Harbor Capital Fund Details Q3 Moves, Touts TSM and Adds Oracle and Toast

Overview

• Harbor Capital Appreciation Fund reported a 5.11% return for Q3 2025 versus 10.51% for the Russell 1000 Growth and 8.12% for the S&P 500.
• The fund highlighted Taiwan Semiconductor Manufacturing Company as a beneficiary of strong demand for advanced AI and high‑performance computing chips, with TSM closing at $298.80 and a $1.55 trillion market cap on Dec. 24 and hedge‑fund holders rising to 194 from 187.
• Harbor initiated a position in Oracle, citing cloud infrastructure strength, AI innovation, and an OpenAI partnership, while Oracle’s fiscal Q2 2026 revenue reached $16.1 billion, up 14% year over year.
• The fund also initiated Toast, pointing to a large under‑penetrated restaurant technology market, a recurring revenue model, and expansion into enterprise and international segments; TOST closed at $36.49 with a $21.46 billion market cap on Dec. 24.
• The letter noted Microsoft shares lagged on concerns about its relationship with OpenAI following the Oracle–OpenAI deal, and the fund’s underweight in Microsoft aided relative results.