Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st March 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.86% | -0.64% | -0.64% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.86% | -0.64% | -0.64% |
Harding Loevner's Global Small Companies Equity strategy underperformed in Q1 2026, declining 0.64% net versus the MSCI All Country World Small Cap Index gain of 1.17%. The portfolio maintains a concentrated approach with 25.6% in its top ten holdings, led by UK shipping services company Clarkson at 3.5%. Industrial holdings dominate at 23.4% versus 20.1% for the index, while the strategy maintains significant overweights in Healthcare (15.8% vs 9.9%) and Communication Services (7.9% vs 3.0%). Geographically, the portfolio is underweight US exposure at 37.7% versus 52.2% for the benchmark, with meaningful allocations to Europe ex-EMU (15.2%), Emerging Markets (13.4%), and Japan (12.3%). Key contributors included Senior, TechnipFMC, and EnerSys, while technology names like Qualys and SPS Commerce detracted. The strategy continues to focus on quality small-cap companies across developed and emerging markets with a bias toward industrial and healthcare sectors.
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| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 24 2026 | 2026 Q1 | - | energy, global, healthcare, industrials, small caps | - | Harding Loevner's global small-cap strategy declined 0.64% in Q1 2026, underperforming its benchmark by 181 basis points. The concentrated portfolio maintains overweights in Industrials and Healthcare while being significantly underweight US exposure. Industrial names like Senior and TechnipFMC contributed positively, while technology holdings detracted from performance. |
| Jan 20 2026 | 2025 Q4 | AAPL, ADBE, AMD, AMZN, AVGO, CRM, CSCO, GOOGL, IBM, INTC, META, MSFT, NFLX, NOW, NVDA, ORCL, PYPL, QCOM, TSLA, TXN | global, healthcare, momentum, Quality, small caps, technology, value |
298380 KS DIA IM 2344 TT |
Harding Loevner's small-cap strategy underperformed in 2025 as quality-growth discipline clashed with momentum-driven markets. Despite temporary headwinds, the manager increased Health Care exposure and maintains conviction that financially strong companies with durable advantages will outperform speculative winners over the long term. |
| Oct 19 2025 | 2025 Q3 | 4587.T, 4975.T, 6383.T, 6869.T, 9962.T, 9988.HK, ALFA.ST, ALGN, ALLE, AMBU.CO, APPF, ATE.PA, BCHN.SW, BCPC, BESI.AS, BRN.DE, CKN.L, COO, CPA, CRDA.L, DIA.MI, DPLM.L, ELAN, ENS, EPAM, EVO.DE, EXPO, FELE, FN, FPE.DE, GLOB, HPG.HM, KXS.TO, LEHN.SW, NBIX, NEM.DE, PEN, PFV.DE, RAT.DE, RPY.MI, RUB.PA, SNR.L, SPSC, TECN.SW, TOM.OL, VAISALA.HE, WTS, ZEU.DE | AI, global, healthcare, momentum, Quality, small caps, value | - | Quality-focused global small-cap strategy underperformed momentum-driven rally but used weakness to add attractive Health Care names with strong recurring revenues and demographic tailwinds. AI disruption in IT services viewed as transitory cyclical challenge rather than permanent threat. Portfolio maintains conviction in fundamental approach despite short-term headwinds from risk-on environment favoring lower-quality, higher-beta stocks. |
| Jul 17 2025 | 2025 Q2 | 4395.T, 4527.T, 6566.T, ALO.PA, CKN.L, CYBR, DPLM.L, ELAN, ENS, G24.DE, GLOB, HPG.HM, MAXF.NS, RGA, RPLY.MI, SNR.L | AI, cybersecurity, global, innovation, IT Services, small caps, technology |
GLOB CYBR |
Portfolio underperformed in Q2 despite strong positioning around AI adoption theme. Small companies are leveraging AI for productivity gains and new services, with cybersecurity firms like CyberArk benefiting from growing security demands. IT consultants face disruption but agile firms are adapting. Manager sees AI as equalizer for well-managed small caps globally. |
| Mar 31 2025 | 2025 Q1 | AAPL, ALGN, ASML, CBSH, CHD, EPAM, FIVE, FTI, GLOB, HP, LAZ, LIVN, LPLA, MKC, NBIX, NDAQ, OLLI, PEN, RGA, STNE | Germany, global, infrastructure, Quality, small caps, Trade Policy |
G24.DE NEM.DE FPE3.DE 6952.T 7747.T |
Harding Loevner's global small-cap strategy outperformed in Q1 2025, benefiting from a significant Germany overweight as the country announced major infrastructure spending. The manager maintains focus on high-quality companies with durable advantages rather than country bets, believing this approach provides better resilience amid trade war fears and potential global economic slowdown. |
| Sep 30 2024 | 2024 Q3 | AAON, AAPL, ADTC, ALLE, AMBU.CO, APPF, ATKR, BWA, CGNX, CYBR, DISO.MI, DPLO, ELANCO, ENS, EXPO, FIVE, GLOB, GWRE, HP, IPGP, KXS.TO, LAZ, LOB, LPRO, NCRX, OLLI, PEN, RGA, ROLL, SPLS, WTS, XPEL | AI, Consumer Staples, global, healthcare, industrials, small caps, technology | - | Global small-cap strategy focusing on essential human needs companies relatively immune to AI disruption. Portfolio emphasizes food and healthcare businesses like Cranswick and Ariake, benefiting from protein consumption trends and aging demographics. Q3 performance lagged benchmark due to healthcare holdings, but managers maintain conviction in durable competitive advantages of companies serving fundamental human requirements. |
