Brown Capital Management Mid Company Fund

Investor Summary

The Brown Capital Management Mid Company Fund was led by Eddie C. Brown, Chairman, CEO, and Founder of Brown Capital Management, who served as lead portfolio manager since September 30, 2002. Brown brought over 40 years of investment experience and held both CFA and CIC designations. The management team included experienced professionals Walton Pearson, Kayode Aje, CFA, Kwame Webb, CFA, and Ed Zane. Following the fund's termination in August 2024, significant team transitions occurred with Walt Pearson retiring on June 30, 2024, while the remaining Mid Company team members joined the International Team as portfolio managers effective July 15, 2024. Brown Capital Management, founded in 1983, is recognized as one of the oldest African-American-founded asset management firms in the United States and operates as 100% employee-owned with 37 employees.

Fund Strategy

Brown Capital Management employs a singular investment philosophy based on identifying Exceptional Growth Companies, ignoring traditional benchmarks, and maintaining the patience and tolerance to hold positions for years. The firm believes that a sustained commitment to a portfolio of exceptional companies will, over time, generate attractive long-term returns. The strategy emphasizes vigorous internal debate and patient investing as core components. Companies are sized by operating revenues rather than market capitalization, with the fund targeting companies with total operating revenues between $500 million and $2.5 billion at initial investment. The approach typically maintains a concentrated portfolio of 40 to 60 securities believed to have significant growth potential. CRITICAL NOTE: This fund was officially terminated on August 12, 2024.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
-	-7.9%	-3.1%

Executive Summary

Brown Capital Management's Mid Company Fund returned -7.85% in Q2 2024, underperforming the Russell MidCap Growth index's -3.21% return. The fund faced significant headwinds from what the manager describes as a shadow recession, where many portfolio companies operate in markets experiencing recessionary demand levels despite no technical U.S. recession. Higher interest rates have particularly impacted biotech funding, hurting companies like Charles River Laboratories, which saw consecutive quarterly revenue declines for the first time since 2008-2009. Top detractors included Align Technologies, Charles River, Veeva Systems, Five9, and Paycom Software, all showing significant revenue growth deceleration from pre-pandemic levels. Contributors included Guidewire Software, which reached an inflection point in its cloud transition with 16% revenue growth, and Insulet, which delivered strong results despite GLP-1 drug concerns. The fund added Natera, a diagnostic testing company with significant market opportunities in cancer-recurrence testing. The manager maintains a long-term approach with an average holding period of seven years, expecting stabilization as economic conditions improve.

Forward Outlook

The manager expects sales growth for affected companies to stabilize in coming quarters, though a stronger economic backdrop is likely required for growth to meaningfully accelerate. They maintain confidence in the long-term prospects of their holdings despite current macro headwinds.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Sep 5 2024	2024 Q2	ALGN, CRL, FIVN, GWRE, NTRA, OMCL, PAYC, PODD, TDOC, VEEV	Biotechnology, growth, healthcare, Medical Devices, mid cap, software, technology	GWRE PODD CRL FIVN NTRA	Brown Capital's Mid Company Fund fell 7.85% in Q2 2024 as portfolio companies faced shadow recession conditions from higher rates. Biotech funding dried up, hurting Charles River Labs, while software names like Guidewire showed recovery. The manager added genomics play Natera and maintains long-term conviction despite macro headwinds affecting growth company fundamentals.
Jan 16 2024	2023 Q4	DXCM, MANH, OMCL, SHOP.TO, VEEV	E-Commerce, growth, healthcare, Medical Devices, mid cap, software, Supply Chain, technology	DXCM SHOP MANH OMCL VEEV	Brown Capital's patient approach vindicated as Dexcom recovered from GLP-1 fears while Shopify and Manhattan Associates delivered strong growth. The fund's low-turnover strategy focuses on Exceptional Growth Companies that can compound returns over years. Despite economic headwinds affecting some holdings like Omnicell and Veeva, management maintains conviction in portfolio quality entering 2024's normalized environment.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Sep 5 2024

