BBH Select Series - Mid Cap Fund

Investor Summary

Timothy F. Harris serves as Portfolio Manager for the BBH Select Series Mid Cap Fund since its inception in May 2021 and brings over 20 years of investment and financial experience to the role. Harris has been Portfolio Manager of the Concentrated Small and Midcap Strategy since April 2024. He graduated summa cum laude from Tufts University and received his MBA from the MIT Sloan School of Management. Harris re-joined BBH in January 2017 as an Equity Analyst after previously working as an investment banker specializing in equity capital markets for European financial institutions at Nomura, covering Nordic, Benelux, and UK markets. He also worked at Lehman Brothers as an investment banker and has earned his CFA designation. His experience combines deep analytical skills with practical market experience across different market cycles.

Fund Strategy

The Fund's investment objective is to provide investors with long-term growth of capital through a disciplined, bottom-up investment process that emphasizes deep due diligence. The strategy focuses on high-quality businesses that demonstrate superior business quality, strong management execution, attractive financial returns, and growth potential. The Fund employs a 'buy and own' approach with a 3-to-5-year investment horizon, avoiding short-term trades in pursuit of small gains. The investment criteria are built on four pillars: Business Quality (loyal customers, essential products, leadership in attractive markets, sustainable competitive advantages), Financial Returns (strong balance sheet and cash flow with high returns on capital), Management (disciplined capital allocation led by strong operators with integrity), and Growth Potential (long-term growth potential with attractive opportunities to reinvest capital). The Fund seeks a margin of safety when there is a significant discount to intrinsic value at the time of purchase.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
3.89%	9.69%	7.37%

Executive Summary

The BBH Select Mid Cap ETF returned 9.7% in Q2 2026, underperforming the Russell Midcap Index's 13.8% return. The quarter was defined by two competing forces: the Iran War and its inflationary consequences, and a powerful resurgence in the AI infrastructure trade. Information technology was the best performing sector, up 54.4%, led by technology hardware up 135.7% driven by AI buildout and memory chip shortages. Energy was the worst performer at -7.2% as a late-quarter peace deal reversed oil prices. Top contributors were Entegris and Arista Networks, both benefiting from AI infrastructure demand and semiconductor cycle strength. Detractors included Guidewire Software, which declined despite strong results due to deal timing, and Darling Ingredients, which pulled back after strong performance despite improving fundamentals in renewable diesel. The portfolio holds 27 positions trading at 90% of intrinsic value with 0.8% cash. The manager maintains a three to five year investment horizon focused on durability and differentiated views across a range of valuations, avoiding concentration in the highest valuation quintile despite the momentum-driven market environment.

Core Thesis

The BBH Select Mid Cap ETF invests in a concentrated portfolio of 27 mid-cap companies with a focus on long-term durability of performance and differentiated views relative to the market, seeking to establish a margin of safety by investing at a significant discount to intrinsic value estimates.

Forward Outlook

The manager views the current market environment as bullish, volatile, and highly sentiment driven, creating conditions where valuations can become detached. The portfolio is positioned at 90% of intrinsic value estimates with 0.8% cash. The focus remains on long-term durability of performance and differentiated views relative to the market across a range of valuations, rather than concentration in the highest valuation quintile. The investment horizon is three to five years, with valuation serving as a margin of safety when investing in new companies at a significant discount to intrinsic value.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Jul 29 2026	2026 Q2	ANET, ATR, BJ, DAR, ENTG, GFL, GWRE, HUBB, KEYS, TTWO, TW, ULS, VMC, WSC	AI, energy, industrials, inflation, mid cap, semiconductors, value	-	BBH Select Mid Cap returned 9.7% in Q2 2026, underperforming the 13.8% benchmark as AI infrastructure drove extreme outperformance in high-beta technology hardware. Entegris and Arista Networks led gains on semiconductor cycle strength and data center buildout. The 27-position portfolio trades at 90% of intrinsic value with differentiated positioning across valuations, avoiding the highest-valuation momentum stocks despite their dominance this quarter.
Apr 18 2026	2026 Q1	DAR, ENTG, GWRE, HUBB	AI, energy, industrials, mid cap, semiconductors, technology, value	DAR ENTG ICLR GWRE HUBB BR	BBH's mid-cap fund underperformed in Q1 as AI disruption fears hit software while energy surged on Iran War. Darling Ingredients soared 71.8% on renewable diesel tailwinds. Portfolio trades at attractive 82% of intrinsic value across 27 quality companies with competitive advantages in industrials and technology, positioned for long-term outperformance through cycles.
Jan 30 2026	2025 Q4	ANET, ATR, BJ, BRO, CBRE, DAR, ENTG, FOUR, GFL, GWRE, GXO, HEI.A, ICLR, ITT, KEYS, LPLA, MCW, NVR, TTWO, TW, ULS, VMC, WH, WMS, WSC, WSO, WST, ZBRA	AI, fundamentals, Intrinsic Value, mid cap, profitability, Quality, technology, value	DAR KEYS FOUR GWRE	BBH Select Mid Cap underperformed in Q4 as markets favored unprofitable, high-beta stocks over the fund's quality-focused approach. Despite strong portfolio fundamentals including superior growth and margins versus the index, AI enthusiasm and stimulus drove speculative rallies. Trading at 82% of intrinsic value, the manager expects eventual rotation back to profitable, cash-generating companies.
Oct 28 2025	2025 Q3	ANET, BFAM, BJ, BRKR, BRO, CBRE, ENTG, FOUR, GFL, GLOB, GWRE, GXO, ICLR, ITT, LPLA, TTWO, VMC, WMS, WSO, WST	AI, healthcare, mid cap, Quality, tariffs, technology, value	ANET UN WMS UN FOUR UN GLOB UN BRKR UN ITT UN BJ UN ANET UN WMS UN FOUR UN GLOB UN BRKR UN ITT UN BJ UN	BBH's mid-cap fund underperformed in Q3 as low-quality stocks rallied, but portfolio companies showed superior fundamentals with 11% revenue growth versus 3% for the index. Arista Networks drove gains on AI momentum while tariff impacts led to exits from Globant and Bruker. Manager maintains quality focus, confident markets will eventually reward cash flow and profitability over speculation.
Jul 20 2025	2025 Q2	ANET, ATR, BRKR, BRO, CBRE, DAR, ENTG, FOUR, GFL.TO, GLOB, GWRE, GXO, HEI, ICLR, LPLA, TTWO, ULS, VMC, WH, WMS, WSO	healthcare, industrials, mid cap, payments, software, tariffs, technology	GWRE FOUR WSO GLOB	BBH Mid Cap Fund returned 5.4% in Q2 2025, underperforming on tariff headwinds affecting technology and healthcare holdings. Guidewire Software and Shift4 Payments drove outperformance while Globant and Watsco detracted. The fund repositioned around tariff impacts, exiting vulnerable names and adding to quality companies trading at attractive valuations following market overreactions.
Mar 31 2025	2025 Q1	ANET, ATR, BRKR, BRO, CBRE, DAR, ENTG, FOUR, GFL, GWRE, GXO, HEI.A, ICLR, LPLA, TTWO, VMC, WH, WMS, WSO, ZBRA	industrials, insurance, mid cap, software, technology, Testing, value	ULS KEYS	BBH's mid-cap fund underperformed in Q1 2025 as policy uncertainty weighed on markets. Insurance holdings Brown & Brown and Guidewire drove positive performance while technology names Globant and Bruker detracted significantly. The manager added testing company UL Solutions and measurement equipment leader Keysight Technologies, maintaining a disciplined approach focused on quality companies trading below intrinsic value.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Jul 29 2026

