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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Harding Loevner Global Equity 2025 Q1 Investor Letter | Buyside Digest

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Primary Source Intelligence • Q1 2025 Letter Analysis

Harding Loevner Global Equity Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Harding Loevner Global Equity. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD-2.12%

YTD-2.12%

Annualized+9.18%

Positioning StanceConstructive

Market CapLarge Cap

GeographyGlobal

Digest Analysis

Quick Take

"The manager used market disruption to purchase quality companies like ASML and HEICO at attractive prices while trimming expensive positions. Underweight US equities, favoring resilient international businesses positioned to grow despite geopolitical challenges."

Executive Summary

Harding Loevner's Global Equity strategy returned -2.12% net in Q1 2025, underperforming the MSCI ACWI Index's -1.22% decline. The quarter was dominated by heightened US policy uncertainty, particularly around trade policy, with tariffs targeting China, then expanding to Canada, Mexico, and US allies. This created significant business uncertainty and undermined investment appetite. The portfolio faced volatility from the DeepSeek AI announcement, which sent shockwaves through semiconductor companies. Despite challenges, the manager maintained their quality-growth approach, taking advantage of volatility to purchase ASML, The Trade Desk, and HEICO at attractive valuations while selling expensive positions in Adyen, Scout24, and Apple. The strategy remains underweight the US relative to the benchmark, having increased exposure to high-quality international businesses at more modest valuations. The manager believes their process of identifying resilient companies with sustainable competitive advantages is well-suited to navigate continued policy volatility and sees ample global opportunities for sound investments that can grow regardless of shifting political priorities.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

72%

CautiousHigh

High Conviction (72%)

The manager demonstrates high conviction through concentrated positions in named holdings like ASML, HEICO, and The Trade Desk, with detailed fundamental analysis and clear thesis explanations. They actively traded during volatility based on valuation discipline, showing strong conviction in their quality-growth approach despite not providing specific position sizes.

Growth Outlook

38%

BearishBullish

Neutral (38%)

The manager expresses significant concern about US policy uncertainty and its disruptive effects on the global economic order, describing the situation as more chaotic than expected. However, they also see opportunities emerging from market volatility and maintain confidence in finding quality investments globally.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

The portfolio is positioned defensively with an underweight to the US market and increased cash at 4.1%, but the manager actively deployed capital during the quarter to purchase quality companies at attractive valuations, showing selective risk appetite.

Capital Deployment

25%

De-riskingDeploying

De-risking (25%)

The portfolio shows moderate deployment activity with six new positions established (Ametek, Amphenol, ASML, HEICO, Mindray, The Trade Desk) while selling four positions. Cash remains at 4.1% with no indication of significant cash level changes, suggesting selective rotation rather than major deployment or de-risking.

Forward Guidance

10%

CautiousExpansionary

Cautious (10%)

The manager indicates they will continue to selectively deploy capital into quality businesses at attractive valuations, with market volatility expected to provide more opportunities. They express readiness to act but emphasize selectivity and patience.

Language Signal

43%

BearishBullish

Balanced (43%)

The letter contains significant risk language around policy uncertainty, trade disruption, and economic instability, but balances this with opportunity language around finding quality investments and navigating challenges through their proven process.

Perceived Risk

75%

Low RiskElevated

Elevated Risk (75%)

The manager extensively discusses systemic risks including US policy uncertainty, trade war escalation, disruption of the global economic order, and potential impacts on capital flows and financial stability. These macro concerns are central to the letter and discussed in significant detail with specific examples and consequences.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

The manager sees selective opportunities, particularly in quality international businesses at attractive valuations compared to expensive US markets. They expect market volatility to create more opportunities but emphasize the need for selectivity and patience in the current environment.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The manager demonstrates a multi-year investment horizon, discussing companies' long-term competitive advantages and growth prospects over the next five years (as with ASML). They emphasize finding businesses that can grow regardless of shifting policy priorities, indicating a patient, long-term approach to investment.