Thu, 12 Oct 2017
Harbor Large Cap Value has a concentrated portfolio with a quality tilt.
Andrew Daniels: Harbor Large Cap Value has posted solid risk-adjusted results in recent years, and is on our radar.
The fund has been subadvised by Aristotle Capital Management since 2012 and is led by Howard Gleicher. Gleicher and a team of about a dozen analysts employ a bottom-up, fundamental approach. They target high-quality companies with sustainable competitive advantages, attractive fundamentals, and experienced management teams. While valuation is an important component to the process, the team prefers quality firms when they're out of favor over mediocre firms trading at fire-sale prices, hence why the fund lands in the large-blend Morningstar Category.
The resulting portfolio is concentrated, holding between 35 and 45 stocks, so portfolio turnover is below average. What's more is that most of the fund's assets are in share classes that charge below average fees. While the fund had just $660 million of assets under management as of August 2017, Aristotle does run more than $11 billion in this strategy, most of which via a separate account.
For investors seeking large-cap exposure, this fund may be worth a second look.