Brown Advisory Small-Cap Growth Strategy

What it bought and sold

• ExitedMister Car Wash, Inc.Jun 2026

  We exited Mister Car Wash, Inc. (MCW) following the news that it would be acquired.

• New positionPlexus Corp.Jun 2026

  We initiated a position in Plexus Corp. (PLXS) as we view it as a differentiated, engineering-led EMS compounder shifting toward a higher- margin, stickier business mix, with accelerating demand across semi-cap, aerospace & defense, and space.

• New positionArxis Inc.Jun 2026

  We bought shares of Arxis Inc (ARXS) in the company's initial public offering.

• ExitedMirion Technologies, Inc. Class AJun 2026

  We exited Mirion Technologies Inc (MIR) with diminishing conviction in the management team's ability to execute on the nuclear opportunity set ahead of them and the recent pressure in their medical segment.

• ExitedMueller Water Products, Inc. Class AJun 2026

  We had already sold much of our position in Mueller Water Products Inc (MWA) in 2025 and finished exiting this quarter.

• New positionACV Auctions, Inc. Class AJun 2026

  We purchased ACV Auctions, Inc. Class A (ACVA) shares after a 40% YTD decline as unit growth decelerated on the 4Q25 print early in the year.

• New positionQuantinuum Inc. Class AJun 2026

  We initiated a position in Quantinuum Inc (QNT) on the IPO with a view that they are best positioned to successfully scale their quantum computing systems over the next few years to solve novel problems for both government and commercial use cases.

• New positionLincoln International, Inc. Class AJun 2026

  We participated in the Lincoln International (LCLN) IPO.

• ExitedOneStream, Inc. Class AMar 2026

  Hg Capital agreed to acquire OneStream, Inc. (OS) for a ~30% premium to where it was trading prior to the news.

• ExitedLittelfuse, Inc.Mar 2026

  We exited our position in Littelfuse, Inc. (LFUS) following significant price appreciation to fund other ideas in the portfolio.

• ExitedRentokil Initial plc Sponsored ADRMar 2026

  After strong price appreciation, we exited Rentokil Initial plc (RTO) on market cap considerations and to fund other ideas.

• ExitedOnestream, Inc.Mar 2026

  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.

• ExitedYork Space Systems, Inc.Mar 2026

  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.

• ExitedTake-Two Interactive Software, Inc.Mar 2026

  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.

• New positionTalen Energy CorpMar 2026

  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.

• ExitedPhreesia, Inc.Mar 2026

  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.

• ExitedNeurocrine Biosciences, Inc.Mar 2026

  We exited Neurocrine Biosciences, Inc. (NBIX) after the risk/reward no longer made sense.

• ExitedConfluent, Inc. Class AMar 2026

  We exited our position following the completion of Confluent, Inc.’s (CFLT) acquisition by IBM.

• New positionGuardant Health, Inc.Mar 2026

  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.

• New positionQ2 Holdings, Inc.Mar 2026

  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.

• New positionFTI Consulting, Inc.Mar 2026

  FTI Consulting, Inc. (FCN) is a global business advisory firm that helps organizations navigate complex financial, legal, operational, and reputational challenges.

• AddedLantheus Holdings IncMar 2026

  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.

• ExitedSailPoint, Inc.Mar 2026

  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.

• New positionWest Pharmaceutical Services, Inc.Mar 2026

  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.

Also held

• SiteOne Landscape Supply, Inc.
• Lattice Semiconductor Corporation
• AAON, Inc.
• Bruker Corporation
• SiTime Corporation
• Bright Horizons Family Solutions, Inc.
• FTI Consulting Inc
• CCC Intelligent Solutions Holdings Inc
• Guidewire Software, Inc.
• Establishment Labs Holdings, Inc.
• Vertex, Inc. Class A
• Entegris, Inc.
• Dynatrace, Inc.
• Casey's General Stores, Inc.
• Brown Advisory Small-Cap Growth Strategy
• Oceaneering International, Inc.

Its investment theses

• ACV Auctions, Inc. Class AJun 2026ACV Auctions, Inc. Class A has a long runway as more auction volume shifts online and new products support renewed growth.
• Quantinuum IncJun 2026Quantinuum Inc is positioned to scale quantum computing systems early and build a defensible long-term moat.
• Arxis, Inc. Class AJun 2026Arxis, Inc. Class A is a high-quality A&D and industrial components manufacturer with an elite management team and an attractive IPO valuation.
• 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.

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