EnerSys (ENS) Initiated by Harbor Mid Cap Value Fund on Improving Margins

The Harbor Capital Advisors released its “Mid Cap Value Fund’s” Q4 2025 investor letter. A copy of the letter can be downloaded here. Harbor Mid Cap Value Fund, subadvised by LSV Asset Management, delivered solid outperformance in the fourth quarter of 2025, with the Institutional Class returning 4.07% versus 1.42% for the Russell Midcap Value Index, benefiting from strength in value stocks as the Russell Midcap Growth Index declined 3.7% during the period. U.S. equities broadly advanced, with the S&P 500 Index rising 2.7% in the quarter and 17.9% for the full year, while mid-caps lagged, with the Russell Midcap Index up just 0.2% in Q4. For 2025, the Fund gained 15.95% (Institutional Class), outperforming the benchmark’s 11.05% return. Attribution data show a total quarterly excess return of 2.82%, largely from selection effects, underscoring the manager’s quantitative value discipline focused on fundamental undervaluation, improving momentum, and risk control. Looking ahead, management noted that while AI-driven large-cap leadership has elevated valuations in certain segments, mid- and small-cap value stocks continue to trade at more attractive multiples, positioning the Fund to capitalize on opportunities within economically sensitive and cash-generative businesses. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Harbor Capital Advisors' Mid Cap Value Fund highlighted stocks like EnerSys (NYSE:ENS). EnerSys (NYSE:ENS) is an industrial technology company that manufactures energy storage systems and battery solutions for telecommunications, transportation, and utility applications. The one-month return of EnerSys (NYSE:ENS) was -8.08% while its shares traded between $76.57 and $171.13 over the last 52 weeks. On February 26, 2026, EnerSys (NYSE:ENS) stock closed at approximately $172.62 per share, with a market capitalization of about $6.316 billion.

Harbor Capital Advisors' Mid Cap Value Fund stated the following regarding EnerSys (NYSE:ENS) in its Q4 2025 investor letter:

We also initiated a position in EnerSys (NYSE:ENS) in the Industrials sector. EnerSys designs, manufactures, and distributes energy systems and batteries to customers worldwide. The stock ranks high on multiple cash flow and forecast earnings measure — our two most important blocks of valuation. The company typically pays a dividend and has been aggressively buying back stock, which we view positively. Price momentum over the past 12 months has been strong. In addition, several indicators of operating momentum are also attractive, with improving operating margins and growth in sales. Overall, the stock ranks in the top 5% in our stock-ranking universe, which led to the fourth quarter purchase.

EnerSys (NYSE:ENS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held EnerSys (NYSE:ENS) at the end of the fourth quarter, which was 23 in the previous quarter. While we acknowledge the risk and potential of EnerSys (NYSE:ENS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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 EnerSys (NYSE:ENS) and shared the list of stocks that were discussed by Jim Cramer. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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