Harbor Capital Appreciation Fund Administrative Class (HRCAX)

Overview

The fund specializes in investing primarily (no less than 65% of its total assets under normal market conditions) in a mix of common and preferred stocks of foreign companies. It employs a strategic approach guided by the Subadvisor to pinpoint lucrative long-term investment opportunities. These opportunities are often found in the wake of specific capital cycle or supply-side conditions, leveraging the dynamics of capital cycles. The foundation of the investment philosophy rests on the notion that the allure of high returns tends to attract an excessive influx of capital and spur competition, while the anticipation of low returns drives a significant reduction in new capital investments, thereby deterring competition.

Products and Services

• Common Stock Investments

Investment in common stocks of foreign entities, aiming to capitalize on equity appreciation and dividends, constitutes a significant portion of the fund’s strategy. This aligns with the objective to tap into the growth potential of companies benefiting from favorable capital cycle conditions.

• Preferred Stock Investments

Allocation to preferred stocks enhances the fund's diversification and income generation capabilities. Preferred stocks offer unique advantages such as fixed dividends and priority over common stock in asset liquidation, providing a blend of income and stability amid varying capital cycle phases.

• Capital Cycle-Based Investment Strategy

The Subadvisor’s expertise in identifying and exploiting the nuances of capital cycles forms the cornerstone of the fund’s approach. By understanding how the influx and ebbing of capital affect market dynamics, the fund aims to invest in companies positioned to benefit from such cycles, thus potentially offering superior long-term returns.