Brown Advisors Mid-Cap Growth strategy

Investor Summary

The strategy is co-managed by Brian Angerame, a Managing Director and Portfolio Manager with 32 years of investment industry experience who joined ClearBridge in 2000 as a Research Analyst and became Portfolio Manager in 2005, specializing in consumer discretionary, consumer staples, healthcare, and cyclical sectors within mid- and SMID-cap equities. Matthew Lilling, CFA, serves as co-manager with 20 years of investment industry experience, joining ClearBridge in 2010 and co-managing the fund since June 30, 2020, bringing diverse experience from private equity, M&A advisory, and investment banking with an MBA from Columbia Business School and BA in Economics from Emory University.

Fund Strategy

The ClearBridge Mid Cap Growth Strategy employs a market cap relevant, style pure, and risk-aware investment approach that evaluates businesses without any macro tilt, focusing on companies that can compound high levels of growth in large markets without depending on macro tailwinds, provide durable returns, and have ample access to capital to fund high-growth investment opportunities. The strategy seeks long-term capital appreciation by investing in a diversified portfolio of 40 to 70 stocks selected for their long-term growth potential through a concentrated portfolio that includes only those stocks in which the managers have the greatest conviction. Stock selection is based on bottom-up fundamental analysis, supported by a rigorous approach to valuation, with a contrarian approach to growth that often owns stocks bearing low correlation to the overall market and other growth strategies.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
11.9%	17.5%	6.9%

Executive Summary

The Mid-Cap Growth Strategy returned 17.5% net in Q2 2026, outperforming its benchmark by 300 basis points as both stock selection and allocation effects contributed positively, led by Technology sector investments. The quarter saw a continuation of market leadership broadening beyond mega-cap tech, with small-caps and biotech leading returns. AI infrastructure suppliers drove top performance, with Marvell Technology, Flex, and Monolithic Power Systems all benefiting from data center buildout demand. However, AI disruption fears weighed on software holdings like CoStar Group and Guidewire Software. Portfolio activity accelerated significantly with 30% dollar turnover as the manager exited nine positions and established eighteen new ones, including hardware companies serving different parts of the AI infrastructure stack, consumer services businesses like Robinhood Markets and Viking Holdings, and software platforms like Snowflake. The manager demonstrated valuation discipline by selling Marvell after it more than doubled, while opportunistically building positions during pullbacks. The strategy maintains its focus on owning a diversified portfolio of compounders that can grow significantly larger over time.

Forward Outlook

The manager remains committed to achieving attractive, risk-adjusted returns over a full market cycle by owning a diversified portfolio of companies that can grow significantly larger over time. The strategy continues to apply its small-cap investment philosophy and disciplined process to a broader, high-quality universe of mid- and small-cap companies. Performance has been consistent with this hypothesis since inception.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Jul 20 2026	2026 Q2	BFAM, CASY, CSGP, DDOG, ENTG, FLEX, GWRE, HUBS, MPWR, MRVL, MSA, NOVT, ROST, TOST, TTWO	AI Infrastructure, growth, healthcare, mid cap, Portfolio turnover, software, technology, valuation	FLEX HOOD SNOW USFD VIK	Brown Advisory's Mid-Cap Growth Strategy outperformed by 300 basis points in Q2 2026, driven by AI infrastructure suppliers including Marvell Technology which returned 166% before being sold on valuation. The manager executed high portfolio turnover, adding eighteen new positions across data center hardware, software, and consumer services while maintaining discipline around price targets. Market leadership continued broadening beyond mega-cap tech as anticipated in recent letters.
Apr 15 2026	2026 Q1	AAON, ANDG, ARES, CCC, CSGP, DDOG, DKNG, DT, EFX, FICO, FIX, FTAI, GH, GWRE, HUBS, IT, LITE, LNG, LSCC, MDLN, MPWR, ODFL, OII, OS, PODD, PWR, RDDT, TOST, TTD, VOYG, VRSK, VRT, VST, WCN, WDAY, YSS	AI, energy, growth, industrials, mid cap, software, technology	GWRE TOST RDDT ANDG FTAI GH	Brown Advisory's Mid-Cap Growth Strategy faced headwinds from AI-driven software sell-off in Q1 2026, prompting portfolio repositioning away from threatened SaaS names toward opportunities like Toast and Guidewire. Energy strength and data center demand provided some offset. The manager maintains focus on identifying durable growth compounders despite near-term thematic challenges from AI disruption.
Jan 26 2026	2025 Q4	AS, AXON, CPNG, CSGP, CVNA, EFX, EXPE, FICO, HWM, INSM, IOT, MDLN, NTRA, PLTR, PSN, PSTG, RKLB, ULTA, VEEV, ZS	AI, energy, growth, healthcare, industrials, mid cap, semiconductors, technology	-	Brown Advisory's Mid-Cap Growth strategy lagged in Q4 2025 primarily due to not owning Palantir, which dominated benchmark returns at extreme valuations. The strategy added quality compounders like Axon and Zscaler during market volatility, benefiting from AI infrastructure demand and broadening market leadership. Expected small-cap earnings acceleration in 2026 should support the mid-cap opportunity set going forward.
Oct 16 2025	2025 Q3	CAH, COR, CPNG, CVNA, DKNG, FIG, FIX, HLT, LNG, MCK, MDB, MPWR, NET, NTSK, PSN, PSTG, VRT, VST, WST, ZS	AI, Biotech, gaming, growth, healthcare, Mid-cap, semiconductors, technology	PSN NTSK CVNA	Brown Advisory's Mid-Cap Growth strategy underperformed modestly in Q3, returning 2.2% net versus 3% for the benchmark. Strong AI-exposed holdings drove gains, but elevated valuations prompted profit-taking. New positions in Cardinal Health, DraftKings, and Parsons reflect focus on secular growth themes. Portfolio expanded to 61 names while maintaining disciplined approach to compounding growth companies.
Aug 27 2025	2025 Q2	AJG, CSGP, EFX, ENTG, FICO, FIX, GWRE, HLT, LNG, MRVL, NET, OII, PINS, RBLX, TECH, VOYG, VRT, VST, WCN, WST	AI, Data centers, defense, energy, growth, mid cap, semiconductors, technology	NET FIX VOYG	Brown Advisory's Mid-Cap Growth strategy was impacted by Palantir's benchmark dominance but outperformed excluding this effect. AI infrastructure recovery drove strong performance from Vertiv and Marvell, while new defense technology holding Voyager delivered exceptional gains. The strategy continues finding attractive compounding opportunities despite tariff volatility, maintaining disciplined portfolio construction with 59 concentrated holdings.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Jul 20 2026

2026 Q2

BFAM, CASY, CSGP, DDOG, ENTG, FLEX, GWRE, HUBS, MPWR, MRVL, MSA, NOVT, ROST, TOST, TTWO

AI Infrastructure, growth, healthcare, mid cap, Portfolio turnover, software, technology, valuation

FLEX
HOOD
SNOW
USFD
VIK

Brown Advisory's Mid-Cap Growth Strategy outperformed by 300 basis points in Q2 2026, driven by AI infrastructure suppliers including Marvell Technology which returned 166% before being sold on valuation. The manager executed high portfolio turnover, adding eighteen new positions across data center hardware, software, and consumer services while maintaining discipline around price targets. Market leadership continued broadening beyond mega-cap tech as anticipated in recent letters.