2026 Q2

ANET, ATR, BJ, DAR, ENTG, GFL, GWRE, HUBB, KEYS, TTWO, TW, ULS, VMC, WSC

AI, energy, industrials, inflation, mid cap, semiconductors, value

BBH Select Mid Cap returned 9.7% in Q2 2026, underperforming the 13.8% benchmark as AI infrastructure drove extreme outperformance in high-beta technology hardware. Entegris and Arista Networks led gains on semiconductor cycle strength and data center buildout. The 27-position portfolio trades at 90% of intrinsic value with differentiated positioning across valuations, avoiding the highest-valuation momentum stocks despite their dominance this quarter.

Apr 18 2026

2026 Q1

DAR, ENTG, GWRE, HUBB

AI, energy, industrials, mid cap, semiconductors, technology, value

DAR
ENTG
ICLR
GWRE
HUBB
BR

BBH's mid-cap fund underperformed in Q1 as AI disruption fears hit software while energy surged on Iran War. Darling Ingredients soared 71.8% on renewable diesel tailwinds. Portfolio trades at attractive 82% of intrinsic value across 27 quality companies with competitive advantages in industrials and technology, positioned for long-term outperformance through cycles.

Jan 30 2026

2025 Q4

ANET, ATR, BJ, BRO, CBRE, DAR, ENTG, FOUR, GFL, GWRE, GXO, HEI.A, ICLR, ITT, KEYS, LPLA, MCW, NVR, TTWO, TW, ULS, VMC, WH, WMS, WSC, WSO, WST, ZBRA

AI, fundamentals, Intrinsic Value, mid cap, profitability, Quality, technology, value

DAR
KEYS
FOUR
GWRE

BBH Select Mid Cap underperformed in Q4 as markets favored unprofitable, high-beta stocks over the fund's quality-focused approach. Despite strong portfolio fundamentals including superior growth and margins versus the index, AI enthusiasm and stimulus drove speculative rallies. Trading at 82% of intrinsic value, the manager expects eventual rotation back to profitable, cash-generating companies.

Oct 28 2025

2025 Q3

ANET, BFAM, BJ, BRKR, BRO, CBRE, ENTG, FOUR, GFL, GLOB, GWRE, GXO, ICLR, ITT, LPLA, TTWO, VMC, WMS, WSO, WST

AI, healthcare, mid cap, Quality, tariffs, technology, value

ANET UN
WMS UN
FOUR UN
GLOB UN
BRKR UN
ITT UN
BJ UN
ANET UN
WMS UN
FOUR UN
GLOB UN
BRKR UN
ITT UN
BJ UN

BBH's mid-cap fund underperformed in Q3 as low-quality stocks rallied, but portfolio companies showed superior fundamentals with 11% revenue growth versus 3% for the index. Arista Networks drove gains on AI momentum while tariff impacts led to exits from Globant and Bruker. Manager maintains quality focus, confident markets will eventually reward cash flow and profitability over speculation.

Jul 20 2025

2025 Q2

ANET, ATR, BRKR, BRO, CBRE, DAR, ENTG, FOUR, GFL.TO, GLOB, GWRE, GXO, HEI, ICLR, LPLA, TTWO, ULS, VMC, WH, WMS, WSO

healthcare, industrials, mid cap, payments, software, tariffs, technology

GWRE
FOUR
WSO
GLOB

BBH Mid Cap Fund returned 5.4% in Q2 2025, underperforming on tariff headwinds affecting technology and healthcare holdings. Guidewire Software and Shift4 Payments drove outperformance while Globant and Watsco detracted. The fund repositioned around tariff impacts, exiting vulnerable names and adding to quality companies trading at attractive valuations following market overreactions.

Mar 31 2025

2025 Q1

ANET, ATR, BRKR, BRO, CBRE, DAR, ENTG, FOUR, GFL, GWRE, GXO, HEI.A, ICLR, LPLA, TTWO, VMC, WH, WMS, WSO, ZBRA

industrials, insurance, mid cap, software, technology, Testing, value

ULS
KEYS

BBH's mid-cap fund underperformed in Q1 2025 as policy uncertainty weighed on markets. Insurance holdings Brown & Brown and Guidewire drove positive performance while technology names Globant and Bruker detracted significantly. The manager added testing company UL Solutions and measurement equipment leader Keysight Technologies, maintaining a disciplined approach focused on quality companies trading below intrinsic value.

QUARTER	THEMES	TAGS
2026 Q2	AI AI infrastructure buildout accelerated in Q2 2026, driving strong performance in semiconductor and power infrastructure companies. The AI capital expenditure boom benefited holdings like Entegris and Arista Networks. However, software and business services companies faced pressure from AI disruption concerns, though sentiment stabilized late in the quarter.	Semiconductors Data Centers Cloud Infrastructure Software
	Semiconductor Cycle Wafer volumes expected to grow mid- to high-single digits for 2026 and fab construction to grow high-single digits, both upgraded from low-single digit expectations last quarter. Memory chip shortages and strong demand drove technology hardware up 135.7% in the quarter. Supply chain constraints emerged as a challenge for some companies.	Memory Foundries Semi Equipment Chip Designers
	Energy Energy was the worst performing sector, down -7.2%, as the late-quarter Iran War peace deal drove a sharp reversal in oil prices. Energy companies were initially beneficiaries of elevated oil prices due to the conflict but faded through the quarter. Lower energy prices and the opening of the Strait of Hormuz supported a late rally in industrials.	Oil Geopolitical Commodities
	Inflation Elevated oil prices due to the Iran War pushed inflation to its highest level since 2023, keeping the Federal Reserve on hold and raising the prospect of future rate hikes. Many companies faced persistent cost pressures throughout the quarter, though lower energy prices late in the quarter provided some relief.	Rates Fed Cost Pressures
	Renewable Developers Darling Ingredients is extremely well-positioned for significantly improved profitability through its Diamond Green Diesel joint venture with Valero. Long-awaited certainty on government mandates finalized at the end of Q1 2026 will support both margins at DGD and higher Feed prices, with full benefits starting to appear in Q2 2026.	Biofuels Renewable Components Energy Transition
2026 Q1	AI Rapid AI advancements including Anthropic's Claude Cowork release led to steep declines in software companies due to perceived disruption risk. AI is driving customers to accelerate cloud deployments with longer terms and larger deals. Some incumbents like Guidewire are well positioned to benefit through lower costs and expanded addressable markets.	Software Disruption Cloud Automation Innovation
	Semiconductors Semiconductor companies benefited from growing capital expenditures supporting AI adoption. Entegris reported strong results as gross margins troughed and revenue growth is poised to reaccelerate in 2026. The company should benefit from recovery in wafer volumes and new fabrication construction.	Chip Equipment Wafer Fabrication Capital Expenditure Recovery AI Infrastructure
	Energy Iran War resulted in sharp oil price increases from $67 to $101 at quarter end. Energy was the best performing sector up 37.7%. The fund has no direct energy exposure which was a headwind during the quarter.	Oil Prices Geopolitical Risk Sector Performance War Premium Commodity Shock
	Renewable Energy Darling Ingredients' renewable diesel segment benefited from increased energy prices and new mandatory minimums for renewable fuels announced by the White House and EPA. These renewable volume obligations should drive strong demand alongside higher prices and margins through 2026.	Renewable Diesel Regulatory Support Biofuels Environmental Policy Mandates
2025 Q4	AI Manager believes AI revolution is fundamentally different from dot-com bubble due to current compute capacity constraints versus future demand. Views infrastructure buildout as most secure part of AI food chain, explaining continued investment in Nvidia, ASML, and new Micron position. Expects volatility but remains committed to AI thesis despite circular financing concerns around some players.	Artificial Intelligence Data Centers Compute Infrastructure GPUs
	Trade Policy Manager notes 2025 saw global trade order rewritten through executive orders and tweets. Expects Supreme Court ruling on Trump tariff legality could invalidate IEEPA-imposed tariffs, though similar tariffs would likely be reimposed under other legal frameworks. Views tariffs as potential central topic for early 2026 but prefers they fade as investment concern.	Tariffs Trade IEEPA Supreme Court
	Rates Federal Reserve continued easing cycle with Fed Funds rate reaching parity with 2-year bond at 3.5%. Manager believes within 25-50 basis points of neutral rate. Disagrees with Trump's advocacy for rates near zero, arguing it would steepen yield curve rather than reduce rates across all durations uniformly.	Federal Reserve Interest Rates Monetary Policy
	Enterprise Software Manager consolidated enterprise software exposure into platform companies ServiceNow and Salesforce while eliminating Adobe. Views platforms as better positioned than best-of-breed apps against AI disintermediation threats. Expects platform companies to deliver accelerating performance as AI solutions gain critical mass across enterprise.	SaaS Platforms AI Integration
2025 Q3	AI The fund has exposure to AI through companies like Arista Networks, which provides data center switches to cloud network and AI customers. Arista's AI revenue is targeted at $1.5 billion this year and expected to reach $2.75 billion next year, growing 60-70% and representing about 25% of revenue. The manager acknowledges enthusiasm for AI driving enormous capital expenditures in associated infrastructure while being cognizant of bubble-like behavior in certain segments.	Data Centers Infrastructure Cloud Semiconductors Growth
	Quality The fund focuses on high quality, profitable companies with superior fundamentals. Current portfolio companies have grown revenues and EBITDA by 11% and 14% over the last twelve months respectively, compared to 3% and 4% for the Index. The portfolio enjoys superior operating margins and returns on equity of 20% and 18%, compared to 12% and 12% for the Index, with much lower leverage profile.	Profitability Margins Cash Flow Returns Fundamentals
	Trade Policy Several technology and healthcare companies continue to be impacted by tariffs and policy uncertainty. The fund reduced exposure to some affected companies including exiting Globant and Bruker due to tariff impacts on Latin American customers and academic/life science funding cuts. Policy uncertainty includes restrictions on federal research funding, efforts to cut NIH and NSF budgets, and tariffs on China, EU, and Switzerland.	Tariffs Policy Regulation Government Uncertainty
2025 Q2	Trade Policy Several technology and healthcare companies were impacted by tariffs and academic and life science funding cuts. The magnitude of proposed tariffs and funding cuts have been greater than anticipated, with companies like Globant seeing Latin American clients pause projects due to tariff uncertainty. The fund exited positions in Toro and Crown Holdings due to heightened tariff risks.	Tariffs Trade Policy Uncertainty Impact
	Software Guidewire Software was the largest positive contributor, returning 25.7% during the quarter as the leading provider of core systems software to the P&C insurance industry. The company announced record fiscal Q3 results with acceleration in annual recurring revenue driven by high close rates and record-low attrition. Guidewire continues to benefit from insurance companies prioritizing modernization of their core systems.	SaaS Insurance Cloud Modernization ARR
	Payments Shift4 Payments returned 21.3% during the quarter as an integrated payments processor specializing in hospitality. The company reported strong results with volumes, net revenue, EBITDA, and earnings above consensus. End-to-end volumes of $45.0 billion increased 35% and organic net revenue growth is expected to be over 20% in 2025.	Processing Hospitality Volumes Growth Fintech
2025 Q1	Insurance The fund benefits from exposure to property & casualty insurance through Brown & Brown and Guidewire Software. Brown & Brown delivered strong organic growth of 13.8% and continues to benefit from the current inflationary environment and hard insurance premium rate cycle. Guidewire benefits from increasing gross written premiums as insurance rates rise due to inflation and limited capacity.	P&C Insurance Insurance Brokers Premium Rates Hard Market Inflation
	Software The fund holds multiple software positions including Guidewire as the leading provider of core systems software to P&C insurance industry. Guidewire reported strong results exceeding expectations and raised full-year guidance as it wins new customers and migrates existing customers to the cloud. The company set a new long-term target for more than 50% of P&C insurance industry premiums to run on their software.	SaaS Cloud Enterprise Software Insurance Software Migration
	Testing The fund initiated a new position in UL Solutions, a leading testing, inspection, and certification company verifying products meet global safety standards. ULS serves 80,000 customers with 99% retention and benefits from new product introductions, expansion into growing categories like batteries and electrification, and regular price increases. The company will also benefit if customers adjust manufacturing in response to tariffs.	Testing & Inspection Certification Safety Standards Regulatory Tariffs

QUARTER

THEMES

AI

AI infrastructure buildout accelerated in Q2 2026, driving strong performance in semiconductor and power infrastructure companies. The AI capital expenditure boom benefited holdings like Entegris and Arista Networks. However, software and business services companies faced pressure from AI disruption concerns, though sentiment stabilized late in the quarter.

Semiconductors Data Centers Cloud Infrastructure Software

Semiconductor Cycle

Wafer volumes expected to grow mid- to high-single digits for 2026 and fab construction to grow high-single digits, both upgraded from low-single digit expectations last quarter. Memory chip shortages and strong demand drove technology hardware up 135.7% in the quarter. Supply chain constraints emerged as a challenge for some companies.

Memory Foundries Semi Equipment Chip Designers

Energy

Energy was the worst performing sector, down -7.2%, as the late-quarter Iran War peace deal drove a sharp reversal in oil prices. Energy companies were initially beneficiaries of elevated oil prices due to the conflict but faded through the quarter. Lower energy prices and the opening of the Strait of Hormuz supported a late rally in industrials.

Oil Geopolitical Commodities

Inflation

Elevated oil prices due to the Iran War pushed inflation to its highest level since 2023, keeping the Federal Reserve on hold and raising the prospect of future rate hikes. Many companies faced persistent cost pressures throughout the quarter, though lower energy prices late in the quarter provided some relief.

Rates Fed Cost Pressures

Renewable Developers

Darling Ingredients is extremely well-positioned for significantly improved profitability through its Diamond Green Diesel joint venture with Valero. Long-awaited certainty on government mandates finalized at the end of Q1 2026 will support both margins at DGD and higher Feed prices, with full benefits starting to appear in Q2 2026.

Biofuels Renewable Components Energy Transition

2026 Q1

AI

Rapid AI advancements including Anthropic's Claude Cowork release led to steep declines in software companies due to perceived disruption risk. AI is driving customers to accelerate cloud deployments with longer terms and larger deals. Some incumbents like Guidewire are well positioned to benefit through lower costs and expanded addressable markets.

Software Disruption Cloud Automation Innovation

Semiconductors

Semiconductor companies benefited from growing capital expenditures supporting AI adoption. Entegris reported strong results as gross margins troughed and revenue growth is poised to reaccelerate in 2026. The company should benefit from recovery in wafer volumes and new fabrication construction.

Chip Equipment Wafer Fabrication Capital Expenditure Recovery AI Infrastructure

Energy

Iran War resulted in sharp oil price increases from $67 to $101 at quarter end. Energy was the best performing sector up 37.7%. The fund has no direct energy exposure which was a headwind during the quarter.

Oil Prices Geopolitical Risk Sector Performance War Premium Commodity Shock

Renewable Energy

Darling Ingredients' renewable diesel segment benefited from increased energy prices and new mandatory minimums for renewable fuels announced by the White House and EPA. These renewable volume obligations should drive strong demand alongside higher prices and margins through 2026.

Renewable Diesel Regulatory Support Biofuels Environmental Policy Mandates

2025 Q4

AI

Manager believes AI revolution is fundamentally different from dot-com bubble due to current compute capacity constraints versus future demand. Views infrastructure buildout as most secure part of AI food chain, explaining continued investment in Nvidia, ASML, and new Micron position. Expects volatility but remains committed to AI thesis despite circular financing concerns around some players.

Artificial Intelligence Data Centers Compute Infrastructure GPUs

Trade Policy

Manager notes 2025 saw global trade order rewritten through executive orders and tweets. Expects Supreme Court ruling on Trump tariff legality could invalidate IEEPA-imposed tariffs, though similar tariffs would likely be reimposed under other legal frameworks. Views tariffs as potential central topic for early 2026 but prefers they fade as investment concern.

Tariffs Trade IEEPA Supreme Court

Rates

Federal Reserve continued easing cycle with Fed Funds rate reaching parity with 2-year bond at 3.5%. Manager believes within 25-50 basis points of neutral rate. Disagrees with Trump's advocacy for rates near zero, arguing it would steepen yield curve rather than reduce rates across all durations uniformly.

Federal Reserve Interest Rates Monetary Policy

Enterprise Software

Manager consolidated enterprise software exposure into platform companies ServiceNow and Salesforce while eliminating Adobe. Views platforms as better positioned than best-of-breed apps against AI disintermediation threats. Expects platform companies to deliver accelerating performance as AI solutions gain critical mass across enterprise.

SaaS Platforms AI Integration

2025 Q3

AI

The fund has exposure to AI through companies like Arista Networks, which provides data center switches to cloud network and AI customers. Arista's AI revenue is targeted at $1.5 billion this year and expected to reach $2.75 billion next year, growing 60-70% and representing about 25% of revenue. The manager acknowledges enthusiasm for AI driving enormous capital expenditures in associated infrastructure while being cognizant of bubble-like behavior in certain segments.

Data Centers Infrastructure Cloud Semiconductors Growth

Quality

The fund focuses on high quality, profitable companies with superior fundamentals. Current portfolio companies have grown revenues and EBITDA by 11% and 14% over the last twelve months respectively, compared to 3% and 4% for the Index. The portfolio enjoys superior operating margins and returns on equity of 20% and 18%, compared to 12% and 12% for the Index, with much lower leverage profile.

Profitability Margins Cash Flow Returns Fundamentals

Trade Policy

Several technology and healthcare companies continue to be impacted by tariffs and policy uncertainty. The fund reduced exposure to some affected companies including exiting Globant and Bruker due to tariff impacts on Latin American customers and academic/life science funding cuts. Policy uncertainty includes restrictions on federal research funding, efforts to cut NIH and NSF budgets, and tariffs on China, EU, and Switzerland.

Tariffs Policy Regulation Government Uncertainty

2025 Q2

Trade Policy

Several technology and healthcare companies were impacted by tariffs and academic and life science funding cuts. The magnitude of proposed tariffs and funding cuts have been greater than anticipated, with companies like Globant seeing Latin American clients pause projects due to tariff uncertainty. The fund exited positions in Toro and Crown Holdings due to heightened tariff risks.

Tariffs Trade Policy Uncertainty Impact

Software

Guidewire Software was the largest positive contributor, returning 25.7% during the quarter as the leading provider of core systems software to the P&C insurance industry. The company announced record fiscal Q3 results with acceleration in annual recurring revenue driven by high close rates and record-low attrition. Guidewire continues to benefit from insurance companies prioritizing modernization of their core systems.

SaaS Insurance Cloud Modernization ARR

Payments

Shift4 Payments returned 21.3% during the quarter as an integrated payments processor specializing in hospitality. The company reported strong results with volumes, net revenue, EBITDA, and earnings above consensus. End-to-end volumes of $45.0 billion increased 35% and organic net revenue growth is expected to be over 20% in 2025.

Processing Hospitality Volumes Growth Fintech

2025 Q1

Insurance

The fund benefits from exposure to property & casualty insurance through Brown & Brown and Guidewire Software. Brown & Brown delivered strong organic growth of 13.8% and continues to benefit from the current inflationary environment and hard insurance premium rate cycle. Guidewire benefits from increasing gross written premiums as insurance rates rise due to inflation and limited capacity.

