| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.17% | -5.55% | -5.55% |
Harding Loevner's Global Equity portfolio declined 5.5% gross in Q1 2026, underperforming the MSCI ACWI Index's 3.1% decline amid extraordinary geopolitical events including military action in Iran that disrupted energy markets. The Energy sector climbed 34% as Brent crude rose over 60%, while AI disruption moved beyond software into other digital economy areas. The portfolio emphasizes resilience through diversification and financial strength, with holdings less leveraged than the benchmark. Key contributors included ASML on strong semiconductor equipment demand and energy holdings Shell and SLB. Detractors included Booking Holdings amid AI disintermediation concerns and Tencent on AI investment questions. The manager added aerospace aftermarket plays Safran and HEICO, plus low-cost carrier Ryanair, while exiting CoStar due to residential platform execution risks. The strategy focuses on companies with durable competitive advantages and healthy balance sheets positioned to navigate volatility, particularly benefiting from infrastructure modernization and energy transition trends supporting long-term structural growth.
Build a portfolio of financially strong companies with durable competitive advantages that can withstand a broad range of economic scenarios, focusing on businesses whose earnings aren't dependent on a narrow set of economic outcomes while benefiting from long-term structural growth trends in infrastructure and technology.
If the current energy shock proves to be more than transitory, businesses with durable competitive advantages, healthy balance sheets, and the ability to fund their own growth will continue to have the upper hand. The objective is not to predict periods of stress or try to trade around them to any significant degree but rather to build a portfolio resilient enough that such events do not force reactive decisions.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 13 2026 | 2026 Q1 | 0700.HK, ADBE, ASML, BKNG, CME, HDFCBANK.NS, HEI, RYA.L, SAF.PA, SAP.DE, SHEL, SLB, SONY, SU.PA, TSM, TW | aerospace, AI, energy, Geopolitical, infrastructure, Quality, Resilience, technology | - | Harding Loevner's global equity strategy underperformed in Q1 2026 amid Iran conflict driving energy surge and AI disruption weighing on tech. The portfolio emphasizes financial resilience over reactive positioning, adding aerospace aftermarket exposure while maintaining focus on quality companies with competitive advantages positioned for infrastructure modernization and energy transition themes. |
| 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 | US equity exceptionalism has created dangerous concentration with top 10 stocks at 40% of global markets, heavily dependent on AI capex continuing to surprise upward. International markets trade at half US valuations while providing essential AI infrastructure and diverse growth opportunities. Portfolio balances AI exposure with geographic diversification to capture global winners beyond US mega-caps. |
| Oct 14 2025 | 2025 Q3 | 0700.HK, 1299.HK, 2308.TW, 300760.SZ, 4519.T, 6146.T, 6758.T, 6861.T, ABBV, ACN, ADBE, ALC, ALFA.ST, AME, AMZN, APH, ASML, ATCO-A.ST, ATD.TO, ATKR, AVGO, BKNG, CME, CPG.L, CSGP, D05.SI, DE, DHR, DPLM.L, ELV, EPI-A.ST, GLOB, GMAB, GOOGL, HDB, HEI, HLN.L, HON, JNJ, META, MSFT, NFLX, NOC, NOW, NVDA, PGR, ROG.SW, SAP, SGSN.SW, SHEL, SLB, SNPS, SU.PA, TMO, TSM, TTD, TW, V, VRTX, WMMVY | AI, diversification, global, healthcare, momentum, technology, valuation |
ACN US VRTX US ELV US TMO US GOOGL US TCEHY US |
Harding Loevner's diversified global equity strategy significantly underperformed in Q3 as AI-driven momentum investing reached 70-year highs. The portfolio deliberately avoids chasing momentum stocks, maintaining discipline in valuation and diversification despite near-term headwinds. Management expects their fundamental approach to deliver superior long-term returns as market leadership cycles and excessive AI spending eventually reverses. |
