| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.19% | 9.45% | 10.07% |
Hardman Johnston's Large Cap Equity strategy returned 9.5% in Q2 2026 and 10.1% year-to-date, slightly underperforming the S&P 500's 15.2% quarterly return but matching its 10.2% YTD performance. The manager maintains conviction that the US economy will continue steady growth, providing a solid backdrop for corporate profit expansion. Top contributors included Illumina, which dominates gene sequencing with 70% market share, SharkNinja, which continues to innovate in home products, and Vertiv Holdings, whose cooling and power management products are essential to AI-driven data center buildout. Detractors included Albemarle, which pulled back on near-term lithium supply increases despite long-term shortage expectations, and energy holdings SLB and EOG Resources, which declined with oil prices. The manager sees the market broadening beyond direct AI beneficiaries, with improving opportunities across agriculture, aerospace, consumer, financial services, housing, and healthcare. The portfolio holds 41 positions with 2.8% cash and maintains disciplined position sizing despite strong market momentum.
The manager maintains a diversified large cap portfolio positioned to benefit from broad-based US economic growth, with selective exposure to AI infrastructure, healthcare innovation, aerospace, and agriculture, while managing concentration risk through disciplined position sizing.
The manager expects the US economy to keep chugging along at a steady pace with enough growth to provide a solid backdrop for corporate profit growth, absent a shock. The market appears to be broadening with performance being delivered from a growing list of industries. The manager sees signs that discipline in position sizing and diversification may soon bear fruit.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 14 2026 | 2026 Q2 | AEIS, ALB, AMZN, AZN, CCJ, CMCSA, EL, EOG, GOOGL, ILMN, MA, META, MMC, OLED, PYPL, SCHW, SLB, SN, UNH, VRT | AI, Diversified, energy, healthcare, industrials, large cap, technology, US | - | Hardman Johnston's large cap strategy delivered solid absolute returns in Q2 2026 while slightly underperforming the S&P 500. The manager maintains a diversified 41-position portfolio with selective exposure to AI infrastructure through Vertiv, healthcare innovation via Illumina's genomics leadership, and aerospace. Near-term headwinds in lithium and energy were offset by strength in data center infrastructure and life sciences tools. |
| Apr 12 2026 | 2026 Q1 | AEIS, CW, EL, EOG, IQV, OLED, VRT | aerospace, AI, energy, Geopolitical, infrastructure, large cap, value | - | Hardman Johnston outperformed by 4.9% in Q1 2026 by focusing on companies with strong order backlogs over cyclical exposures. Computing infrastructure and aerospace holdings drove performance while consumer-facing names lagged due to geopolitical pressures. Despite near-term energy price and economic headwinds, the firm sees long-term opportunities in AI productivity tools, manufacturing reshoring, and aerospace demand. |
| Jan 14 2026 | 2025 Q4 | 7269.T, AMZN, AZN, BDX, CCO.TO, CMCSA, EL, EW, GOOGL, HDB, ILMN, IQV, MA, META, MMC, PYPL, SCHW, SLB, SN, TMUS | AI, Genomics, growth, healthcare, large cap, Lithium, technology |
ALB ILMN AEIS OLED |
Hardman Johnston delivered strong Q4 performance, outperforming the S&P 500 with 4.27% net returns. The firm sees opportunities rather than bubbles, benefiting from early AI investments while diversifying into transportation and consumer products. Key winners included Albemarle on lithium surge and Illumina positioned for life sciences recovery. Economic backdrop remains favorable despite political volatility. |
| Oct 21 2025 | 2025 Q3 | 7269.T, AAPL, ADBE, ADP, AEIS, ALB, AMZN, ASML, AZN, BDX, CMCSA, CTVA, CW, EL, EW, FMC, GOOGL, HWM, HXL, IBN, ILMN, IQV, MA, MDT, META, MMC, MRVL, MSFT, NVDA, OLED, PRY.MI, PYPL, SCHW, SLB, SN, SWK, TMUS, UBER, VRT, VRTX | aerospace, AI, healthcare, industrials, large cap, technology, value |
AEIS PRY VRT CTVA |
