| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 6.66% | 10.03% | 5.39% |
Harding Loevner's International Small Companies Equity composite returned 10.3% gross in Q2 2026, slightly ahead of the 9.8% benchmark gain, though year-to-date performance of 5.9% lagged the index's 9.4% return. The portfolio benefited from strong stock selection in Industrials and an overweight in Information Technology, which rose over 40% as semiconductor suppliers to AI data centers projected significant earnings gains. The manager is positioning the portfolio to benefit from physical AI applications expanding beyond digital uses into robotics, automation, and industrial equipment. Key holdings include Harmonic Drive Systems for robotic components, MISUMI Group for automation parts, and Silergy for automotive and data center semiconductors. In Japan, prolonged corporate governance-driven value rallies have created opportunities to add high-quality businesses at more reasonable valuations, including Japan Elevator Service, Rakus, and M3. The manager added exposure to mining automation through Ferreycorp and continues seeking attractively priced, quality-growth companies globally. Portfolio risks include AI disruption concerns for software holdings and geopolitical tensions affecting commodities and shipping.
The fund invests in high-quality small-cap companies outside the US that are positioned to benefit from long-term structural trends, particularly the emergence of physical AI applications in robotics, automation, and industrial equipment, while maintaining discipline on valuations and focusing on businesses with sustainable competitive advantages and strong growth prospects.
The manager expects AI to evolve into a general-purpose technology that transforms industries and enables new business models as it becomes increasingly ingrained in the physical world, similar to how electricity and the internet evolved. More opportunities are likely to arise as advances in models, computing power, and hardware make AI systems increasingly capable and affordable. The manager continues to look for attractively priced, high-quality companies poised for long-term growth, wherever they may be, while acknowledging that challenging market conditions can sometimes create rare opportunities to buy the best businesses in their respective industries at more reasonable valuations.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 27 2026 | 2026 Q2 | 002595.SZ, 0522.HK, 2413.T, 2436.TW, 3454.T, 3923.T, 5274.TW, 6268.T, 9962.T, AOF.DE, BEAN.SW, CAT, CKN.L, CRL.MI, KWS.DE, NEM.DE, RUI.PA | AI, Automation, Data centers, Electric Vehicles, Japan, Robotics, semiconductors, small caps | - | The fund returned 10.3% gross in Q2 2026, outperforming the 9.8% benchmark, driven by semiconductor and industrial holdings benefiting from AI data center demand. The manager is positioning for physical AI applications in robotics and automation, adding Japanese quality-growth companies at improved valuations including Harmonic Drive Systems, Japan Elevator Service, and Rakus. Year-to-date performance of 5.9% trails the index's 9.4% return. |
| Apr 24 2026 | 2026 Q1 | 2454.TW, 3661.T, 3769.T, AOF.DE, BEC.DE, CKN.L, FERREYCORP.LM, HEXPOL.ST, KXS.TO, LBTY.BR, NDAQ.DE, REY.MI, S24.DE, SHKELKAR.NS, SNR.L, TEMN SW | AI, energy, geopolitics, international, small cap, software, technology | - | AI coding advances triggered software selloff but manager sees important distinctions between vulnerable providers and specialized enterprise software with regulatory complexity and switching costs. Used IT rout to add quality names while exiting AI-vulnerable services. Iran war drove oil surge. Portfolio underperformed on software exposure but positioned for eventual market recognition of quality differences. |
| Jan 20 2026 | 2025 Q4 | 0005.HK, 0700.HK, AAPL, BHP.AX, BP.L, GSK, HSBA.L, LLY, MARS, MC.PA, MKC, MSFT, NESN.SW, OR.PA, PAN, SANOFI, SAP.DE, SHOP.TO, VOW3.DE, WEED.TO | AI, Consumer Staples, gold, growth, international, momentum, Quality, small cap |
DIA IM CWK LN 002891 CH 4527 JP HERDEZ MM EVT GR |
Harding Loevner's small-cap international fund gained 16% in 2025 but lagged momentum-driven markets favoring AI and gold themes over fundamental quality. The fund increased Consumer Staples exposure while maintaining conviction in quality-growth companies with durable advantages, believing patient capital focused on fundamentals will outperform speculative momentum plays over time. |
| Oct 19 2025 | 2025 Q3 | AAPL, ADBE, AIRTEL.L, AMAT, AMD, AVGO, CRM, CSCO, IBM, INTC, KLAC, LRCX, MRVL, MSFT, MU, NVDA, NXPI, ORCL, QCOM, TXN | AI, Europe, Health Care, international, IT Services, momentum, Quality, small cap |
6869 JP AFX GR MEDI NO |
