The Harbor Capital Advisors released its “Mid Cap Value Fund’s” Q4 2025 investor letter. A copy of the letter can be downloaded here. 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.
In its fourth-quarter 2025 investor letter, Harbor Capital Advisors’ Mid Cap Value Fund highlighted stocks like PulteGroup, Inc. (NYSE:PHM). PulteGroup, Inc. (NYSE:PHM) is a home construction company engaged in the development and sale of residential properties across the United States. The one-month return of PulteGroup, Inc. (NYSE:PHM) was 8.45% while its shares traded between $88.07 and $144.50 over the last 52 weeks. On February 26, 2026, PulteGroup, Inc. (NYSE:PHM) stock closed at approximately $135.66 per share, with a market capitalization of about $26.091 billion.
Harbor Capital Advisors’ Mid Cap Value Fund stated the following regarding PulteGroup, Inc. (NYSE:PHM) in its Q4 2025 investor letter:
While several Fund holdings struggled — including PulteGroup, Inc. (NYSE:PHM) in the Consumer Discretionary sector. PulteGroup, in the homebuilding industry, struggled due to slowing orders and margin pressures despite a slight decrease in mortgage rates. We continue to hold PulteGroup in the Fund.
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PulteGroup, Inc. (NYSE:PHM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held PulteGroup, Inc. (NYSE:PHM) at the end of the fourth quarter, which was 42 in the previous quarter. While we acknowledge the risk and potential of PulteGroup, Inc. (NYSE:PHM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PulteGroup, Inc. (NYSE:PHM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered PulteGroup, Inc. (NYSE:PHM) and shared the list of best affordable housing stocks to buy. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
