflare, both AI-focused companies.	Artificial Intelligence Data Platforms Machine Learning
	E-commerce The fund initiated a position in Airbnb as a leading global platform for alternative accommodations. Walmart showed rapid growth in e-commerce and digital advertising, reinforcing confidence in the company's durable growth profile.	Digital Commerce Online Platforms Digital Advertising
	Cloud Microsoft faced concerns about Azure's growth and elevated AI-related infrastructure spending. The fund initiated a position in Cloudflare as a leading provider of cloud-based security, networking, and developer services.	Cloud Infrastructure SaaS Cloud Security
	Semiconductors Taiwan Semiconductor benefited from robust AI-driven demand for its leading-edge manufacturing nodes, improving visibility into future growth. The semiconductor sector faced headwinds from multiple compression and rotation away from growth.	Chip Manufacturing AI Chips Foundries
2025 Q4	Oil The region's long oil exposure contributed to meaningful underperformance relative to emerging markets in 2025. The outlook for 2026 suggests a continuation of lower oil prices, which remains a headwind for MENA markets.	Oil Energy Commodities
	Infrastructure Spending The recalibration of ambitious giga-projects in Saudi Arabia signals a more pragmatic approach to capital spending and resource allocation. This shift enhances policy credibility and ensures sustainable public finances.	Infrastructure Saudi Arabia Capital Spending
	Capital Markets Capital market relevance continues to be a priority for regional governments. This should translate into a broadly supportive market environment, characterized by investor-friendly policies and improved market investability.	Capital Markets Policy Investability
2025 Q3	AI Artificial intelligence continues to drive market performance with persistent investor enthusiasm for AI and related growth themes. Information Technology sector led by large-cap constituents outperformed all other sectors, with Communications Services also capitalizing on AI momentum. Corporate earnings growth supported by AI development provides fundamental backing for technology-led rally.	Artificial Intelligence Technology Growth Innovation Computing
	Semiconductors Semiconductor companies benefited from strong demand for advanced AI and high-performance computing chips. Taiwan Semiconductor driven higher by leadership in next-generation manufacturing and role in industry growth. Broadcom benefited from record AI chip orders and rising demand for accelerators from new customers.	Chips AI Computing Manufacturing Accelerators Hardware
	Cloud Cloud infrastructure and enterprise software showing strong growth momentum. Oracle positioned as leader in cloud infrastructure with strong growth supported by AI innovation and partnerships including OpenAI agreement. Advanced Micro Devices momentum with major cloud providers highlights growth prospects in data center and AI accelerators.	Infrastructure Enterprise Software Data Centers Computing SaaS
	E-commerce E-commerce platforms demonstrating sustained growth with Shopify benefiting from increased merchant adoption of payment and AI-powered solutions, ongoing global expansion, and sustained demand for value-added services. Toast serving large under-penetrated restaurant technology market with integrated platform for operations and customer experience.	Digital Commerce Payments Merchant Services Platform Technology
2025 Q2	AI Artificial intelligence continued to drive market momentum in Q3 2025, with persistent investor enthusiasm for AI and related growth themes supporting strong returns in Communication Services and Information Technology sectors. The fund initiated a position in Advanced Micro Devices, citing its sharpened product roadmap and momentum with major cloud providers in AI accelerators.	Artificial Intelligence Machine Learning Cloud Providers Data Centers Computing
	Semiconductors Semiconductor companies showed strong performance driven by AI demand, with Taiwan Semiconductor benefiting from strong demand for advanced AI and high-performance computing chips. Broadcom's stock price benefited from record AI chip orders and rising demand for accelerators from new customers.	AI Chips High Performance Computing Foundries Accelerators Manufacturing
	Cloud Cloud infrastructure remained a key growth driver, with the fund initiating a position in Oracle citing strong growth in cloud and applications supported by AI innovation and partnerships. Advanced Micro Devices was also highlighted for its momentum with major cloud providers.	Cloud Infrastructure Enterprise Software SaaS Data Centers Computing
	E-commerce E-commerce platforms showed strong performance with Shopify benefiting from increased merchant adoption of its payment and AI-powered solutions, ongoing global expansion, and sustained demand for e-commerce value-added services. The fund initiated a position in Toast, a leader in cloud-based restaurant technology.	Digital Commerce Payments Merchant Services Restaurant Technology Point of Sale
2025 Q1	AI The surprise launch of China's DeepSeek AI model pressured AI-related stocks, key drivers of 2024 gains. DeepSeek claimed to run on less powerful chips at much lower cost than competitors, exacerbating CapEx concerns and leading to share weakness in U.S. silicon manufacturers and cloud computing companies. The manager expects generative AI use cases to spread from technology providers to various industries, increasing competitive positioning through improved time to market and streamlined customer service.	DeepSeek CapEx Generative AI Cloud Computing Silicon
	Semiconductors U.S. silicon manufacturers like NVIDIA and Broadcom faced broad sell-offs due to DeepSeek's emergence and CapEx sustainability concerns. The fund initiated a position in Taiwan Semiconductor Manufacturing Company, believing it should benefit from strong demand for AI chips and cyclical recovery in smartphones and high-performance computing segments.	NVIDIA Broadcom Taiwan Semiconductor AI Chips HPC
	Cloud Cloud computing companies such as Google and Microsoft have been investing heavily in AI model development but faced pressure from DeepSeek's low-cost competitor emergence. There are concerns that cloud providers may slow data center build-out, affecting related infrastructure stocks.	Google Microsoft Data Centers Infrastructure Build-out
	Data Centers Data center growth is driving higher electricity demand, with nuclear power viewed as a sustainable source. The fund initiated a position in Constellation Energy, which operates the largest carbon-free nuclear fleet in the U.S., though the stock lost value amid AI infrastructure sell-offs and concerns about cloud provider build-out slowdowns.	Electricity Demand Nuclear Power Constellation Energy Carbon-free Infrastructure
	Streaming Netflix continues to outdistance competitors in owned and licensed content, driving subscription growth domestically and in underpenetrated non-U.S. markets. Price flexibility and expanded ad tiers remain opportunities that should benefit free-cash-flow margins.	Netflix Content Subscriptions Ad Tiers Cash Flow
	Trade Policy New tariffs were announced during the first quarter, though uncertainty remained about whether tariff threats were real or negotiating tactics. Market sentiment waned due to concerns about increased input costs leading to higher prices and inflation resurgence. O'Reilly Automotive was viewed as a potential beneficiary of tariff-induced price hikes on imported cars, expecting higher demand for aftermarket parts.	Tariffs Input Costs Inflation Aftermarket Parts Imported Cars
2024 Q2	AI Accelerated spending on artificial intelligence infrastructure among hyperscalers continued during the quarter. Near-term disappointment with the pace of developing applications to monetize AI spending weighed on SaaS company valuations, though the fund remains encouraged by AI initiatives that will improve current offerings and drive revenue growth over their investment time horizon.	Infrastructure Hyperscalers SaaS Applications Monetization
	Travel Consumers are still expressing a strong preference for travel, with healthy activity levels across the globe. This represents a bright spot amid otherwise mixed trends in global consumer goods companies.	Consumer Activity Global Preference Healthy