Harding Loevner's international small-cap strategy underperformed in Q3 as momentum-driven markets favored higher-beta stocks over quality businesses. Health Care holdings faced cyclical headwinds despite strong demographic tailwinds, while IT services companies navigated AI disruption concerns. The manager maintains conviction in quality-focused approach, adding attractive Health Care positions during weak sentiment periods and positioning for long-term fundamental outperformance. |
| Jul 22 2025 | 2025 Q2 | 3697.T, 4544.T, 7203.T, AAPL, ALTEN.PA, BC8.DE, BELIMO.SW, CYBR, GLOB, GOOGL, MELI, MSFT, NVDA, RPY.MI, TMV.DE | AI, cybersecurity, innovation, international, IT Services, small caps, technology |
CYBR GLOB 4527 JP 3697 JP |
International small caps returned 17% in Q2, matching benchmarks. AI adoption is viewed as structurally transformative, with portfolio companies leveraging the technology to strengthen competitive advantages rather than creating models. CyberArk benefits from AI-driven security needs, while IT services firms navigate mixed implications. The manager sees AI as a potential equalizer across geographies and company sizes. |
| Mar 31 2025 | 2025 Q1 | AAPL, ADBE, AMAT, AMD, AMZN, AVGO, CRM, GOOGL, INTC, KLAC, LRCX, META, MRVL, MSFT, NFLX, NVDA, ORCL, QCOM, TSLA, TXN | emerging markets, Europe, growth, international, Japan, Quality, small cap | - | International small-cap fund underperformed in 2024 due to currency headwinds and sector-specific weakness, but maintains focus on quality-growth companies with superior fundamentals. Valuation premiums have narrowed significantly, creating attractive entry points for high-quality businesses. Recent additions Carl Zeiss Meditec and Shift exemplify the opportunity to acquire strong companies at reasonable prices. |
| Dec 31 2024 | 2024 Q4 | AAPL, BCHN.SW, BELB.SW, BKNT.MC, BOSS.SW, CARL.DE, CLRK.L, CRAN.L, DPLM.L, EVT.DE, GRFN.L, LEMN.SW, PFVN.DE, RGHT.L, RTHB.L, SHOP.TO, SNR.L, STRA.DE, TECN.SW, TOMRA.OL | emerging markets, Europe, growth, international, Japan, Quality, small cap | - | International small-cap quality-growth strategy underperformed in 2024 due to currency headwinds and regional weakness, particularly in Europe. Despite near-term challenges, the manager maintains conviction in superior-quality holdings with strong fundamentals. Valuation premiums have compressed, creating better future opportunities. Added Carl Zeiss Meditec and Shift at attractive prices while trimming expensive positions. |
| Sep 30 2024 | 2024 Q3 | ALT.PA, BC8.DE, BCHN.SW, BLMO.SW, BOSS.SW, CKN.L, CRAN.L, CYBR, DPLM.L, GLOB, GRAF.L, KIN.TO, LOTB.BR, NEMN.DE, REY.MI, SNR.L, STE.DE, TECN.SW, TMV.DE, TOM.OL, VAIS.HE | emerging markets, Food, healthcare, industrials, international, small caps, technology | - | Harding Loevner's international small-cap strategy outperformed in Q3 through stock selection in companies serving essential human needs. The fund emphasizes food and healthcare businesses like Cranswick and STRATEC that remain immune to AI disruption, benefiting from demographic trends including aging populations and protein demand growth while maintaining geographic diversification across developed and emerging markets. |
| Jul 18 2024 | 2024 Q2 | 1347.HK, AAPL, ACNB, ADVT.TW, ALTN.PA, AMZN, AWS, BCHT.DE, CYBR, GLOB, IBM, KIN.TO, LEM.SW, MSFT, NMET.DE, REP.MI, RMV.L, TMV.DE, VAIS.HE | competition, E-Commerce, international, Quality, small caps, underperformance | - | International small caps underperformed in Q2 as mega-cap tech dominance continues. The portfolio focuses on quality businesses with competitive moats that can defend against large competitors. Key thesis centers on identifying situations where market fears about new entrants are overestimated, as demonstrated by Allegro's successful defense against Amazon in Poland through network effects and strategic positioning. |
| Apr 15 2024 | 2024 Q1 | AAPL, ADBE, AMD, AMZN, CRM, GOOGL, INTC, META, MSFT, NFLX, NVDA, ORCL, PYPL, QCOM, SHOP.TO, SPOT, SQ, TSLA, TWLO, UBER | AI, cybersecurity, international, Japan, semiconductors, small caps, value | - | Harding Loevner's international small-cap strategy underperformed in Q1 as Japanese value stocks surged following the Bank of Japan's policy shift. The manager focuses on riding powerful waves like AI and cybersecurity through niche players Pfeiffer Vacuum and Cyberark, both benefiting from structural growth trends with strong competitive moats in consolidated industries. |