Apr 15 2026

2026 Q1

AAON, ANDG, ARES, CCC, CSGP, DDOG, DKNG, DT, EFX, FICO, FIX, FTAI, GH, GWRE, HUBS, IT, LITE, LNG, LSCC, MDLN, MPWR, ODFL, OII, OS, PODD, PWR, RDDT, TOST, TTD, VOYG, VRSK, VRT, VST, WCN, WDAY, YSS

AI, energy, growth, industrials, mid cap, software, technology

GWRE
TOST
RDDT
ANDG
FTAI
GH

Brown Advisory's Mid-Cap Growth Strategy faced headwinds from AI-driven software sell-off in Q1 2026, prompting portfolio repositioning away from threatened SaaS names toward opportunities like Toast and Guidewire. Energy strength and data center demand provided some offset. The manager maintains focus on identifying durable growth compounders despite near-term thematic challenges from AI disruption.

Jan 26 2026

2025 Q4

AS, AXON, CPNG, CSGP, CVNA, EFX, EXPE, FICO, HWM, INSM, IOT, MDLN, NTRA, PLTR, PSN, PSTG, RKLB, ULTA, VEEV, ZS

AI, energy, growth, healthcare, industrials, mid cap, semiconductors, technology

Brown Advisory's Mid-Cap Growth strategy lagged in Q4 2025 primarily due to not owning Palantir, which dominated benchmark returns at extreme valuations. The strategy added quality compounders like Axon and Zscaler during market volatility, benefiting from AI infrastructure demand and broadening market leadership. Expected small-cap earnings acceleration in 2026 should support the mid-cap opportunity set going forward.

Oct 16 2025

2025 Q3

CAH, COR, CPNG, CVNA, DKNG, FIG, FIX, HLT, LNG, MCK, MDB, MPWR, NET, NTSK, PSN, PSTG, VRT, VST, WST, ZS

AI, Biotech, gaming, growth, healthcare, Mid-cap, semiconductors, technology

PSN
NTSK
CVNA

Brown Advisory's Mid-Cap Growth strategy underperformed modestly in Q3, returning 2.2% net versus 3% for the benchmark. Strong AI-exposed holdings drove gains, but elevated valuations prompted profit-taking. New positions in Cardinal Health, DraftKings, and Parsons reflect focus on secular growth themes. Portfolio expanded to 61 names while maintaining disciplined approach to compounding growth companies.

Aug 27 2025

2025 Q2

AJG, CSGP, EFX, ENTG, FICO, FIX, GWRE, HLT, LNG, MRVL, NET, OII, PINS, RBLX, TECH, VOYG, VRT, VST, WCN, WST

AI, Data centers, defense, energy, growth, mid cap, semiconductors, technology

NET
FIX
VOYG

Brown Advisory's Mid-Cap Growth strategy was impacted by Palantir's benchmark dominance but outperformed excluding this effect. AI infrastructure recovery drove strong performance from Vertiv and Marvell, while new defense technology holding Voyager delivered exceptional gains. The strategy continues finding attractive compounding opportunities despite tariff volatility, maintaining disciplined portfolio construction with 59 concentrated holdings.

