Harding Loevner LP - Global Equity Composite on Adobe Inc.
Thesis
The portfolio maintained a small exposure to software and services because the fund believed the sell-off over AI disruption concerns underestimated the competitive advantages and growth potential of its holdings. Adobe outperformed in August as those disruption concerns began to abate. Its AI-related annual recurring revenue surpassed $500 million, providing evidence that AI can also create growth opportunities for the business.
“AI-related annual recurring revenue for Adobe surpassed $500 million”
Key risks
- Renewed concerns that AI could disrupt software businesses
- High short-term volatility in software and services