| Jul 16 2025 | 2025 Q2 | 0700.HK, 1299.HK, 300760.SZ, 4519.T, 6146.T, 6758.T, 6861.T, ABBV, ACN, ADBE, ALC, ALFA.ST, AMAT, AME, AMZN, APH, ASML, ATCO-A.ST, ATD.TO, ATKR, AVGO, BBCA.JK, BKNG, CME, CPG.L, CRM, CSGP, D05.SI, DE, DHR, DPLM.L, EPIA.ST, GLOB, GMAB, GOOGL, HDFCBANK.NS, HEI, HLN.L, HON, JNJ, META, MSFT, NFLX, NOC, NOW, NVDA, PGR, ROG.SW, SAP, SGS.SW, SHEL, SLB, SNPS, SU.PA, SY1.DE, TMO, TSM, TTD, TW, V, VRTX, WALMEX.MX | AI, Cloud, Data centers, global, growth, semiconductors, technology |
ADBE BKNG ADBE |
The portfolio capitalizes on AI's transition from potential to reality, with holdings demonstrating real AI applications and measurable business effects. Despite Q2 underperformance due to Health Care headwinds, the manager remains confident in the AI thesis, adding to Adobe and Disco Corp while benefiting from strong performance in Communication Services and semiconductor infrastructure plays. |
| Mar 31 2025 | 2025 Q1 | 002230.SZ, 0700.HK, 1299.HK, 4519.T, 6758.T, 6861.T, ABBV, ACN, ADBE, ALC, ALFA.ST, AMAT, AME, AMZN, APH, ASML, ATCO-A.ST, ATD.TO, ATKR, AVGO, BBCA.JK, BKNG, CME, COMP.L, CRM, CSGP, D05.SI, DE, DHR, DPLM.L, EPI-A.ST, GLOB, GMAB, GOOGL, HDFCBANK.NS, HEI, HLN.L, HON, META, MSFT, NFLX, NOC, NOW, NVDA, ROG.SW, SAP, SGSN.SW, SHEL, SLB, SNPS, SU.PA, SY1.DE, TMO, TSM, TTD, TW, UNH, VRTX, WMMVY | AI, Geopolitical, global, Policy Uncertainty, Quality, semiconductors, technology, Trade Policy | - | Harding Loevner's Global Equity strategy declined 2.12% in Q1 amid heightened US trade policy uncertainty and AI-related volatility. The manager used market disruption to purchase quality companies like ASML and HEICO at attractive prices while trimming expensive positions. The portfolio remains underweight US equities, favoring resilient international businesses positioned to grow despite geopolitical challenges. |
| Dec 31 2024 | 2024 Q4 | 0700.HK, 1299.HK, 4519.T, 6758.T, 6861.T, 9962.T, AAPL, ABBV, ACN, ADBE, ADYEN.AS, ALC, ALFA.ST, AMAT, AMZN, ATCO-A.ST, ATKR, ATU.TO, AVGO, BBCA.JK, BKNG, CME, CRM, CSGP, D05.SI, DE, DHR, DPLM.L, EPI-A.ST, GLOB, GMAB, GOOGL, HDFCBANK.NS, HLN.L, HON, META, MSFT, NFLX, NOC, NOW, NVDA, RGEN, ROG.SW, ROK, SAP, SGSN.SW, SHEL, SLB, SNPS, SU.PA, SY1.DE, TMO, TSM, TW, UNH, VRTX, WMMVY | AI, Data centers, geopolitics, global, growth, semiconductors, technology, Trade Policy | - | Harding Loevner's global equity strategy delivered -0.95% in Q4, matching benchmark performance, with full-year returns of 14.50% trailing the index by 350bp. Strong AI-driven themes continue with data center investment growth exceeding 20%, while semiconductor positioning reflects geopolitical risk management. The manager maintains their bottom-up fundamental approach despite increasing trade policy complexity and regulatory uncertainty in healthcare. |
| Sep 30 2024 | 2024 Q3 | 0700.HK, 1299.HK, ADYEN.AS, AMZN, B3SA3.SA, BBCA.JK, BKNG, CME, CPG.L, GOOGL, HDFCBANK.NS, HLN.L, KER.PA, META, NFLX, PINS, SLB, SONY, TW, WALMEX.MX | AI, China, global, growth, healthcare, momentum, Quality, semiconductors | - | Harding Loevner underperformed in Q3 as momentum-driven markets favored large index stocks they don't own. The team deliberately avoids momentum investing despite recent challenges, focusing on fundamental analysis and quality growth companies. They reduced expensive holdings, particularly in the US, while adding to medtech names during weakness. China stimulus drove late-quarter Asian gains. |
| Jul 18 2024 | 2024 Q2 | 0700.HK, 1299.HK, ABBV, ADYEN.AS, ALC, AMZN, BKNG, CME, COST, DHR, GOOGL, ISRG, KER.PA, META, NFLX, OR.PA, PINS, SLB, SONY, TW | AI, competition, global, growth, innovation, Quality, semiconductors, technology | - | Harding Loevner matched the index despite avoiding NVIDIA, benefiting from semiconductor value chain holdings like ASML and TSMC. The manager emphasizes quality and diversification as essential for navigating innovation-driven competition. AI secular growth is expected to benefit software companies as enterprises adopt generative AI tools, while maintaining focus on companies with sustainable competitive advantages. |
