ContactHarbor Small Cap Growth Fund (HASGX) Strategy Profile
October 21, 2024Table of Contents
Average Annual Returns as of 09/30/2024
| 3 Months | YTD | 1 Yr. | 3 Yr. | 5 Yr. | 10 Yr. | Since Fund Inception | Fund Inception Date | |
| Harbor Small Cap Growth Fund (Instl) | 9.40% | 12.55% | 26.98% | 2.25% | 11.98% | 10.87% | 9.41% | 11/01/2000 |
| Russell 2000® Growth Index | 8.41% | 13.22% | 27.66% | -0.35% | 8.82% | 8.95% | 6.55% | 11/01/2000 |
Performance data shown represents past performance and is no guarantee of future results. Past performance is net of management fees and expenses and reflects reinvested dividends and distributions. Past performance reflects the beneficial effect of any expense waivers or reimbursements, without which returns would have been lower. Investment returns and principal value will fluctuate and when redeemed may be worth more or less than their original cost. Returns for periods less than one year are not annualized. Current performance may be higher or lower and is available through the most recent month end at harborcapital.com or by calling 800-422-1050. For most current performance please click here.
- The Fund’s risk controls and emphasis on quality growth companies with reasonable valuations have resulted in a history of downside outperformance versus the Russell 2000 Growth Index.
- Across the 25 worst performance days for the Russell 2000 Growth Index since HASGX’s inception (11/1/2000), the Harbor Small Cap Growth Fund has produced positive excess returns on 22 of those 25 days.
- On average, the Fund has outperformed the Index by +0.61% during these sharp drawdown days.
Performance
| Date | Harbor Small Cap Growth Fund (Instl) | Russell 2000 Growth Index | Excess Return |
|---|---|---|---|
| 1/2/2001 | -3.63% | -6.32% | 2.69% |
| 9/17/2001 | -4.50% | -5.54% | 1.03% |
| 9/29/2008 | -6.51% | -6.56% | 0.05% |
| 10/2/2008 | -5.45% | -5.55% | 0.10% |
| 10/7/2008 | -5.08% | -5.74% | 0.65% |
| 10/9/2008 | -6.19% | -7.37% | 1.18% |
| 10/15/2008 | -9.15% | -9.84% | 0.69% |
| 10/22/2008 | -6.13% | -5.58% | -0.54% |
| 11/12/2008 | -6.10% | -6.23% | 0.13% |
| 11/14/2008 | -5.39% | -6.82% | 1.42% |
| 11/19/2008 | -6.51% | -7.46% | 0.95% |
| 11/20/2008 | -6.49% | -6.53% | 0.04% |
| 12/1/2008 | -9.26% | -10.67% | 1.41% |
| 1/20/2009 | -5.97% | -6.17% | 0.20% |
| 3/2/2009 | -6.33% | -5.84% | -0.49% |
| 8/4/2011 | -6.38% | -6.42% | 0.04% |
| 8/8/2011 | -8.73% | -8.97% | 0.24% |
| 8/18/2011 | -6.59% | -6.41% | -0.19% |
| 3/9/2020 | -8.57% | -8.57% | 0.00% |
| 3/11/2020 | -6.40% | -6.43% | 0.03% |
| 3/12/2020 | -10.03% | -10.99% | 0.97% |
| 3/16/2020 | -13.08% | -14.69% | 1.61% |
| 3/18/2020 | -8.53% | -8.97% | 0.43% |
| 4/1/2020 | -5.46% | -7.05% | 1.59% |
| 6/11/2020 | -6.03% | -6.96% | 0.93% |
| Averages | -6.90% | -7.51% | 0.61% |
Source: Morningstar Direct.
Performance data shown represents past performance and is no guarantee of future results. The 25 worst days represent the 25 days with the largest negative returns for Russell 2000 Growth since the Fund's inception in November 2000, in chronological order.
Since Harbor Small Cap Growth’s inception in November 2000, the Fund has outperformed the Russell 2000 Growth Index in 15 of 23 calendar years (65.2% calendar year batting average). This is notably stronger relative to Morningstar's US Small Growth category average's calendar year batting average of 34.8% over the same time frame.
In addition, this includes 5 consecutive years of benchmark-relative outperformance for Harbor Small Cap Growth from 2019 through 2023, a period marked by changing economic conditions, style rotation, and heightened volatility.
Harbor Small Cap Growth (Instl) has outperformed the Russell 2000 Growth Index by more than 5% in 6 of its 15 outperformance years. Importantly, 7 of 8 of the Fund’s underperformance years were within the -5% to 0% excess return range and its worst calendar year excess return fell just outside this range at -5.10% in 2016. This is likely a function of the team’s unwavering emphasis on quality growth companies with reasonable valuations and disciplined risk controls.