2024 Q2

ALGN, CRL, FIVN, GWRE, NTRA, OMCL, PAYC, PODD, TDOC, VEEV

Biotechnology, growth, healthcare, Medical Devices, mid cap, software, technology

GWRE
PODD
CRL
FIVN
NTRA

Brown Capital's Mid Company Fund fell 7.85% in Q2 2024 as portfolio companies faced shadow recession conditions from higher rates. Biotech funding dried up, hurting Charles River Labs, while software names like Guidewire showed recovery. The manager added genomics play Natera and maintains long-term conviction despite macro headwinds affecting growth company fundamentals.

Jan 16 2024

2023 Q4

DXCM, MANH, OMCL, SHOP.TO, VEEV

E-Commerce, growth, healthcare, Medical Devices, mid cap, software, Supply Chain, technology

DXCM
SHOP
MANH
OMCL
VEEV

Brown Capital's patient approach vindicated as Dexcom recovered from GLP-1 fears while Shopify and Manhattan Associates delivered strong growth. The fund's low-turnover strategy focuses on Exceptional Growth Companies that can compound returns over years. Despite economic headwinds affecting some holdings like Omnicell and Veeva, management maintains conviction in portfolio quality entering 2024's normalized environment.

QUARTER	THEMES	TAGS
2024 Q2	Biotechnology Charles River Laboratories, a pre-clinical contract research organization involved in 80% of FDA-approved drugs, is experiencing significant headwinds from higher interest rates curtailing capital market funding for biotech customers. Small and medium-sized biotech companies represent 40% of Charles River's client base and are most affected by the weaker funding environment, leading to consecutive quarterly revenue declines for the first time since 2008-2009. The manager believes this represents the worst capital-raising environment for biotech in at least five years.	CRO Drug Discovery Capital Markets Funding Pre-clinical
	Healthcare Software Veeva Systems was cited as one of the companies experiencing macro weakness affecting disappointing results. The company operates in the life sciences software space, providing solutions for pharmaceutical companies. Despite current headwinds, the manager maintains that these companies' products and services remain relevant to their clients, with sales growth expected to stabilize in coming quarters.	Life Sciences Pharmaceutical Software SaaS Healthcare IT
	Medical Devices Insulet produces the Omnipod Insulin Management System, the first commercial tubeless insulin-patch pump for diabetics. The company delivered strong quarterly results with 23% revenue growth in constant currency and 740 basis points of operating margin improvement. While GLP-1 weight-loss drugs pose a long-term risk to insulin pump demand, the manager believes this is manageable given the large global pump market of 11 million patients growing 9-12% annually, with Insulet serving less than 500,000 patients.	Insulin Pumps Diabetes Medical Technology CGM Patient Care
	Enterprise Software Guidewire Software provides software for Property & Casualty insurance companies, replacing legacy mainframe systems to lower costs and improve decision making. After facing obstacles during its seven-year cloud transition, the company reached an inflection point with 16% overall revenue growth and 28% growth in subscription and support segments. The manager expects ongoing cloud adoption to drive sales and margins higher as insurance companies modernize their systems.	Insurance Software Cloud Migration Legacy Modernization SaaS P&C Insurance
	Genomics Natera was added as a new position, representing a diagnostic testing company using advanced technology to detect small amounts of DNA in blood tests. The company offers prenatal tests, cancer-recurrence tests, and transplant-organ-rejection tests, investing 25% of revenue in R&D. While currently unprofitable, the manager sees a path to profitability as the business scales, with cancer-recurrence testing representing a $15-20 billion market opportunity and expected 20% average topline growth over five years.	Diagnostic Testing DNA Testing Cancer Detection Prenatal Testing Clinical Validation
2023 Q4	GLP1 Clinical trial results showed GLP-1 obesity drugs lower diabetes and cardiovascular disease risk, initially causing investor fears about medical device companies. However, additional studies revealed high patient discontinuation rates, alleviating concerns and supporting coexistence with other therapies like continuous glucose monitors.	Diabetes Medical Devices Obesity Cardiovascular Discontinuation
	E-commerce Shopify demonstrated strong performance with 25% revenue growth and margin expansion after abandoning fulfillment ambitions and resolving competitive concerns with Amazon through partnership. The company maintains clear path to double-digit growth with addressable market exceeding $150 billion.	Software Platform Growth Margins Partnership
	Logistics Manhattan Associates benefits from post-pandemic supply chain modernization push, with consumers demanding flexible omnichannel options. The company's cloud-first pivot continues paying dividends with 44% cloud subscription revenue growth and strong execution across all metrics.	Supply Chain Cloud Omnichannel Modernization Execution