| Jan 31 2024 | 2023 Q4 | 002891.SZ, 036570.KS, 0522.HK, 0696.HK, 1269.TW, 1882.HK, 2175.T, 2371.T, 2395.TW, 2815.T, 3588.HK, 3654.TW, 4536.T, 4694.T, 4975.T, 500790.BO, 5031.KL, 6147.TW, 6199.T, 7956.T, 9962.T, ATE.PA, BC8.DE, BCHN.SW, BELN.SW, BGEO.L, BKT.MC, BOSN.SW, CEVI.ST, CHR.CO, CKN.L, CPA, CWK.L, CYBR, DALOG.KL, DIA.MI, DPLM.L, EVT.DE, FPE.DE, G24.DE, GFTU.L, GLOB, HERDEZ.MX, HFG.DE, HPG.HM, KWS.DE, KXS.TO, LDA.MC, LEHN.SW, LOTB.BR, MABANEE.KW, MEGACPO.MX, MFSL.NS, NEM.DE, PDIA.JK, PDXIF, PFV.DE, RAT.L, RENT3.SA, REP.MI, RMV.L, ROBR.PS, RUI.PA, SAB1L.VS, SBS.DE, SMNIF, SNG.BU, SNR.L, SQUP.DH, SXT, TECN.SW, THULE.ST, TMV.DE, TOM.OL, VAISF, YOUGF | AI, growth, international, Japan, Quality, small caps, Style Headwinds, technology | - | International small-cap fund underperformed in 2023 due to quality growth style headwinds, particularly in Japan. Strong IT sector performance driven by AI enthusiasm offset weakness in industrial holdings. Japan's corporate governance reforms may create future opportunities despite current challenges. Portfolio maintains quality focus with geographic diversification and underweight Japan positioning. |
| Mar 3 2023 | 2022 Q4 | 0GEG LN, CHR SW, DPH LN, GEB GR, LELA GR, TOM NO | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIPhysical AI is creating opportunities for small-cap companies globally, particularly in robotics, automation, and industrial applications. AI is expanding robotics beyond tightly engineered environments into wider industrial, logistical, medical, and service applications. The manager sees AI becoming increasingly ingrained in the physical world, transforming industries and enabling new business models similar to electricity and the internet. |
Robotics Automation Physical AI Industrial AI |
RoboticsManufacturing businesses view robotics as a solution to productivity challenges and labor shortages. Advances in AI are helping expand robotics into a wider range of applications where environments are less predictable. The market opportunity remains large given low robot density relative to workers globally, with Japan leading at 450 robots per 10,000 employees versus 200 in North America. |
Industrial robots Labor shortages Manufacturing Collaborative robots | |
SemiconductorsSemiconductor value per vehicle is rising to $1,400 by 2028 from $500 in 2020, driven by electric vehicles containing more than twice the number of chips as internal combustion vehicles. Demand is accelerating for sensors, computing power, and semiconductors to support increasingly software-based vehicles. The Information Technology sector rose more than 40% as small caps supplying large semiconductor companies projected significant earnings gains amid a surge in demand from AI data centers. |
Electric vehicles Automotive chips Data centers Analog chips | |
JapanJapan has been a challenging place for quality-growth investing in recent years due to government corporate-governance reforms disproportionately benefiting low-quality businesses. Since 2020, shares of the highest-quality Japanese companies have underperformed the lowest by more than 11 percentage points. The prolonged value rally has left some high-quality businesses trading at more reasonable valuations, creating selective opportunities. |
Corporate governance Quality stocks Valuations Value rally | |
AutomationThe mining industry is gradually embracing automation with autonomous haul trucks and remote software platforms to monitor equipment and coordinate operations. As equipment becomes more technologically sophisticated, dealers may deepen relationships by helping customers better monitor equipment, anticipate maintenance needs, and perform repairs more efficiently. This could shift a greater share of industry profits toward aftermarket services. |
Mining automation Autonomous trucks Aftermarket services Equipment monitoring | |
Data CentersIndustrials outperformed as engineering and consulting companies enjoyed strong demand from customers building data centers. Demand for data center equipment lifted several holdings, with companies benefiting from increased cooling requirements and strong demand across data center, heat pump, and refrigeration businesses. Revenue from data centers has grown to roughly 15% of sales for some holdings and is expected to continue rising. |
HVAC Cooling Infrastructure Equipment demand | |
Electric VehiclesElectric vehicles are becoming increasingly software-based, with AI accelerating demand for sensors, computing power, and semiconductors. Electric vehicles can contain more than twice the number of chips as internal combustion engine-based vehicles. Semiconductor value per vehicle will rise to $1,400 by 2028, up from $500 in 2020, driven by broader range of functions from propulsion and advanced safety features to infotainment and increasingly autonomous driving. |
Automotive semiconductors Vehicle software Autonomous driving Power management | |
CloudPenetration of cloud-based invoicing software in Japan remains low at about 20%, well below some markets in Europe where government mandates and integration have accelerated adoption. Penetration should rise as labor shortages and rising tax complexity support automation. Despite investor concerns that AI could reduce demand for business software, one holding finished its fiscal year with fourth-quarter sales rising 20% year over year. |
