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 Warner Bros. Discovery, Inc. (NASDAQ:WBD). Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a global media and entertainment company engaged in content production, streaming services, and television broadcasting across multiple platforms. The one-month return of Warner Bros. Discovery, Inc. (NASDAQ:WBD) was 4.58% while its shares traded between $7.52 and $30.00 over the last 52 weeks. On February 26, 2026, Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock closed at approximately $28.80 per share, with a market capitalization of about $71.409 billion.
Harbor Capital Advisors’ Mid Cap Value Fund stated the following regarding Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q4 2025 investor letter:
“While several Fund holdings struggled — the most significant detractor was our underweight to Warner Bros. Discovery, Inc. (NASDAQ:WBD), which is in the benchmark and was up nearly 50% on acquisition activity.”
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Warner Bros. Discovery, Inc. (NASDAQ:WBD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 86 hedge fund portfolios held Warner Bros. Discovery, Inc. (NASDAQ:WBD) at the end of the fourth quarter, which was 70 in the previous quarter. While we acknowledge the risk and potential of Warner Bros. Discovery, Inc. (NASDAQ:WBD) 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 Warner Bros. Discovery, Inc. (NASDAQ:WBD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Warner Bros. Discovery, Inc. (NASDAQ:WBD) and shared the list of up-and-coming streaming companies and services. 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.