QUARTER	THEMES	TAGS
2026 Q2	AI Infrastructure The fund's top contributors were all suppliers to the AI buildout, including Marvell Technology (custom AI chips), Flex (data-center hardware), and Monolithic Power Systems (power-management semiconductors for AI servers). The manager initiated multiple positions in hardware companies benefiting from heavy data center investment, including copper and optical-cable providers, semiconductor materials companies, and test equipment providers. Each serves a different part of the AI infrastructure buildout, giving exposure to rising compute, networking and power requirements.	Data Centers Semiconductors AI Power Equipment Networking
	AI Disruption Risk The fund's most notable decliners—CoStar Group and Guidewire Software—de-rated on fears that AI could disrupt their businesses, even as both companies continued to post generally solid results. Investors continue to fear that CoStar Group will be displaced by AI, compounded by Google's expansion into real estate marketplaces. Toast experienced weakness due to AI fears and concerns around rising memory costs.	AI Software Real Estate
	Software The manager used the software selloff to build positions in Snowflake and Datadog at attractive valuations. Snowflake sits at the convergence of rising enterprise data needs and AI adoption, with accelerating product innovation under new CEO Sridhar Ramaswamy. Datadog reported stronger than expected results with large AI lab contributions and wins inside hyperscale companies. However, several software positions were exited due to fundamental concerns or better opportunities elsewhere.	Cloud SaaS Enterprise Software Data & Analytics
	Portfolio Turnover Portfolio activity picked up considerably during the quarter, with dollar turnover greater than 30% amid volatility in both the broader market and individual stock prices. The manager exited nine positions and established eighteen new ones. Name turnover for the trailing twelve months measured approximately 37%, mildly above historical pace, as the team found better alternatives among names on their research bench.	Risk Appetite Volatility
	Valuation Discipline The manager sold Marvell Technology after it more than doubled during the quarter, consistent with their price discipline. They also exited Casey's General Stores and Ross Stores on valuation after periods of strong execution and share-price appreciation left less upside in their three-year forecasts. The manager took advantage of pullbacks and volatility to establish positions in Robinhood Markets, Viking Holdings, and US Foods at attractive valuations.	Value Quality
	Consumer Services The manager initiated positions in several consumer-facing businesses including Robinhood Markets (diversified financial platform), US Foods (foodservice distributor with self-help initiatives), and Viking Holdings (luxury cruise operator). US Foods is executing on a multi-year plan supporting double-digit earnings growth with modest dependence on restaurant traffic. Viking Holdings benefits from strong repeat rates, demand visibility, and superior unit economics versus mainstream cruise lines.	Consumer Finance Foodservice Cruises Restaurants
	Healthcare The fund added positions in Teleflex (diversified medical technology) and Tenet Healthcare (hospitals and ambulatory surgery centers). Tenet can improve earnings quality as it shifts toward higher-margin ambulatory care and benefits from durable demand for surgical capacity. However, Insulet experienced voluntary recalls totaling 7 million insulin pump units and faces competitive worries as more tubeless alternatives are expected to hit the market.	Medical Devices Hospitals Diabetes
	Market Leadership Broadening The widening of market leadership beyond a handful of large technology companies—a theme of recent letters—carried into the second quarter. Small-caps led returns for a second consecutive quarter, with the Russell 2000 Growth Index gaining approximately 26% versus 17% for the Russell 1000 Growth Index. Biotech experienced its fourth consecutive quarter of leadership. The Strategy outpaced its benchmark in a risk-on quarter despite its mildly more conservative posture.	Small Caps Biotechnology Risk Appetite
2026 Q1	AI AI dominance drove market dynamics during the quarter, with the death of anything in its crosshairs. The manager scrutinized AI risk of every position and eliminated several software positions facing AI threats. However, they also see AI opportunities, particularly in Reddit's data licensing for large language models.	Artificial Intelligence Software Data Disruption LLM
	Software The quarter saw what some dubbed the SaaS-pocalypse, with collapsing share prices of quality software growers facing AI threats. The manager eliminated positions in Workday, Gartner, and Verisk while reducing weights in HubSpot and Dynatrace, but found opportunities in Toast and Guidewire Software.	SaaS Cloud Enterprise Software Disruption Valuation
	Energy Energy prices soared 77% due to military campaign in Iran and closure of the Strait of Hormuz. Energy sector drove benchmark results with companies like Cheniere Energy benefiting from LNG supply disruption concerns and higher oil prices improving offshore activity economics.	Oil LNG Geopolitical Supply Offshore
	Data Centers AI infrastructure companies and data center buildout beneficiaries were among the benchmark's top contributors. The strategy has exposure to AI/data center buildout approximately in line with the Russell Midcap Growth Index, with companies like Comfort Systems benefiting from data center construction demand.	Infrastructure Construction AI Capacity Demand
2025 Q4	AI Manager views AI as a classic capital cycle bubble comparable to past infrastructure booms. Sees massive capital spending with improbable returns, creative financing, and circular dynamics among hyperscalers. Expects this to end badly for early investors despite potential societal benefits.	Data Centers Capital Cycle Hyperscalers Infrastructure Bubble
	Value Portfolio trades at 12.2x earnings with 8.2% earnings yield versus S&P 500's 26x multiple and 3.9% yield. Active value management through trimming expensive positions and adding to undervalued ones drove 41.4% net returns despite maintaining undervaluation.	Earnings Yield Active Management Undervalued Price to Earnings
	Gold Gold reached $5,000 per ounce driving mining profitability through the roof. Portfolio's gold miners Kinross and Newmont saw margins surge to 33% and 32% respectively. Manager constructive on long-term gold price for myriad unfortunate reasons.	Gold Miners Kinross Newmont Margins
	Berkshire Hathaway Warren Buffett stepped down as CEO at year-end 2025 after 61 years, with Greg Abel taking over. Manager provides detailed tribute to Buffett's legacy and compound interest achievements while analyzing succession and business segments.	Warren Buffett Greg Abel Succession Compound Interest
	Dollar Stores Combined investment in Dollar General, Dollar Tree, and Five Below totaled 25.9% of holdings by year-end, up from 17.1% at start of year. These retailers contributed meaningfully to 41.9% net returns despite having lower profit margins than portfolio average.	Dollar General Dollar Tree Five Below Retailers
2025 Q3	AI Approximately 14% of the portfolio consists of companies with meaningful exposure to AI or data center capex. Seven of the top fifteen midcap index contributors sport businesses that hinge on Artificial Intelligence and data center CapEx. Strong fundamental performance coupled with burgeoning valuations in AI-exposed stocks pushed several portfolio positions towards three-year price targets.	Data Centers Semiconductors Cloud Enterprise Software
	Healthcare The strategy is overweight Health Care with broad exposure to services, devices and biotechnology. Cardinal Health was added as a meaningful position in the dominant U.S. wholesale drug distributor oligopoly. The company benefits from rising demand for complex specialty and biologic therapies and serves adjacent markets like nuclear medicine.	Medical Distribution Biotechnology Medical Devices Specialty Pharma
	Gaming Initiated position in DraftKings to gain exposure to the burgeoning online sports betting and iGaming markets where DraftKings and FanDuel have established a duopoly. The thesis hinges on persistent out-growth in lucrative wagers like complex parlays and live, in-game prop bets pushing hold rates and EBITDA higher.	Sports Betting Online Gaming Entertainment
	Cybersecurity Participated in NetSkope's IPO, a technology leader in cloud network security. NetSkope's novel architecture enables stronger protection and faster performance as cyber threats escalate. The company is positioned well for legacy replacement opportunities and enterprise adoption of generative AI technologies.	Cloud Security Data Privacy Enterprise Software
	E-commerce Initiated small position in Carvana, one of the fastest-growing online used car retailers. The company continues to outpace peers with revenue growth above 40% and targets 20-40% annual growth over the next five years. With expanded reconditioning capacity, improving profitability and widening competitive advantage expected as the business scales.	Used Autos Auto Retail Digital Commerce
2025 Q2	AI AI-exposed stocks that were hit disproportionately following the DeepSeek news in the first three months of the year bounced the hardest in the second quarter. Three of the top-five contributors during the quarter benefited from that recovery. Cloudflare stands to benefit meaningfully from the rise of modern application development in fast-growing sectors like AI.	Data Centers Semiconductors Cloud Infrastructure Software
	Data Centers Ongoing data center capex supports Comfort Systems' ability to continue outgrowing the market while maintaining attractive margins. Companies exposed to the AI data center capex cycle, including Vertiv and Marvell, contributed positively to performance in the quarter.	Infrastructure AI Cloud Power Equipment Construction
	Defense Voyager is a unique player in the early-stage space and defense technology sector, with capabilities spanning missile propulsion, signal intelligence, communications, and guidance systems. Voyager recently secured a key contract for its solid-rocket propulsion technology in a next-generation missile defense system, further validating its innovation and unlocking a new source of near-term profitability.	Space Defense Electronics Government IT Aerospace Defense Components
	Onshoring Onshoring-driven construction demand supports Comfort Systems' ability to continue outgrowing the market while maintaining attractive margins over the investment horizon.	Construction Industrial Services Manufacturing Infrastructure Trade Policy
	Energy The strategy is now modestly over-weight Energy with positions in Cheniere Energy, a leading U.S. producer of Liquefied Natural Gas, and remote-operated-vehicle operator Oceaneering International. Vistra delivered strong first-quarter results, reinforcing its enviable position as a leading power producer in Texas.	LNG Natural Gas Independent Power Producers Oil Services Utilities

QUARTER

THEMES

AI Infrastructure

The fund's top contributors were all suppliers to the AI buildout, including Marvell Technology (custom AI chips), Flex (data-center hardware), and Monolithic Power Systems (power-management semiconductors for AI servers). The manager initiated multiple positions in hardware companies benefiting from heavy data center investment, including copper and optical-cable providers, semiconductor materials companies, and test equipment providers. Each serves a different part of the AI infrastructure buildout, giving exposure to rising compute, networking and power requirements.

Data Centers Semiconductors AI Power Equipment Networking

AI Disruption Risk

The fund's most notable decliners—CoStar Group and Guidewire Software—de-rated on fears that AI could disrupt their businesses, even as both companies continued to post generally solid results. Investors continue to fear that CoStar Group will be displaced by AI, compounded by Google's expansion into real estate marketplaces. Toast experienced weakness due to AI fears and concerns around rising memory costs.

AI Software Real Estate

Software

The manager used the software selloff to build positions in Snowflake and Datadog at attractive valuations. Snowflake sits at the convergence of rising enterprise data needs and AI adoption, with accelerating product innovation under new CEO Sridhar Ramaswamy. Datadog reported stronger than expected results with large AI lab contributions and wins inside hyperscale companies. However, several software positions were exited due to fundamental concerns or better opportunities elsewhere.

Cloud SaaS Enterprise Software Data & Analytics

Portfolio Turnover

Portfolio activity picked up considerably during the quarter, with dollar turnover greater than 30% amid volatility in both the broader market and individual stock prices. The manager exited nine positions and established eighteen new ones. Name turnover for the trailing twelve months measured approximately 37%, mildly above historical pace, as the team found better alternatives among names on their research bench.

Risk Appetite Volatility

Valuation Discipline

The manager sold Marvell Technology after it more than doubled during the quarter, consistent with their price discipline. They also exited Casey's General Stores and Ross Stores on valuation after periods of strong execution and share-price appreciation left less upside in their three-year forecasts. The manager took advantage of pullbacks and volatility to establish positions in Robinhood Markets, Viking Holdings, and US Foods at attractive valuations.