QUARTER

THEMES

AI

AI-related stocks faced multiple compression and rotation away from growth during the quarter. Continued skepticism around AI near-term investment returns left AI stocks exposed. The fund initiated positions in Palantir Technologies and Cloudflare, both AI-focused companies.

Artificial Intelligence Data Platforms Machine Learning

E-commerce

The fund initiated a position in Airbnb as a leading global platform for alternative accommodations. Walmart showed rapid growth in e-commerce and digital advertising, reinforcing confidence in the company's durable growth profile.

Digital Commerce Online Platforms Digital Advertising

Cloud

Microsoft faced concerns about Azure's growth and elevated AI-related infrastructure spending. The fund initiated a position in Cloudflare as a leading provider of cloud-based security, networking, and developer services.

Cloud Infrastructure SaaS Cloud Security

Semiconductors

Taiwan Semiconductor benefited from robust AI-driven demand for its leading-edge manufacturing nodes, improving visibility into future growth. The semiconductor sector faced headwinds from multiple compression and rotation away from growth.

Chip Manufacturing AI Chips Foundries

2025 Q4

Oil

The region's long oil exposure contributed to meaningful underperformance relative to emerging markets in 2025. The outlook for 2026 suggests a continuation of lower oil prices, which remains a headwind for MENA markets.

