Brown Advisory
Brown Advisory Mid Cap Growth
US Mid-cap Growth
Sep 2025 → Jun 2026
Our archive holds 3 letters from this strategy, behind 13 investment theses and positions in 40 companies. Every quote below is copied verbatim from the letter it came from.
3 letters in 2 years — follow all of Brown Advisory for every strategy.
What it bought and sold
We initiated two small positions in recent IPOs that we continue to hold: Arxis Inc (ARXS), an aerospace and defense component compounder, and Quantinuum Inc (QNT), a leader in the early but promising quantum computing market.
We initiated a position in Snowflake Inc (SNOW), a cloud-native data platform our research team has followed closely for years.
We used the volatility surrounding Middle East tensions and fuel-cost fears to establish our position.
The shares weakened this spring after a modest first-quarter earnings miss amid soft restaurant traffic, and we took advantage to build our position.
The Strategy owns both Datadog—a position we added to during the first quarter's software selloff—and Lattice Semiconductor.
We took advantage of a sharp spring pullback in the shares to initiate our position in the quarter.
We established our position in early April, and the shares more than doubled during the quarter, making Flex one of our largest contributors.
We initiated two small positions in recent IPOs that we continue to hold: Arxis Inc (ARXS), an aerospace and defense component compounder, and Quantinuum Inc (QNT), a leader in the early but promising quantum computing market.
We like the company’s shift away from capital- intensive aircraft leasing and toward a higher-margin MRE (Maintain, Repair, Exchange) business, which should improve earnings quality and durability over time.
We also reduced the weights of Hubspot, Inc (HUBS), Dynatrace, Inc (DT) and CoStar Group, Inc (CSGP).
We participated in the company’s IPO in our Small-Cap Growth Strategy and built a position on mild weakness in Mid-Cap Growth during the first quarter.
During the first quarter, we scrutinized AI risk of every position in the portfolio once again. Based on that analysis, we eliminated positions in Workday, Inc (WDAY), Gartner, Inc (IT), and Verisk Analytics, Inc (VRSK).
After following the company for many years, we built a small position in Guardant Health after recent due diligence highlighted a stable competitive environment and underscored several positive upcoming catalysts for the company.
During the first quarter, we scrutinized AI risk of every position in the portfolio once again. Based on that analysis, we eliminated positions in Workday, Inc (WDAY), Gartner, Inc (IT), and Verisk Analytics, Inc (VRSK).
We also built six new positions, including in two companies we believe are being disproportionately penalized in the software rout—Toast, Inc (TOST) and Guidewire Software, Inc (GWRE).
We also reduced the weights of Hubspot, Inc (HUBS), Dynatrace, Inc (DT) and CoStar Group, Inc (CSGP).
We exited OneStream, Inc. (OS) after Hg Capital agreed to acquire the company at an approximately 30% premium to its undisturbed share price.
We also built six new positions, including in two companies we believe are being disproportionately penalized in the software rout—Toast, Inc (TOST) and Guidewire Software, Inc (GWRE).
We participated in the IPO of satellite manufacturer York Space Systems (YSS) and exited our small position in the quarter to fund other opportunities.
We also reduced the weights of Hubspot, Inc (HUBS), Dynatrace, Inc (DT) and CoStar Group, Inc (CSGP).
We also exited our small position in a 2025 IPO, Voyager Technologies (VOYG).
We exited DraftKings (DKNG) as prediction-market concerns continued to weigh on sentiment.
During the first quarter, we scrutinized AI risk of every position in the portfolio once again. Based on that analysis, we eliminated positions in Workday, Inc (WDAY), Gartner, Inc (IT), and Verisk Analytics, Inc (VRSK).
Also held
Its investment theses
- Flex LtdJun 2026Flex Ltd is a global electronics manufacturing and supply-chain services company benefiting from AI data-center demand and a planned separation that could highlight faster-growing, higher-margin segments.
- Robinhood Markets IncJun 2026Robinhood Markets Inc is a diversified financial platform with a technology-native, mobile-first model and a credible path to becoming a global brokerage leader.
- Snowflake IncJun 2026Snowflake Inc is a cloud-native data platform exposed to enterprise data and AI adoption, with accelerating product innovation and attractive valuation.
- US Foods Holding CorpJun 2026US Foods Holding Corp is a leading foodservice distributor with self-help initiatives that support double-digit earnings growth.
- Viking HoldingsJun 2026Viking Holdings is a luxury cruise operator with strong repeat demand, superior unit economics, and a long runway for profitable growth.
- Credo Technology Group Holding LtdJun 2026Credo Technology Group Holding Ltd is part of the AI infrastructure buildout, benefiting from rising data-center compute and networking demand.
- Guidewire Software, Inc.Mar 2026Guidewire Software is an insurance-software provider with durable, accelerating growth and a strong competitive position as insurers remain early in cloud transformation.
- Toast, Inc.Mar 2026Toast is a restaurant software leader with long runway for location growth, expanding verticals, and a widening competitive advantage.
- Reddit, Inc.Mar 2026Reddit combines an engaged audience, early-stage monetization, and AI data-licensing upside with room for revenue growth and margin expansion.
- Andersen Group, Inc.Mar 2026Andersen Group is a tax services firm taking share from the Big Four, with mid-teens growth, margin expansion, and acquisition upside.