SaaS Business software Japan digitization Back-office automation | |
| 2026 Q1 |
AIAI coding tools like Anthropic's Claude Opus 4.6 triggered a software sector selloff, but the manager believes industry change is gradual. AI poses risks to simple software providers but less threat to complex enterprise software with deep domain expertise and customer relationships. |
Software Automation Enterprise Software Coding Disruption |
SoftwareSoftware stocks fell precipitously in the SaaSpocalypse but the manager sees important distinctions between vulnerable commoditized providers and specialized enterprise software companies. Commercial software providers have flourished despite past disruptions like open-source. |
SaaS Enterprise Software Open Source Barriers Maintenance | |
OilUS and Israel airstrikes on Iran caused oil markets to surge with Brent crude rising over 60% in March. Energy was the strongest performing sector, rising 25% in the quarter as war disrupted global supply chains. |
Geopolitics Supply Chain Energy Crude Iran | |
GeopoliticsThe war in Iran proved more consequential for markets than AI developments, given prospects of continued disruption leading to broader economic ramifications. Physical world vulnerabilities to real-world frictions remain significant. |
Iran War Supply Chain Oil Disruption | |
| 2025 Q4 |
GlobalInternational equities outperformed U.S. equities by the widest margin in over a decade, with MSCI ACWI ex US up 32.4% versus 17.9% for S&P 500. Currency headwinds for U.S. assets and fundamental strength in European defense spending and Asian semiconductor leadership drove returns. Manager positioned portfolios for this rotation entering the year based on valuation and concentration risk concerns. |
International Diversification Currency Valuation |
AIAI remains transformative but markets are shifting from hype to show-me phase, focusing on which companies will earn durable profits. Industry has spent over $400 billion on capex while producing roughly $50 billion in revenues. Physical constraints including power shortages and build delays are challenging assumptions of frictionless scaling. |
Technology Capex Monetization Infrastructure | |
Private CreditPrivate markets are finally offering attractive opportunities as supply and demand balance has shifted. Traditional institutions are over-allocated, distributions have dried up, and scarcity of capital gives patient liquidity providers leverage on price and terms. Manager preparing to launch private markets fund in Q1 2026 targeting these dislocations. |
Illiquidity Secondaries Opportunity Pricing | |
Commercial Real EstateReal estate presents opportunities where price and replacement cost have meaningfully diverged. Commercial real estate market down approximately 20% since 2022 while construction costs have risen 20-30%. Refinancing cliffs are forcing motivated behavior, creating opportunities to acquire assets at deep discounts below replacement cost. |
Valuation Refinancing Construction Distressed | |
| 2025 Q3 |
Health CareThe portfolio's Health Care holdings faced headwinds from momentum-driven markets favoring short-term sentiment over long-term fundamentals. Despite turbulent conditions including COVID disruptions, rising interest rates, and policy uncertainty, the underlying demand drivers remain strong with aging demographics and increasing health investments. Equipment and supplies companies with recurring revenue models are positioned for recovery. |
Medical Devices Diagnostics Recurring Revenue Demographics Equipment |
AIAI presents both opportunities and challenges for the portfolio's IT services holdings. While AI could potentially reduce demand for traditional time-and-materials contracts, it also creates new service opportunities. Companies are adapting by shifting to subscription models and developing AI-powered tools, with the transition phase creating temporary uncertainty before stabilization. |
IT Services Automation Productivity Disruption Subscription | |
MomentumThe portfolio underperformed due to momentum-driven markets that rewarded recent price trends over fundamental quality. Higher-beta stocks surged while quality companies underperformed, creating a disconnect between short-term market sentiment and long-term business fundamentals that the portfolio targets. |
Beta Quality Fundamentals Sentiment Volatility | |
QualityThe portfolio emphasizes quality businesses with durable competitive advantages, strong balance sheets, and rational industry structures. Quality companies significantly underperformed lower-quality counterparts during the quarter, but the manager maintains conviction in this approach for long-term outperformance. |
Competitive Advantages Balance Sheets Durability Fundamentals Resilience | |
| 2025 Q2 |