Performance data shown represents past performance and is no guarantee of future results. Past performance is net of management fees and expenses and reflects reinvested dividends and distributions. Past performance reflects the beneficial effect of any expense waivers or reimbursements, without which returns would have been lower. Investment returns and principal value will fluctuate and when redeemed may be worth more or less than their original cost. Returns for periods less than one year are not annualized. Current performance may be higher or lower and is available through the most recent month end at harborcapital.com or by calling 800-422-1050.
*2001 is the first full calendar year of the Fund’s performance.
Source: Morningstar Direct.
- Founded in 1989, Westfield Capital is an employee-owned boutique investment firm based in Boston, MA. Since the firm’s inception, AUM has grown from $130 million to over $23 billion (as of 9/30/2024). Westfield has over 60 employees, and it specializes in growth equity investing within each segment of the market capitalization spectrum.
- The firm’s Small Cap Growth Equity strategy incepted in July 1989 (35+ year track record) and has $3.7B AUM (as of 9/30/2024).
- Analysts are organized vertically by industry group, covering their respective areas across the market capitalization spectrum. Coverage across the market cap range enables better understanding of market dynamics and relationships between companies.
30+ | YEAR HERITAGE SPECIALIZING IN U.S. |
61 | EMPLOYEES IN ONE OFFICE |
$23B | ASSETS UNDER MANAGEMENT |
100% | EMPLOYEE OWNED |
22 | INVESTMENT PROFESSIONALS |
Source: Westfield Capital Management, L.P. as of 9/30/2024.
Westfield employs a Growth-at-a-Reasonable Price (GARP) approach, seeking companies with underappreciated earnings growth trading at reasonable valuations.
The team’s due diligence process is driven by deep fundamental research in pursuit of what Westfield believes are the best managed, highest quality, and optimally positioned businesses.
Meeting with company management teams is an integral part of the Westfield’s due diligence process; the team meets with hundreds of company managements each quarter.
A dedicated risk control team is employed throughout the process to ensure appropriate risk management. This includes close monitoring of price targets, downside flag system, factor exposures, and continuously seeking to improve the investment process.
The Fund’s high conviction portfolio of 60 to 80 growth equities is constructed and actively managed by the Investment Committee.
This disciplined, risk-managed process has yielded steady outperformance with lower beta risk over time.
On a rolling 5-year basis, the Fund has regularly produced positive excess returns versus the Russell 2000 Growth Index while exhibiting a rolling 5-year beta lower than 1.00 over the last decade.
Performance data shown represents past performance and is no guarantee of future results. Past performance is net of management fees and expenses and reflects reinvested dividends and distributions. Past performance reflects the beneficial effect of any expense waivers or reimbursements, without which returns would have been lower. Investment returns and principal value will fluctuate and when redeemed may be worth more or less than their original cost. Returns for periods less than one year are not annualized. Current performance may be higher or lower and is available through the most recent month end at harborcapital.com or by calling 800-422-1050.
| Share Class | Institutional |
|---|---|
| Cusip | 411511868 |
| Fund Number | 2010 |
| Gross Expense Ratio | 0.88% |
| Inception Date | 11/1/2000 |
| Manager Name | Westfield Capital Management, LP |
| Benchmark | Russell® 2000 Growth Index |
| Morningstar Category | Small Growth |
Source: Morningstar Direct. The 10-year period is shown to illustrate rolling 5-year periods, as 5 years is indicative of a market cycle.
Important Information
For Institutional use only. Not for use with Retail investors.
All investments involve risk including the possible loss of principal.
There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. Stocks of small cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies.
The Russell 2000® Growth Index is an unmanaged index representing the smallest 2000 stocks with the highest price-to-book ratio and future earnings. The Russell 2000® Growth Index and Russell® are trademarks of Frank Russell Company. This unmanaged index does not reflect fees and expenses and is not available for direct investment.
In relation to any data attributed to Morningstar, please note the following: © 2024 Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is no guarantee of future results.
Alpha is a measure of risk (beta)-adjusted return.
Batting Average is a statistical method that measures an investment manager's ability to meet or beat the returns of a benchmark index.
Beta is a measure of systematic risk, or the sensitivity of a fund to movements in the benchmark. A beta of 1 implies that the expected movement of a fund's return would match that of the benchmark used to measure beta.
Growth at a reasonable price (GARP) is an equity investment strategy that combines growth and value investing attributes. GARP investors focus on companies with earnings growth above broad market levels but without extremely high valuations.
The views expressed herein may not be reflective of current opinions, are subject to change without prior notice, and should not be considered investment advice.
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