Hardman Johnston underperformed in Q3 due to S&P 500's AI concentration but remains bullish on the productivity revolution while finding value in neglected sectors. AI infrastructure holdings like Vertiv and Advanced Energy drove gains, while company-specific issues hurt Corteva and Vertex. The firm is cautiously optimistic on 2026 economic prospects despite political uncertainty. |
| Jul 17 2025 | 2025 Q2 | 7269.T, AMZN, AZN, CMCSA, CW, GOOGL, HWM, IBN, MA, META, MMC, PYPL, SCHW, SLB, SN, TMUS, UBER, UNH, VRT, VRTX | aerospace, Data centers, healthcare, large cap, nuclear, technology, Trade Policy | - | Hardman Johnston delivered solid Q2 returns despite trade policy volatility, with nuclear power, aerospace, and data center infrastructure driving outperformance. While healthcare faced government pricing pressure and elevated rates constrained housing, the manager maintains long-term conviction in demographic and productivity trends, positioning for structural growth in energy efficiency and technology infrastructure. |
| Mar 31 2025 | 2025 Q1 | AMZN, AZN, BDX, CMCSA, GOOGL, HWM, HXL, IBN, MA, META, MMC, MRVL, PYPL, SCHW, SLB, SN, STAN.L, TMUS, VRT, VRTX | aerospace, AI, growth, tariffs, technology, volatility | - | Growth-focused large cap strategy underperformed in Q1 2025 due to AI volatility and tariff disruption. DeepSeek's emergence pressured tech holdings Marvell and Vertiv, while new administration trade policies created broad market uncertainty. Manager maintains conviction in portfolio quality and growth thesis, emphasizing the importance of staying invested through volatility as market turns can be swift. |
| Dec 31 2024 | 2024 Q4 | AMZN, AZN, BDX, CMCSA, ELAN, EW, FTI, GOOGL, IBN, LEN, MA, MELI, MMC, PYPL, SCHW, SLB, SN, STAN.L, SUZKY, TMUS | Data centers, healthcare, interest rates, large cap, technology, Trade Policy |
SN MRVL LEN |
Hardman Johnston underperformed in Q4 but delivered strong full-year returns of 17.29%. The manager expects US policy changes to drive growth while managing headwinds from inflation and trade uncertainty. Portfolio repositioning included exiting healthcare due to policy pressures and adding data center exposure through Marvell Technology, plus housing play Lennar Corporation. |
| Sep 30 2024 | 2024 Q3 | 7269.T, AMZN, AZN, BDX, CMCSA, ELAN, EW, FTI, GOOGL, IBN, ILMN, MA, MELI, MMC, PYPL, SCHW, SLB, STAN.L, TMUS, XRAY | aerospace, AI, healthcare, large cap, rates, technology | - | Hardman Johnston posted 4.86% net returns in Q3 as Fed rate cuts signal improved economic prospects. Technology concentration has driven market returns but creates opportunities in undervalued sectors. The firm expects near-term softness without recession, remains confident in aerospace and healthcare holdings, and seeks additional quality growth opportunities at attractive prices. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI applications are expected to boost productivity in a tight labor market. Society is increasingly nervous about AI regulation, but constraints have not yet been imposed as companies and countries compete for leadership. The manager expects virtually every area of the economy to benefit from implementing AI tools. |
Productivity Regulation Applications Data Centers |
Data CentersVertiv Holdings continues to prove its value to customers building out data centers. Their suite of cooling and power management infrastructure products are essential to the AI wave. The company was a top contributor in the quarter and over the trailing twelve months. |
Cooling Power Management Infrastructure | |
GenomicsIllumina maintains 70% market share in the gene-sequencing business and remains the preferred provider for researchers and clinicians who increasingly rely on genetic data to develop and prescribe therapies in human health. The company's products have also found uses in many other areas of life sciences. |
Gene Sequencing Life Sciences Healthcare | |
AerospaceThe manager sees improving opportunities across aerospace. Curtiss-Wright Corporation and Howmet Aerospace are significant holdings at 4.4% and 4.2% of the portfolio respectively, representing meaningful exposure to the aerospace sector. |
Defense Components | |
AgricultureThe manager sees improving opportunities across agriculture. Corteva holds a 3.1% portfolio weight, representing exposure to the agricultural chemicals and seed & traits sectors. |
