Brown Advisory
Brown Advisory Small-Cap Growth Strategy
Small-cap Growth
Mar 2025 → Mar 2026
Our archive holds 3 letters from this strategy, behind 6 investment theses and positions in 7 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
Hg Capital agreed to acquire OneStream, Inc. (OS) for a ~30% premium to where it was trading prior to the news.
We exited our position in Littelfuse, Inc. (LFUS) following significant price appreciation to fund other ideas in the portfolio.
After strong price appreciation, we exited Rentokil Initial plc (RTO) on market cap considerations and to fund other ideas.
We had two additional take-outs in the first quarter, Onestream, Inc. (OS) and Mister Car Wash, Inc. (MCW), both by private equity, which is an acknowledgment that many companies are trading below their intrinsic value today.
We participated in the IPO of satellite manufacturer York Space Systems, Inc. (YSS) and exited our small position during the quarter to fund other opportunities.
Take-Two Interactive Software, Inc. (TTWO) has been a strong performer and has now grown into a $30 billion-plus market cap company; we exited our position.
We used recent weakness as an opportunity to initiate a position in Talen Energy (TLN), an independent power producer whose portfolio includes the Susquehanna nuclear plant and other dispatchable generation assets, with a growing focus on serving power demand from data centers.
Remaining shares of Phreesia, Inc. (PHR) were sold following F3Q26 results where it became evident that the business model and growth rate were straying from our original thesis.
We exited Neurocrine Biosciences, Inc. (NBIX) after the risk/reward no longer made sense.
We exited our position following the completion of Confluent, Inc.’s (CFLT) acquisition by IBM.
After following the company for many years, we purchased shares of Guardant Health, Inc. (GH), as recent due diligence highlighted a stable competitive environment and underscored a number of positive catalysts for the company over the next several years.
We initiated a position in Q2 Holdings, Inc. (QTWO), which engages in the provision of digital banking and lending solutions to financial institutions and financial technology companies, among others, wishing to incorporate banking into their customer engagement and servicing strategies.
FTI Consulting, Inc. (FCN) is a global business advisory firm that helps organizations navigate complex financial, legal, operational, and reputational challenges.
Shares of Lantheus Holdings Inc (LNTH) were added after the company received FDA approval of its key product TruVu, positively shifting the competitive positioning and allowing more confident underwriting of the operational outlook.
We exited SailPoint, Inc. (SAIL) as it held up in relatively better than the broader software complex which created more attractive relative risk/reward opportunities.
Concerns over potential share losses to oral weight loss drugs and an unexpected CEO retirement announcement sent shares of West Pharmaceutical (WST) lower, offering an attractive entry point to a company we know well.
Shares of Lumexa Imaging Holdings, Inc. (LMRI) were bought following a significant pullback in valuation after the company’s IPO.
We sold Clearwater Analytics Holdings, Inc. (CWAN) due to the announced acquisition by Permira and Warburg Pincus.
Knife River Corporation (KNF) is a vertically integrated producer of aggregates, asphalt, and construction services operating in the Pacific Northwest region.
It was announced that Mister Car Wash, Inc. (MCW) would be taken private by its private equity sponsor, Leonard Green Partners.
We exited SLB Limited (SLB) after the company completed its acquisition of our holding ChampionX.
We exited Cactus, Inc. (WHD) as we lost confidence that its major growth lever, expansion into the Middle East, would play out in 2026 amid the escalating conflict in the region.
Also held
Its investment theses
- Knife River CorporationMar 2026Knife River Corporation is a vertically integrated construction materials business seeing stronger demand and potential pricing and margin growth.
- Enerpac Tool Group CorpSep 2025Enerpac Tool Group Corp (EPAC) is a hidden gem in the industrial sector with improving margins, a strong balance sheet, and a commitment to operational enhancements under CEO Paul Sternlieb.
- Netskope,Sep 2025Netskope, Inc. is a technology leader in Cloud Network Cyber Security, offering innovative solutions for stronger security and performance in Enterprise networks, with significant growth potential in the coming years.
- Parsons CorporationSep 2025Parsons Corporation is a leading solutions provider for the Federal Government and Critical Infrastructure projects, well-positioned for continued growth with expected mid-teens EBITDA growth driven by organic revenue gains, M&A, and margin expansion.
- AAON Inc.Mar 2025AAON Inc. is a promising investment with strong growth potential in both the commercial rooftop HVAC market and its rapidly expanding data center cooling business.
- GeneracMar 2025Generac is a potentially undervalued company with strong market share in home standby generators, expected EBITDA growth, and optionality for expansion from new product success.