Oil Energy Commodities

Infrastructure Spending

The recalibration of ambitious giga-projects in Saudi Arabia signals a more pragmatic approach to capital spending and resource allocation. This shift enhances policy credibility and ensures sustainable public finances.

Infrastructure Saudi Arabia Capital Spending

Capital Markets

Capital market relevance continues to be a priority for regional governments. This should translate into a broadly supportive market environment, characterized by investor-friendly policies and improved market investability.

Capital Markets Policy Investability

2025 Q3

AI

Artificial intelligence continues to drive market performance with persistent investor enthusiasm for AI and related growth themes. Information Technology sector led by large-cap constituents outperformed all other sectors, with Communications Services also capitalizing on AI momentum. Corporate earnings growth supported by AI development provides fundamental backing for technology-led rally.

Artificial Intelligence Technology Growth Innovation Computing

Semiconductors

Semiconductor companies benefited from strong demand for advanced AI and high-performance computing chips. Taiwan Semiconductor driven higher by leadership in next-generation manufacturing and role in industry growth. Broadcom benefited from record AI chip orders and rising demand for accelerators from new customers.

Chips AI Computing Manufacturing Accelerators Hardware

Cloud

Cloud infrastructure and enterprise software showing strong growth momentum. Oracle positioned as leader in cloud infrastructure with strong growth supported by AI innovation and partnerships including OpenAI agreement. Advanced Micro Devices momentum with major cloud providers highlights growth prospects in data center and AI accelerators.

Infrastructure Enterprise Software Data Centers Computing SaaS

E-commerce

E-commerce platforms demonstrating sustained growth with Shopify benefiting from increased merchant adoption of payment and AI-powered solutions, ongoing global expansion, and sustained demand for value-added services. Toast serving large under-penetrated restaurant technology market with integrated platform for operations and customer experience.

Digital Commerce Payments Merchant Services Platform Technology

2025 Q2

AI

Artificial intelligence continued to drive market momentum in Q3 2025, with persistent investor enthusiasm for AI and related growth themes supporting strong returns in Communication Services and Information Technology sectors. The fund initiated a position in Advanced Micro Devices, citing its sharpened product roadmap and momentum with major cloud providers in AI accelerators.

Artificial Intelligence Machine Learning Cloud Providers Data Centers Computing

Semiconductors

Semiconductor companies showed strong performance driven by AI demand, with Taiwan Semiconductor benefiting from strong demand for advanced AI and high-performance computing chips. Broadcom's stock price benefited from record AI chip orders and rising demand for accelerators from new customers.

AI Chips High Performance Computing Foundries Accelerators Manufacturing

Cloud

Cloud infrastructure remained a key growth driver, with the fund initiating a position in Oracle citing strong growth in cloud and applications supported by AI innovation and partnerships. Advanced Micro Devices was also highlighted for its momentum with major cloud providers.

Cloud Infrastructure Enterprise Software SaaS Data Centers Computing

E-commerce

E-commerce platforms showed strong performance with Shopify benefiting from increased merchant adoption of its payment and AI-powered solutions, ongoing global expansion, and sustained demand for e-commerce value-added services. The fund initiated a position in Toast, a leader in cloud-based restaurant technology.

Digital Commerce Payments Merchant Services Restaurant Technology Point of Sale

2025 Q1

AI

The surprise launch of China's DeepSeek AI model pressured AI-related stocks, key drivers of 2024 gains. DeepSeek claimed to run on less powerful chips at much lower cost than competitors, exacerbating CapEx concerns and leading to share weakness in U.S. silicon manufacturers and cloud computing companies. The manager expects generative AI use cases to spread from technology providers to various industries, increasing competitive positioning through improved time to market and streamlined customer service.

DeepSeek CapEx Generative AI Cloud Computing Silicon

Semiconductors

U.S. silicon manufacturers like NVIDIA and Broadcom faced broad sell-offs due to DeepSeek's emergence and CapEx sustainability concerns. The fund initiated a position in Taiwan Semiconductor Manufacturing Company, believing it should benefit from strong demand for AI chips and cyclical recovery in smartphones and high-performance computing segments.