Crop Protection Seed & Traits | |
LithiumAlbemarle had a good run-up earlier in the year but pulled back recently as prices for battery grade lithium retreated in the face of a short-term boost to supply. Longer term, the manager continues to expect shortages in these materials. |
Battery Metals Supply Electric Vehicles | |
OilSLB and EOG Resources traded down in sympathy with benchmark oil prices during the quarter. They remain the best in their respective fields, but they are and will always remain sensitive to the price of oil. |
Energy Oil Services Exploration & Production | |
| 2026 Q1 |
AIThe firm continues to see demand for productivity tools, particularly AI driven tools to offset the tightness in the labor market. They view AI as a key driver for long-term growth despite near-term economic headwinds. |
Productivity Labor Automation Technology Growth |
EnergyThe war in Iran and closure of the Strait of Hormuz have caused energy prices to increase, which the firm expects to remain elevated for the foreseeable future. This will dampen consumer spending and limit the Federal Reserve's ability to bring interest rates down. |
Oil Geopolitical Iran Prices Consumer | |
AerospaceLonger term demand for air travel and the quest for more fuel efficiency keeps the firm bullish on the aerospace industry. Companies like Curtiss-Wright Corporation and Howmet Aerospace saw strong performance due to customer order growth in aerospace. |
Travel Efficiency Defense Orders Backlogs | |
InfrastructureThe firm sees strong backlogs in computing infrastructure with companies like Vertiv Holdings performing well. They continue to see manufacturing capabilities return and demand for infrastructure investments. |
Computing Data Centers Manufacturing Backlogs Growth | |
| 2025 Q4 |
AIThe fund extensively analyzes whether there is a bubble in artificial intelligence, comparing current AI hype to previous market bubbles like the late 1990s internet boom. They discuss the uncertainty around AI investment returns, GPU depreciation schedules, and datacenter power demands, while noting their position in Google which has shifted from AI laggard to leader. |
Artificial Intelligence Bubble Technology Valuations Investment |
BiotechnologyThe short book faced headwinds particularly within biotech during the quarter. The fund discusses their approach to shorting biotech companies that go public via reverse mergers and spend capital on stock promotion rather than lab research. |
Biotech Short Selling Reverse Merger Stock Promotion | |
| 2025 Q3 |
AIThe firm is debating how far artificial intelligence has to run and whether AI-related holdings are bargains, over-extended, or fairly valued. They believe they are at the beginning of a new productivity revolution and suspect current forecasts are too low for companies enabling this revolution. Both Vertiv and Advanced Energy sell power conditioning and management tools into the computing sector and are seeing a surge in business related to the AI buildout. |
Productivity Computing Power Buildout Revolution |
Data CentersCompanies like Vertiv Holdings and Advanced Energy Industries are benefiting from the AI buildout by selling power conditioning and management tools into the computing sector. These companies are experiencing a surge in business related to data center infrastructure needs. |
Power Infrastructure Computing Management Tools | |
Grid UpgradePrysmian manufactures and installs power transmission cables essential to the continued strengthening of the electrical grid. The company was a strong contributor to performance in the quarter as grid infrastructure investments continue. |
Transmission Cables Infrastructure Electrical Strengthening | |
| 2025 Q2 |
NuclearCurtiss-Wright Corp performed well as the market expects demand for their nuclear power components to improve over the coming years. The company is positioned to benefit from the growing nuclear power sector. |
Nuclear Power Components |
AerospaceHowmet Aerospace Inc outperformed as the company's prospects continue to brighten as a key supplier to the commercial aircraft market. As Boeing and Airbus normalize their production schedules, Howmet's engine components will be in greater demand. |