AIThe accelerating adoption of artificial intelligence is viewed as a decisively structural trend with far-reaching effects on how people work. Companies in the portfolio are investing in AI to strengthen competitive advantages, with examples including Reply developing customized AI tools and Shift deploying AI engineers to achieve significant cost savings. |
Artificial Intelligence Machine Learning Automation Digital Transformation Technology Adoption |
CybersecurityAI is creating new security risks as businesses increasingly trust AI with their data. Identity and access management is seeing greater demand, with CyberArk positioned to benefit from the proliferation of machine identities and AI agents that require digital identity protection. |
Identity Management Machine Identities Digital Security Access Control Data Protection | |
IT ServicesIT consulting businesses face mixed implications from AI adoption. While AI threatens to displace entry-level programming tasks, it presents new opportunities for agile firms to develop customized AI solutions. Companies are moving away from time-and-materials contracts toward outcome-based pricing models. |
Technology Consulting Software Development Digital Services Business Transformation Outsourcing | |
| 2025 Q1 |
QualityThe manager emphasizes investing in quality-growth small companies with superior profit margins, returns on equity, and balance sheet strength. The portfolio's average profit margin, return on equity, and return on assets exceed benchmark levels, while maintaining healthier balance sheets. |
Quality Growth Margins Returns Balance Sheet |
Small CapsThe fund focuses exclusively on international small-cap companies, with weighted median market cap of $2.8 billion. The manager discusses the prolonged underperformance of small caps versus large caps since 2021 and the challenging environment for quality-growth small companies. |
Small Cap Market Cap Underperformance International Size Premium | |
ValueThe manager notes that valuation premiums for quality-growth companies have substantially narrowed over the past year, creating better future return opportunities. They recently added Carl Zeiss Meditec and Shift at more reasonable valuations after significant price declines. |
Valuation Premium Opportunity Reasonable Attractive | |
| 2024 Q4 |
QualityThe manager emphasizes investing in quality-growth small companies with superior profit margins, returns on equity, and balance sheet strength. The portfolio's average profit margin, return on equity, and return on assets exceed benchmark levels, while maintaining healthier balance sheets. |
Quality Growth Margins ROE Balance Sheet |
Small CapsFocus on international small-cap companies outside the US, with the portfolio containing companies in the market cap range of the MSCI ACWI ex US Small Cap Index. The manager notes persistent divergence between large and small cap performance since 2021. |
Small Cap International Market Cap Divergence | |
ValueThe manager discusses taking advantage of more reasonable valuations after the valuation premium for quality-growth companies substantially narrowed. They added Carl Zeiss Meditec and Shift at attractive valuations relative to their growth prospects. |
Valuation Premium Attractive Pricing | |
| 2024 Q3 |
FoodHuman beings will continue to require food for survival, making food companies relatively immune to AI disruption. Cranswick benefits from growing protein demand as scientists find many people aren't eating enough protein to maintain muscle and ward off aging effects. Lotus Bakeries has built strong brand awareness through airline partnerships and achieved 20% household penetration in successfully penetrated markets. |
Protein Brands Demographics Nutrition Distribution |
DiagnosticsAs demographics shift to an older population, a greater portion of disposable incomes will likely be spent on monitoring health. STRATEC and Tecan supply labs operated by biotech and pharmaceutical businesses, hospitals, and universities. Both companies have durable competitive advantages in their niches and have historically generated strong returns as measured by cash flow return on investment. |
Aging Healthcare Lab Equipment Automation Demographics | |
AIGenerative artificial intelligence is described as a powerful wave with potential to reshape industries and the economy. While AI may have profound effects on many industries and companies, human needs for food and health-related products remain unchanged. The technology may change how businesses operate but won't affect underlying demand for essential products. |
Technology Disruption Automation Innovation Transformation | |
| 2024 Q2 |
E-commerceAllegro's success in defending against Amazon's entry into Poland demonstrates the opportunity for small-cap investors to identify situations where market fears about large new entrants are overestimated. Allegro leveraged smart parcel distribution strategy and network effects to maintain market position despite Amazon's significant resources. |