NVIDIA Broadcom Taiwan Semiconductor AI Chips HPC

Cloud

Cloud computing companies such as Google and Microsoft have been investing heavily in AI model development but faced pressure from DeepSeek's low-cost competitor emergence. There are concerns that cloud providers may slow data center build-out, affecting related infrastructure stocks.

Google Microsoft Data Centers Infrastructure Build-out

Data Centers

Data center growth is driving higher electricity demand, with nuclear power viewed as a sustainable source. The fund initiated a position in Constellation Energy, which operates the largest carbon-free nuclear fleet in the U.S., though the stock lost value amid AI infrastructure sell-offs and concerns about cloud provider build-out slowdowns.

Electricity Demand Nuclear Power Constellation Energy Carbon-free Infrastructure

Streaming

Netflix continues to outdistance competitors in owned and licensed content, driving subscription growth domestically and in underpenetrated non-U.S. markets. Price flexibility and expanded ad tiers remain opportunities that should benefit free-cash-flow margins.

Netflix Content Subscriptions Ad Tiers Cash Flow

Trade Policy

New tariffs were announced during the first quarter, though uncertainty remained about whether tariff threats were real or negotiating tactics. Market sentiment waned due to concerns about increased input costs leading to higher prices and inflation resurgence. O'Reilly Automotive was viewed as a potential beneficiary of tariff-induced price hikes on imported cars, expecting higher demand for aftermarket parts.

Tariffs Input Costs Inflation Aftermarket Parts Imported Cars

2024 Q2

AI

Accelerated spending on artificial intelligence infrastructure among hyperscalers continued during the quarter. Near-term disappointment with the pace of developing applications to monetize AI spending weighed on SaaS company valuations, though the fund remains encouraged by AI initiatives that will improve current offerings and drive revenue growth over their investment time horizon.

Infrastructure Hyperscalers SaaS Applications Monetization

Travel

Consumers are still expressing a strong preference for travel, with healthy activity levels across the globe. This represents a bright spot amid otherwise mixed trends in global consumer goods companies.

Consumer Activity Global Preference Healthy

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Jan 21, 2026	Fund Letters	Kathleen A. McCarragher	APH	Amphenol Corporation	Information Technology	Electronic Components	Bull	New York Stock Exchange	AI, Connectivity, datacenters, infrastructure, semiconductors	Login
Jan 21, 2026	Fund Letters	Kathleen A. McCarragher	MRK	Merck & Co., Inc.	Health Care	Pharmaceuticals	Bull	New York Stock Exchange	earnings, innovation, Oncology, pharmaceuticals, pipeline	Login
Oct 17, 2025	Fund Letters	Kathleen A. McCarragher	TOST US	Toast, Inc.	Information Technology	Application Software	Bull	NYSE	efficiency, expansion, growth, recurring revenue, SaaS, Software, valuation	Login
Oct 17, 2025	Fund Letters	Kathleen A. McCarragher	ORCL US	Oracle Corp.	Information Technology	Systems Software	Bull	NYSE	AI, cloud, growth, Margins, Partnerships, Software, valuation	Login
Oct 17, 2025	Fund Letters	Kathleen A. McCarragher	AMD US	Advanced Micro Devices, Inc.	Information Technology	Semiconductors	Bull	NASDAQ	AI, data centers, growth, innovation, Margins, semiconductors, valuation	Login
Sep 30, 2025	Fund Letters	Harbor Capital Appreciation Fund	ORCL	Oracle Corporation	Information Technology	Software	Bull	NYSE	AI, cloud infrastructure, cloud migration, Database, Enterprise software, OpenAI partnership, Software	Login
Sep 30, 2025	Fund Letters	Harbor Capital Appreciation Fund	TOST	Toast Inc	Information Technology	Software	Bull	NYSE	cloud-based, Enterprise Expansion, Payments, Point of Sale, recurring revenue, Restaurant technology, SaaS	Login
Sep 30, 2025	Fund Letters	Harbor Capital Appreciation Fund	AMD	Advanced Micro Devices Inc	Information Technology	Semiconductors & Semiconductor Equipment	Bull	NASDAQ	AI, cloud providers, data center, growth, high-performance computing, semiconductors, technology	Login
Jul 22, 2025	Fund Letters	Kathleen A. McCarragher	HUBS	HubSpot, Inc.	Information Technology	Application Software	Bull	New York Stock Exchange	CRM, Enterprises, growth, Margins, SaaS, Subscriptions	Login
Jul 22, 2025	Fund Letters	Kathleen A. McCarragher	SHOP	Shopify Inc.	Information Technology	E-commerce & Auction Services	Bull	NASDAQ	ecommerce, Globalization, Merchants, Platforms, profitability, Subscriptions	Login
Jul 22, 2025	Fund Letters	Kathleen A. McCarragher	BSX	Boston Scientific Corporation	Health Care	Health Care Equipment	Bull	New York Stock Exchange	Cardiology, Devices, innovation, Margins, Medtech, Procedures	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Jan 21, 2026