| Apr 15 2024 | 2024 Q1 | 0700.HK, 1398.HK, 2607.HK, 4519.T, 6758.T, AAPL, ABBV, ACN, ADBE, ALC, AMAT, AME, AMZN, ASML, ATCO-A.ST, AVGO, B3SA3.SA, BBCA.JK, BHP, BKNG, CME, COST, CRM, CSCO, CSGP, DE, DHR, GLOB, GMAB, GOOGL, HDB, HON, ISRG, KER.PA, LLY, MELI, META, MSFT, NFLX, NKE, NOC, NOW, NVDA, OR.PA, PINS, RGEN, RIO, ROG.SW, ROK, SAP, SGSN.SW, SLB, SNPS, SU.PA, SY1.DE, TMO, TSLA, TSM, TW, UNH, VRTX | AI, global, growth, Quality, software, technology | - | Harding Loevner sold NVIDIA entirely despite AI optimism, citing valuation concerns and competitive threats. They're pivoting to software companies like Salesforce and new holding Globant that can benefit from AI adoption without hardware dependency. The strategy emphasizes durable competitive advantages over momentum, positioning for AI's second wave of business application deployment rather than infrastructure buildout. |
| Jan 31 2024 | 2023 Q4 | ADBE, ADYEN.AS, AMZN, ASML, AVGO, CRM, GOOGL, ISRG, META, MSFT, NFLX, NOW, NVDA, PINS, SAP, SNPS, SU.PA, VRTX | AI, global, growth, innovation, Quality, semiconductors, software, technology |
AIR FP|ICLR|LIN|MRVL|NOW|TSM MELI|NFLX|ORCL|TCOM|VRTX|YUMC |
Strong Q4 performance driven by AI-focused technology holdings including ServiceNow and semiconductor recovery plays. Manager sees AI infrastructure boom creating long-term productivity gains for quality companies with proprietary data advantages. Maintains diversified approach across 50+ holdings to navigate geopolitical risks while portfolio valuations appear attractive relative to past decade. |
| Mar 3 2023 | 2022 Q4 | AAPL, ALGN, NKE, SIVB | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
EnergyEnergy sector climbed nearly 34% in the quarter following military action in Iran that lifted oil prices. Brent crude rose more than 60%, its largest monthly gain on record, while West Texas Intermediate crude settled above $100 a barrel for the first time since 2022. The portfolio holds Shell and SLB which benefited from rising oil prices. |
Oil Energy Trading Geopolitical Iran Crude |
AIAI disruption moved beyond software and IT services into other areas of the digital economy, weighing on stocks such as Booking Holdings. The rolling thunder of AI disruption affected various sectors while training and operating advanced models require large, continuous supplies of electricity, tying the AI industry's growth to energy infrastructure availability. |
Data Centers Cloud Semiconductors Energy Infrastructure Disruption | |
AerospaceCommercial aerospace production has struggled to keep pace with steadily growing demand for air travel. The industry has about 5,300 fewer aircraft than previously expected, with order backlog equivalent to about 58% of the industry's active fleet. Companies focused on the aftermarket like Safran and HEICO benefit from these conditions through monopoly-like economics over engine lifecycles. |
Aerospace Components Aftermarket Supply Chain Airlines Defense | |
ResilienceThe portfolio emphasizes building resilience through diversification and holding businesses whose earnings aren't dependent on a narrow set of economic outcomes. Financial strength helps determine which companies can absorb pressures while continuing to grow, with the portfolio's holdings being less leveraged and better capitalized than the benchmark. |
Quality Balance Sheet Diversification Risk Management Competitive Advantage | |
Infrastructure SpendingThe gap between what physical infrastructure exists and what the modern economy needs is apparent in energy. Reliable power infrastructure has become increasingly critical to support the demands of the AI era. Companies like Schneider Electric provide equipment and software needed to build and manage this infrastructure. |
Grid Upgrade Energy Transition Electrical Equipment Power Electronics Automation | |
Private CreditPrivate credit funds have come under increasing scrutiny with two private credit-backed companies declaring bankruptcy last year. Anxiety over AI disruption fueled redemption requests at funds exposed to software companies' debt, prompting some firms including Blue Owl to limit redemptions and reigniting concerns about opacity and illiquidity. |
Credit Stress Liquidity Redemptions Systemic Risk Underwriting | |
| 2025 Q4 |