| Jul 18 2024 | 2024 Q2 | AAPL, ACN, AMZN, ATKR, BECG.DE, BWA, ENS, FIVE, GOOGL, IBM, KWS.L, LLY, MSFT, OLLI, PFE, PLUS, RHHBY, RMV.L, XPEL, YOUGV.L | AI, barriers to entry, competition, global, Quality, small caps, technology | - | Global small caps underperformed as AI enthusiasm favored large-cap tech stocks. The portfolio declined 4.8% versus benchmark's 1.4% fall, hurt by weak stock selection including YouGov and Five Below. However, the manager sees opportunities in quality small companies with strong competitive moats like Rightmove, Simulations Plus, and Bechtle that can defend against larger competitors. |
| Apr 15 2024 | 2024 Q1 | 6588.T, AAON, ALLE, ATKR, BWA, CYBR, ELAN, ENDV.L, ENS, FIVE, MBUU, MGPI, NEM.DE, OLLI, PFV.DE, RGA, RUB.PA, SWAV, XPEL, YOU.L | AI, cybersecurity, global, Japan, semiconductors, small caps, technology, value |
PFEV.DE CYBR |
Harding Loevner's global small cap strategy underperformed in Q1 due to stock selection issues in Japan and Europe, but maintains focus on powerful long-term waves including AI and cybersecurity. Key holdings Pfeiffer Vacuum and Cyberark occupy strong competitive positions in consolidated industry niches with high switching costs and growing demand drivers. |
| Jan 31 2024 | 2023 Q4 | 4751.T, 6588.T, AAON, BWA, CYBR, EAVA.L, FIVE, HP, JCU, MALIBU, MGPI, NBIX, NMTC.DE, OLLI, SWAV, TOMRA.OL, XPEL, YOUGF | AI, global, growth, healthcare, Japan, Quality, small caps, technology | - | Global small cap strategy delivered modest Q4 outperformance but lagged for the year due to persistent quality growth headwinds, especially in Japan. Strong performance from technology names like YouGov and Cyberark offset weakness in industrials and consumer staples. Japanese corporate governance reforms may eventually benefit quality companies, but near-term style challenges persist for the quality-focused approach. |
| Mar 3 2023 | 2022 Q4 | 0H7S LN, BGEO LN, CYBR, DPH LN, LELA GR, TOM NO, VAYA GR | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
OilThe region's long oil exposure contributed to meaningful underperformance relative to MSCI EM Index in 2025. The outlook for 2026 suggests a continuation of lower oil prices, which remains a headwind for MENA markets. |
Oil Energy Commodities |
AIThe region's under-representation in the AI theme resulted in meaningful underperformance relative to MSCI EM Index in 2025. The outlook for 2026 suggests sustained capital flows toward AI-linked assets, continuing to be a headwind for MENA markets. |
AI Technology Capital Flows | |
Capital MarketsCapital 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 Regulation | |
Infrastructure SpendingThe 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 Allocation | |
| 2025 Q3 |
QualityThe portfolio targets durable sources of return through quality, growth, and value, emphasizing steady, lower-beta businesses with strong fundamentals over higher-beta momentum plays. Quality companies in the benchmark underperformed lowest quality by more than 1,200 basis points during the quarter. |
Quality Fundamentals Beta Resilience Durability |
HealthcareHealth Care sector has been a significant detractor but represents a disconnect between short-term sentiment and long-term growth prospects. The portfolio focuses on equipment and supplies businesses with superior fundamentals, strong cash-flow generation, and 84% recurring revenues excluding pharmaceuticals. |
Healthcare Equipment Recurring Demographics Fundamentals | |
AIAI presents both secular concerns about shrinking IT services revenue through productivity gains and cyclical challenges as companies reassess IT needs. The portfolio holds 11 IT-services companies with distinct strengths, viewing current disruption as transitory while monitoring competitive positioning. |
AI Productivity IT Services Disruption Technology | |
MomentumMomentum investing seeks profit from recent price trends rather than fundamentals, with momentum-fueled markets emphasizing short-term stock price movements. The portfolio's underexposure to higher-beta momentum stocks led the market rally but conflicts with the long-term fundamental approach. |
Momentum Beta Trends Short-term Fundamentals | |
| 2025 Q2 |
AIAI adoption is accelerating across industries with companies investing in AI tools to strengthen competitive advantages. Small companies are leveraging AI for productivity gains and new service offerings, with some achieving meaningful cost savings and operational improvements. |
Artificial Intelligence Machine Learning Automation Digital Transformation Productivity |
