Strong Results Lifted Garrett Motion (GTX) in Q2

Harbor Funds, an investment management company, released its Q2 2026 investor letter for "Harbor Mid Cap Value Fund". The letter can be downloaded here . Global equities experienced a sharp rally in Q2 2026, with the S&P 500 returning 15.2%, its strongest quarter since 2020, driven by a shift from software to hardware in the Artificial Intelligence capital spending cycle. Small caps outperformed large caps, with the Russell 2000® gaining 21.5% compared to the Russell 1000's 15.1%. Growth stocks led within large caps, while Information Technology rose about 33%, contributing significantly to the S&P 500's return. The Harbor Mid Cap Value Fund returned 13.99%, outperforming its benchmark, the Russell Midcap Value Index. Strong stock selection in Consumer Discretionary, Real Estate, and Financials contributed positively, although an underweight in Information Technology negatively impacted results. Despite ongoing economic uncertainties, the investment philosophy remains committed to a disciplined value approach. Check the fund's top five holdings for its best picks in 2026.

In its second-quarter 2026 investor letter, Harbor Mid Cap Value Fund highlighted Garrett Motion Inc. (NASDAQ: GTX ) as a material contributor to performance. Garrett Motion Inc. (NASDAQ:GTX) designs and manufactures engineered turbocharging and high-speed electric motor technologies for OEMs, distributors, and industrial fields. On September 04, 2026, Garrett Motion Inc. (NASDAQ:GTX) stock closed at $26.66 per share. The one-month return of Garrett Motion Inc. (NASDAQ:GTX) was -3.58%, and its shares gained 111.73% over the past 52 weeks. Garrett Motion Inc. has a market capitalization of $4.97 billion.

Harbor Mid Cap Value Fund stated the following regarding Garrett Motion Inc. (NASDAQ:GTX) in its Q2 2026 investor letter:

"The top contributors in the second quarter included three Information Technology holdings, as well as Garrett Motion Inc. (NASDAQ:GTX) in the Consumer Discretionary sector and State Street in Financials. Garrett Motion was up nearly 100% after a strong first quarter earnings report significantly exceeded analysts' expectations and provided improved guidance going forward. The company has continued to generate good cash flow and buys back stock aggressively."

Garrett Motion Inc. (NASDAQ:GTX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds . According to our database, 49 hedge fund portfolios held Garrett Motion Inc. (NASDAQ:GTX) at the end of the second quarter, up from 46 in the previous quarter. While we acknowledge the potential of Garrett Motion Inc. (NASDAQ:GTX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .