What We Do

At Harding Loevner, we operate on the conviction that insights gained through the careful study of individual companies are more valuable than market forecasts. Our investment style is rooted in a fundamental, research-based, company-focused stock selection process. The portfolios that result from this process are fairly concentrated, well diversified portfolios comprised of high-quality growth companies that exhibit high returns on assets, low leverage, low volatility of returns, and high profit margins.

Through our analysis, we have the opportunity to take advantage of specific company knowledge and industry trends over long periods of time. We believe that other managers with a shorter-term or top-down focus will miss these insights. Accordingly, we favor stocks of companies that exhibit four characteristics:

1. Growth – prospective growth of revenue, earnings and cash flows
2. Management – track record of successful management with a clearly articulated business strategy and a suitable regard for shareholders
3. Financial Strength – financial resources, business-appropriate balance sheet and borrowing capacity, and free cash flow generation
4. Competitive Advantage – high and growing margins, sustained by durable competitive advantages

We provide portfolio transparency, timely communications, comprehensive client service, and appropriate access to portfolio managers. At the request of clients, we accept and honor socially responsible investment guidelines and restrictions for separate accounts. For clients that are taxable, we aim to maximize after-tax returns through active portfolio management that includes deferring the recognition of gains and harvesting losses when applicable.