Navigating Market Currents: NewMarket Corporation's Performance Amidst Sector Headwinds
Harbor Capital Advisors' Q4 2025 Performance Overview
Harbor Capital Advisors' Mid Cap Value Fund demonstrated robust performance in the fourth quarter of 2025. The Institutional Class of the fund achieved a return of 4.07%, significantly surpassing the Russell Midcap Value Index's 1.42%. This outperformance was largely attributed to the strength of value stocks during a period when the Russell Midcap Growth Index saw a decline of 3.7%. While the S&P 500 Index experienced a 2.7% rise in Q4, mid-cap stocks generally lagged, with the Russell Midcap Index only gaining 0.2%.
NewMarket Corporation's Challenges in Q4 2025
NewMarket Corporation (NYSE:NEU), a key holding in the Harbor Mid Cap Value Fund, faced difficulties in the fourth quarter of 2025. The company, a specialist in performance additives for petroleum products and industrial uses, saw its stock decline by 7.20% over one month. Its shares fluctuated between $510.07 and $875.97 during the 52-week period, closing at approximately $616.60 per share on February 25, 2026, with a market capitalization around $5.79 billion. This downturn was primarily driven by a general weakening in the petroleum additives business, a significant portion of NewMarket's revenue.
Investment Strategy and Future Outlook for Value Stocks
Despite the challenges faced by some of its holdings, Harbor Capital Advisors' Mid Cap Value Fund continues to retain its investment in NewMarket Corporation. The fund's management emphasizes its quantitative value discipline, which focuses on fundamental undervaluation, improving momentum, and effective risk control. Looking forward, the management notes that while large-cap stocks, particularly those in the AI sector, have seen elevated valuations, mid- and small-cap value stocks remain attractively priced. This positioning is expected to allow the fund to capitalize on opportunities within economically sensitive and cash-generative businesses, even as some individual companies navigate sector-specific headwinds.