P&C Insurance Insurance Brokers Premium Rates Hard Market Inflation

Software

The fund holds multiple software positions including Guidewire as the leading provider of core systems software to P&C insurance industry. Guidewire reported strong results exceeding expectations and raised full-year guidance as it wins new customers and migrates existing customers to the cloud. The company set a new long-term target for more than 50% of P&C insurance industry premiums to run on their software.

SaaS Cloud Enterprise Software Insurance Software Migration

Testing

The fund initiated a new position in UL Solutions, a leading testing, inspection, and certification company verifying products meet global safety standards. ULS serves 80,000 customers with 99% retention and benefits from new product introductions, expansion into growing categories like batteries and electrification, and regular price increases. The company will also benefit if customers adjust manufacturing in response to tariffs.

Testing & Inspection Certification Safety Standards Regulatory Tariffs

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Apr 18, 2026	Fund Letters	BBH Select Series - Mid Cap Fund	DAR	Darling Ingredients Inc	Packaged Foods	Food Products	Bull	New York Stock Exchange	Animal-Byproducts, Biofuels, EPA Mandate, Feed Ingredients, Joint venture, Rendering, Renewable diesel, Specialty Health Products	Login
Apr 18, 2026	Fund Letters	BBH Select Series - Mid Cap Fund	ENTG	Entegris Inc	Semiconductor Equipment & Materials	Semiconductors & Semiconductor Equipment	Bull	NASDAQ	Cost Restructuring, Filtration Products, Logic Chips, memory chips, Production Nodes, Semiconductor Recovery, semiconductors, Wafer Fabrication	Login
Apr 18, 2026	Fund Letters	BBH Select Series - Mid Cap Fund	ICLR	ICON plc	Diagnostics & Research	Life Sciences Tools & Services	Bear	NASDAQ	AI Disintermediation, Biotechnology Services, contract research organization, Cro, drug development, Pharmaceutical Services, revenue recognition	Login
Apr 18, 2026	Fund Letters	BBH Select Series - Mid Cap Fund	GWRE	Guidewire Software Inc	Software - Application	Software	Bull	New York Stock Exchange	AI integration, Annual Recurring Revenue, cloud migration, Core Systems, Insurance-software, Property & Casualty Insurance, SaaS, subscription model	Login
Apr 18, 2026	Fund Letters	BBH Select Series - Mid Cap Fund	HUBB	Hubbell Inc	Electrical Equipment & Parts	Electrical Equipment	Bull	New York Stock Exchange	data centers, electrical equipment, Electrification, Grid Hardening, Industrial Nearshoring, Mission-Critical Products, Transmission Distribution, Utility Infrastructure	Login
Apr 18, 2026	Fund Letters	BBH Select Series - Mid Cap Fund	BR	Broadridge Financial Solutions	Information Technology Services	IT Services	Bull	New York Stock Exchange	Direct Indexing, Distributed Ledger, Financial infrastructure, Governance Solutions, Post-Trade Processing, Proxy Services, Separately Managed Accounts, Tokenization	Login
Jan 30, 2026	Fund Letters	Tim Harris	DAR	Darling Ingredients Inc.	Consumer Staples	Agricultural Products	Bull	New York Stock Exchange	Animal-Byproducts, Free Cash Flow, Rendering, Renewable diesel, Sustainability	Login
Jan 30, 2026	Fund Letters	Tim Harris	KEYS	Keysight Technologies Inc.	Information Technology	Electronic Equipment & Instruments	Bull	New York Stock Exchange	AI infrastructure, Instrumentation, margin expansion, semiconductors, Test-And-Measurement	Login
Jan 30, 2026	Fund Letters	Tim Harris	FOUR	Shift4 Payments Inc.	Financials	Transaction & Payment Processing Services	Neutral	New York Stock Exchange	buybacks, consumer spending, hospitality, Payments, Sentiment	Login
Jan 30, 2026	Fund Letters	Tim Harris	GWRE	Guidewire Software Inc.	Information Technology	Application Software	Neutral	New York Stock Exchange	AI adoption, ARR growth, cloud migration, Insurance-software, vertical software	Login
Oct 28, 2025	Fund Letters	Tim Harris	ANET UN	Arista Networks Inc.	Information Technology	Communications Equipment	Bull	NYSE	AI, cloud, data centers, hyperscalers, Networking	Login
Oct 28, 2025	Fund Letters	Tim Harris	WMS UN	Advanced Drainage Systems Inc.	Industrials	Building Products	Bull	NYSE	construction, Stormwater, Sustainability, Water infrastructure	Login
Oct 28, 2025	Fund Letters	Tim Harris	FOUR UN	Shift4 Payments Inc.	Information Technology	IT Services	Bull	NYSE	Fintech, hospitality, organic growth, Payments	Login
Oct 28, 2025	Fund Letters	Tim Harris	GLOB UN	Globant S.A.	Information Technology	IT Consulting & Services	Bear	NYSE	AI services, Digital transformation, It consulting, Software	Login
Oct 28, 2025	Fund Letters	Tim Harris	BRKR UN	Bruker Corp.	Health Care	Life Sciences Tools & Services	Bear	NASDAQ	Funding cuts, instruments, life sciences, R&D	Login
Oct 28, 2025	Fund Letters	Tim Harris	ITT UN	ITT Inc.	Industrials	Machinery	Bull	NYSE	Aerospace, capital allocation, EVs, Industrials, machinery	Login
Oct 28, 2025	Fund Letters	Tim Harris	BJ UN	BJ’s Wholesale Club Holdings Inc.	Consumer Discretionary	Food Retail	Bull	NYSE	consumer staples, Membership, Pricing power, retail, Warehouse	Login
Oct 28, 2025	Fund Letters	Tim Harris	ANET UN	Arista Networks Inc.	Information Technology	Communications Equipment	Bull	NYSE	AI, cloud, data centers, hyperscalers, Networking	Login
Oct 28, 2025	Fund Letters	Tim Harris	WMS UN	Advanced Drainage Systems Inc.	Industrials	Building Products	Bull	NYSE	construction, Stormwater, Sustainability, Water infrastructure	Login
Oct 28, 2025	Fund Letters	Tim Harris	FOUR UN	Shift4 Payments Inc.	Information Technology	IT Services	Bull	NYSE	Fintech, hospitality, organic growth, Payments	Login
Oct 28, 2025	Fund Letters	Tim Harris	GLOB UN	Globant S.A.	Information Technology	IT Consulting & Services	Bear	NYSE	AI services, Digital transformation, It consulting, Software	Login
Oct 28, 2025	Fund Letters	Tim Harris	BRKR UN	Bruker Corp.	Health Care	Life Sciences Tools & Services	Bear	NASDAQ	Funding cuts, instruments, life sciences, R&D	Login
Oct 28, 2025	Fund Letters	Tim Harris	ITT UN	ITT Inc.	Industrials	Machinery	Bull	NYSE	Aerospace, capital allocation, EVs, Industrials, machinery	Login
Oct 28, 2025	Fund Letters	Tim Harris	BJ UN	BJ’s Wholesale Club Holdings Inc.	Consumer Discretionary	Food Retail	Bull	NYSE	consumer staples, Membership, Pricing power, retail, Warehouse	Login
Jun 30, 2025	Fund Letters	BBH Select Series - Mid Cap Fund	GWRE	Guidewire Software Inc	Information Technology	Application Software	Bull	NYSE	ARR growth, cloud migration, Core Systems, Insurance Technology, operating leverage, P&C insurance, SaaS	Login
Jun 30, 2025	Fund Letters	BBH Select Series - Mid Cap Fund	FOUR	Shift4 Payments Inc	Information Technology	Data Processing & Outsourced Services	Bull	NYSE	Cross-sell, Free Cash Flow, hospitality, international expansion, Payments processing, tax-free shopping, volume growth	Login
Jun 30, 2025	Fund Letters	BBH Select Series - Mid Cap Fund	WSO	Watsco Inc	Industrials	Trading Companies & Distributors	Neutral	NYSE	gross margin expansion, HVAC Distribution, industry transition, Mix shift, Refrigerant Technology, Residential Replacement, technology leadership	Login
Jun 30, 2025	Fund Letters	BBH Select Series - Mid Cap Fund	GLOB	Globant SA	Information Technology	IT Consulting & Other Services	Bull	NYSE	AI Studios, Digital Engineering, Latin America, Mission Critical Applications, Software Development, tariff impact, Variable Cost Structure	Login
Mar 31, 2025	Fund Letters	BBH Select Series - Mid Cap Fund	ULS	UL Solutions Inc	Industrials	Professional Services	Bull	NYSE	Certification, defensive, Inspection, IPO, Pricing power, professional services, Regulatory, Safety Standards, Testing, Tic	Login
Mar 31, 2025	Fund Letters	BBH Select Series - Mid Cap Fund	KEYS	Keysight Technologies Inc	Information Technology	Electronic Equipment, Instruments & Components	Bull	NYSE	5G, 6G, Aerospace, AI, data center, Defense, Electric Vehicles, Measurement, R&D, recurring revenue, semiconductors, Test Equipment	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Apr 18, 2026

