HAMVX Q3 2025: 8.96% Return Beats Benchmark
Harbor Mid Cap Value Fund Q3 2025 Commentary
In the third quarter of 2025, the Harbor Mid Cap Value Fund achieved a solid return of 8.96%, surpassing its benchmark, the Russell Midcap Value Index, which posted a 6.18% gain during the same period.
During Q3 2025, U.S. stock markets experienced robust performance, fueled by increasing investor optimism regarding a more lenient Federal Reserve policy approach and consistent positive adjustments to corporate profit forecasts.
Among the standout performers in the fund’s portfolio were holdings in the Information Technology sector, specifically SanDisk and Western Digital, which contributed significantly to the overall results.
Market Review
The U.S. equity markets posted impressive advances throughout the third quarter of 2025. This upward momentum was bolstered by heightened expectations for a softer stance from the Federal Reserve, or Fed, alongside ongoing upward revisions in corporate earnings projections. Notably, the S&P 500 climbed by 8.1%, reflecting broad-based strength across various sectors.
Quick Insights
- Valuation Comparison: The HAMVX fund is trading at approximately 11 times forward earnings and under 8 times cash flow, offering substantial discounts compared to both its core benchmark and value-oriented peers.
- Sector Overweights: The portfolio maintains the largest overweight positions in Consumer Discretionary and Financials sectors. These allocations stem from compelling valuation opportunities and effective stock picks within homebuilding, automotive, and financial services sub-industries.
- Outperformance Drivers: Recent superior returns were primarily driven by astute stock selection in Information Technology—particularly SanDisk and Western Digital—and Consumer Discretionary. This success was enhanced by a disciplined value investing approach, capitalizing on AI-related demand surges and positive developments in the housing market.
