Here's How Apple (AAPL) Impacted Harbor Capital Appreciation Fund

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 Apple Inc. (NASDAQ:AAPL). Apple Inc. (NASDAQ:AAPL) is an American multinational company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The one-month return of Apple Inc. (NASDAQ:AAPL) was -1.35%, and its shares gained 6.05% of their value over the last 52 weeks. On December 24, 2025, Apple Inc. (NASDAQ:AAPL) stock closed at $273.81 per share, with a market capitalization of $4.063 trillion.

Harbor Capital Appreciation Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its third quarter 2025 investor letter:

"Apple Inc.'s (NASDAQ:AAPL) stock price benefited after the company launched a new, higher-priced iPhone lineup that is generating strong early demand. The Fund’s underweight position in Apple relative to the index con-tributed negatively to relative returns."

Apple Inc. (NASDAQ:AAPL) is in 8th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 166 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the third quarter, which was 156 in the previous quarter. Apple Inc. (NASDAQ:AAPL) reported revenue of $102.5 billion in the September quarter, reflecting an 8% year-over-year increase. While we acknowledge the potential of Apple Inc. (NASDAQ:AAPL) 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.

In another article, we covered Apple Inc. (NASDAQ:AAPL) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.