Fund Letters

BBH Select Series - Mid Cap Fund

DAR

Darling Ingredients Inc

Packaged Foods

Food Products

Bull

New York Stock Exchange

Animal-Byproducts, Biofuels, EPA Mandate, Feed Ingredients, Joint venture, Rendering, Renewable diesel, Specialty Health Products

Apr 18, 2026

Fund Letters

BBH Select Series - Mid Cap Fund

ENTG

Entegris Inc

Semiconductor Equipment & Materials

Semiconductors & Semiconductor Equipment

Bull

NASDAQ

Cost Restructuring, Filtration Products, Logic Chips, memory chips, Production Nodes, Semiconductor Recovery, semiconductors, Wafer Fabrication

Apr 18, 2026

Fund Letters

BBH Select Series - Mid Cap Fund

ICLR

ICON plc

Diagnostics & Research

Life Sciences Tools & Services

Bear

NASDAQ

AI Disintermediation, Biotechnology Services, contract research organization, Cro, drug development, Pharmaceutical Services, revenue recognition

Apr 18, 2026

Fund Letters

BBH Select Series - Mid Cap Fund

GWRE

Guidewire Software Inc

Software - Application

Software

Bull

New York Stock Exchange

AI integration, Annual Recurring Revenue, cloud migration, Core Systems, Insurance-software, Property & Casualty Insurance, SaaS, subscription model

Apr 18, 2026

Fund Letters

BBH Select Series - Mid Cap Fund

HUBB

Hubbell Inc

Electrical Equipment & Parts

Electrical Equipment

Bull

New York Stock Exchange

data centers, electrical equipment, Electrification, Grid Hardening, Industrial Nearshoring, Mission-Critical Products, Transmission Distribution, Utility Infrastructure

Apr 18, 2026

Fund Letters

BBH Select Series - Mid Cap Fund

Broadridge Financial Solutions

Information Technology Services

IT Services

Bull

New York Stock Exchange

Direct Indexing, Distributed Ledger, Financial infrastructure, Governance Solutions, Post-Trade Processing, Proxy Services, Separately Managed Accounts, Tokenization

Jan 30, 2026

Fund Letters

Tim Harris

DAR

Darling Ingredients Inc.

Consumer Staples

Agricultural Products

Bull

New York Stock Exchange

Animal-Byproducts, Free Cash Flow, Rendering, Renewable diesel, Sustainability

Jan 30, 2026

Fund Letters

Tim Harris

KEYS

Keysight Technologies Inc.

Information Technology

Electronic Equipment & Instruments

Bull

New York Stock Exchange

AI infrastructure, Instrumentation, margin expansion, semiconductors, Test-And-Measurement

Jan 30, 2026

Fund Letters

Tim Harris

FOUR

Shift4 Payments Inc.

Financials

Transaction & Payment Processing Services

Neutral

New York Stock Exchange

buybacks, consumer spending, hospitality, Payments, Sentiment

Jan 30, 2026

Fund Letters

Tim Harris

GWRE

Guidewire Software Inc.

Information Technology

Application Software

Neutral

New York Stock Exchange

AI adoption, ARR growth, cloud migration, Insurance-software, vertical software

Oct 28, 2025

Fund Letters

Tim Harris

ANET UN

Arista Networks Inc.

Information Technology

Communications Equipment

Bull

NYSE

AI, cloud, data centers, hyperscalers, Networking

Oct 28, 2025

Fund Letters

Tim Harris

WMS UN

Advanced Drainage Systems Inc.

Industrials

Building Products

Bull

NYSE

construction, Stormwater, Sustainability, Water infrastructure

Oct 28, 2025

Fund Letters

Tim Harris

FOUR UN

Shift4 Payments Inc.

Information Technology

IT Services

Bull

NYSE

Fintech, hospitality, organic growth, Payments

Oct 28, 2025

Fund Letters

Tim Harris

GLOB UN

Globant S.A.

Information Technology

IT Consulting & Services

Bear

NYSE

AI services, Digital transformation, It consulting, Software

Oct 28, 2025

Fund Letters

Tim Harris

BRKR UN

Bruker Corp.

Health Care

Life Sciences Tools & Services

Bear

NASDAQ

Funding cuts, instruments, life sciences, R&D

Oct 28, 2025

Fund Letters

Tim Harris

ITT UN

ITT Inc.