QUARTER

THEMES

Biotechnology

Charles River Laboratories, a pre-clinical contract research organization involved in 80% of FDA-approved drugs, is experiencing significant headwinds from higher interest rates curtailing capital market funding for biotech customers. Small and medium-sized biotech companies represent 40% of Charles River's client base and are most affected by the weaker funding environment, leading to consecutive quarterly revenue declines for the first time since 2008-2009. The manager believes this represents the worst capital-raising environment for biotech in at least five years.

CRO Drug Discovery Capital Markets Funding Pre-clinical

Healthcare Software

Veeva Systems was cited as one of the companies experiencing macro weakness affecting disappointing results. The company operates in the life sciences software space, providing solutions for pharmaceutical companies. Despite current headwinds, the manager maintains that these companies' products and services remain relevant to their clients, with sales growth expected to stabilize in coming quarters.

Life Sciences Pharmaceutical Software SaaS Healthcare IT

Medical Devices

Insulet produces the Omnipod Insulin Management System, the first commercial tubeless insulin-patch pump for diabetics. The company delivered strong quarterly results with 23% revenue growth in constant currency and 740 basis points of operating margin improvement. While GLP-1 weight-loss drugs pose a long-term risk to insulin pump demand, the manager believes this is manageable given the large global pump market of 11 million patients growing 9-12% annually, with Insulet serving less than 500,000 patients.

Insulin Pumps Diabetes Medical Technology CGM Patient Care

Enterprise Software

Guidewire Software provides software for Property & Casualty insurance companies, replacing legacy mainframe systems to lower costs and improve decision making. After facing obstacles during its seven-year cloud transition, the company reached an inflection point with 16% overall revenue growth and 28% growth in subscription and support segments. The manager expects ongoing cloud adoption to drive sales and margins higher as insurance companies modernize their systems.

Insurance Software Cloud Migration Legacy Modernization SaaS P&C Insurance

Genomics

Natera was added as a new position, representing a diagnostic testing company using advanced technology to detect small amounts of DNA in blood tests. The company offers prenatal tests, cancer-recurrence tests, and transplant-organ-rejection tests, investing 25% of revenue in R&D. While currently unprofitable, the manager sees a path to profitability as the business scales, with cancer-recurrence testing representing a $15-20 billion market opportunity and expected 20% average topline growth over five years.

Diagnostic Testing DNA Testing Cancer Detection Prenatal Testing Clinical Validation

2023 Q4

GLP1

Clinical trial results showed GLP-1 obesity drugs lower diabetes and cardiovascular disease risk, initially causing investor fears about medical device companies. However, additional studies revealed high patient discontinuation rates, alleviating concerns and supporting coexistence with other therapies like continuous glucose monitors.

Diabetes Medical Devices Obesity Cardiovascular Discontinuation

E-commerce

Shopify demonstrated strong performance with 25% revenue growth and margin expansion after abandoning fulfillment ambitions and resolving competitive concerns with Amazon through partnership. The company maintains clear path to double-digit growth with addressable market exceeding $150 billion.