Value Quality

Consumer Services

The manager initiated positions in several consumer-facing businesses including Robinhood Markets (diversified financial platform), US Foods (foodservice distributor with self-help initiatives), and Viking Holdings (luxury cruise operator). US Foods is executing on a multi-year plan supporting double-digit earnings growth with modest dependence on restaurant traffic. Viking Holdings benefits from strong repeat rates, demand visibility, and superior unit economics versus mainstream cruise lines.

Consumer Finance Foodservice Cruises Restaurants

Healthcare

The fund added positions in Teleflex (diversified medical technology) and Tenet Healthcare (hospitals and ambulatory surgery centers). Tenet can improve earnings quality as it shifts toward higher-margin ambulatory care and benefits from durable demand for surgical capacity. However, Insulet experienced voluntary recalls totaling 7 million insulin pump units and faces competitive worries as more tubeless alternatives are expected to hit the market.

Medical Devices Hospitals Diabetes

Market Leadership Broadening

The widening of market leadership beyond a handful of large technology companies—a theme of recent letters—carried into the second quarter. Small-caps led returns for a second consecutive quarter, with the Russell 2000 Growth Index gaining approximately 26% versus 17% for the Russell 1000 Growth Index. Biotech experienced its fourth consecutive quarter of leadership. The Strategy outpaced its benchmark in a risk-on quarter despite its mildly more conservative posture.

Small Caps Biotechnology Risk Appetite

2026 Q1

AI

AI dominance drove market dynamics during the quarter, with the death of anything in its crosshairs. The manager scrutinized AI risk of every position and eliminated several software positions facing AI threats. However, they also see AI opportunities, particularly in Reddit's data licensing for large language models.

Artificial Intelligence Software Data Disruption LLM

Software

The quarter saw what some dubbed the SaaS-pocalypse, with collapsing share prices of quality software growers facing AI threats. The manager eliminated positions in Workday, Gartner, and Verisk while reducing weights in HubSpot and Dynatrace, but found opportunities in Toast and Guidewire Software.

SaaS Cloud Enterprise Software Disruption Valuation

Energy

Energy prices soared 77% due to military campaign in Iran and closure of the Strait of Hormuz. Energy sector drove benchmark results with companies like Cheniere Energy benefiting from LNG supply disruption concerns and higher oil prices improving offshore activity economics.

Oil LNG Geopolitical Supply Offshore

Data Centers

AI infrastructure companies and data center buildout beneficiaries were among the benchmark's top contributors. The strategy has exposure to AI/data center buildout approximately in line with the Russell Midcap Growth Index, with companies like Comfort Systems benefiting from data center construction demand.

Infrastructure Construction AI Capacity Demand

2025 Q4

AI

Manager views AI as a classic capital cycle bubble comparable to past infrastructure booms. Sees massive capital spending with improbable returns, creative financing, and circular dynamics among hyperscalers. Expects this to end badly for early investors despite potential societal benefits.

Data Centers Capital Cycle Hyperscalers Infrastructure Bubble

Value

Portfolio trades at 12.2x earnings with 8.2% earnings yield versus S&P 500's 26x multiple and 3.9% yield. Active value management through trimming expensive positions and adding to undervalued ones drove 41.4% net returns despite maintaining undervaluation.

Earnings Yield Active Management Undervalued Price to Earnings

Gold

Gold reached $5,000 per ounce driving mining profitability through the roof. Portfolio's gold miners Kinross and Newmont saw margins surge to 33% and 32% respectively. Manager constructive on long-term gold price for myriad unfortunate reasons.

Gold Miners Kinross Newmont Margins

Berkshire Hathaway

Warren Buffett stepped down as CEO at year-end 2025 after 61 years, with Greg Abel taking over. Manager provides detailed tribute to Buffett's legacy and compound interest achievements while analyzing succession and business segments.

Warren Buffett Greg Abel Succession Compound Interest

Dollar Stores

Combined investment in Dollar General, Dollar Tree, and Five Below totaled 25.9% of holdings by year-end, up from 17.1% at start of year. These retailers contributed meaningfully to 41.9% net returns despite having lower profit margins than portfolio average.

Dollar General Dollar Tree Five Below Retailers

2025 Q3

AI

Approximately 14% of the portfolio consists of companies with meaningful exposure to AI or data center capex. Seven of the top fifteen midcap index contributors sport businesses that hinge on Artificial Intelligence and data center CapEx. Strong fundamental performance coupled with burgeoning valuations in AI-exposed stocks pushed several portfolio positions towards three-year price targets.

Data Centers Semiconductors Cloud Enterprise Software

Healthcare

The strategy is overweight Health Care with broad exposure to services, devices and biotechnology. Cardinal Health was added as a meaningful position in the dominant U.S. wholesale drug distributor oligopoly. The company benefits from rising demand for complex specialty and biologic therapies and serves adjacent markets like nuclear medicine.

Medical Distribution Biotechnology Medical Devices Specialty Pharma

Gaming

Initiated position in DraftKings to gain exposure to the burgeoning online sports betting and iGaming markets where DraftKings and FanDuel have established a duopoly. The thesis hinges on persistent out-growth in lucrative wagers like complex parlays and live, in-game prop bets pushing hold rates and EBITDA higher.

Sports Betting Online Gaming Entertainment

Cybersecurity

Participated in NetSkope's IPO, a technology leader in cloud network security. NetSkope's novel architecture enables stronger protection and faster performance as cyber threats escalate. The company is positioned well for legacy replacement opportunities and enterprise adoption of generative AI technologies.

Cloud Security Data Privacy Enterprise Software

E-commerce

Initiated small position in Carvana, one of the fastest-growing online used car retailers. The company continues to outpace peers with revenue growth above 40% and targets 20-40% annual growth over the next five years. With expanded reconditioning capacity, improving profitability and widening competitive advantage expected as the business scales.

Used Autos Auto Retail Digital Commerce

2025 Q2

AI

AI-exposed stocks that were hit disproportionately following the DeepSeek news in the first three months of the year bounced the hardest in the second quarter. Three of the top-five contributors during the quarter benefited from that recovery. Cloudflare stands to benefit meaningfully from the rise of modern application development in fast-growing sectors like AI.

Data Centers Semiconductors Cloud Infrastructure Software

Data Centers

Ongoing data center capex supports Comfort Systems' ability to continue outgrowing the market while maintaining attractive margins. Companies exposed to the AI data center capex cycle, including Vertiv and Marvell, contributed positively to performance in the quarter.

Infrastructure AI Cloud Power Equipment Construction

Defense

Voyager is a unique player in the early-stage space and defense technology sector, with capabilities spanning missile propulsion, signal intelligence, communications, and guidance systems. Voyager recently secured a key contract for its solid-rocket propulsion technology in a next-generation missile defense system, further validating its innovation and unlocking a new source of near-term profitability.

Space Defense Electronics Government IT Aerospace Defense Components

Onshoring

Onshoring-driven construction demand supports Comfort Systems' ability to continue outgrowing the market while maintaining attractive margins over the investment horizon.

Construction Industrial Services Manufacturing Infrastructure Trade Policy

Energy

The strategy is now modestly over-weight Energy with positions in Cheniere Energy, a leading U.S. producer of Liquefied Natural Gas, and remote-operated-vehicle operator Oceaneering International. Vistra delivered strong first-quarter results, reinforcing its enviable position as a leading power producer in Texas.