Industrials

Machinery

Bull

NYSE

Aerospace, capital allocation, EVs, Industrials, machinery

Oct 28, 2025

Fund Letters

Tim Harris

BJ UN

BJ’s Wholesale Club Holdings Inc.

Consumer Discretionary

Food Retail

Bull

NYSE

consumer staples, Membership, Pricing power, retail, Warehouse

Oct 28, 2025

Fund Letters

Tim Harris

ANET UN

Arista Networks Inc.

Information Technology

Communications Equipment

Bull

NYSE

AI, cloud, data centers, hyperscalers, Networking

Oct 28, 2025

Fund Letters

Tim Harris

WMS UN

Advanced Drainage Systems Inc.

Industrials

Building Products

Bull

NYSE

construction, Stormwater, Sustainability, Water infrastructure

Oct 28, 2025

Fund Letters

Tim Harris

FOUR UN

Shift4 Payments Inc.

Information Technology

IT Services

Bull

NYSE

Fintech, hospitality, organic growth, Payments

Oct 28, 2025

Fund Letters

Tim Harris

GLOB UN

Globant S.A.

Information Technology

IT Consulting & Services

Bear

NYSE

AI services, Digital transformation, It consulting, Software

Oct 28, 2025

Fund Letters

Tim Harris

BRKR UN

Bruker Corp.

Health Care

Life Sciences Tools & Services

Bear

NASDAQ

Funding cuts, instruments, life sciences, R&D

Oct 28, 2025

Fund Letters

Tim Harris

ITT UN

ITT Inc.

Industrials

Machinery

Bull

NYSE

Aerospace, capital allocation, EVs, Industrials, machinery

Oct 28, 2025

Fund Letters

Tim Harris

BJ UN

BJ’s Wholesale Club Holdings Inc.

Consumer Discretionary

Food Retail

Bull

NYSE

consumer staples, Membership, Pricing power, retail, Warehouse

Jun 30, 2025

Fund Letters

BBH Select Series - Mid Cap Fund

GWRE

Guidewire Software Inc

Information Technology

Application Software

Bull

NYSE

ARR growth, cloud migration, Core Systems, Insurance Technology, operating leverage, P&C insurance, SaaS

Jun 30, 2025

Fund Letters

BBH Select Series - Mid Cap Fund

FOUR

Shift4 Payments Inc

Information Technology

Data Processing & Outsourced Services

Bull

NYSE

Cross-sell, Free Cash Flow, hospitality, international expansion, Payments processing, tax-free shopping, volume growth

Jun 30, 2025

Fund Letters

BBH Select Series - Mid Cap Fund

WSO

Watsco Inc

Industrials

Trading Companies & Distributors

Neutral

NYSE

gross margin expansion, HVAC Distribution, industry transition, Mix shift, Refrigerant Technology, Residential Replacement, technology leadership

Jun 30, 2025

Fund Letters

BBH Select Series - Mid Cap Fund

GLOB

Globant SA

Information Technology

IT Consulting & Other Services

Bull

NYSE

AI Studios, Digital Engineering, Latin America, Mission Critical Applications, Software Development, tariff impact, Variable Cost Structure

Mar 31, 2025

Fund Letters

BBH Select Series - Mid Cap Fund

ULS

UL Solutions Inc

Industrials

Professional Services

Bull

NYSE

Certification, defensive, Inspection, IPO, Pricing power, professional services, Regulatory, Safety Standards, Testing, Tic

Mar 31, 2025

Fund Letters

BBH Select Series - Mid Cap Fund

KEYS

Keysight Technologies Inc

Information Technology

Electronic Equipment, Instruments & Components

Bull

NYSE

5G, 6G, Aerospace, AI, data center, Defense, Electric Vehicles, Measurement, R&D, recurring revenue, semiconductors, Test Equipment

TICKER	COMMENTARY
ENTG	Entegris returned 53.5% during the quarter, ending with a weight of 6.4%. Entegris is a key supplier to the semiconductor industry of essential filtration products, materials, and related delivery equipment that enables the high precision fabrication of semiconductor chips. Entegris reported strong first quarter 2026 results and provided second quarter guidance above consensus with accelerating growth in second and third quarter 2026. This matches an upgraded view of industry end markets, with wafer volumes now expected to grow mid- to high-single digits for 2026 and fab construction to grow high-single digits, both of which were low-single digits expectations just last quarter. Relatively new CEO Dave Reeder indicated a focus on gross margins when he started, and that is evident from the substantial improvement in first quarter 2026 that is expected to continue over the year. Gross margin of 46.9% was significantly above guidance of 44.5-45.5% and increased 310 basis points from fourth quarter 2025. Lastly, Entegris now aims to bring net leverage to 3.0x by year end, driven by robust free cash flow of at least $450m.
ANET	Arista returned 38.4% during the quarter, ending with a weight of 5.1%. Arista is the leading provider of data center switches to cloud network customers. Arista reported strong first quarter results with record revenue and free cash flow ahead of expectations, but guidance fell short of high expectations due to increasing supply chain shortages. In addition, extended customer acceptance cycles on new AI products have pushed a growing volume of contracted demand into deferred revenue ahead of recognition, temporarily understating reported revenue growth and creating some investor confusion. However, management subsequently clarified this dynamic, clearly delineating 54% growth inclusive of deferred product revenue. Management also expressed confidence in the outlook for 2026 along with a constructive demand backdrop for 2027. Finally, rising component costs are an industry-wide challenge, but Arista's multiyear supply commitments and execution track record leave us confident in their ability to execute throughout the next several years. Gross margin guidance of 62% to 64% was maintained despite the rising input cost pressures. Management also continues to expect one or possibly two new 10%+ customers in 2026 beyond Microsoft and Meta as Arista meets the needs of multiple companies building out data centers for AI.
GWRE	Guidewire declined -17.7% during the quarter, ending with a weight of 3.1%. Guidewire is the leading provider of core systems software to the property and casualty (P&C) insurance industry. Guidewire reported strong fiscal third quarter results (its fiscal year ends in July), with revenue growth of 27% and profitability well ahead of guidance, and management raised full-year guidance for both. The shares nevertheless declined because annual recurring revenue (ARR) growth of 19% finished at the midpoint of guidance, the first quarter since 2022 that ARR did not meet or exceed the high end of its guidance, as a couple of deals slipped past quarter end. We believe the slippage reflects timing rather than demand. The pipeline remains healthy, and management noted the fiscal fourth quarter is off to a good start and could be a record quarter. Fully ramped ARR continues to grow faster than reported ARR, and management expects it to grow above the 22% achieved in fiscal year 25, which supports continued growth into future years. While AI is perceived as a risk by the market, a modern core system is a prerequisite for insurers to deploy AI, and early customer pilots using AI tooling have reduced cloud migration costs by approximately 35%, lowering the largest cost barrier to modernization. We believe this migration will drive Guidewire's growth for the next decade, as the Company currently wins more than 80% of competitive requests for proposals (RFPs) but only 25% of industry premiums are running on its systems. In addition, Guidewire's pricing is tied to direct written premiums rather than employee headcount, which makes it a beneficiary of rising insurance premiums and insulates it from potential AI-driven seat reductions.
DAR	Darling returned -11.7% during the quarter, ending with a weight of 4.0% after trimming the position early in the quarter on strength. Darling is the global leader in rendering animal byproducts and used cooking oil into fats and proteins for a variety of end uses, including animal feed, specialty health products, and renewable diesel through a joint venture with Valero called Diamond Green Diesel (DGD). Darling reported stronger than expected first quarter 2026 results, driven by better performance in the core Feed and Food segments, as well as stronger margins at DGD. Notwithstanding lower oil prices at quarter-end, Darling is extremely well-positioned for significantly improved profitability, with long-awaited certainty on government mandates finalized at the end of first quarter 2026, which will support both margins at DGD and higher Feed prices. These end markets are further benefiting from higher prices as a result of the recent conflict in the Middle East. The full benefit of recent development will start to be apparent in second quarter 2026.
KEYS	We opportunistically trimmed a number of our top performing holdings to better align with our target weight. These include Arista, Darling, Entegris, and Keysight Technologies Inc.
HUBB	We also executed a partial tax loss harvest on Brown & Brown Inc., Shift4 Payments Inc., and Zebra Technologies Corp. We added primarily to Hubbell Inc. and Broadridge Financial Solutions, to continue to build those positions after introducing them to the portfolio last quarter.