Marketplaces Network Effects Logistics Competition |
Small CapsSmall caps have underperformed larger peers by a wide margin over the last couple of years, as mega-cap stocks dominate market returns. The portfolio focuses on high-quality businesses with competitive advantages in growing, profitable niches that can withstand attacks by large, well-funded competitors. |
Underperformance Quality Competitive Advantages Barriers | |
| 2024 Q1 |
AIGenerative AI is a powerful wave gaining momentum since ChatGPT's launch, with global spending on enabling chips expected to surge from $50B in 2023 to $100-400B over the next few years. Smaller companies like Pfeiffer Vacuum occupy important niches in the AI supply chain, manufacturing advanced vacuum pumps critical for semiconductor clean rooms where AI chips are produced. |
Semiconductors Chips Manufacturing Supply Chain Technology |
CybersecurityRising ransomware attacks (up 70% in 2023) and expanding digital identities create strong demand for cybersecurity solutions. Cyberark benefits from protecting privileged access management, with only 50% of privileged users currently secure at customer organizations, presenting significant expansion opportunities. |
Ransomware Digital Identity Access Management Security Software Data Protection | |
SemiconductorsIncreasing semiconductor complexity drives greater need for specialized manufacturing equipment like Pfeiffer Vacuum's pumps. As transistors become smaller and more sensitive to impurities, more powerful vacuum pumps are required for clean room environments, with nearly half of Pfeiffer's sales going to semiconductor customers. |
Manufacturing Equipment Clean Rooms Vacuum Technology Chip Production Precision Manufacturing | |
JapanBank of Japan's landmark move to end negative interest rates and yield curve control boosted value stocks in Japan, which led the index performance. The cheapest Japanese stocks outperformed the most expensive by nearly 1,600 basis points during the quarter. |
Monetary Policy Interest Rates Value Stocks Central Banking Market Leadership | |
| 2023 Q4 |
JapanJapan represents the single-largest country weight in the international small-cap benchmark but has been a source of style headwinds for quality growth stocks. The manager discusses Japan's economic reforms, corporate governance improvements, and new TSE mandates that may benefit lower-quality companies in the short term but could increase the number of high-quality companies over time. |
Corporate Governance TSE Quality Growth Reforms |
QualityThe portfolio focuses on quality growth stocks, which faced significant style headwinds in 2023, particularly in Japan. High-quality small companies underperformed low-quality ones, and the manager's research process seeks companies with strong competitive advantages, managerial excellence, and sustained high profitability. |
Growth Profitability Competitive Advantages Style Headwinds | |
AIArtificial intelligence captivated investors given the technology's potential to drive long-term productivity gains and growth. The IT sector was propelled by enthusiasm over AI, with the sector surging nearly 35% for the year. |
Technology Productivity Growth IT |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 20, 2026 | Fund Letters | Jafar Rizvi | DIA IM | DiaSorin S.p.A. | Health Care | Health Care Equipment | Bear | Borsa Istanbul | Barriers, cashflow, Consumables, diagnostics, Margins, Regulation, Testkits | Login |
| Jan 20, 2026 | Fund Letters | Jafar Rizvi | CWK LN | Cranswick plc | Consumer Staples | Packaged Foods & Meats | Bull | New York Stock Exchange | Animalwelfare, CapEx, consolidation, Margins, Pricing, Regulation, scale, Supply | Login |
| Jan 20, 2026 | Fund Letters | Jafar Rizvi | 002891 CH | Yantai China Pet Foods Co., Ltd. | Consumer Staples | Packaged Foods & Meats | Bull | Shenzhen Stock Exchange | Certifications, Exports, Foodsafety, Labor, Petfood, Share, Supplychain | Login |
| Jan 20, 2026 | Fund Letters | Jafar Rizvi | 4527 JP | Rohto Pharmaceutical Co., Ltd. | Consumer Staples | Personal Products | Bull | New York Stock Exchange | Demand, expansion, eyecare, Normalization, premiumization, Skincare, supplements | Login |
| Jan 20, 2026 | Fund Letters | Jafar Rizvi | HERDEZ MM | Grupo Herdez, S.A.B. de C.V. | Consumer Staples | Packaged Foods & Meats | Bull | New York Stock Exchange | buybacks, Capitalallocation, divestiture, Food, Margins, spinoff, Streamline | Login |
| Jan 20, 2026 | Fund Letters | Jafar Rizvi | EVT GR | Evotec SE | Health Care | Life Sciences Tools & Services | Bear | Xetra | biopharma, Cycles, Outsourcing, Partnerships, profitability, R&D, spending | Login |
