| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.4% | 1.9% | 12.7% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 12.7% | 14.5% | 22.9% | -29.4% | 15.7% | 30.7% |
Harding Loevner argues that 15 years of US equity outperformance has created unsustainable concentration and valuation gaps, with the top 10 US stocks representing 40% of global markets compared to 18% in 2009. The current AI narrative heavily favors US hyperscalers like Alphabet, Amazon, Meta, and Microsoft, but international markets provide essential AI infrastructure through companies like TSMC, ASML, Delta Electronics, and Schneider Electric. The portfolio maintains roughly one-third exposure to AI-related companies but emphasizes diversification across business models and geographies. Key contributors included Alphabet, which successfully integrated AI into search, and semiconductor equipment suppliers like ASML and Fabrinet. The manager warns that if AI capex disappoints, US markets face double sensitivity from rich valuations and narrow leadership, while international markets start from cheaper multiples with more diverse growth drivers. Policy uncertainty around tariffs and regulation adds additional risk to concentrated positions.
International markets offer superior risk-adjusted opportunities compared to concentrated US AI exposure, trading at roughly half US valuations while providing diversified exposure to AI enablers and growth opportunities unrelated to the narrow AI narrative.
If AI delivers on its promise, global winners will continue to extend well beyond US mega-caps. And if the capex cycle proves bumpier than the market expects, diversification across industries and across regions may matter more than it has in years.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 20 2026 | 2025 Q4 | 0700.HK, 1299.HK, 2308.TW, 300124.SZ, 300760.SZ, 4519.T, 6758.T, 6861.T, ABBV, ACN, ADBE, ALFA.ST, AME, AMZN, APH, ASML, ATCO-A.ST, ATD.TO, ATKR, AVGO, BKNG, CME, COMP.L, CSGP, D05.SI, DE, DHR, DPLM.L, EFX, ELV, EPI-A.ST, FN, GMAB, GOOGL, HDFCBANK.NS, HEI, HLN.L, HON, JNJ, META, MSFT, NFLX, NOC, NVDA, PGR, ROG.SW, SAP, SGSN.SW, SHEL, SLB, SU.PA, TMO, TSM, TTD, TW, V, VRTX, WMMVY | AI, global, international, semiconductors, technology, value | GOOG | AI represents a capital-expenditure regime with two distinct camps: hyperscalers investing in computing capacity and physical enablers of the buildout. The US market is more… |
| Oct 14 2025 | 2025 Q3 | ACN, GOOG, ORCL, TSM | Artificial Intelligence, diversification, healthcare, technology, valuation |
ACN US VRTX US ELV US TMO US GOOGL US TCEHY US |
AI-driven capital spending dominated market momentum, but the fund stresses valuation discipline and sector diversification. It highlights risks of overinvestment in speculative AI ventures and… |
| Jul 16 2025 | 2025 Q2 | - | Artificial Intelligence, innovation, monetization, productivity, secular growth |
ADBE BKNG |
The commentary centers on AI as a structural growth driver transforming business models across sectors, not just technology. Management highlights real-world monetization, productivity gains, and… |
| Mar 31 2025 | 2025 Q1 | 6758 JP, ADYEY, ASML NA, G25 GR, GOOG, HEI, TTD, W | - | - | - |
| Dec 31 2024 | 2024 Q4 | ACN, ASML, AVGO, NFLX, NVDA, SU FP, UNH | - | - | - |
| Sep 30 2024 | 2024 Q3 | AAPL, ADYEN, AIA, AMAT, AMZN, ASML, DHR, HLN LN, KER FP, OR FP, PINS, RGEN, SU FP, TMO | - | - | - |
| Jul 18 2024 | 2024 Q2 | AAPL, ADYEN NA, ASML, CRM, DHR, GLOB, MSFT, NVDA, TSM, VRTX | - | - | - |
| Apr 15 2024 | 2024 Q1 | NFLX, NVDA, ROK, SU FP, VRTX | - | - | - |
| Jan 31 2024 | 2023 Q4 | AMZN, ISRG, NOW, SAP, SND GR, VERX | - | - | - |
| Mar 3 2023 | 2022 Q4 | AAPL, ALGN, NKE, SIVB | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
SemiconductorsTaiwan Semiconductor represents the dominant manufacturer for leading fabless chip designers including NVIDIA, Apple, and Broadcom. The global arms race to develop artificial general intelligence will support multiple years of robust growth for foundries with leading-edge capabilities. |
Foundries Advanced Process AI Chips Manufacturing Technology Leadership | |
ValueBlue Tower focuses on value investing with international diversification. The manager notes that the valuation spread between cheap and expensive stocks is one of the greatest in market history, creating a favorable environment for their value-oriented approach. |
Value International Cheap Expensive Valuation | |
| 2025 Q3 |
DiversificationThe Fund remains purposefully diversified despite market leadership being narrow and focused on AI. This discipline reflects commitment to effective risk management and appropriate diversification, which weighed on relative performance but positions the Fund well for various market scenarios. |
