ContactHarbor International Compounders Fund Strategy Profile
June 06, 2024Table of Contents
Long-Term Growth Investing. Active manager with over three decades of experience seeking to identify companies with competitive advantages, strong governance and clear long-term strategies that it believes can sustain consistent growth levels well into the future. The team attempts to exploit market inefficiencies by investing in companies with underappreciated multi-year, structural growth opportunities.
Research-Centric Expertise. C WorldWide’s investment edge is driven by in-depth fundamental research conducted by a team with decades of experience. The team will select companies based on a complete understanding of their long-term strategy and culture, integrated with C WorldWide investment team's vision about how their competitive strengths and related market demand themes might evolve.
| Share Class | Institutional |
|---|---|
| Cusip | 41152P641 |
| Fund Number | 2049 |
| Inception Date | 03/01/2024 |
| Manager Name | C WorldWide Asset Management |
| Benchmark | MSCI All Country World Ex. U.S. (ND) Index |
| Morningstar Category | Foreign Large Growth |
Global Thematic Overlay. Identifying themes and integrating them into the process is a meaningful part of the team’s selection criteria. Themes represent secular societal changes expected to occur that may impact the economics of industries and individual companies over a medium-term time horizon.
Focused Portfolio. Portfolio only contains the team’s highest conviction ideas with a maximum of 30 holdings, which makes the portfolio construction process an active competition for capital.
The Harbor International Compounders Fund (HSICX) is an actively managed Mutual Fund that offers exposure to C WorldWide’s International equity strategy. The Fund employs a bottom-up, research- driven process to constructing a portfolio of foreign large capitalization companies.
The Harbor International Compounders Fund (HSICX) seeks long-term growth of capital by investing in large capitalization companies, primarily outside the U.S., that C WorldWide Asset Management believes have compelling prospects for long-term growth.
Conviction: maximum 30 stocks
Buy/Sell discipline: one in/one out
Quality and large cap bias
Earnings growth drives share prices
Low turnover
Long-term investment horizon
Global trends and themes
Tailwinds and headwinds
- Founded in 1986, C WorldWide is an equity boutique investment firm based in Copenhagen, Denmark.
- Since the firm’s inception, AUM has grown to over $17 billion (as of 12/31/2023). The firm has over three decades of experience employing a disciplined and consistent process.
- The firm’s PMs average 30 years of industry experience and 22 years of firm tenure and are part of the firm’s 24-person investment team.
- HSICX is a high conviction portfolio employing a 30-stock maximum. This approach ensures a constant competition for capital, ensuring each holding continuously earns its place in the portfolio.
Portfolio Manager Team
Bo Knudsen
CEO & Portfolio Manager Global Equities
Bengt Seger
Portfolio Manager Global Equities
Peter O'Reilly
Portfolio Manager Global Equities
Mattias Kolm
Portfolio Manager Global Equities
- It’s not the magnitude of growth, it’s the sustainability of growth. The team is seeking companies with competitive advantages, strong governance and clear long-term strategies resulting in the ability to compound earnings growth over time.
- C WorldWide devotes resources explicitly to focus on identifying generational trends (20 – 40 years) and themes (at least five years, often longer). These thematic insights drive C WorldWide toward attractive addressable markets with the potential for sustainability of growth.
- These themes are seamlessly integrated with C WorldWide’s disciplined, bottom-up fundamental research; the team will never invest in low conviction stocks regardless of conviction in the theme.
The Fund invests primarily in equity securities of at least $5B in market cap of non-U.S. companies that the team believes has the potential to deliver sustainable long-term growth. The investment philosophy centers on the belief that businesses with durable moats, strong governance and a clear long-term strategy have the potential to sustain consistent growth levels well into the future.
The firm’s investment culture embraces a set of shared beliefs about how markets work, specific strengths and skill sets, effective methods of decision-making, and how to implement insights. The team will:
- Embrace a long-term time horizon.
- Focus on identifying sustainable business models.
- Own only the highest conviction ideas.
- Dig deep in company research using qualitative and fundamental analysis.
- Integrate the identification of long-term themes into stock selection criteria.
- Believe that risk management should focus on qualitative factors — understanding what we own, and effective diversification.
- Embrace the notion that good governance has the potential to correlate to favorable operating results.
The process starts and ends with a portfolio of C WorldWide’s highest conviction ideas – maximum 30 holdings.
| High Conviction Portfolio 25-30 holdings | Idea Generation (Full investment team, 24 people – meeting twice a week) | Building Conviction Global Research Team & core members* - meeting every 4th week | Global Decision Team & Meeting Meeting every 10th day or more often | Portfolio Construction 25-30 holdings |
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*The core members of the Global Research Meeting are the four PM’s in global decision team Bo Knudsen, Bengt Seger, Mattias Kolmand Peter O’Reilly. Supplemented with global PM Jakob Greisen and Leemon Wu, Senior Advisor Lars Wincentsen, Head of Research David Rindegren, Analyst Marcus Bellander and ESG Specialist Mette Bergenstoff Sletbjerg.
For more information, please visit www.harborcapital.com or call (866) 313‐5549.
Important Information
All investments involve risk including the possible loss of principal.
There is no guarantee that the investment objective of the Fund will be achieved. Fixed income investments are affected by interest rate changes and the creditworthiness of the issues held by the Fund. As interest rates rise, the values of fixed income securities held by the Fund are likely to decrease and reduce the value of the Fund's portfolio. There may be a greater risk that the Fund could lose money due to prepayment and extension risks because the Fund invests, at times, in mortgage-related and/or asset backed securities.
The Subadviser considers certain Environmental, Social and Governance (“ESG”) factors in evaluating company quality which may result in the selection or exclusion of securities for reasons other than performance and the Fund may underperform relative to other funds that do not consider ESG factors.
The MSCI All Country World Ex. US (ND) Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global developed and emerging markets, excluding the U.S. This unmanaged index does not reflect fees and expenses and is not available for direct investment.
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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