Harbor Funds, an investment management firm, released its Q3 2025 investor letter for the “Harbor Mid Cap Fund.” A copy of the letter can be downloaded here. The Harbor Mid Cap Fund primarily focuses on investing in equity securities, focusing on common and preferred stocks of mid-sized U.S. companies. Global stocks rallied strongly in the third quarter, driven by declining inflation, resilient economic data and some of the most disruptive trade measures being eased or postponed. The fund returned 4.19% for the quarter, lagging the Midcap index’s 8.53% return due to trading momentum. Plus, check out the fund’s top five holdings to learn your best picks in 2025.
In its Q3 2025 investor letter, Harbor Mid Cap Fund highlighted stocks like Woodward, Inc. (NASDAQ:WWD). Woodward, Inc. (NASDAQ:WWD) designs and develops control solutions for the aerospace and industrial markets. Woodward, Inc. (NASDAQ:WWD)’s monthly performance was 5.27% and its shares gained 83.79% of its value in the last 52 weeks. On December 24, 2025, Woodward, Inc. (NASDAQ:WWD) stock closed at $313.87 per share, with a market capitalization of $18.831 million.
Harbor Mid Cap Fund stated the following regarding Woodward, Inc. (NASDAQ:WWD) in its Q3 2025 investor letter:
“Woodward, Inc. (NASDAQ:WWD) contributed to the performance. Woodward is a leading provider of controls used in aircraft engines, aerospace, and the industrial and energy markets. The company reported better-than-consensus earnings, revenue, and earnings before interest and taxes margins in the most recent quarter. Within the aerospace segment, there was strong demand for new defense equipment and increased aftermarket/maintenance business activity, as more older aircraft continue to be used for longer periods of time. The company was also able to demonstrate its continued share growth and margin expansion in commercial aircraft engines through its transformation from a components supplier to a systems supplier. We believe the commercial aerospace manufacturing industry has not yet fully recovered from the lows of the pandemic. Future earnings visibility and potential for further margin expansion will likely come with the continued rebound in commercial airline manufacturing and gains in content share.”
Woodward, Inc. (NASDAQ:WWD) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 52 hedge fund portfolios owned Woodward, Inc. (NASDAQ:WWD) at the end of the third quarter, compared to 54 in the previous quarter. While we recognize the potential of Woodward, Inc. (NASDAQ:WWD) as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.