LNG Natural Gas Independent Power Producers Oil Services Utilities

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Jul 20, 2026	Fund Letters	Brown Advisors Mid-Cap Growth strategy	FLEX	Flex Ltd	Electronic Components	Electronic Equipment, Instruments & Components	Bull	NASDAQ	AI data center, cloud infrastructure, Electronics Manufacturing, growth, spin-off, Supply Chain Services, value unlock	Login
Jul 20, 2026	Fund Letters	Brown Advisors Mid-Cap Growth strategy	HOOD	Robinhood Markets Inc	Capital Markets	Capital Markets	Bull	NASDAQ	Brokerage Platform, cryptocurrency, Fintech, global expansion, growth, Mobile-First, Technology-Native	Login
Jul 20, 2026	Fund Letters	Brown Advisors Mid-Cap Growth strategy	SNOW	Snowflake Inc	Software - Application	Software	Bull	New York Stock Exchange	AI, Cloud Data Platform, Data Warehousing, Enterprise Analytics, growth, product innovation, SaaS	Login
Jul 20, 2026	Fund Letters	Brown Advisors Mid-Cap Growth strategy	USFD	US Foods Holding Corp	Food Distribution	Food Distributors	Bull	New York Stock Exchange	cost savings, Defensive growth, Foodservice Distribution, market share gains, Private-label, Self Help, US	Login
Jul 20, 2026	Fund Letters	Brown Advisors Mid-Cap Growth strategy	VIK	Viking Holdings Ltd	Travel Services	Hotels, Restaurants & Leisure	Bull	New York Stock Exchange	Affluent Consumer, Capacity growth, Direct Marketing, Experiential Travel, Luxury Cruise, Premium Leisure, recurring revenue	Login
Apr 15, 2026	Fund Letters	Brown Advisors Mid-Cap Growth strategy	GWRE	Guidewire Software, Inc.	Software - Application	Application Software	Bull	NASDAQ	Application Software, Cloud transformation, growth, Insurance-software, SaaS, turnaround	Login
Apr 15, 2026	Fund Letters	Brown Advisors Mid-Cap Growth strategy	TOST	Toast, Inc.	Software - Infrastructure	Financial Technology	Bull	New York Stock Exchange	growth, Payments, restaurant software, SaaS, SMB, vertical software	Login
Apr 15, 2026	Fund Letters	Brown Advisors Mid-Cap Growth strategy	RDDT	Reddit, Inc.	Internet Content & Information	Interactive Media & Services	Bull	New York Stock Exchange	advertising, AI Training Data, Data licensing, growth, social media, user engagement	Login
Apr 15, 2026	Fund Letters	Brown Advisors Mid-Cap Growth strategy	ANDG	Andersen Group, Inc.	Personal Services	Professional Services	Bull	NASDAQ	Big Four Alternative, growth, IPO, M&A, professional services, Tax Services	Login
Apr 15, 2026	Fund Letters	Brown Advisors Mid-Cap Growth strategy	FTAI	FTAI Aviation Ltd.	Rental & Leasing Services	Aerospace & Defense	Bull	NASDAQ	aftermarket, Aircraft engines, asset-light, Aviation, CFM56, MRE Services	Login
Apr 15, 2026	Fund Letters	Brown Advisors Mid-Cap Growth strategy	GH	Guardant Health, Inc.	Diagnostics & Research	Biotechnology	Bull	NASDAQ	biotechnology, Cancer Screening, CMS Coverage, diagnostics, liquid biopsy, Precision Oncology	Login
Oct 16, 2025	Fund Letters	GEORGE SAKELLARIS	PSN	Parsons Corp.	Information Technology	Aerospace & Defense	Bull	NYSE	Contracts, cybersecurity, Defense, Government, growth, infrastructure	Login
Oct 16, 2025	Fund Letters	GEORGE SAKELLARIS	NTSK	NetSkope Inc.	Information Technology	Cybersecurity	Bull	-	AI, cloud, cybersecurity, growth, IPO, Software, technology	Login
Oct 16, 2025	Fund Letters	GEORGE SAKELLARIS	CVNA	Carvana Co.	Consumer Discretionary	Internet & Direct Marketing Retail	Bull	NASDAQ	Autos, Digital, e-commerce, growth, Margins, retail, Scalability	Login
Jun 30, 2025	Fund Letters	Brown Advisors Mid-Cap Growth strategy	NET	Cloudflare, Inc.	Information Technology	Internet Services & Infrastructure	Bull	NASDAQ	AI infrastructure, CDN, cloud platform, cybersecurity, Edge computing, growth, SaaS, Serverless	Login
Jun 30, 2025	Fund Letters	Brown Advisors Mid-Cap Growth strategy	FIX	Comfort Systems USA, Inc.	Industrials	Construction & Engineering	Bull	NYSE	construction, data center, Industrials, margin expansion, MEP Contracting, Non-Union, Onshoring, Skilled Labor Shortage	Login
Jun 30, 2025	Fund Letters	Brown Advisors Mid-Cap Growth strategy	VOYG	Voyager Technologies, Inc.	Industrials	Aerospace & Defense	Bull	NASDAQ	defense technology, Early stage, government contracts, Missile-Defense, NASA, Propulsion, Signal Intelligence, Space	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Jul 20, 2026

Fund Letters

Brown Advisors Mid-Cap Growth strategy

FLEX

Flex Ltd

Electronic Components

Electronic Equipment, Instruments & Components

Bull

NASDAQ

AI data center, cloud infrastructure, Electronics Manufacturing, growth, spin-off, Supply Chain Services, value unlock

Jul 20, 2026

Fund Letters

Brown Advisors Mid-Cap Growth strategy

HOOD

Robinhood Markets Inc

Capital Markets

Bull

NASDAQ

Brokerage Platform, cryptocurrency, Fintech, global expansion, growth, Mobile-First, Technology-Native

Jul 20, 2026

Fund Letters

Brown Advisors Mid-Cap Growth strategy

SNOW

Snowflake Inc

Software - Application

Software

Bull

New York Stock Exchange

AI, Cloud Data Platform, Data Warehousing, Enterprise Analytics, growth, product innovation, SaaS

Jul 20, 2026

Fund Letters

Brown Advisors Mid-Cap Growth strategy

USFD

US Foods Holding Corp

Food Distribution

Food Distributors

Bull

New York Stock Exchange

cost savings, Defensive growth, Foodservice Distribution, market share gains, Private-label, Self Help, US

Jul 20, 2026

Fund Letters

Brown Advisors Mid-Cap Growth strategy

VIK

Viking Holdings Ltd

Travel Services

Hotels, Restaurants & Leisure

Bull

New York Stock Exchange

Affluent Consumer, Capacity growth, Direct Marketing, Experiential Travel, Luxury Cruise, Premium Leisure, recurring revenue

Apr 15, 2026

Fund Letters

Brown Advisors Mid-Cap Growth strategy

GWRE

Guidewire Software, Inc.

Software - Application

Application Software

Bull

NASDAQ

Application Software, Cloud transformation, growth, Insurance-software, SaaS, turnaround

Apr 15, 2026

Fund Letters

Brown Advisors Mid-Cap Growth strategy

TOST

Toast, Inc.

Software - Infrastructure

Financial Technology

Bull

New York Stock Exchange

growth, Payments, restaurant software, SaaS, SMB, vertical software

Apr 15, 2026

Fund Letters

Brown Advisors Mid-Cap Growth strategy

RDDT

Reddit, Inc.

Internet Content & Information

Interactive Media & Services

Bull

New York Stock Exchange

advertising, AI Training Data, Data licensing, growth, social media, user engagement

Apr 15, 2026

Fund Letters

Brown Advisors Mid-Cap Growth strategy

ANDG

Andersen Group, Inc.