Software Platform Growth Margins Partnership

Logistics

Manhattan Associates benefits from post-pandemic supply chain modernization push, with consumers demanding flexible omnichannel options. The company's cloud-first pivot continues paying dividends with 44% cloud subscription revenue growth and strong execution across all metrics.

Supply Chain Cloud Omnichannel Modernization Execution

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
-	Fund Letters	Brown Capital Management Mid Company Fund	DXCM	Dexcom	Health Care Equipment & Services	Health Care Equipment	Bull	NASDAQ	Bull, Continuous Glucose Monitoring, Diabetes Management, Exceptional Growth Company, Healthcare Technology, Medical devices, Share Buyback	Login
-	Fund Letters	Brown Capital Management Mid Company Fund	FIVN	Five9	Software	Application Software	Bull	NASDAQ	AI integration, Cloud software, Contact center, E-commerce Growth, Enterprise Deals, Legacy Replacement, Revenue Per Seat, Seat-Based Model	Login
-	Fund Letters	Brown Capital Management Mid Company Fund	SHOP	Shopify	Software & Services	Internet Software & Services	Bull	NYSE	Amazon Alternative, Cloud software, E-commerce Platform, margin expansion, Partnership Agreement, payment processing, SaaS	Login
-	Fund Letters	Brown Capital Management Mid Company Fund	GWRE	Guidewire Software	Software	Application Software	Bull	NYSE	cloud migration, Digital transformation, GAAP profitability, Insurance-software, Legacy System Replacement, P&C insurance, SaaS, subscription model	Login
-	Fund Letters	Brown Capital Management Mid Company Fund	NTRA	Natera	Health Care Equipment & Supplies	Life Sciences Tools & Services	Bull	NASDAQ	Cancer Recurrence, Clinical Validation, Diagnostic Testing, DNA Detection, Prenatal Testing, R&D investment, Reimbursement, Transplant Monitoring	Login
-	Fund Letters	Brown Capital Management Mid Company Fund	PODD	Insulet	Health Care Equipment & Supplies	Health Care Equipment	Bull	NASDAQ	CGM Integration, Diabetes Management, Insulin Pump, international expansion, Manufacturing efficiency, market leader, Medical devices, Tubeless Technology	Login
-	Fund Letters	Brown Capital Management Mid Company Fund	MANH	Manhattan Associates	Software & Services	Application Software	Bull	NASDAQ	Cloud transformation, inventory management, margin expansion, Omnichannel, Post-Pandemic Modernization, SaaS, Supply chain software	Login
-	Fund Letters	Brown Capital Management Mid Company Fund	OMCL	Omnicell	Health Care Equipment & Services	Health Care Equipment	Bull	NASDAQ	cash flow positive, cost savings, Cyclical Recovery, Healthcare Technology, Hospital Automation, Medication Management, Pharmacy Robotics	Login
-	Fund Letters	Brown Capital Management Mid Company Fund	VEEV	Veeva Systems	Software & Services	Application Software	Bull	NYSE	Cloud software, double-digit growth, IQVIA Competitor, Life Sciences Software, Pharmaceutical CRM, regulatory compliance, SaaS	Login
-	Fund Letters	Brown Capital Management Mid Company Fund	CRL	Charles River Laboratories	Life Sciences Tools & Services	Life Sciences Tools & Services	Bull	NYSE	biotech funding, contract research, Cyclical Recovery, Drug Discovery, FDA approval, interest rate sensitivity, market leader, Pre-clinical Services	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Fund Letters

Brown Capital Management Mid Company Fund

DXCM

Dexcom

Health Care Equipment & Services

Health Care Equipment

Bull

NASDAQ

Bull, Continuous Glucose Monitoring, Diabetes Management, Exceptional Growth Company, Healthcare Technology, Medical devices, Share Buyback