Risk Management Portfolio Construction Concentration |
HealthcareFund focuses exclusively on healthcare sector with concentrated portfolio of small-cap companies. Investment approach targets special situations within healthcare including spin-offs, asset sales, business model pivots, and new product launches. Portfolio includes pharmaceutical, medical device, biotechnology, and healthcare IT companies. |
Pharmaceuticals Medical Devices Biotechnology Healthcare IT Special Situations | |
InfrastructureFiera Capital enhanced capabilities in infrastructure as a segment where they have deep expertise and privileged access to opportunities. This represents a strategic focus area for capital allocation. |
Infrastructure Private Markets Capabilities | |
| 2025 Q2 |
ArtificialIntelligence |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 14, 2025 | Fund Letters | Peter Baughan | ACN US | Accenture Plc | Information Technology | IT Services | Bull | NYSE | AI, Consulting, growth, innovation, IT services, Partnerships, valuation | Login |
| Oct 14, 2025 | Fund Letters | Peter Baughan | VRTX US | Vertex Pharmaceuticals, Inc. | Health Care | Biotechnology | Bull | NASDAQ | Biotech, Cystic fibrosis, growth, healthcare, innovation, Pricing power, R&D | Login |
| Oct 14, 2025 | Fund Letters | Peter Baughan | ELV US | Elevance Health, Inc. | Health Care | Managed Care | Bull | NYSE | cash flow, Demographics, growth, healthcare, Insurance, Regulation, valuation | Login |
| Oct 14, 2025 | Fund Letters | Peter Baughan | TMO US | Thermo Fisher Scientific Inc. | Health Care | Life Sciences Tools & Services | Bull | NYSE | healthcare, innovation, life sciences, Margins, R&D, recovery, valuation | Login |
| Oct 14, 2025 | Fund Letters | Peter Baughan | GOOGL US | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, Data, innovation, Margins, Search | Login |
| Oct 14, 2025 | Fund Letters | Peter Baughan | TCEHY US | Tencent Holdings Ltd. | Communication Services | Interactive Media & Services | Bull | - | advertising, AI, China, Gaming, growth, Internet, Margins | Login |
| Jul 16, 2025 | Fund Letters | Peter Baughan | ADBE | Adobe Inc. | Information Technology | Application Software | Bull | NASDAQ | AI Workflows, Content, Margins, Software | Login |
| Jul 16, 2025 | Fund Letters | Peter Baughan | BKNG | Booking Holdings Inc. | Consumer Discretionary | Online Travel Services | Bull | NASDAQ | AI, Margins, Personalization, platform, Travel | Login |
| Jan 20, 2026 | Fund Letters | Peter Baughan | GOOG | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, Margins, Search | Login |
| TICKER | COMMENTARY |
|---|---|
| 0700.HK | Tencent was mentioned as one of the largest contributors in 2025. |
| 1299.HK | Proceeds were deployed to three Asian companies: 1) Alibaba Group Holding is the largest Chinese e-commerce and cloud company, which has stabilized its e-commerce business and invested in the growing cloud business; 2) Asian insurance company AIA Group Limited is leveraging growing demand from Hong Kong, China and other Asian countries; and 3) Chinese company Ping An Insurance may benefiting from the structural demand for health and protection products given the aging population and limited coverage of national insurance. |
| 300760.SZ | Shenzhen Mindray Bio-Medical Electronics was listed as a top detractor to quarter-end fund performance. |
| 4519.T | During the quarter we initiated a position in Chugai Pharmaceutical, which is majority owned by Roche. We like the continued sales growth of its core products, and we think the market had underestimated the potential royalty payments for Orforglipron, a weight-loss pill which Chugai has licensed to Eli Lilly. |
| 6758.T | Sony |
| ABBV | Other increasers included AbbVie |
| ACN | Accenture is the world's leading IT consultant, with advantages stemming from their depth and breadth across products, geographies, and industries. Their revenue is split roughly in half between IT consulting and managed services. Over the last four years, Accenture's valuation has roughly halved. They've faced headwinds in IT spending and suffered from the perception that they are an AI loser. We believe that AI will cause deflationary pressure in parts of their business, but that it will be more than offset by the work required for enterprises to adopt AI. This is recently evidenced by partnerships with OpenAI and Anthropic. The AI supplier landscape is increasingly fragmented, and corporate customers need significant help adopting these technologies at scale. We believe this will drive AI suppliers and customers into Accenture's arms. The current cyclical pressures are being attributed to structural issues, which we believe is incorrect, creating an attractive long-term set-up. |