Personal Services

Professional Services

Bull

NASDAQ

Big Four Alternative, growth, IPO, M&A, professional services, Tax Services

Apr 15, 2026

Fund Letters

Brown Advisors Mid-Cap Growth strategy

FTAI

FTAI Aviation Ltd.

Rental & Leasing Services

Aerospace & Defense

Bull

NASDAQ

aftermarket, Aircraft engines, asset-light, Aviation, CFM56, MRE Services

Apr 15, 2026

Fund Letters

Brown Advisors Mid-Cap Growth strategy

Guardant Health, Inc.

Diagnostics & Research

Biotechnology

Bull

NASDAQ

biotechnology, Cancer Screening, CMS Coverage, diagnostics, liquid biopsy, Precision Oncology

Oct 16, 2025

Fund Letters

GEORGE SAKELLARIS

PSN

Parsons Corp.

Information Technology

Aerospace & Defense

Bull

NYSE

Contracts, cybersecurity, Defense, Government, growth, infrastructure

Oct 16, 2025

Fund Letters

GEORGE SAKELLARIS

NTSK

NetSkope Inc.

Information Technology

Cybersecurity

Bull

AI, cloud, cybersecurity, growth, IPO, Software, technology

Oct 16, 2025

Fund Letters

GEORGE SAKELLARIS

CVNA

Carvana Co.

Consumer Discretionary

Internet & Direct Marketing Retail

Bull

NASDAQ

Autos, Digital, e-commerce, growth, Margins, retail, Scalability

Jun 30, 2025

Fund Letters

Brown Advisors Mid-Cap Growth strategy

NET

Cloudflare, Inc.

Information Technology

Internet Services & Infrastructure

Bull

NASDAQ

AI infrastructure, CDN, cloud platform, cybersecurity, Edge computing, growth, SaaS, Serverless

Jun 30, 2025

Fund Letters

Brown Advisors Mid-Cap Growth strategy

FIX

Comfort Systems USA, Inc.

Industrials

Construction & Engineering

Bull

NYSE

construction, data center, Industrials, margin expansion, MEP Contracting, Non-Union, Onshoring, Skilled Labor Shortage

Jun 30, 2025

Fund Letters

Brown Advisors Mid-Cap Growth strategy

VOYG

Voyager Technologies, Inc.

Industrials

Aerospace & Defense

Bull

NASDAQ

defense technology, Early stage, government contracts, Missile-Defense, NASA, Propulsion, Signal Intelligence, Space