Fund Letters

Kathleen A. McCarragher

APH

Amphenol Corporation

Information Technology

Electronic Components

Bull

New York Stock Exchange

AI, Connectivity, datacenters, infrastructure, semiconductors

Jan 21, 2026

Fund Letters

Kathleen A. McCarragher

MRK

Merck & Co., Inc.

Health Care

Pharmaceuticals

Bull

New York Stock Exchange

earnings, innovation, Oncology, pharmaceuticals, pipeline

Oct 17, 2025

Fund Letters

Kathleen A. McCarragher

TOST US

Toast, Inc.

Information Technology

Application Software

Bull

NYSE

efficiency, expansion, growth, recurring revenue, SaaS, Software, valuation

Oct 17, 2025

Fund Letters

Kathleen A. McCarragher

ORCL US

Oracle Corp.

Information Technology

Systems Software

Bull

NYSE

AI, cloud, growth, Margins, Partnerships, Software, valuation

Oct 17, 2025

Fund Letters

Kathleen A. McCarragher

AMD US

Advanced Micro Devices, Inc.

Information Technology

Semiconductors

Bull

NASDAQ

AI, data centers, growth, innovation, Margins, semiconductors, valuation

Sep 30, 2025

Fund Letters

Harbor Capital Appreciation Fund

ORCL

Oracle Corporation

Information Technology

Software

Bull

NYSE

AI, cloud infrastructure, cloud migration, Database, Enterprise software, OpenAI partnership, Software

Sep 30, 2025

Fund Letters

Harbor Capital Appreciation Fund

TOST

Toast Inc

Information Technology

Software

Bull

NYSE

cloud-based, Enterprise Expansion, Payments, Point of Sale, recurring revenue, Restaurant technology, SaaS

Sep 30, 2025

Fund Letters

Harbor Capital Appreciation Fund

AMD

Advanced Micro Devices Inc

Information Technology

Semiconductors & Semiconductor Equipment

Bull

NASDAQ

AI, cloud providers, data center, growth, high-performance computing, semiconductors, technology

Jul 22, 2025

Fund Letters

Kathleen A. McCarragher

HUBS

HubSpot, Inc.

Information Technology

Application Software

Bull

New York Stock Exchange

CRM, Enterprises, growth, Margins, SaaS, Subscriptions

Jul 22, 2025

Fund Letters

Kathleen A. McCarragher

SHOP

Shopify Inc.