| ADBE | Later in the quarter we initiated Adobe, a stock we have held before, where we believe AI is more likely to enhance the product suite than disrupt it. |
| ALFA.ST | We also doubled down on existing Portfolio companies that had sold off by more than any change in the underlying business justified (e.g., Roche Holdings AG, Alfa Laval AG). |
| AME | Electronic instruments and electromechanical device manufacturer AMETEK Inc. rose 9%. Third quarter results came in ahead of sell-side expectations, with new orders leading to a record backlog. |
| AMZN | We added to our holdings in Amazon.com Inc. |
| APH | We trimmed Amphenol Corp. |
| ASML | ASML is the largest constituent of the MSCI EAFE Index as the critical toolmaker in the AI ecosystem. |
| ATCO-A.ST | Atlas Copco supplies industrial products and components, such as vacuum valves, air compressors, filters and pumps, into a wide variety of end markets. We expect the businesses we own to be commercially ambitious and look to grow their revenue faster than the markets they serve – even more so when those markets are challenged. We sold Atlas Copco in May, having become disappointed with its lack of observable self-help initiatives. |
| AVGO | Broadcom, a leading semiconductor company and long-term holding, continued to execute well amid strong demand for custom silicon supporting AI workloads. |
| BKNG | You may remember that we owned Booking during the pandemic. It is the world's leading online travel agency and a business we have admired for a long time. The company benefits from powerful network effects—more hotels attract more travelers, and vice versa—creating a moat that is incredibly difficult for competitors to cross. It is highly profitable, capital-light, and generates significant free cash flow. We were happy to re-enter this high-quality compounder at a valuation that offers a compelling margin of safety. |
| CME | Additionally, while CME is a great company and has been an excellent investment for our portfolio, it was at the high end of fair value, and we needed to make room for a new position as the portfolio was at out 20 stock holdings limit. |
| CSGP | CoStar Group is a premier information services provider to the commercial and residential real estate industries. For the last few years, we have watched the core businesses under the CoStar umbrella enjoy solid double-digit revenue growth along with consistent margin expansion. However, at the enterprise level, margins have contracted significantly due to the company's large and persistent investment in Homes.com. The results of the company's residential efforts have fallen dramatically short of its long-term expectations. |
| D05.SI | We have followed the company for many years, but aside from occasional trades, we had not felt compelled to build a meaningful position in a business—even one that is an industry leader—whose business is traditionally mainly asset-based lending and whose earnings are still meaningfully influenced by interest-rate cycles. Over the previous two years, we have been increasingly impressed by the extent to which DBS has converted scale and technology into a structural economic moat. |
| DE | Deere treaded water as the market wanted AI momentum and not our names. |
| DHR | After lagging through the first three quarters of 2025, Danaher's stock rebounded during Q4 as bioprocessing, life science, and diagnostics demand continued to recover from a cyclical trough. On the 3Q25 call, management established conservative 2026 growth expectations. Revenue is expected to continue to lag long-term trends at 3-6% but improve throughout the year. |
| DPLM.L | Diploma delivered strong, broad-based performance, supported by multiple businesses benefiting from the build-out of high-performance computing and data center infrastructure. |
| EFX | We divested our position in Equifax during the quarter following a strategic shift by FICO, a leading provider of credit scores to the mortgage industry. FICO announced plans to sell its credit scores directly to mortgage underwriters, bypassing the credit bureaus and thereby pressuring the economics that EFX has historically captured in the credit-scoring value chain. |
| ELV | Elevance's shares declined by approximately 3% in 2025, after having drawn down by over 20% the year prior. Both companies' share prices are now at levels first reached during 2021. We happen to believe both securities are attractive at current levels. In fact, we added modestly to Elevance during the year. |
| FN | Fabrinet Information Technology 1.6 |
