Harbor Capital Advisors Mid Cap Value Fund’s Q4 2025 Letter

The Harbor Capital Advisors released its “Mid Cap Value Fund’s” Q4 2025 investor letter. Harbor Mid Cap Value Fund, subadvised by LSV Asset Management, delivered solid outperformance in the fourth quarter of 2025, with the Institutional Class returning 4.07% versus 1.42% for the Russell Midcap Value Index, benefiting from strength in value stocks as the Russell Midcap Growth Index declined 3.7% during the period. U.S. equities broadly advanced, with the S&P 500 Index rising 2.7% in the quarter and 17.9% for the full year, while mid-caps lagged, with the Russell Midcap Index up just 0.2% in Q4. For 2025, the Fund gained 15.95% (Institutional Class), outperforming the benchmark’s 11.05% return. Attribution data show a total quarterly excess return of 2.82%, largely from selection effects, underscoring the manager’s quantitative value discipline focused on fundamental undervaluation, improving momentum, and risk control. Looking ahead, management noted that while AI-driven large-cap leadership has elevated valuations in certain segments, mid- and small-cap value stocks continue to trade at more attractive multiples, positioning the Fund to capitalize on opportunities within economically sensitive and cash-generative businesses. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

A copy of Harbor Capital Advisors Mid Cap Value Fund’s Q4 2025 investor letter can be downloaded here.