Aerospace Aircraft Components Boeing Airbus | |
Data CentersVertiv Holdings Co rebounded after an AI scare surrounding Deepseek in the first quarter. Vertiv is the trusted supplier of data center infrastructure required to sustain the AI build out. |
Data Centers Infrastructure AI | |
Trade PolicyThe Trump administration's unconventional approach to trade negotiations left investors uncertain about the future, prompting a rapid sell-off. Later in the quarter, it became clear that the trade threats were largely posturing to get trading partners to address the issues. |
Trade Tariffs Negotiations | |
| 2025 Q1 |
AIThe portfolio was significantly impacted by AI-related volatility following DeepSeek's R1 model release, which pressured AI compute and networking supply chains. Despite the selloff in holdings like Marvell and Vertiv, the manager believes the immediate reaction was an overreaction and that reasoning models should drive greater hardware demand over time. |
DeepSeek Compute Networking Hardware Models |
Data CentersData center investments faced pressure amid concerns of a capex bubble following DeepSeek's emergence. Vertiv, a core beneficiary of data center investment with its thermal and electrical equipment suite, saw order deceleration but the manager views this as expected given the blistering pace of prior growth. |
Capex Orders Thermal Electrical Investment | |
Trade PolicyNew administration tariffs have been disruptive and upended business investment plans and consumer confidence. The magnitude and breadth of tariffs surprised investors, with potential disruption to virtually every economic sector, though the manager expects eventual negotiations and agreements. |
Tariffs Disruption Negotiations Supply Investment | |
AerospaceAerospace exposure through Howmet continues to show resilient growth driven by core aerospace positioning and increasing contribution from industrial gas turbine components. Supply chain issues present both challenges and opportunities for market share gains, with high-margin aftermarket sales providing offset potential. |
Aftermarket Turbine Supply Chain Fasteners Share | |
| 2024 Q4 |
Data CentersData center buildout remains strong with companies like Marvell and Vertiv playing key roles. Investment in data centers for artificial intelligence applications was strong during the quarter. Marvell has a strong position in data networking chips in data centers. |
AI Infrastructure Networking Cloud |
HealthcareHealthcare generally weakened as much of the industry came under attack from policy makers on both sides of the aisle. The portfolio lightened healthcare exposure by exiting positions in Johnson & Johnson, Dentsply Sirona, and Novo Nordisk. Healthcare exposure was a drag on performance in the quarter. |
Policy Regulation Pharmaceuticals Medical Devices | |
Trade PolicyMuddy outlooks for trade policy and immigration are chilling business investment decisions. The manager wonders about disruptive trade actions but understands that the world continues to invest to rebalance its supply chain footprint, which should spur investment and economic growth. |
Immigration Supply Chain Investment Policy | |
| 2024 Q3 |
RatesThe Federal Reserve cut interest rates by 0.5% in September, signaling a change in direction for major parts of the economy. After years of rapidly rising rates, this change will affect mortgage rates, credit card balances, savings, and business operations. Major sectors that have been moribund, especially housing, will have a chance to help the next expansion cycle get underway. |
Interest Rates Federal Reserve Monetary Policy Housing Economic Growth |
AIAfter the breathtaking surge in artificial intelligence spending over the last 18 months, it is natural to wonder where the next drivers of market performance will come from. The outperformance of the largest information technology companies is well chronicled, with the flip side being the underperformance of the vast majority of other companies. |
