Harbor Capital Appreciation Fund, an investment management company, released its Q3 2025 investor letter. A copy of the same can be downloaded here. The Harbor Capital Appreciation Fund primarily focuses on investing in equity securities, targeting U.S. companies that have a market capitalization of at least $1 billion at the time of investment. US equities delivered solid results in the third quarter, driven by continued momentum in AI and strong corporate earnings. The Federal Reserve’s interest rate cut also supported the market at the end of the quarter. The fund returned 5.11% in the quarter compared to 10.51% for the Russell 1000® Growth Index and 8.12% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Harbor Capital Appreciation Fund highlighted stocks such as Oracle Corporation (NYSE:ORCL). Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments. The one-month return of Oracle Corporation (NYSE:ORCL) was -3.64%, and its shares gained 15.21% of their value over the last 52 weeks. On December 24, 2025, Oracle Corporation (NYSE:ORCL) stock closed at $197.49 per share, with a market capitalization of $567.414 billion.
Harbor Capital Appreciation Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its third quarter 2025 investor letter:
“We initiated a position in Oracle Corporation (NYSE:ORCL), a leader in cloud infrastructure and enterprise software. Strong growth in the cloud and applications is supported by demand, AI innovation, and partnerships such as its OpenAI agreement. With a large installed base and expanding cloud adoption, Oracle is well positioned to capture rising software and infrastructure demand.”
Oracle Corporation (NYSE:ORCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 122 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the third quarter, which was 124 in the previous quarter. In the second quarter of fiscal 2026, Oracle Corporation (NYSE:ORCL) reported total revenues of $16.1 billion, up 14% compared to last year’s comparable quarter. While we acknowledge the potential of Oracle Corporation (NYSE:ORCL) 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.