Defense SpendingCanada announced significant defense spending increases to reach 2% NATO target in 2026 and 5% GDP by 2035. This represents a potential sea change in investment levels with cumulative spending reaching substantial billions over the next decade. |
NATO Military Infrastructure Government |
AIThe AI capital cycle has driven technology sector spending from $100B in 2020 to $400B expected in 2026. This massive investment will lower returns on capital and profitability as infrastructure depreciates over 5-8 years. |
Data Centers Capital Cycle Technology Infrastructure | |
Trade PolicyUS tariffs pushed average rates to levels not seen in over 100 years. Tariffs are now a permanent reality for the global economy, driving countries toward National Capitalism policies. |
Tariffs Protectionism Global Trade | |
Energy TransitionFederal-Alberta MOU aims to increase oil and gas production while reaching carbon neutrality by 2050. Focus on reducing regulatory overlap and achieving 2-year permitting timeframes for energy projects. |
Oil Gas Regulation Carbon | |
Infrastructure SpendingCanada's pivot includes prioritizing key infrastructure investments alongside defense and energy sector reforms. Toromont Industries positioned to benefit from elevated infrastructure spending levels. |
Construction Equipment Investment | |
| 2025 Q3 |
AIAI represents a real secular change reshaping industries but creates broad uncertainty in markets. The impact could be incremental or profoundly disruptive, making historical fundamentals less reliable. Markets reward companies perceived as central to AI buildout while penalizing those that don't fit the narrative. |
Artificial Intelligence Technology Disruption Semiconductors Cloud |
MomentumThe past six months were one of the strongest periods for momentum investing in over 70 years, with high-momentum stocks outperforming low-momentum stocks by 45 percentage points. The portfolio deliberately resists incorporating price momentum as a factor due to weak connection to fundamentals and trading costs. |
Price Momentum Performance Trading Outperformance Concentration | |
HealthcareHealth Care sector benefits from long-term trends including aging populations, innovation in oncology and rare diseases, and projected growth in national health expenditures outpacing GDP. The sector shows signs of recovery from pandemic dislocations with improving hospital finances and stabilizing fundamentals. |
Demographics Innovation Pharmaceuticals Medical Devices Aging | |
| 2025 Q2 |
AIAI models released in 2024 have demonstrated marked improvement in performance against new benchmarks, including major strides in reasoning to solve complex problems. Many companies can now point to real products and applications as well as measurable effects on their businesses. Competition among big tech companies appears to be intensifying as more companies join the race to develop cutting-edge AI systems. |
Machine Learning Data Centers Semiconductors Cloud Automation |
SemiconductorsCutting-edge AI chips have much more intricate structures than traditional semiconductors, requiring more chiplets to be diced and polished with greater precision. The buildout of AI data centers is fueling demand for connectors and other semiconductor components. Companies like Disco Corp benefit from the increasingly complex designs of AI chips. |
AI Chips Foundries Equipment Packaging Memory | |
Data CentersThe aggressive investment by large data-center operators looks less speculative than it once did, with both Microsoft and Amazon's AI revenues reaching multi-billion-dollar levels. The buildout of AI data centers around the world is driving demand for electrical equipment and semiconductor components. |
Cloud Infrastructure AI Infrastructure Power Equipment Cooling Servers | |
CloudCloud infrastructure companies are benefiting from the AI transition, with major cloud providers seeing significant AI revenue growth. The shift toward AI applications is driving increased demand for cloud services and infrastructure. |
SaaS Infrastructure Computing Storage Networking | |
| 2025 Q1 |