TICKER

COMMENTARY

ENTG

Entegris returned 53.5% during the quarter, ending with a weight of 6.4%. Entegris is a key supplier to the semiconductor industry of essential filtration products, materials, and related delivery equipment that enables the high precision fabrication of semiconductor chips. Entegris reported strong first quarter 2026 results and provided second quarter guidance above consensus with accelerating growth in second and third quarter 2026. This matches an upgraded view of industry end markets, with wafer volumes now expected to grow mid- to high-single digits for 2026 and fab construction to grow high-single digits, both of which were low-single digits expectations just last quarter. Relatively new CEO Dave Reeder indicated a focus on gross margins when he started, and that is evident from the substantial improvement in first quarter 2026 that is expected to continue over the year. Gross margin of 46.9% was significantly above guidance of 44.5-45.5% and increased 310 basis points from fourth quarter 2025. Lastly, Entegris now aims to bring net leverage to 3.0x by year end, driven by robust free cash flow of at least $450m.

ANET

Arista returned 38.4% during the quarter, ending with a weight of 5.1%. Arista is the leading provider of data center switches to cloud network customers. Arista reported strong first quarter results with record revenue and free cash flow ahead of expectations, but guidance fell short of high expectations due to increasing supply chain shortages. In addition, extended customer acceptance cycles on new AI products have pushed a growing volume of contracted demand into deferred revenue ahead of recognition, temporarily understating reported revenue growth and creating some investor confusion. However, management subsequently clarified this dynamic, clearly delineating 54% growth inclusive of deferred product revenue. Management also expressed confidence in the outlook for 2026 along with a constructive demand backdrop for 2027. Finally, rising component costs are an industry-wide challenge, but Arista's multiyear supply commitments and execution track record leave us confident in their ability to execute throughout the next several years. Gross margin guidance of 62% to 64% was maintained despite the rising input cost pressures. Management also continues to expect one or possibly two new 10%+ customers in 2026 beyond Microsoft and Meta as Arista meets the needs of multiple companies building out data centers for AI.

GWRE

Guidewire declined -17.7% during the quarter, ending with a weight of 3.1%. Guidewire is the leading provider of core systems software to the property and casualty (P&C) insurance industry. Guidewire reported strong fiscal third quarter results (its fiscal year ends in July), with revenue growth of 27% and profitability well ahead of guidance, and management raised full-year guidance for both. The shares nevertheless declined because annual recurring revenue (ARR) growth of 19% finished at the midpoint of guidance, the first quarter since 2022 that ARR did not meet or exceed the high end of its guidance, as a couple of deals slipped past quarter end. We believe the slippage reflects timing rather than demand. The pipeline remains healthy, and management noted the fiscal fourth quarter is off to a good start and could be a record quarter. Fully ramped ARR continues to grow faster than reported ARR, and management expects it to grow above the 22% achieved in fiscal year 25, which supports continued growth into future years. While AI is perceived as a risk by the market, a modern core system is a prerequisite for insurers to deploy AI, and early customer pilots using AI tooling have reduced cloud migration costs by approximately 35%, lowering the largest cost barrier to modernization. We believe this migration will drive Guidewire's growth for the next decade, as the Company currently wins more than 80% of competitive requests for proposals (RFPs) but only 25% of industry premiums are running on its systems. In addition, Guidewire's pricing is tied to direct written premiums rather than employee headcount, which makes it a beneficiary of rising insurance premiums and insulates it from potential AI-driven seat reductions.

DAR

Darling returned -11.7% during the quarter, ending with a weight of 4.0% after trimming the position early in the quarter on strength. Darling is the global leader in rendering animal byproducts and used cooking oil into fats and proteins for a variety of end uses, including animal feed, specialty health products, and renewable diesel through a joint venture with Valero called Diamond Green Diesel (DGD). Darling reported stronger than expected first quarter 2026 results, driven by better performance in the core Feed and Food segments, as well as stronger margins at DGD. Notwithstanding lower oil prices at quarter-end, Darling is extremely well-positioned for significantly improved profitability, with long-awaited certainty on government mandates finalized at the end of first quarter 2026, which will support both margins at DGD and higher Feed prices. These end markets are further benefiting from higher prices as a result of the recent conflict in the Middle East. The full benefit of recent development will start to be apparent in second quarter 2026.

KEYS

We opportunistically trimmed a number of our top performing holdings to better align with our target weight. These include Arista, Darling, Entegris, and Keysight Technologies Inc.

HUBB

We also executed a partial tax loss harvest on Brown & Brown Inc., Shift4 Payments Inc., and Zebra Technologies Corp. We added primarily to Hubbell Inc. and Broadridge Financial Solutions, to continue to build those positions after introducing them to the portfolio last quarter.

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Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th June 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

AI

Semiconductor Cycle

Energy

Inflation

Renewable Developers

AI

Semiconductors

Energy

Renewable Energy

AI

Trade Policy

Rates

Enterprise Software

AI

Quality

Trade Policy

Trade Policy

Software

Payments

Insurance

Software

Testing

Investor Pitches

Current Portfolio as of ( 30th June 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Tim Harris Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

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BBH Select Series – Mid Cap Fund