Artificial Intelligence Technology Market Performance Information Technology |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | ALB | Albemarle Corporation | Materials | Specialty Chemicals | Bull | New York Stock Exchange | Batteries, energy, EVs, Lithium, Pricing | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | ILMN | Illumina, Inc. | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Funding, Genomics, marketshare, research, Sequencing | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | AEIS | Advanced Energy Industries, Inc. | Information Technology | Electronic Equipment, Instruments & Components | Bull | NASDAQ | AI, Computing, datacenters, infrastructure, Power | Login |
| Jan 14, 2026 | Fund Letters | Cassandra A. Hardman | OLED | Universal Display Corporation | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | Demand, Displays, Intellectualproperty, materials, OLED | Login |
| Oct 21, 2025 | Fund Letters | Cassandra A. Hardman | AEIS | Advanced Energy Industries Inc. | Industrials | Electronic Equipment, Instruments & Components | Bull | NASDAQ | AI, data centers, Free Cash Flow, Power systems, Precision equipment, semiconductors | Login |
| Oct 21, 2025 | Fund Letters | Cassandra A. Hardman | PRY | PRYSMIAN S.p.A. | Industrials | Electrical Equipment | Bull | - | Electrification, Grid modernization, infrastructure, Power cables, renewable energy, tariffs | Login |
| Oct 21, 2025 | Fund Letters | Cassandra A. Hardman | VRT | Vertiv Holdings Co. | Industrials | Electrical Equipment | Bull | NYSE | AI, data centers, Digitalization, infrastructure, Margins, Power management | Login |
| Oct 21, 2025 | Fund Letters | Cassandra A. Hardman | CTVA | Corteva Inc. | Materials | Agricultural Chemicals | Bear | NYSE | agriculture, Crop protection, Pricing, Regulation, Seeds, Yields | Login |
| Dec 31, 2024 | Fund Letters | Hardman Johnston Large Cap Equity | SN | SharkNinja, Inc. | Consumer Discretionary | Household Durables | Bull | NYSE | Consumer products, household appliances, innovation, market share gains, Social Media Marketing, value proposition, Younger Demographics | Login |
| Dec 31, 2024 | Fund Letters | Hardman Johnston Large Cap Equity | MRVL | Marvell Technology, Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | AI infrastructure, Cloud computing, data center, Datacenter Buildout, networking chips, semiconductors, technology infrastructure | Login |
| Dec 31, 2024 | Fund Letters | Hardman Johnston Large Cap Equity | LEN | Lennar Corporation | Consumer Discretionary | Household Durables | Bull | NYSE | Contrarian Investment, Entry Opportunity, homebuilder, Housing shortage, mortgage rates, Real Estate, Supply-Demand Imbalance | Login |
| TICKER | COMMENTARY |
|---|---|
| ILMN | With 70% market share in the gene-sequencing business, Illumina remains the preferred provider for researchers and clinicians who increasingly rely on genetic data to develop and prescribe therapies in human health. The company's products have also found uses in many other areas of life sciences. |
| SN | SharkNinja has overcome concerns about its supply chains and continues to innovate and disrupt with its home products and appliances. It remains the preferred choice of consumers seeking the latest products at the right price. |
| VRT | Vertiv Holdings continues to prove its value to its customers who are building out data centers. While not very glamorous, their suite of cooling and power management infrastructure products are essential to the AI wave. |
| ALB | While Albemarle had a good run-up earlier in the year, it has pulled back recently as prices for battery grade lithium have retreated in the face of a short-term boost to supply. Longer term we continue to expect shortages in these materials. |
| SLB | It should come as no surprise that SLB and EOG Resources have traded down in sympathy with benchmark oil prices. They remain the best in their respective fields, but they are and will always remain sensitive to the price of oil. |
| EOG | It should come as no surprise that SLB and EOG Resources have traded down in sympathy with benchmark oil prices. They remain the best in their respective fields, but they are and will always remain sensitive to the price of oil. |
| AEIS | Advanced Energy Industries was a largest contributor over the last twelve months with a 3.79% total effect. |
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