In the third quarter of 2025, the Harbor Mid Cap Value Fund achieved an impressive return of 8.96%, significantly surpassing its benchmark, the Russell Midcap\u00ae Value Index, which posted a return of 6.18%. This notable outperformance was primarily driven by increasing optimism regarding the Federal Reserve's policy stance, which has become more accommodating, alongside consistent positive adjustments to corporate earnings forecasts. This period saw robust gains across U.S. equities, reflecting a resilient market environment.
During this quarter, the U.S. stock market experienced substantial growth, largely attributable to investor confidence in a more supportive Federal Reserve policy and continuous upward revisions to corporate earnings projections. This positive economic backdrop created a fertile ground for equity investments, leading to widespread gains.
A significant portion of the fund's success stemmed from its strategic holdings, particularly within the Information Technology sector. Among the top-performing assets were SanDisk and Western Digital, both of which delivered exceptional returns. These companies benefited from strong market demand and innovative product cycles, contributing substantially to the fund's overall outperformance.
The Harbor Mid Cap Value Fund's strategic allocation and astute stock selection in sectors like Information Technology proved instrumental in navigating the market dynamics of Q3 2025. The fund's ability to identify and capitalize on opportunities, such as the growth trajectories of SanDisk and Western Digital, allowed it to deliver superior returns compared to its benchmark, underscoring the effectiveness of its investment strategy.