Information Technology

E-commerce & Auction Services

Bull

NASDAQ

ecommerce, Globalization, Merchants, Platforms, profitability, Subscriptions

Jul 22, 2025

Fund Letters

Kathleen A. McCarragher

BSX

Boston Scientific Corporation

Health Care

Health Care Equipment

Bull

New York Stock Exchange

Cardiology, Devices, innovation, Margins, Medtech, Procedures

TICKER	COMMENTARY
SNOW	Snowflake's shares declined amid slowing product revenue growth and rising competition in Al-data platforms.
SHOP	Shopify's shares declined over concerns about the durability of its current growth rates.
APP	AppLovin shares declined over concerns about the competition, and Al-disintermediation risk increased.
CEG	Constellation Energy's shares declined amid the lower-than-expected accretion from its Calpine acquisition and delayed project and contracting timelines.
AAPL	Apple shares pulled back on concerns over margin sustainability.
MSFT	The Fund's underweight position in Microsoft relative to the index was a contributor to relative returns. Microsoft's shares declined amid concerns about Azure's growth and elevated Al-related infrastructure spending.
TSM	Taiwan Semiconductor benefited as robust Al-driven demand for its leading-edge manufacturing nodes improved visibility into future growth.
WMT	Walmart's shares increased, as rapid growth in e-commerce and digital advertising reinforced confidence in the company's durable growth profile.
MRK	Merck shares benefited from strong results and increased interest in its upcoming pipeline.
HLT	Hilton's shares rose on confidence in its sustained pricing power.
PLTR	We initiated a position in Palantir Technologies, a leading provider of Al and data platforms that help organizations integrate information, build applications, and operationalize decisions. Strength in government and defense now complements a rapidly growing commercial business as customers adopt its Al-native platforms. Deep domain expertise, an integrated software stack, and focus on mission-critical workflows underpin durable customer relationships and support potential long-term growth.
NET	We initiated a position in Cloudflare, a leading provider of cloud-based security, networking, and developer services supporting critical Internet, as well as Al-infrastructure, at the network edge. Cloudflare's globally distributed network, integrated Zero Trust platform, and expanding Al-centric developer tools are transforming its role from content delivery to a full-stack Internet platform. Continued product innovation, deepening enterprise adoption, and a focus on platform consolidation, we believe will reinforce its ability to deliver durable growth alongside improving profitability over time.
ABNB	We initiated a position in Airbnb, a leading global platform for alternative accommodations. Airbnb's differentiated supply, global network effects, and expanding host base support durable potential growth, particularly across international markets. Continued product innovation and disciplined expansion beyond core stays enhance the platform's potential to generate attractive margins and free cash flow, which could compound value over time.

TICKER

COMMENTARY

SNOW

Snowflake's shares declined amid slowing product revenue growth and rising competition in Al-data platforms.

SHOP

Shopify's shares declined over concerns about the durability of its current growth rates.

APP

AppLovin shares declined over concerns about the competition, and Al-disintermediation risk increased.

CEG

Constellation Energy's shares declined amid the lower-than-expected accretion from its Calpine acquisition and delayed project and contracting timelines.

AAPL

Apple shares pulled back on concerns over margin sustainability.

MSFT

The Fund's underweight position in Microsoft relative to the index was a contributor to relative returns. Microsoft's shares declined amid concerns about Azure's growth and elevated Al-related infrastructure spending.

TSM

Taiwan Semiconductor benefited as robust Al-driven demand for its leading-edge manufacturing nodes improved visibility into future growth.

WMT

Walmart's shares increased, as rapid growth in e-commerce and digital advertising reinforced confidence in the company's durable growth profile.

MRK

Merck shares benefited from strong results and increased interest in its upcoming pipeline.

HLT

Hilton's shares rose on confidence in its sustained pricing power.

PLTR

We initiated a position in Palantir Technologies, a leading provider of Al and data platforms that help organizations integrate information, build applications, and operationalize decisions. Strength in government and defense now complements a rapidly growing commercial business as customers adopt its Al-native platforms. Deep domain expertise, an integrated software stack, and focus on mission-critical workflows underpin durable customer relationships and support potential long-term growth.

NET

We initiated a position in Cloudflare, a leading provider of cloud-based security, networking, and developer services supporting critical Internet, as well as Al-infrastructure, at the network edge. Cloudflare's globally distributed network, integrated Zero Trust platform, and expanding Al-centric developer tools are transforming its role from content delivery to a full-stack Internet platform. Continued product innovation, deepening enterprise adoption, and a focus on platform consolidation, we believe will reinforce its ability to deliver durable growth alongside improving profitability over time.

ABNB

We initiated a position in Airbnb, a leading global platform for alternative accommodations. Airbnb's differentiated supply, global network effects, and expanding host base support durable potential growth, particularly across international markets. Continued product innovation and disciplined expansion beyond core stays enhance the platform's potential to generate attractive margins and free cash flow, which could compound value over time.

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Investment Summary

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Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

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Core Thesis

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AI

E-commerce

Cloud

Semiconductors

Oil

Infrastructure Spending

Capital Markets

AI

Semiconductors

Cloud

E-commerce

AI

Semiconductors

Cloud

E-commerce

AI

Semiconductors

Cloud

Data Centers

Streaming

Trade Policy

AI

Travel

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Current Portfolio as of ( 31st March 2026 )

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Kathleen A. McCarragher Top Holdings

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Harbor Capital Appreciation Fund