CybersecurityGrowing security risks from AI adoption are driving demand for identity and access management solutions. The proliferation of machine identities and AI agents is creating new cybersecurity challenges that specialized companies are positioned to address. |
Identity Management Machine Identities Security Software Digital Certificates Access Control | |
IT ServicesIT consulting firms are adapting to AI disruption by moving away from time-and-materials contracts toward outcome-based pricing. Companies are developing AI-powered tools and services while facing pressure on traditional billable hours from AI automation. |
Consulting Software Development Digital Services Technology Integration Business Transformation | |
| 2025 Q1 |
GermanyThe portfolio significantly increased exposure to Germany over the past couple years, with an 8.3% average weight versus 1.1% in the benchmark. Despite economic challenges, the manager found high-quality growing businesses trading at reasonable prices. Germany's constitutional amendment to allow fiscal stimulus and infrastructure spending of over $500 billion boosted market performance in Q1. |
Infrastructure Spending Germany Fiscal Stimulus Constitutional Reform Defense Spending |
QualityThe manager emphasizes investing in companies with durable competitive advantages, strong balance sheets, high profitability, and properly incentivized management. These characteristics help insulate businesses from changing economic conditions and cyclical downturns. The focus is on companies that can maintain growth despite macroeconomic headwinds. |
Quality Resilience Competitive Advantages Strong Balance Sheets Profitability | |
Small CapsThe strategy focuses on global small-cap companies, which tend to be more domestically focused and thus have limited exposure to tariffs. However, small caps are generally more sensitive to growth expectations than large caps, making quality selection crucial in a risky environment with potential global economic slowdown. |
Small Caps Domestic Focus Growth Sensitivity Trade Policy Economic Slowdown | |
| 2024 Q3 |
AIArtificial intelligence may have profound effects on plenty of industries and companies, but what it won't change are the human needs and desires underpinning demand for food and health-related products. The technology may change the way food and health-care businesses operate, but the demand that fuels their growth is less likely to be affected. |
Technology Disruption Food Healthcare Automation |
ProteinAs scientists increasingly understand the role of protein, they are finding many of us aren't eating enough protein to maintain muscle and ward off other side effects of aging. The National Institute of Health recommends daily protein intake of 1.2–2.0 grams per kilogram of body weight, a level that is much higher than what men and women in the US tend to consume. |
Nutrition Aging Health Food Demographics | |
| 2024 Q2 |
Small CapsGlobal small caps underperformed large caps due to fewer AI-related stocks in the segment. The portfolio focuses on high-quality small companies with competitive advantages in growing, profitable niches that can withstand competition from larger, well-funded competitors. |
Small Caps Quality Competitive Advantages Niche Markets Barriers to Entry |
AIAI enthusiasm drove large-cap tech performance while small caps lagged due to fewer chip-related stocks. AI creates both opportunities and threats for small companies, with new entrants potentially disrupting established players but also creating demand for specialized services like data centers. |
AI Technology Data Centers Disruption Competition | |
Competitive AdvantagesThe letter emphasizes identifying small companies with strong barriers to entry that can defend against large competitors. Examples include Rightmove's network effects, Simulations Plus's proprietary data, and Bechtle's local relationships and specialized services. |
Barriers to Entry Network Effects Proprietary Data Local Relationships Differentiation | |
| 2024 Q1 |
AIGenerative AI represents a powerful wave that has gained tremendous momentum since ChatGPT's launch. The world spent around $50B on AI-enabling chips in 2023, with forecasts ranging from $100B to over $400B in coming years. Smaller companies like Pfeiffer Vacuum occupy important niches in the AI supply chain through semiconductor manufacturing equipment. |
Semiconductors Chips Manufacturing Supply Chain Technology |
CybersecurityCybersecurity represents a wave ready to crest, with ransomware attacks up 70% in 2023. Cyberark has built a strong position protecting privileged accounts, with growing demand from machine identities and new SEC reporting requirements. The company's transition to a subscription model is showing revenue rebound with 24% expected growth. |
Software Security Subscription Identity Cloud | |