Trade PolicyThe letter extensively discusses heightened US policy uncertainty, particularly around trade policy, with early salvos in the new trade war hitting China, then re-targeting Canada, Mexico, and US allies in Europe and Asia. The manager notes that tariffs and policies aimed at forcing US self-sufficiency create business uncertainty and undermine investment appetite. |
Tariffs Self-sufficiency Protectionism Policy uncertainty Trade war |
AIThe portfolio was impacted by volatility triggered by the January release of DeepSeek, a Chinese-developed LLM model claiming similar performance to cutting-edge AI models at a fraction of the cost. This created shockwaves through the semiconductor industry and affected AI-exposed companies globally. |
DeepSeek LLM Semiconductor AI models Technology disruption | |
SemiconductorsThe letter discusses ASML Holdings, the world's sole producer of extreme ultraviolet lithography systems needed for the smallest, most powerful chips required for smartphones, computers, and AI data centers. The company faced volatility due to concerns over restrictions on sales to China and slower-than-expected orders. |
ASML Lithography Chip manufacturing China restrictions Equipment | |
QualityThe manager emphasizes their quality-growth investing approach, focusing on companies with superior profitability and sustainable competitive advantages. They discuss the challenge that great businesses are not secrets and can stay expensive for extended periods, requiring careful timing and valuation discipline. |
Quality-growth Sustainable growth Competitive advantages Valuation discipline Business quality | |
| 2024 Q4 |
AIArtificial intelligence continues to drive significant investment and growth across multiple sectors. The manager discusses the sustained momentum in AI development, with companies like OpenAI, xAI, Anthropic raising billions for infrastructure spending. New large language models have launched showing significant improvements, particularly in creating chains of thought to simulate human reasoning. The runway for model development remains long, suggesting sustainable demand for increasingly powerful hardware. |
Data Centers GPUs Cloud Semiconductors Enterprise Software |
SemiconductorsThe semiconductor industry faces both opportunities and geopolitical risks. NVIDIA maintains its technological lead through next-generation products like the Blackwell server rack system and its CUDA software ecosystem. However, export restrictions to China and competitive threats from custom ASICs create uncertainty. The manager sold ASML due to geopolitical risks and valuation concerns, then later repurchased NVIDIA after industry valuations compressed. |
GPUs Memory Semi Equipment Foundries EDA | |
Trade PolicyThe incoming Trump administration may implement more sophisticated protectionist measures compared to the first term. Companies have already made initial supply chain adjustments, but further trade restrictions could require harder and costlier changes. The manager notes that global trade has held up over the past eight years despite various tariffs and sanctions, but additional restrictions could reignite inflation and create more significant business disruptions. |
Sanctions Industrial Policy Onshoring Inflation | |
Data CentersAI-related demand is driving significant growth in data center infrastructure investment. Capital investment in AI data centers is expected to grow by more than 20% according to Morgan Stanley. This benefits not only chip companies like NVIDIA but also infrastructure providers like Schneider Electric, whose electrical and cooling equipment are complementary to power-intensive GPUs that produce significant heat. |
AI Cloud Power Equipment Electrical Equipment Energy Efficiency | |
| 2024 Q3 |
MomentumThe letter extensively discusses momentum investing challenges, noting that disciplined fundamental investors have been challenged by momentum concentrated in a few large stocks. The manager explains their deliberate resistance to incorporating momentum factors due to trading costs, volatility, and FOMO risks. |
Momentum FOMO Volatility Trading Drawdowns |
AIThe letter discusses AI-related investments and their impact on semiconductor demand. It notes that investors began questioning whether generative AI adoption will justify large outlays for specialized AI chips, and mentions the broader AI ecosystem's influence on market dynamics. |