| GMAB | Genmab, our largest position, is a prime example. Investors often flee when a patent cliff for a flagship product like Genmab's Darzalex (late 2020s/early 2030s) looms, fixating on the certain loss of legacy revenue while completely discounting what might replace it. Meanwhile, a slate of late-stage assets and growing partnered drugs are only beginning to contribute revenue well into the 2030s. The company's R&D machine, still run by scientist-founder Dr. Jan van de Winkel, fosters disciplined capital allocation and scientific excellence, and its recent acquisition of ProfoundBio slots antibody-drug-conjugate technology neatly into its core expertise. Yet, the market treats Genmab as a single-product story, which allowed us to acquire the stock at a price lower than the cash flows from its commercialised drugs alone, essentially getting a world-class discovery platform (which has yielded eight approved medicines thus far) for free. |
| GOOGL | I'm willing to go bankrupt rather than lose this race. Larry Page, co-founder of Google |
| HEI | We've held HEI since early 2021. It's one of those quietly excellent family businesses. The Mendelsons have run it for decades, they own a meaningful stake, and they've built durable niches in aerospace parts and defense electronics. HEI was up 36% in 2025, hitting new highs on strong results across both their Flight Support and Electronic Technologies divisions. They keep doing what they do: disciplined acquisitions, high returns on capital, strong cash generation. |
| HON | Honeywell is a US multinational leader in aerospace and industrial automation that is simplifying its business. Following the separation of its advanced materials business in late 2025, Honeywell's aerospace division will spin off in 2026. |
| JNJ | Johnson & Johnson stock demonstrated strong performance in Q4, driven by robust financial results, upward guidance revisions, and accelerating growth for the pharmaceutical and medical technology segments. The company's consistent execution across key business segments and positive market sentiment, despite a significant headwind from Stelara generics, contributed to its outperformance relative to broader market indices. |
| META | Meta was cited as a larger position that contributed little despite what I thought was positive operating progress, representing opportunity cost in the portfolio. |
| MSFT | OpenAI's well-documented 'circular' funding with its business partners (NVIDIA, Microsoft, among others) is additional cause for concern. |
| NFLX | Netflix has built a durable economic moat around its vertically-integrated, globally-scaled streaming business. As the first company to establish a global subscription media platform within the $500 billion TV market, Netflix is now reaping the benefits of its early leadership. With more than 300 million members, Netflix enjoys the lowest content cost per subscriber in the industry. |
| NVDA | Nvidia sits at the top of the S&P 500 as the designer in the AI ecosystem. |
| PGR | Cadence, Linde, United Rentals, and Progressive rounded out the top-five detractors in the quarter. |
| ROG.SW | Roche contributed positively. We can attribute this both to stabilisation of their core businesses and also encouraging pipeline developments in oncology and obesity treatments. The investment case for these related companies is starting to play out positively, and we see several years of continued pipeline momentum ahead. |
| SAP | We trimmed SAP SE. |
| SHEL | Global oil & gas producer and distributor |
| SLB | Venezuela's regime change should benefit energy companies operating in the country, as well as oilfield service providers such as SLB, which are likely to play a critical role in restoring and expanding Venezuela's oil production capacity. |
| SU.PA | Roughly one third of the portfolio, from Legrand to Schneider to Microsoft, is involved in the AI build-out in some way, from power to cooling to efficiency support. |
| TMO | Thermo Fisher Scientific was up on improved sentiment toward the health care sector. |
| TSM | TSMC leads the MSCI Emerging Markets Index as the manufacturer in the AI ecosystem. |
| TTD | Communication Services also detracted from relative performance, driven by early-year weakness in The Trade Desk (TTD). The company, one of the world's largest independent demand-side advertising platforms, faced its first revenue miss in more than eight years and issued softer-than-consensus expected guidance. These challenges were compounded by disruptions from a sales reorganization and slower adoption of its new AI-powered platform, Kokai. |
| TW | Tradeweb -1.4% |
| V | We added to our holdings in Visa Inc. |
| VRTX | Vertex Pharmaceuticals benefited from growing optimism around its kidney disease pipeline and continued to demonstrate the value of idiosyncratic, innovation-driven growth. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| No Recent Buys Data | |||||
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| No industry data available | |||