| Oct 19, 2025 | Fund Letters | Jafar Rizvi | 6869 JP | Sysmex Corporation | Health Care | Health Care Equipment | Bull | NYSE | diagnostics, Emerging markets, Installed base, Margins, Reagents, recurring revenue, visibility | Login |
| Oct 19, 2025 | Fund Letters | Jafar Rizvi | AFX GR | Carl Zeiss Meditec AG | Health Care | Health Care Equipment | Bull | - | Demographics, Installed base, margin normalization, Ophthalmology, Premium iols, Recurring mix | Login |
| Oct 19, 2025 | Fund Letters | Jafar Rizvi | MEDI NO | Medistim ASA | Other | Health Care Equipment | Bull | NYSE | Cardio surgery, Disposables, Free Cash Flow, Procedures, Sales expansion, TAM, Utilization | Login |
| Jul 22, 2025 | Fund Letters | Jafar Rizvi | CYBR | CyberArk Software Ltd. | Information Technology | Systems Software | Bull | NASDAQ | AI, cybersecurity, Identity, Recurring, Regulation, Software | Login |
| Jul 22, 2025 | Fund Letters | Jafar Rizvi | GLOB | Globant S.A. | Information Technology | IT Consulting & Other Services | Bull | New York Stock Exchange | AI, Consulting, Digital, growth, Platforms, Subscription | Login |
| Jul 22, 2025 | Fund Letters | Jafar Rizvi | 4527 JP | Rohto Pharmaceutical Co., Ltd. | Consumer Staples | Personal Products | Bull | New York Stock Exchange | AI, consumer, eyecare, healthcare, innovation, manufacturing | Login |
| Jul 22, 2025 | Fund Letters | Jafar Rizvi | 3697 JP | SHIFT Inc. | Information Technology | Application Software | Bull | New York Stock Exchange | AI, Japan, Quality, services, Software, Testing | Login |
| TICKER | COMMENTARY |
|---|---|
| 6268.T | Harmonic Drive Systems is a supplier to robotics companies. Harmonic's speed reducers are installed in robot joints, slowing down motor rotations to produce smooth, high-torque movements that enable robotic arms to lift and position objects with greater precision. Harmonic's reducers are known for their accuracy, durability, compact size, and repeatability—the ability to consistently return to the same position under stress, a critical measure of robotic performance. The company's competitive advantage lies in its manufacturing expertise, which allows it to produce highly reliable components at scale and satisfy the demands of leading robot makers. Beyond traditional industrial robots, Harmonic is finding opportunities in collaborative robots that are designed to work alongside humans, logistics robots used in warehouses, and surgical robots. Eventually, humanoid robots may provide additional upside for Harmonic, though they are not central to the investment thesis. |
| 9962.T | MISUMI Group manufactures and distributes components for automation equipment, die presses, and plastic molds used across a wide range of industries. Its recent acquisition of US-based Fictiv may increase exposure to humanoid robots over time. Amazon Robotics, Boston Dynamics, and Tesla are among companies building humanoid robots that have turned to Fictiv to source custom parts. Fictiv can quickly turn a single prototype into thousands of production units without requiring the customer to switch vendors. That capability may prove particularly valuable as humanoid robot developers move from research into pilot deployments, requiring faster iteration and more reliable access to parts. MISUMI said it would repurchase 30 billion yen of stock and provided a better-than-expected outlook, citing increased demand for factory-automation equipment as well as optical equipment for data centers. |
| CAT | At a major mine in southern Peru, the country's first autonomous truck fleet is already at work. There were only 32 trucks as of last year—Caterpillar vehicles equipped with its MineStar Command software—but they provide a glimpse of how automation may reshape the mining industry in the coming years. |
| 2436.TW | Silergy makes analog power-management chips used in electronics, vehicles, and servers. The company's proprietary chip design and manufacturing process allow it to pack more functionality into a smaller area, saving customers space and money. It uses a modular approach to chip design, reusing existing, pre-tested components rather than designing each new chip from scratch. This allows it to more rapidly introduce new products. Given the accelerating pace of product cycles in electric vehicles and computing hardware, those advantages have helped it take market share from much larger global competitors. Revenue from data centers has grown to roughly 15% of company sales and is expected to continue rising. Recent price increases and strong order visibility for the second half of the year also point to a recovery in margins. |
