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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Hardman Johnston Global Equity 2025 Q1 Investor Letter | Buyside Digest

Back to Fund Profile (Hardman Johnston Global Equity)

Primary Source Intelligence • Q1 2025 Letter Analysis

Hardman Johnston Global Equity Quarterly Analysis

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

Fund Returns

QTD+0%

Annualized+10.43%

Positioning StanceConstructive

Market CapLarge Cap

GeographyGlobal

Digest Analysis

Quick Take

"Hardman Johnston outperformed in volatile Q1 2025, driven by defense and aerospace holdings while tech faced AI-related pressure. The strategy added positions in European defense, commercial aerospace, and semiconductor infrastructure while reducing healthcare exposure."

Executive Summary

Hardman Johnston Global Equity delivered solid relative performance in Q1 2025, returning 0.43% net versus -1.32% for the MSCI AC World Index despite turbulent markets. The strategy benefited from strong performance in Industrials and Consumer Discretionary, led by defense contractor Rheinmetall and aerospace supplier Howmet, while Information Technology holdings faced pressure from AI-related concerns following DeepSeek's launch. The manager initiated five new positions including Rheinmetall, Airbus, Marvell Technology, Brookfield Corporation, and Infineon Technologies, while liquidating eight positions primarily in Healthcare. Key risks include unprecedented trade turbulence from sweeping US tariffs, potential negative Q1 GDP, and persistent inflation pressures. However, secular themes remain intact including European defense spending increases, AI infrastructure demand, and demographic-driven healthcare needs. The portfolio maintains focus on company quality and fundamentals while positioning for long-term growth opportunities in defense, aerospace, and technology infrastructure. Market volatility is expected to create additional attractive entry points for high-quality international companies.

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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

68%

CautiousHigh

Moderate (68%)

The manager demonstrates moderate-high conviction through concentrated 29-position portfolio with specific position sizing discussions, named holdings with detailed thesis explanations, and willingness to scale positions like Rheinmetall after CEO meeting. Clear rationales provided for both additions and liquidations.

Growth Outlook

38%

BearishBullish

Neutral (38%)

The manager expresses significant concern about trade turbulence, tariff impacts, and economic headwinds including potential negative Q1 GDP and persistent inflation. While acknowledging some positive secular themes, the overall market outlook is cautious given unprecedented policy uncertainty.

Risk Appetite

25%

DefensiveAggressive

Defensive (25%)

The portfolio maintains selective risk appetite with five new position initiations and eight liquidations, showing active portfolio management. Cash position at 2% indicates willingness to deploy capital but with measured approach given market uncertainty.

Capital Deployment

15%

De-riskingDeploying

De-risking (15%)

Net neutral deployment with five initiations and eight liquidations representing portfolio rotation rather than significant net capital deployment. Cash level at 2% suggests measured approach to new investments while maintaining selectivity.

Forward Guidance

0%

CautiousExpansionary

Cautious (0%)

The manager takes a balanced approach, expecting continued volatility while actively evaluating opportunities. They express readiness to capitalize on market dislocations but acknowledge substantial uncertainty requiring patience and selectivity.

Language Signal

45%

BearishBullish

Balanced (45%)

Language is mixed with risk-focused terms like 'turbulent', 'unprecedented', 'uncertainty' balanced against opportunity language like 'attractive', 'compelling', and 'growth prospects'. Risk language slightly dominates the discussion.

Perceived Risk

72%

Low RiskElevated

Elevated Risk (72%)

High perceived risk given extensive discussion of trade policy turbulence, tariff retaliation, potential negative GDP, inflation pressures, and market uncertainty. Manager explicitly describes environment as having 'unprecedented trade turbulence' and 'substantially more dust'.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

Manager sees selective opportunities in specific areas like defense, aerospace, and European financials, while market dislocation is creating additional entry points. Opportunities exist but require careful selection given the challenging environment.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

Multi-year investment horizon evident through focus on secular themes, long-term growth characteristics, and structural trends like defense spending and demographic changes. Airbus backlog stretching into next decade exemplifies long-term thinking, though some catalyst dependency exists.