| 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 dependent on AI continuing to surprise to the upside due to richer valuations and concentrated exposure. Global semiconductor ecosystem enables AI buildout, spanning chip foundries, memory-chip makers, and equipment manufacturers. International markets are more heavily tilted toward this manufacturing and infrastructure provider segment. International markets trade at roughly half the multiples of US stocks, offering more attractive valuations. Non-US markets start from cheaper valuations and possess more diverse growth opportunities unrelated to AI. |
| 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 emphasizes healthcare as a secular growth engine supported by demographics and innovation. Exposure to Accenture and Thermo Fisher reflects conviction in durable, high-quality earnings. |
| 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 expanding profit pools driven by AI adoption. The theme extends to enablers and downstream beneficiaries beyond mega-cap tech. |
| 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 been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
SemiconductorsRGA initiated a position in Lattice Semiconductor, viewing it as an under-appreciated AI winner with immediate gains and longer-term optionality. Lattice's focus on efficiency and advantages in low-power, small footprint FPGAs position it favorably for AI servers, particularly as the only Post-Quantum Cryptography secure chips on the market. |
FPGAs Security Efficiency AI Infrastructure Programmable | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 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 |
HealthcareHealthcare was the strongest relative contributor in the quarter with holdings increasing nearly +16% compared to benchmark returns of roughly +12%. Exact Sciences was acquired for a significant premium by Abbott Laboratories resulting in an +86% return, while other strong performers included Tarsus Pharmaceuticals, Glaukos following approval of a new product, Penumbra, and Repligen driven by strong earnings results. |
M&A Product Approval Earnings Biotech | |
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 | Shinya also visited Shenzhen, where Star Magnolia Capital organized an educational visit for our families to Tencent's headquarters, alongside meetings with several promising early-stage companies. |
| 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. 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. |
| ADBE | By looking at their Rnancials, FactSet, PayPal, Adobe, and Salesforce seem to be doing Rne. The market, however, is reading subdued revenue growth as a sign of increased competition on their core oSerings. These companies' outlooks look more di'cult than their past. |
| 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 | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| APH | We trimmed Amphenol Corp. |
| ASML | ASML, TSMC, and Arista Networks are key players in the AI build out supply chain. |
| 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 | The primary contributors to its performance were our exposures to Broadcom |
| 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 | The shares of CoStar Group, Inc., the global leader in digitizing real estate, declined in the fourth quarter, due to concerns that the company's residential Homes.com platform will continue to require significant capital investment and competitive worries that Google's new real estate advertisement format and Zillow's OpenAI partnership could divert traffic from Homes.com in the years ahead. |
| 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 | The holdings in Applied Materials, Elevance Health, LVMH and Anheuser-Busch InBev were exited |
| 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 | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| 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 | During the quarter, we switched out of a long-held position in Johnson & Johnson into a new holding in Merck. |
| META | On January 9, Meta Platforms unveiled a new agreement with Vistra—the largest generator of competitive electricity in the United States—as well as with TerraPower and Oklo. The announcement builds on Meta's agreement last year with Constellation Energy and positions the company to become one of the largest corporate purchasers of nuclear-generated electricity in the United States. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| NFLX | NFLX was the portfolio's largest detractor in 4Q25 following investor concerns around near-term subscriber growth and rising content spending. While revenue grew approximately 10% year-over-year, management guided to slower net subscriber additions in North America and Europe after recent price increases, and margins were pressured by elevated investment in live sports and international content. |
| NVDA | AI bellwether NVIDIA's very strong set of earnings in late November helped the AI theme re-assert its dominance when investors breathed a sigh of relief following the results. |
| PGR | Cadence, Linde, United Rentals, and Progressive rounded out the top-five detractors in the quarter. |
| ROG.SW | Top gainers among the Fund's holdings included Roche (+27%) |
| 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 a strong contributor with 8.69% ending weight and 1.47% contribution. |
| TSM | TSMC was a top contributor during the quarter, driven by robust demand for advanced semiconductor manufacturing and improved gross margins as AI continues to grow strong and the non-AI segment showed signs of recovery. Management raised its revenue growth guidance to the mid-30% range, and given continued strength in demand, AI-related growth targets are expected to move above the current mid-40% level. |
| 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 | There were companies there such as Visa, which we own, as well as many we do not, and which would not likely be appropriate for this mandate. |
| VRTX | Top gainers in the Fund this quarter included Vertex Pharmaceuticals (+16%) |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