TICKER	COMMENTARY
MRVL	Marvell Technology Inc (MRVL), a designer of custom AI chips and our largest contributor, returned 166% during the period; consistent with our price discipline, we sold the position on valuation. Shares of Marvell Technology Inc (MRVL) more than doubled in the quarter, first on a strong April quarter and outlook and later on an endorsement of the company's growth prospects by NVIDIA's CEO during a recent keynote. The market increasingly recognizes Marvell Technology's importance as a supplier of bottlenecked interconnect technology for data centers. We exited Marvell Technology Inc (MRVL) after substantial appreciation tied to the company's AI-related data center opportunity. We believe Marvell Technology remains well-positioned in custom silicon and high-speed connectivity, but the stock is now more than $200B in market capitalization. We used the strength to fund other data center and semiconductor opportunities in our market cap range.
FLEX	Flex Ltd (FLEX), which builds data-center hardware, and Monolithic Power Systems Inc (MPWR), whose power-management semiconductors sit inside AI servers, also contributed meaningfully. Flex Ltd (FLEX) is a global electronics manufacturing and supply-chain services company with a fast-growing business supplying the AI data-center buildout. In May, management announced plans to spin off its Cloud and Power Infrastructure segment, which carries faster growth and better margins than the legacy manufacturing operation and could represent nearly half of company revenue—and roughly two-thirds of profits—by fiscal 2028. We established our position in early April, and the shares more than doubled during the quarter, making Flex one of our largest contributors. We believe the planned separation will help investors more fully appreciate the value of each business. Flex Ltd (FLEX) reported strong fiscal 2026 results and announced plans to separate its Cloud and Power Infrastructure business into a standalone public company focused on AI data center power and thermal infrastructure.
MPWR	Flex Ltd (FLEX), which builds data-center hardware, and Monolithic Power Systems Inc (MPWR), whose power-management semiconductors sit inside AI servers, also contributed meaningfully. Monolithic Power Systems Inc (MPWR) reported a strong quarter and now expects its Enterprise Data segment to grow at least 85% this year. The market began to anticipate what could be continued outsized growth into 2027 on design wins across several AI accelerators, driving the share price higher.
DDOG	The Strategy owns both Datadog—a position we added to during the first quarter's software selloff—and Lattice Semiconductor. Datadog Inc (DDOG) reported a stronger than consensus expected quarter with a large AI lab significantly contributing to revenue growth as well as announced wins inside some large hyperscale companies, reinforcing Datadog's strong position with both AI-native and non-AI-native companies.
CSGP	On the other side of the same theme, our most notable decliners—CoStar Group Inc (CSGP) and Guidewire Software Inc (GWRE)—de-rated on fears that AI could disrupt their businesses, even as both companies continued to post generally solid results. Investors continue to fear that CoStar Group Inc (CSGP) will be displaced by AI. These fears were compounded with an announcement in the quarter that Google is expanding its real estate marketplace.
GWRE	On the other side of the same theme, our most notable decliners—CoStar Group Inc (CSGP) and Guidewire Software Inc (GWRE)—de-rated on fears that AI could disrupt their businesses, even as both companies continued to post generally solid results. Guidewire Software Inc's (GWRE) main key metric, annualized recurring revenue, decelerated sequentially in the quarter due to the timing of certain large deals, driving a decline in the stock price in the quarter. We continue to like Guidewire Software's competitive position in P&C insurance and its long-term growth prospects.
HOOD	Robinhood Markets Inc (HOOD) has evolved from the pioneer of commission-free stock trading into a diversified financial platform with more than 27 million funded accounts. The global brokerage industry remains fragmented—a local incumbent dominates nearly every major market, and none has meaningfully crossed borders. With its technology-native, mobile-first platform and a rapid pace of new product introductions across active trading, cryptocurrency, futures, advisory services, and international markets, we believe Robinhood Markets has a credible opportunity to become the industry's first global leader while compounding revenue at attractive rates. We took advantage of a sharp spring pullback in the shares to initiate our position in the quarter. Robinhood Markets Inc (HOOD) has built a large, engaged consumer financial-services platform that continues to expand beyond stock trading into options, retirement, crypto, cash management and other products. We believe the company should have room to grow revenue and profits as it deepens wallet share with existing customers and benefits from a more normalized interest-rate and trading environment.
SNOW	We initiated a position in Snowflake Inc (SNOW), a cloud-native data platform our research team has followed closely for years. Snowflake sits at the convergence of two durable trends: the rising importance of enterprise data and analytics, and the adoption of AI, which increases consumption on the company's platform. Under CEO Sridhar Ramaswamy, the pace of product innovation has inflected, and the company closed its latest fiscal year with a record number of new customers, accelerating bookings growth, and thousands of customers already using its newer AI offerings. We used the software selloff to build our position at what we view as an attractive valuation. We initiated a position in Snowflake Inc (SNOW), a cloud-native data platform our research team has followed for years. we believe the company sits at the intersection of two durable trends: rising enterprise data needs and AI adoption, both of which should increase platform consumption. Under CEO Sridhar Ramaswamy, product innovation has accelerated, and recent results showed record new customer additions, accelerating bookings growth and early traction in newer AI offerings. We used the software selloff to build the position at an attractive valuation.
USFD	US Foods Holding Corp (USFD) is one of the largest foodservice distributors in the United States and a steady share gainer with independent restaurant, healthcare, and hospitality customers. We like the company's self-help profile: management is executing on a multi-year plan that includes more than $300 million of cost-of-goods savings through 2027, rising private-label penetration, and the scaling of its Pronto next-day delivery program toward $1.5 billion in sales by 2027. Together, those initiatives support management's long-term algorithm of double-digit earnings growth with only modest dependence on the restaurant traffic environment. The shares weakened this spring after a modest first-quarter earnings miss amid soft restaurant traffic, and we took advantage to build our position. US Foods Holding Corp (USFD) is one of the largest foodservice distributors in the U.S. A handful of company-specific initiatives, including a growing private label business and identified cost savings support management's double-digit earnings growth target.
VIK	Viking Holdings (VIK) is one of the only pure-play public luxury cruise operators. The company built its model around a single brand, nearly identical small ships, direct marketing, and a loyal base of affluent travelers aged 55 and over—an approach that produces strong repeat rates, unusual demand visibility (Viking Holdings is already taking bookings for 2027 and 2028), and unit economics superior to the mainstream cruise lines. Its scaled River business acts as a customer-acquisition engine for the faster-growing Ocean segment, where Viking Holdings fields the youngest fleet in luxury cruising and holds a multi-year newbuild pipeline. We believe capacity growth and steady yield gains can compound revenue at a low-double-digit to mid-teens rate for years, with operating leverage driving even faster earnings growth. We used the volatility surrounding Middle East tensions and fuel-cost fears to establish our position. Viking Holdings (VIK) is a differentiated cruise operator with a strong brand, loyal customer base and exposure to the higher-end leisure travel market. We believe the company can grow profitably as it expands capacity, maintains strong pricing and benefits from consumers' continued preference for experiential travel.
FIX	Comfort Systems USA Inc (FIX) continues to benefit from strong demand for its services, reporting organic revenue of more than 50% and record high gross and operating margins. We believe the company continues to be a key beneficiary of the AI / datacenter build-out and management commentary indicates that the new project pipeline shows strong visibility into the next couple of years.
PODD	Insulet Corp (PODD) experienced two voluntary recalls totaling 7 million units in the period due to a small tear in the tubing of its insulin pumps. This fed competitive worries as more tubeless alternatives are expected to hit the market over the next 18 months.
CPNG	Coupang Inc (CPNG) continues to recover from the late-2025 data breach. Customers are returning and platform activity is rebounding, though profit recovery will take longer.
TW	Tradeweb Markets Inc (TW) shares were weak during the quarter alongside peer MarketAxess despite continued healthy trading activity across its platform. The market focused on lower rate volatility, tighter credit spreads and the possibility that fixed-income trading activity could normalize from elevated levels.
ENTG	We purchased positions in five hardware companies benefiting from heavy data center investment: copper and optical-cable provider Credo Technology Group Holding (CRDO), semiconductor materials company Entegris Inc (ENTG) (owned in SCG), manufacturing partner Flex Ltd (FLEX), test and measurement provider Keysight (previously owned), and analog and mixed-signal semiconductor company MACOM Technology Solutions Holdings Inc (MTSI). Each company serves a different part of the AI infrastructure buildout, giving us exposure to rising compute, networking and power requirements without relying on a single narrow product cycle.
MSA	MSA Safety Inc (MSA), another Small-Cap Growth Strategy holding, provides mission-critical safety equipment, including fire-service gear, gas detection systems and industrial protective products. The company benefits from recurring replacement demand, a strong brand reputation and opportunities to drive steady earnings growth through product innovation, pricing and margin expansion.
NOVT	Novanta Inc (NOVT) supplies precision photonics, vision and motion-control technologies to medical and advanced industrial customers. We believe the company has a long runway for growth through innovation, share gains and disciplined acquisitions in markets where its components are critical to customers' end products.
TFX	Teleflex Inc (TFX) is a diversified medical technology company with products used in vascular access, interventional procedures, anesthesia, emergency medicine and urology. Procedure normalization, new product adoption and better execution across the portfolio should support a return to steadier growth.
THC	Tenet Healthcare Corp (THC) operates hospitals and ambulatory surgery centers, with a growing mix of higher-margin outpatient procedures through its surgery-center business. We believe the company can continue to improve earnings quality as it shifts toward ambulatory care, manages costs and benefits from durable demand for surgical capacity.
TTWO	Take-Two Interactive Software Inc (TTWO) owns a portfolio of leading interactive entertainment franchises, including several of the industry's most valuable long-duration intellectual-property assets. The upcoming launch of Grand Theft Auto VI, along with recurrent consumer spending and scaled development and publishing infrastructure, should drive meaningful earnings growth over time.
TWLO	Twilio Inc (TWLO) provides communications software that allows businesses to embed messaging, voice, email and customer engagement tools into digital workflows. After a period of decelerating growth and muted profitability, the company has returned to double-digit growth while expanding margins. We also see early evidence that the company may benefit from the proliferation of AI voice agents over the coming years.
BFAM	Bright Horizons Family Solutions Inc (BFAM) continues to benefit from improving capacity utilization and solid demand for backup care, but the pace of recovery in its core child care center business remains uneven. We exited the position to fund opportunities with more attractive upside and clearer near-term earnings visibility.
CASY	We sold Casey's General Stores Inc (CASY) after a period of strong execution and share-price appreciation left less upside in our three-year forecast.
ROST	We sold Ross Stores Inc (ROST) after the company's recovery from pandemic-era and inflation-related disruptions largely played out. While we believe Ross Stores remains a strong off-price retailer with a compelling value proposition, the share price better reflected the margin and merchandising improvement we had underwritten.
DPZ	We exited our position in Domino's Pizza Inc (DPZ) as difficult comparisons and lack of visibility into near-term catalysts are compounded by a sluggish pizza category, raising questions on the company's long-term growth algorithm.
HUBS	HubSpot Inc (HUBS) is struggling to figure out how to monetize AI in its customer base while core demand for its solutions is decelerating. We exited to fund relatively more attractive growth opportunities.
TOST	The key metric that we track for restaurant software and payment provider Toast Inc (TOST), location growth, continues expanding at impressive rates but shares remain weak due to AI fears and concerns around rising memory costs. We exited in favor of better opportunities.
TYL	We sold our small position in Tyler Technologies in the quarter to fund new investments.
ZS	We exited Zscaler when its core business decelerated faster than we expected. We have growing concern around an intensifying competitive environment as Cloudflare (a current holding) maintains momentum and the larger Palo Alto competes with scale and a broad product portfolio.

TICKER

COMMENTARY

MRVL

Marvell Technology Inc (MRVL), a designer of custom AI chips and our largest contributor, returned 166% during the period; consistent with our price discipline, we sold the position on valuation. Shares of Marvell Technology Inc (MRVL) more than doubled in the quarter, first on a strong April quarter and outlook and later on an endorsement of the company's growth prospects by NVIDIA's CEO during a recent keynote. The market increasingly recognizes Marvell Technology's importance as a supplier of bottlenecked interconnect technology for data centers. We exited Marvell Technology Inc (MRVL) after substantial appreciation tied to the company's AI-related data center opportunity. We believe Marvell Technology remains well-positioned in custom silicon and high-speed connectivity, but the stock is now more than $200B in market capitalization. We used the strength to fund other data center and semiconductor opportunities in our market cap range.

