The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
As of Oct 14, 2026
Harding Loevner International Equity composite delivered a net return of 1.28% in the third quarter of 2026, bringing its year-to-date net performance to 15.81% and outperforming its benchmark, the MSCI All Country World ex US Index. Cash stood at 2.6% of the portfolio at quarter-end. Strategy performance reflected resilient equity markets that advanced despite severe headwinds across fixed income and energy markets. Sector allocation remained overweight Industrials, Health Care, and Information Technology, while maintaining an intentional underweight stance toward Financials, Materials, and Energy. The investment team highlighted an extraordinary macroeconomic divergence: long-term bond yields soared above 5% alongside persistent inflation and sovereign fiscal deficits, yet equity markets remained buoyant on sustained corporate earnings and artificial intelligence infrastructure spending. Crucially, broad optimism has compressed international valuation spreads between speculative or cyclical equities and high-quality franchises to their narrowest levels in nearly three decades. The managers observe that historically, when quality valuation spreads compress to neutral or below, high-quality international equities have subsequently outperformed 77% of the time, signaling an impending reversal of recent value-style dominance, particularly as commercial banks face margin peaking and latent credit loss cycles. Portfolio turnover during the quarter broadened the fund's sources of future growth while trimming fully valued holdings. The strategy initiated new long positions in Chinese hardware leader Lenovo, Japanese industrial systems powerhouse Hitachi, and re-established a stake in Brazilian lender Itaú Unibanco, while funding these additions through complete divestments of Epiroc, Safran, Daifuku, Sysmex, AstraZeneca, and Telkom Indonesia.
Investing in high-quality, durable growth businesses with sound balance sheets and consistent profitability generates superior risk-adjusted returns over full market cycles, particularly when valuation spreads compress.
The managers anticipate that future international equity returns will increasingly be driven by durable organic profit growth rather than further valuation re-rating of low-quality or highly cyclical companies. As the multi-year tailwinds enjoyed by traditional value stocks and commercial banks diminish under the weight of higher deposit costs and rising credit losses, the environment is shifting decisively in favor of high-quality compounders with pristine balance sheets and pricing power.
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