Harbor Mid Cap Value Fund Trimmed State Street (STT) Following Appreciation

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 State Street Corporation (NYSE: STT ) as a material contributor to performance. State Street Corporation (NYSE:STT) is leading US-based financial services company providing custody, accounting, and fund administration services. On September 04, 2026, State Street Corporation (NYSE:STT) closed at $194.26 per share. Over the past month, State Street Corporation (NYSE:STT) returned 3.61%, and its shares are up 73.23% over the past year. State Street Corporation (NYSE:STT) has a market capitalization of $53.36 billion, and its stock has traded within a 52-week range of $104.64 to $195.93.

Harbor Mid Cap Value Fund stated the following regarding State Street Corporation (NYSE:STT) in its Q2 2026 investor letter:

"The top contributors in the second quarter included three Information Technology holdings, as well as Garrett Motion in the Consumer Discretionary sector and State Street Corporation (NYSE:STT) in Financials. State Street advanced due to a strong earnings report highlighting increases in fee-based revenues, expanding assets under management and assets under custody/administration. The company increased its dividend and continued to buy back shares, which pleased investors. We trimmed our exposure."

State Street Corporation (NYSE:STT) is not on our list of the 40 Most Popular Stocks Among Hedge Funds . According to our database, 52 hedge fund portfolios held State Street Corporation (NYSE:STT) at the end of the second quarter, the same as in the previous quarter. While we acknowledge the potential of State Street Corporation (NYSE:STT) 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 .