| 3454.T | Japan Elevator Service is the country's leading independent provider of elevator maintenance. Its services are often more affordable than those offered by companies affiliated with elevator manufacturers, thanks in part to the proprietary data and expertise it has accumulated on elevator wear and failure rates across different models. That knowledge has allowed the company to efficiently manage inventory and stock parts most likely to be needed. Industry demand is fairly stable, though a longer-term opportunity is emerging in the replacement of old elevators. Just as Japan's population is aging, so are its elevators, with some parts being phased out. New elevator installations aren't currently a major focus for the company, but it may gradually expand into that part of the market as replacement demand rises. |
| 3923.T | Rakus provides small and medium-size businesses in Japan with cloud-based software for back-office functions, including expense management, billing, and employee-attendance tracking. The company has built a differentiated competitive position through a direct-sales model that guides customers with limited in-house IT personnel through the process of digitizing their operations. It also benefits from a long runway for growth, with penetration of cloud-based invoicing software in Japan still low at about 20%, well below some markets in Europe where government mandates and integration of invoicing software into the tax system—to automatically calculate consumption taxes levied on goods and services—have accelerated adoption. Penetration should rise as labor shortages and rising tax complexity support automation, while Rakus's implementation support should help it capture less digitally sophisticated customers. Despite investor concerns that AI could reduce demand for business software, Rakus finished its fiscal year on a strong note, with fourth-quarter sales rising 20% year over year. |
| 2413.T | M3 operates a medical-information platform for physicians, with an especially strong foothold in Japan. Pharmaceutical companies pay M3 to gain access to its physician network so they can market drugs. Over the years, the company has expanded beyond its core offering to include services such as clinical-trial support and patient engagement, building an ecosystem that is unrivaled in the country and difficult to replace. While some investors fear pharmaceutical companies will use AI to bring those activities in-house, they lack the breadth of physician behavioral data that M3 has accumulated. The company is already using AI to better serve its users. What drives traffic and engagement on the platform is not general internet searches but rather physicians visiting the site directly, often daily, to access personalized content. Roughly 80% of the platform's landing page is customized for each physician using AI, and the time physicians spend on the platform has actually increased 24% since AI chatbots such as ChatGPT were introduced. As of now, management estimates that services potentially vulnerable to AI substitution account for only about 1% of revenue. It appears more likely that AI will strengthen M3's competitive position by helping it collect and analyze data more effectively to improve personalization and develop new services for physicians, patients, and drugmakers. |
| 002595.SZ | China's Hanbell Precise Machinery's quarterly earnings surpassed market expectations amid improving demand for semiconductor vacuum pumps and continued strength in cooling compressors. |
| BEAN.SW | Shares of Switzerland-based Belimo gained as the maker of HVAC actuators and valves benefits from increased cooling requirements for data centers. |
| CRL.MI | Italy-based Carel, which also makes HVAC controls, said margins widened and its backlog remains robust, supported by strong demand across its data center, heat pump, and refrigeration businesses. |
| 5274.TW | Aspeed was one of the largest contributors to performance over the trailing 12 months. |
| 0522.HK | Hong Kong-based ASM Pacific Technology reported record orders for advanced semiconductor packaging equipment used in AI-related chip production. |
| NEM.DE | German software and services holding Nemetschek was weak due to AI disruption fears despite reporting solid operating results. |
| AOF.DE | ATOSS Software was weak due to AI disruption fears despite reporting solid operating results. |
| CKN.L | UK-based shipbroker Clarkson underperformed as easing geopolitical tensions and the potential reopening of the Strait of Hormuz diminished expectations that freight rates and shipbroking activity would remain elevated. |
| KWS.DE | Although the seed producer's earnings remained stable and management maintained its outlook for the year, that resilience was overshadowed by investor concerns about higher fertilizer costs potentially limiting how much farmers plant following the closure of the Strait of Hormuz. |
| RUI.PA | French chemical storage and distribution company Rubis detracted as lower energy prices weighed on investor sentiment. |
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