AI Semiconductors Generative AI Technology Chips | |
SemiconductorsThe manager reduced semiconductor exposure earlier in the year as the sector underperformed. They discuss the end of Moore's Law and the industry's shift toward advanced-packaging technologies, benefiting companies like Applied Materials over traditional lithography-focused firms. |
Semiconductors Moore's Law Packaging Lithography Equipment | |
ChinaChina unveiled a sweeping stimulus package to boost credit availability and stabilize real estate markets. The MSCI China Index surged over 20% in two weeks following the stimulus announcement, with companies having Chinese consumer exposure also rallying. |
China Stimulus Real Estate Consumer Policy | |
| 2024 Q2 |
AIThe race for artificial-intelligence solutions is driving innovation across sectors, with companies like Adobe, OpenAI, and others competing to develop generative AI capabilities. The manager expects software and services businesses to become primary beneficiaries as large companies embrace generative AI. Competition in AI is intense, with new capabilities being unveiled regularly by tech startups and incumbents. |
Generative AI ChatGPT Machine Learning Software Innovation |
SemiconductorsASML's extreme ultraviolet lithography machines and TSMC's next-generation semiconductors are enabling more powerful, energy-efficient chips to meet surging demand for high-performance computing. The semiconductor value chain, including Applied Materials, Broadcom, and TSMC, continues to benefit from AI-driven demand. TSMC plans to advance chip technology from N3 to A16, potentially increasing transistor count from 100 billion to over 1 trillion within a decade. |
EUV Lithography Chip Manufacturing Moore's Law Transistors Foundries | |
InnovationThe manager emphasizes that long-term prosperity relies on innovation, with companies like Intuitive Surgical, Tradeweb, and Alcon pioneering advances in their respective fields. Innovation breeds competition, making quality and diversification vital portfolio characteristics. The firm seeks companies that can deliver sustained high profitability from riding waves of innovation while maintaining competitive advantages. |
R&D Competitive Advantage Technology Growth Disruption | |
QualityThe manager's research process focuses on businesses displaying financial strength, competent management teams, and sustainable competitive advantages. Quality companies characterized by lower leverage and more stable returns on capital fared better than lower quality peers. The MSCI All Country World Quality Index outperformed the core index by over 300 basis points. |
Financial Strength ROE Stability Balance Sheet Management Competitive Moats | |
| 2024 Q1 |
AIThe fund sold NVIDIA due to valuation concerns despite believing in AI's transformational impact. They are investing in more reasonably priced software companies positioned to benefit from AI, including Salesforce, Globant, and SAP. The managers see strong prospects for many holdings as AI applications proliferate but emphasize the importance of durable competitive advantages. |
Software Semiconductors Data Cloud Enterprise |
SoftwareSoftware companies offer different types of durable competitive advantages that enable them to profit from AI advances without being priced for perfection. Leading software companies have high switching costs and can incorporate new AI features into existing products. Global IT spending on software is projected to grow 12.7% this year. |
SaaS Enterprise Software CRM ERP Cloud | |
Data CentersSchneider Electric outperformed on growing expectations for its data-center business, as the company is one of only a handful capable of providing power and cooling technology needed to support the AI data boom. The fund sees this as a key infrastructure play for the AI revolution. |
Infrastructure Power Cooling AI Infrastructure | |
| 2023 Q4 |
AIAI infrastructure boom of 2023 will serve as foundation for long-term productivity improvements across global enterprises. Companies will connect data sets to language models with AI agents to automate tasks and serve customers. First-mover advantages in language models will dissipate as open-source models proliferate, making proprietary data sets the source of lasting competitive advantage. |