Fund Letters

Brown Capital Management Mid Company Fund

FIVN

Five9

Software

Application Software

Bull

NASDAQ

AI integration, Cloud software, Contact center, E-commerce Growth, Enterprise Deals, Legacy Replacement, Revenue Per Seat, Seat-Based Model

Fund Letters

Brown Capital Management Mid Company Fund

SHOP

Shopify

Software & Services

Internet Software & Services

Bull

NYSE

Amazon Alternative, Cloud software, E-commerce Platform, margin expansion, Partnership Agreement, payment processing, SaaS

Fund Letters

Brown Capital Management Mid Company Fund

GWRE

Guidewire Software

Software

Application Software

Bull

NYSE

cloud migration, Digital transformation, GAAP profitability, Insurance-software, Legacy System Replacement, P&C insurance, SaaS, subscription model

Fund Letters

Brown Capital Management Mid Company Fund

NTRA

Natera

Health Care Equipment & Supplies

Life Sciences Tools & Services

Bull

NASDAQ

Cancer Recurrence, Clinical Validation, Diagnostic Testing, DNA Detection, Prenatal Testing, R&D investment, Reimbursement, Transplant Monitoring

Fund Letters

Brown Capital Management Mid Company Fund

PODD

Insulet

Health Care Equipment & Supplies

Health Care Equipment

Bull

NASDAQ

CGM Integration, Diabetes Management, Insulin Pump, international expansion, Manufacturing efficiency, market leader, Medical devices, Tubeless Technology

Fund Letters

Brown Capital Management Mid Company Fund

MANH

Manhattan Associates

Software & Services

Application Software

Bull

NASDAQ

Cloud transformation, inventory management, margin expansion, Omnichannel, Post-Pandemic Modernization, SaaS, Supply chain software

Fund Letters

Brown Capital Management Mid Company Fund

OMCL

Omnicell

Health Care Equipment & Services

Health Care Equipment

Bull

NASDAQ

cash flow positive, cost savings, Cyclical Recovery, Healthcare Technology, Hospital Automation, Medication Management, Pharmacy Robotics

Fund Letters

Brown Capital Management Mid Company Fund

VEEV

Veeva Systems

Software & Services

Application Software

Bull

NYSE

Cloud software, double-digit growth, IQVIA Competitor, Life Sciences Software, Pharmaceutical CRM, regulatory compliance, SaaS

Fund Letters

Brown Capital Management Mid Company Fund

CRL

Charles River Laboratories

Life Sciences Tools & Services

Bull

NYSE

biotech funding, contract research, Cyclical Recovery, Drug Discovery, FDA approval, interest rate sensitivity, market leader, Pre-clinical Services

