The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Harbor Mid Cap Value Fund returned 13.99% in Q2 2026, outperforming the Russell Midcap Value Index's 13.40% return through strong stock selection despite value stocks lagging growth across all market-cap ranges. The quarter saw dramatic market broadening as small caps outpaced large caps and leadership within Information Technology shifted from software to hardware, driven by AI infrastructure buildout. Top contributors included semiconductor and AI infrastructure suppliers TD Synnex, Arrow Electronics, and Hewlett Packard Enterprise, which surged 50-90% on surging demand. Garrett Motion and State Street also contributed significantly. Detractors included Kroger, pressured by competition and inflation, and energy holdings Matador Resources as natural gas prices fell. The manager initiated Fortune Brands Innovations and added to Regeneron Pharmaceuticals based on attractive quantitative rankings, while trimming State Street and Cummins after strong runs. The Fund maintains significant overweights to Consumer Discretionary and Financials, with the portfolio trading at 10.6x forward earnings versus 16x for the benchmark. Despite ongoing macro uncertainty, the manager remains committed to the disciplined value approach.
LSV Asset Management employs a disciplined quantitative value approach to mid-cap investing, systematically identifying undervalued companies based on fundamental metrics including low price-to-cash flow and price-to-earnings ratios, while controlling incremental risk relative to the benchmark.
The manager notes that while mid- and smaller-cap stocks have performed well in 2026, the largest U.S. companies remain expensive while small- and mid-cap stocks remain relatively attractive. The Fund is attractively priced relative to the benchmark at 10.6x forward earnings compared to more than 16x for the value benchmark. Despite ongoing uncertainty surrounding economic growth, monetary and fiscal policy, and geopolitical tension, the investment philosophy remains unchanged with continued commitment to the disciplined value investment approach. Market leadership has evolved to reward businesses benefiting from the broader AI investment cycle beyond just the largest platform companies.
As of Aug 11, 2026
Dr. Josef Lakonishok serves as the primary portfolio manager and is CEO, CIO, and founding partner of LSV Asset Management, which has subadvised the fund since September 30, 2004. LSV Asset Management was founded in 1994 and manages approximately $112 billion in assets. Dr. Lakonishok is a renowned academic and practitioner in behavioral finance and value investing. The investment team includes Menno Vermeulen, who has co-managed the fund since 2004 as Portfolio Manager and Partner of LSV Asset Management, along with team members Greg Sleight, Guy Lakonishok, and Puneet Mansharamani.
Harbor Mid Cap Value Fund seeks long-term total return by investing at least 80% of its net assets in equity securities, principally common stocks of mid-cap companies which are undervalued in the marketplace at the time of purchase but have potential for appreciation. The fund employs LSV Asset Management's systematic quantitative approach that exploits judgmental biases and behavioral weaknesses that influence investor decisions. The investment strategy uses a bottom-up, contrarian value approach targeting the 1,000 largest publicly traded U.S. companies, focusing on per-share growth rates across six key metrics and preferring stocks in cheaper valuation deciles where low valuations provide an advantageous starting point.
LSV Asset Management
Managing Partner
Neutral / Balanced
Market Conviction
The Fund holds a diversified portfolio with the top 10 holdings representing only 13.38% of assets, indicating broad diversification rather than concentration. Individual positions are sized modestly (largest holding State Street at 1.92%). The manager describes a systematic quantitative approach with buy/sell decisions driven by model rankings rather than high-conviction individual stock calls. While the letter discusses specific holdings and their performance, the language is analytical and model-driven ('the stock ranks high,' 'the overall rank fell out of the hold range') rather than expressing strong personal conviction. The approach is disciplined and systematic but not concentrated, placing conviction in the moderate range.
Growth Outlook
Market outlook remains above average conviction: The Harbor Mid Cap Value Fund delivered strong relative performance of 4.07% in Q4 2025, beating its benchmark by 2.65%. The manager is capitalizing on highly attractive valuations...
Risk Appetite
Risk appetite posture is above average conviction: The Harbor Mid Cap Value Fund delivered strong relative performance of 4.07% in Q4 2025, beating its benchmark by 2.65%. The manager is capitalizing on highly attractive valuations...
Capital Deployment
The letter describes portfolio activity that appears to be rotation rather than net deployment. The manager initiated Fortune Brands Innovations and added to Regeneron Pharmaceuticals while trimming State Street and Cummins and selling Western Digital. No cash level changes are mentioned, and the activity appears to be normal rebalancing within the quantitative framework rather than net deployment or de-risking. The manager states the investment philosophy is 'unchanged' and emphasizes discipline, suggesting steady-state positioning. The score reflects rotation activity with no clear evidence of net capital deployment or withdrawal.
Forward Guidance
Forward guidance signal: The Harbor Mid Cap Value Fund delivered strong relative performance of 4.07% in Q4 2025, beating its benchmark by 2.65%. The manager is capitalizing on highly attractive valuations...
Language Signal
The letter contains substantial bullish language around AI infrastructure opportunities, with holdings 'surging,' 'benefiting from surging demand,' and companies reporting earnings 'well in excess of expectations.' Terms like 'strong stock selection,' 'attractively priced,' 'quality, profitable companies,' and 'strong absolute and relative performance' are positive. However, this is balanced by bearish language around value stocks lagging, 'uncertainty surrounding economic growth,' 'competition from lower cost providers,' and acknowledgment that 'the largest U.S. companies remain expensive.' The net balance tilts moderately positive given the emphasis on successful positioning and attractive valuations in the Fund's segment.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. The Harbor Mid Cap Value Fund delivered strong relative performance of 4.07% in Q4 2025, beating its benchmark by 2.65%. The manager is capitalizing on highly attractive valuations...
Opportunity Density
The manager describes finding attractive opportunities within the mid-cap value universe, stating the Fund 'remains attractively priced relative to the benchmark, trading at 10.6x forward earnings compared to more than 16x earnings for the value benchmark.' The letter highlights successful stock selection and identifies specific new positions (Fortune Brands, Regeneron) that 'rank high' or 'in the top 10%' of the stock-ranking universe. The commentary on 'small- and mid-cap stocks remain relatively attractive' while 'the largest U.S. companies remain expensive' suggests the manager sees a selective but meaningful opportunity set in the Fund's segment. The tone is constructive on finding ideas within the quantitative framework.
Time Horizon
The Fund employs a systematic quantitative value approach that inherently requires patience for valuations to converge. The manager describes holding positions based on model rankings and selling when 'the overall rank fell out of the hold range,' suggesting a medium-term framework tied to fundamental revaluation rather than near-term catalysts. The emphasis on 'disciplined value investment approach' and quality companies that 'generate cash, pay dividends, and repurchase shares' implies a multi-year perspective. However, the letter also discusses quarterly momentum indicators and recent price performance, suggesting some attention to shorter-term factors. The time horizon appears to be medium-term (1-3 years) rather than explicitly long-term or permanent capital.
Top Conviction Themes
Key Catalysts
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