Artificial Intelligence Language Models Automation Productivity Data |
Semiconductor CycleAnticipation of a bottom in the semiconductor cycle propelled shares of chip and equipment manufacturers. The sector benefited from expectations for lower interest rates and continued investment in AI infrastructure. Companies like Broadcom and ASML saw strong performance as markets priced in recovery. |
Semiconductors Chip Equipment Cycle Bottom Recovery | |
CloudBusinesses increasingly recognize the need for consolidated, cloud-based infrastructure to support evolving business models. ServiceNow has become a preferred vendor for addressing these needs through its simplified platform architecture. The shift toward cloud enables cost efficiency and productivity improvements. |
Cloud Infrastructure Platform Digital Transformation Efficiency | |
Enterprise SoftwareUniversal pursuit of lower costs and higher productivity offers growth potential for software providers able to automate labor-intensive processes. All enterprise software holdings have ability to overlay AI features onto existing offerings and are seeing rising customer demand for such capabilities. |
Software Automation Productivity AI Integration Enterprise |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 20, 2026 | Fund Letters | Peter Baughan | GOOG | Alphabet Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | advertising, AI, cloud, Margins, Search | 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 | 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 | TCEHY US | Tencent Holdings Ltd. | Communication Services | Interactive Media & Services | Bull | - | advertising, AI, China, Gaming, growth, Internet, Margins | 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 |
| 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 |
| Jun 30, 2025 | Fund Letters | Harding Loevner Global Equity | ADBE | Adobe | Information Technology | Software | Bull | NASDAQ | Artificial Intelligence, Content Creation, Creative Tools, digital media, generative AI, SaaS, Software, Workflow Software | Login |
| Dec 31, 2023 | Fund Letters | Harding Loevner Global Equity | MELI|NFLX|ORCL|TCOM|VRTX|YUMC | Vertex Pharmaceuticals | Health Care | Biotechnology | Bull | NASDAQ | biotechnology, CRISPR, Cystic fibrosis, Drug Discovery, gene therapy, Orphan drugs, rare disease, Sickle Cell Disease, Type 1 Diabetes | Login |
| Dec 31, 2023 | Fund Letters | Harding Loevner Global Equity | AIR FP|ICLR|LIN|MRVL|NOW|TSM | ServiceNow | Information Technology | Systems Software | Bull | NYSE | Artificial Intelligence, Cloud computing, Digital transformation, Enterprise software, government contracts, IT services, SaaS, workflow automation | Login |
| TICKER | COMMENTARY |
|---|---|
| ASML | ASML, the world's largest supplier of advanced lithography machines. Fourth-quarter 2025 bookings were nearly double consensus expectations, and management said the outlook for 2026 had improved. |
| CME | After the war broke out, trading in crude oil futures and interest-rate contracts surged on CME Group's exchanges. |
| TW | Tradeweb, an electronic fixed-income exchange, similarly reported a jump in January trading volumes in addition to a nearly 13% year-over-year increase in revenue for the fourth quarter of 2025, supported by higher volumes across interest-rate swaps, global government bonds, and mortgages. |
| SLB | our holdings in US oilfield-services company SLB and UK-based producer Shell benefited from rising oil prices. |
| SHEL | our holdings in US oilfield-services company SLB and UK-based producer Shell benefited from rising oil prices. |
| BKNG | Booking Holdings' solid operational results and reassuring outlook were overshadowed by broad concern that increasingly capable AI tools will disintermediate online services including travel platforms. |
| ADBE | As the market wrestled with the implications of cheaper and more accessible code, software providers such as Adobe and SAP also weighed on IT returns. |