SemiconductorsThe increasing complexity of semiconductors creates greater need for specialized equipment like Pfeiffer Vacuum's pumps for clean room manufacturing. As semiconductors become more sophisticated, they require more material deposition and processing, driving demand for more powerful vacuum pumps in the consolidated industry structure. |
Manufacturing Equipment Vacuum Clean Room Technology | |
| 2023 Q4 |
JapanJapan represents the second-largest country weight in the global small cap benchmark but has been challenging for quality growth stocks. Style headwinds have been pronounced with high-quality companies underperforming low-quality ones by 718 basis points from 2021-2023. Recent government reforms and Tokyo Stock Exchange mandates aim to improve corporate governance and shareholder returns, which may benefit the investment opportunity set over time. |
Corporate Governance Style Headwinds Quality Growth Reforms |
QualityThe portfolio focuses on companies with strong competitive advantages, managerial excellence, and sustained high profitability. Quality growth companies have faced valuation headwinds, particularly in Japan where they've traded at premium multiples. The investment process seeks companies operating in industries with long-term demand growth despite challenging market conditions for quality stocks. |
Competitive Advantages Profitability Valuation Growth Management | |
AIArtificial intelligence captivated investors given the technology's potential to drive long-term productivity gains and growth. The Information Technology sector posted strong returns for both the quarter and year, ending 2023 with a 35% gain, propelled by enthusiasm over AI as well as earnings growth. |
Productivity Technology Growth Innovation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 20, 2026 | Fund Letters | Christopher Mack | 298380 KS | ABL Bio Inc. | Health Care | Biotechnology | Bear | New York Stock Exchange | Biotech, Clinicaltrials, milestones, Oncology, Speculation | Login |
| Jan 20, 2026 | Fund Letters | Christopher Mack | DIA IM | DiaSorin S.p.A. | Health Care | Health Care Equipment | Bull | Borsa Istanbul | Cfroi, diagnostics, Reagents, Recurringrevenue, Regulation | Login |
| Jan 20, 2026 | Fund Letters | Christopher Mack | 2344 TT | Winbond Electronics Corp. | Information Technology | Semiconductors | Bear | New York Stock Exchange | Cfroi, Cyclicality, DRAM, Pricing, semiconductors | Login |
| Jul 17, 2025 | Fund Letters | Christopher Mack | GLOB | Globant S.A. | Information Technology | IT Consulting & Other Services | Bull | New York Stock Exchange | AI, cloud, Consulting, Digital, Smallcaps, Subscription | Login |
| Jul 17, 2025 | Fund Letters | Christopher Mack | CYBR | CyberArk Software Ltd. | Information Technology | Systems Software | Bull | NASDAQ | AI, Identity, Privilege, Recurring, Security, Software | Login |
| Mar 31, 2025 | Fund Letters | Harding Loevner Global Small Companies | G24.DE | Scout24 | Communication Services | Interactive Media & Services | Bull | XETRA | Counter-cyclical, Defensive growth, digital advertising, Germany, Monopolistic, Real Estate Portal, SaaS | Login |
| Mar 31, 2025 | Fund Letters | Harding Loevner Global Small Companies | 6952.T | Stanley Electric | Consumer Discretionary | Auto Components | Bull | Tokyo Stock Exchange | activist investor, Automotive Lighting, capital allocation, Corporate Governance, Honda Affiliate, Japan, shareholder returns | Login |
| Mar 31, 2025 | Fund Letters | Harding Loevner Global Small Companies | NEM.DE | Nemetschek | Information Technology | Application Software | Bull | XETRA | 3D design software, BIM, Construction Technology, Germany, growth, SaaS, urbanization | Login |
| Mar 31, 2025 | Fund Letters | Harding Loevner Global Small Companies | 7747.T | Asahi Intecc | Health Care | Health Care Equipment & Supplies | Bull | Tokyo Stock Exchange | cardiovascular, China, FDA approval, Guidewire, Japan, Medical devices, Minimally Invasive | Login |
| Mar 31, 2025 | Fund Letters | Harding Loevner Global Small Companies | FPE3.DE | Fuchs Petrolub | Materials | Specialty Chemicals | Bull | XETRA | automotive, Germany, global footprint, Independent Producer, Industrial, specialty chemicals, Specialty Lubricants | Login |
| Mar 31, 2024 | Fund Letters | Harding Loevner Global Small Companies | PFEV.DE | Pfeiffer Vacuum | Industrials | Industrial Machinery | Bull | XETRA | AI infrastructure, Capital equipment, Clean Room Technology, duopoly, German Manufacturing, industrial machinery, semiconductor equipment, Vacuum Pumps | Login |
| Mar 31, 2024 | Fund Letters | Harding Loevner Global Small Companies | CYBR | CyberArk Software Ltd. | Information Technology | Systems Software | Bull | NASDAQ | cloud security, cybersecurity, Israeli Technology, Machine Identities, Privileged Access Management, Ransomware Protection, SaaS, subscription model | Login |
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