TICKER	COMMENTARY
VEEV	In the second quarter of 2024, management of several of the companies in the Mid Company portfolio cited macro weakness as a cause of disappointing results. These include Veeva (VEEV), Charles River Laboratories (CRL) and Omnicell (OMCL), to name a few.
CRL	Charles River Laboratories is a pre-clinical-trial contract research organization involved in more than 80% of all FDA-approved drugs. The company provides products and services that help pharmaceutical companies, governments and academic institutions accelerate their drug research and development efforts. Unfortunately, the company is a victim of weakening macro conditions as higher rates have significantly curtailed capital market funding for Charles River's customers. In Charles River's latest earnings release, total revenue shrank year over year for the second consecutive quarter, the first consecutive decline since the Great Financial Crisis in 2008-2009. Small and medium-sized biotech companies are 40% of Charles River's client base and are most affected by the weaker funding environment.
OMCL	In the second quarter of 2024, management of several of the companies in the Mid Company portfolio cited macro weakness as a cause of disappointing results. These include Veeva (VEEV), Charles River Laboratories (CRL) and Omnicell (OMCL), to name a few.
ALGN	Align Technologies was among the top five detractors to Mid Company performance in the second quarter of 2024, with revenue growth declining from 22% in 2019 to 3% in 2023 and 6% in Q1 2024.
FIVN	Five9 is a leader in cloud-based contact-center software, which serves as the routing engine to connect callers to agents. It has been a tough couple of years for Five9's stock and this quarter provided no relief. Competitive concerns, questions about AI's long-term impact on the business and deteriorating macroeconomic conditions have all cast clouds over the company's stock. Five9's consumer segment, one of its largest divisions, has really struggled of late as clients hire fewer call-center agents, pressuring Five9's seat-based revenue model. Total revenue growth decelerated to 13% year-over-year in the most recent quarter. The company inked its largest deal ever during the quarter, which will generate more than $50 million in annual revenue once fully rolled out.
PAYC	Paycom Software was among the top five detractors to Mid Company performance in the second quarter of 2024, with revenue growth declining from 30% in 2019 to 23% in 2023 and 11% in Q1 2024.
GWRE	Guidewire Software is a leading provider of software for Property & Casualty (P&C) insurance companies. Its software replaces legacy mainframe systems, helping to lower costs, improve decision making and enhance customer flexibility. The company began a shift to cloud-based subscriptions seven years ago but has faced numerous obstacles along the way. However, evidence of a turn emerged a year ago with the company becoming GAAP profitable for the first time in three years and cloud deals accelerating. The momentum continued during the most recent quarter, with broad-based strength in sales and margins. Overall revenue rose 16% year over year, with growth in the subscription and support segment (60% of sales) accelerating to 28%, driven by strong cloud adoption.
PODD	Insulet is a medical-device company that produces the Omnipod Insulin Management System, the first commercial, tubeless, insulin-patch pump. After reeling late last year over concerns that GLP-1s, the popular weight-loss drugs, will curb diabetes and reduce insulin-pump demand, Insulet's shares have slowly rebounded as the company's results have remained strong. During the quarter, both sales and margins exceeded consensus estimates. Revenue jumped 23% in constant currency, led by much stronger international sales underpinned by the launch in Europe of Omnipod 5, the company's latest model. Operating margin rose a whopping 740 basis points year over year on an adjusted basis.
NTRA	Natera is a diagnostic-testing company that uses advanced technology to detect small amounts of DNA in a simple blood test. The company offers everything from prenatal tests for common genetic disorders to cancer-recurrence tests to transplant-organ-rejection tests. Natera's products save time, lives, money and headaches by apprising expecting parents, cancer patients, and transplant patients earlier and easier. The company invests 25% of its revenue in R&D and is often first to market with the best clinical validation. While most of the company's revenue comes from its prenatal tests, cancer-recurrence testing is the future of the company with a $15 billion to $20 billion market opportunity.
TDOC	Teledoc Health operates a telehealth platform that provides on-demand healthcare services to its members in the U.S. and abroad. Our initial excitement over Teladoc's market-leading position, large market opportunity and compelling value proposition ran into the reality of the company's deteriorating fundamentals. Competitive pressure, high customer-acquisition costs and poor customer retention significantly impaired the company since our initial purchase in March 2020. Additionally, questionable acquisitions and executive turnover further weighed on the business, resulting in revenue growth declining from the high-20s/low-30s to low-single-digits without any improvement in profitability.

TICKER

COMMENTARY

VEEV

In the second quarter of 2024, management of several of the companies in the Mid Company portfolio cited macro weakness as a cause of disappointing results. These include Veeva (VEEV), Charles River Laboratories (CRL) and Omnicell (OMCL), to name a few.

CRL

Charles River Laboratories is a pre-clinical-trial contract research organization involved in more than 80% of all FDA-approved drugs. The company provides products and services that help pharmaceutical companies, governments and academic institutions accelerate their drug research and development efforts. Unfortunately, the company is a victim of weakening macro conditions as higher rates have significantly curtailed capital market funding for Charles River's customers. In Charles River's latest earnings release, total revenue shrank year over year for the second consecutive quarter, the first consecutive decline since the Great Financial Crisis in 2008-2009. Small and medium-sized biotech companies are 40% of Charles River's client base and are most affected by the weaker funding environment.