| SAP.DE | As the market wrestled with the implications of cheaper and more accessible code, software providers such as Adobe and SAP also weighed on IT returns. |
| 0700.HK | In Communication Services, Tencent was the main detractor, as investors question its ability to profit from its aggressive investment in AI. |
| HDFCBANK.NS | Among the limited number of bank stocks we own, India's HDFC Bank declined more than the broader Indian market following the resignation of its chairman. While the development raised concerns, the bank quickly appointed a well-regarded interim chair and stressed that the resignation was for personal reasons. |
| SAF.PA | One is engine manufacturer Safran, a recent addition to the portfolio. Engines are often sold below cost to Boeing or Airbus but generate decades of high-margin aftermarket revenue. Aircraft engines typically remain in service for about 30 years, during which maintenance and part replacement are frequent and often required by regulators. |
| HEI | HEICO is another holding focused on the aftermarket, operating as the aerospace equivalent of a generic-drug manufacturer. It reverse-engineers components originally produced by original equipment manufacturers (OEMs), obtains Federal Aviation Administration approval for their replacement parts, and sells those parts at a discount, typically around 20% below OEM pricing. |
| RYA.L | This quarter, however, we added Ryanair, Europe's leading low-cost carrier. Ryanair is a rare example of an airline that consistently earns returns above its cost of capital while continuing to grow. The foundation of its success is an obsessive focus on cost control. |
| SU.PA | Schneider Electric is a good example. Widely known as a supplier of electrical components for buildings, the company also has a large energy-management business that has grown alongside global demand for electrification and, more recently, the power demands of AI data centers. Schneider reported 11% year-over-year growth in energy-management sales in the fourth quarter of 2025, including a 19% increase in North America, helping overall company sales to exceed management's forecast. |
| DPLM.L | Diploma, a UK distributor of industrial components, raised its outlook for organic revenue growth this year from 6% to 9%, citing favorable supply-demand dynamics in the aerospace industry, which are supporting sales of fasteners and cables, alongside rising North American demand for seals used in infrastructure and nuclear-power projects. |
| TSM | In EMs, Taiwanese holdings TSMC and Delta Electronics benefited from rising demand for semiconductor chips as well as power supplies and energy-management tools needed for AI data centers. |
| SONY | In Japan, shares of electronics conglomerate Sony declined due to rising memory costs and the potential effect on margins, though management said it had secured sufficient supply for the 2026 holiday season and planned to offset some of the pressure through monetization of its PlayStation installed base. |
| BA | In mid-March, Boeing identified a wiring issue on newly built 737 MAX aircraft, threatening this year's production targets and requiring fixes before delivery. Although we don't own Boeing, and this episode may seem minor in isolation, it is only the latest in a series of production missteps that speak to a much deeper challenge. |
| OWL | More recently, anxiety over AI disruption fueled a wave of redemption requests at funds exposed to software companies' debt, prompting some firms, including Blue Owl, to limit redemptions and reigniting concerns about the opacity and illiquidity of private credit assets. |
| TSLA | Consumer Discretionary lagged, largely due to concerns that increased spending by Amazon.com and Tesla will pressure their margins and free cash flow. |
| CSGP | Aside from Booking and our software holdings, CoStar was another significant US detractor. Although CoStar operates a highly attractive commercial real estate platform, its newer US residential-listings service has yet to achieve meaningful traction. We exited the holding given the risk that the ongoing expansion won't generate the hoped-for returns. |
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