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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Hardman Johnston Large Cap Equity 2026 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Hardman Johnston Large Cap Equity)

Primary Source Intelligence • Q3 2026 Letter Analysis

Hardman Johnston Large Cap Equity Quarterly Analysis

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

Fund Returns

QTD+1.19%

YTD+11.38%

Annualized+11.15%

Positioning StanceCONSTRUCTIVE

Market CapLarge Cap

GeographyUS

Digest Analysis

Quick Take

"Trailing the S&P 500 TR index as AI infrastructure suppliers faced near-term consolidation despite robust underlying backlogs. Gains in healthcare and consumer products underscored the value of selective diversification against broader macroeconomic cross-currents."

Executive Summary

Hardman Johnston Large Cap Equity pursues long-term capital appreciation through a disciplined, high-active-share approach focused on high-quality large-capitalization companies benefiting from durable secular growth trends while maintaining sector diversification. For the third quarter of 2026, the strategy returned 1.19% net of fees, lagging the benchmark S&P 500 Total Return Index return of 2.30%. Performance was driven by notable positive contributions from non-technology holdings in healthcare and consumer products, specifically Illumina, IQVIA Holdings, and SharkNinja, demonstrating the portfolio benefits of multi-sector diversification. Detractors included AI-adjacent industrial and technology suppliers Curtiss-Wright, Advanced Energy Industries, and Vertiv Holdings as momentum temporarily cooled across the AI infrastructure trade. The management team remains constructive on foundational AI infrastructure demand, asserting that the ecosystem remains in the early innings given substantial backlogs and persistent demand-supply imbalances. Macro headwinds include elevated interest rates, persistent energy-driven inflation, geopolitical friction, and fiscal deficits.

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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

65%

CautiousHigh

Moderate (65%)

The portfolio maintains a moderately concentrated structure with 40 positions and an active share of 79.1%, holding prominent single-stock positions up to 5.0%. However, conviction is tempered by broad diversification across sectors and moderate position sizes across secondary names.

Growth Outlook

65%

BearishBullish

Bullish (65%)

Management maintains a constructive stance, highlighting upwardly revised US GDP figures, stable labor markets, and durable consumer wealth effects. This optimism is balanced by explicit cautions regarding elevated interest rates, persistent inflation, and national debt expansion.

Risk Appetite

70%

DefensiveAggressive

Balanced (70%)

The portfolio remains predominantly deployed in equities with only a 1.9% cash allocation, running an active share of 79.1% and a portfolio beta of 0.9. Exposure to growth areas like AI infrastructure is maintained despite quarterly detractions.

Capital Deployment

50%

De-riskingDeploying

Net Neutral (50%)

Capital deployment remained net neutral during the quarter with cash sitting at a low 1.9% level. Portfolio turnover over 12 months was 17.8%, with minimal stated portfolio shifts beyond liquidating PayPal.

Forward Guidance

55%

CautiousExpansionary

Neutral (55%)

The firm indicates ongoing discipline and monitoring of backlogs with zero tolerance for complacency, but does not outline aggressive wholesale reallocation plans. Trading activity was measured, marked by a single liquidation of PayPal Holdings.

Language Signal

60%

BearishBullish

Balanced (60%)

The letter balances positive descriptors such as 'surprisingly robust', 'early innings', and 'healthy backlogs' against cautionary language regarding 'stubbornly high inflation', 'oil prices up because of war', and 'luster coming off the AI trade'.

Perceived Risk

55%

Low RiskElevated

Moderate Risk (55%)

The manager discusses several identifiable macro headwinds including war-driven oil spikes, multi-decade high interest rates, geopolitical instability, and federal fiscal deficits, though they conclude the domestic economy remains surprisingly resilient.

Opportunity Density

60%

ScarceAbundant

Selective (60%)

Management identifies selective opportunities across AI infrastructure, reshoring capital projects, healthcare diagnostics, and consumer product innovators, but notes that broader macroeconomic pressures limit ubiquitous upside.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

The team explicitly frames structural themes like artificial intelligence as being in their 'early innings' and maintains long-term fundamental holding horizons, as evidenced by a 17.8% annual portfolio turnover rate.