OMCL

ALGN

Align Technologies was among the top five detractors to Mid Company performance in the second quarter of 2024, with revenue growth declining from 22% in 2019 to 3% in 2023 and 6% in Q1 2024.

FIVN

Five9 is a leader in cloud-based contact-center software, which serves as the routing engine to connect callers to agents. It has been a tough couple of years for Five9's stock and this quarter provided no relief. Competitive concerns, questions about AI's long-term impact on the business and deteriorating macroeconomic conditions have all cast clouds over the company's stock. Five9's consumer segment, one of its largest divisions, has really struggled of late as clients hire fewer call-center agents, pressuring Five9's seat-based revenue model. Total revenue growth decelerated to 13% year-over-year in the most recent quarter. The company inked its largest deal ever during the quarter, which will generate more than $50 million in annual revenue once fully rolled out.

PAYC

Paycom Software was among the top five detractors to Mid Company performance in the second quarter of 2024, with revenue growth declining from 30% in 2019 to 23% in 2023 and 11% in Q1 2024.

GWRE

Guidewire Software is a leading provider of software for Property & Casualty (P&C) insurance companies. Its software replaces legacy mainframe systems, helping to lower costs, improve decision making and enhance customer flexibility. The company began a shift to cloud-based subscriptions seven years ago but has faced numerous obstacles along the way. However, evidence of a turn emerged a year ago with the company becoming GAAP profitable for the first time in three years and cloud deals accelerating. The momentum continued during the most recent quarter, with broad-based strength in sales and margins. Overall revenue rose 16% year over year, with growth in the subscription and support segment (60% of sales) accelerating to 28%, driven by strong cloud adoption.

PODD

Insulet is a medical-device company that produces the Omnipod Insulin Management System, the first commercial, tubeless, insulin-patch pump. After reeling late last year over concerns that GLP-1s, the popular weight-loss drugs, will curb diabetes and reduce insulin-pump demand, Insulet's shares have slowly rebounded as the company's results have remained strong. During the quarter, both sales and margins exceeded consensus estimates. Revenue jumped 23% in constant currency, led by much stronger international sales underpinned by the launch in Europe of Omnipod 5, the company's latest model. Operating margin rose a whopping 740 basis points year over year on an adjusted basis.

NTRA

Natera is a diagnostic-testing company that uses advanced technology to detect small amounts of DNA in a simple blood test. The company offers everything from prenatal tests for common genetic disorders to cancer-recurrence tests to transplant-organ-rejection tests. Natera's products save time, lives, money and headaches by apprising expecting parents, cancer patients, and transplant patients earlier and easier. The company invests 25% of its revenue in R&D and is often first to market with the best clinical validation. While most of the company's revenue comes from its prenatal tests, cancer-recurrence testing is the future of the company with a $15 billion to $20 billion market opportunity.

TDOC

Teledoc Health operates a telehealth platform that provides on-demand healthcare services to its members in the U.S. and abroad. Our initial excitement over Teladoc's market-leading position, large market opportunity and compelling value proposition ran into the reality of the company's deteriorating fundamentals. Competitive pressure, high customer-acquisition costs and poor customer retention significantly impaired the company since our initial purchase in March 2020. Additionally, questionable acquisitions and executive turnover further weighed on the business, resulting in revenue growth declining from the high-20s/low-30s to low-single-digits without any improvement in profitability.

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Damien Davis

Brown Capital Management Mid Company Fund

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th June 2024

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Biotechnology

Healthcare Software

Medical Devices

Enterprise Software

Genomics

GLP1

E-commerce

Logistics

Investor Pitches

Current Portfolio as of ( 30th June 2024 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Damien Davis Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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Brown Capital Management Mid Company Fund