FLEX

Flex Ltd (FLEX), which builds data-center hardware, and Monolithic Power Systems Inc (MPWR), whose power-management semiconductors sit inside AI servers, also contributed meaningfully. Flex Ltd (FLEX) is a global electronics manufacturing and supply-chain services company with a fast-growing business supplying the AI data-center buildout. In May, management announced plans to spin off its Cloud and Power Infrastructure segment, which carries faster growth and better margins than the legacy manufacturing operation and could represent nearly half of company revenue—and roughly two-thirds of profits—by fiscal 2028. We established our position in early April, and the shares more than doubled during the quarter, making Flex one of our largest contributors. We believe the planned separation will help investors more fully appreciate the value of each business. Flex Ltd (FLEX) reported strong fiscal 2026 results and announced plans to separate its Cloud and Power Infrastructure business into a standalone public company focused on AI data center power and thermal infrastructure.

MPWR

Flex Ltd (FLEX), which builds data-center hardware, and Monolithic Power Systems Inc (MPWR), whose power-management semiconductors sit inside AI servers, also contributed meaningfully. Monolithic Power Systems Inc (MPWR) reported a strong quarter and now expects its Enterprise Data segment to grow at least 85% this year. The market began to anticipate what could be continued outsized growth into 2027 on design wins across several AI accelerators, driving the share price higher.

DDOG

The Strategy owns both Datadog—a position we added to during the first quarter's software selloff—and Lattice Semiconductor. Datadog Inc (DDOG) reported a stronger than consensus expected quarter with a large AI lab significantly contributing to revenue growth as well as announced wins inside some large hyperscale companies, reinforcing Datadog's strong position with both AI-native and non-AI-native companies.

CSGP

On the other side of the same theme, our most notable decliners—CoStar Group Inc (CSGP) and Guidewire Software Inc (GWRE)—de-rated on fears that AI could disrupt their businesses, even as both companies continued to post generally solid results. Investors continue to fear that CoStar Group Inc (CSGP) will be displaced by AI. These fears were compounded with an announcement in the quarter that Google is expanding its real estate marketplace.

GWRE

On the other side of the same theme, our most notable decliners—CoStar Group Inc (CSGP) and Guidewire Software Inc (GWRE)—de-rated on fears that AI could disrupt their businesses, even as both companies continued to post generally solid results. Guidewire Software Inc's (GWRE) main key metric, annualized recurring revenue, decelerated sequentially in the quarter due to the timing of certain large deals, driving a decline in the stock price in the quarter. We continue to like Guidewire Software's competitive position in P&C insurance and its long-term growth prospects.

HOOD

Robinhood Markets Inc (HOOD) has evolved from the pioneer of commission-free stock trading into a diversified financial platform with more than 27 million funded accounts. The global brokerage industry remains fragmented—a local incumbent dominates nearly every major market, and none has meaningfully crossed borders. With its technology-native, mobile-first platform and a rapid pace of new product introductions across active trading, cryptocurrency, futures, advisory services, and international markets, we believe Robinhood Markets has a credible opportunity to become the industry's first global leader while compounding revenue at attractive rates. We took advantage of a sharp spring pullback in the shares to initiate our position in the quarter. Robinhood Markets Inc (HOOD) has built a large, engaged consumer financial-services platform that continues to expand beyond stock trading into options, retirement, crypto, cash management and other products. We believe the company should have room to grow revenue and profits as it deepens wallet share with existing customers and benefits from a more normalized interest-rate and trading environment.

SNOW

We initiated a position in Snowflake Inc (SNOW), a cloud-native data platform our research team has followed closely for years. Snowflake sits at the convergence of two durable trends: the rising importance of enterprise data and analytics, and the adoption of AI, which increases consumption on the company's platform. Under CEO Sridhar Ramaswamy, the pace of product innovation has inflected, and the company closed its latest fiscal year with a record number of new customers, accelerating bookings growth, and thousands of customers already using its newer AI offerings. We used the software selloff to build our position at what we view as an attractive valuation. We initiated a position in Snowflake Inc (SNOW), a cloud-native data platform our research team has followed for years. we believe the company sits at the intersection of two durable trends: rising enterprise data needs and AI adoption, both of which should increase platform consumption. Under CEO Sridhar Ramaswamy, product innovation has accelerated, and recent results showed record new customer additions, accelerating bookings growth and early traction in newer AI offerings. We used the software selloff to build the position at an attractive valuation.

USFD

US Foods Holding Corp (USFD) is one of the largest foodservice distributors in the United States and a steady share gainer with independent restaurant, healthcare, and hospitality customers. We like the company's self-help profile: management is executing on a multi-year plan that includes more than $300 million of cost-of-goods savings through 2027, rising private-label penetration, and the scaling of its Pronto next-day delivery program toward $1.5 billion in sales by 2027. Together, those initiatives support management's long-term algorithm of double-digit earnings growth with only modest dependence on the restaurant traffic environment. The shares weakened this spring after a modest first-quarter earnings miss amid soft restaurant traffic, and we took advantage to build our position. US Foods Holding Corp (USFD) is one of the largest foodservice distributors in the U.S. A handful of company-specific initiatives, including a growing private label business and identified cost savings support management's double-digit earnings growth target.

VIK

Viking Holdings (VIK) is one of the only pure-play public luxury cruise operators. The company built its model around a single brand, nearly identical small ships, direct marketing, and a loyal base of affluent travelers aged 55 and over—an approach that produces strong repeat rates, unusual demand visibility (Viking Holdings is already taking bookings for 2027 and 2028), and unit economics superior to the mainstream cruise lines. Its scaled River business acts as a customer-acquisition engine for the faster-growing Ocean segment, where Viking Holdings fields the youngest fleet in luxury cruising and holds a multi-year newbuild pipeline. We believe capacity growth and steady yield gains can compound revenue at a low-double-digit to mid-teens rate for years, with operating leverage driving even faster earnings growth. We used the volatility surrounding Middle East tensions and fuel-cost fears to establish our position. Viking Holdings (VIK) is a differentiated cruise operator with a strong brand, loyal customer base and exposure to the higher-end leisure travel market. We believe the company can grow profitably as it expands capacity, maintains strong pricing and benefits from consumers' continued preference for experiential travel.

FIX

Comfort Systems USA Inc (FIX) continues to benefit from strong demand for its services, reporting organic revenue of more than 50% and record high gross and operating margins. We believe the company continues to be a key beneficiary of the AI / datacenter build-out and management commentary indicates that the new project pipeline shows strong visibility into the next couple of years.

PODD

Insulet Corp (PODD) experienced two voluntary recalls totaling 7 million units in the period due to a small tear in the tubing of its insulin pumps. This fed competitive worries as more tubeless alternatives are expected to hit the market over the next 18 months.

CPNG

Coupang Inc (CPNG) continues to recover from the late-2025 data breach. Customers are returning and platform activity is rebounding, though profit recovery will take longer.

Tradeweb Markets Inc (TW) shares were weak during the quarter alongside peer MarketAxess despite continued healthy trading activity across its platform. The market focused on lower rate volatility, tighter credit spreads and the possibility that fixed-income trading activity could normalize from elevated levels.

ENTG

We purchased positions in five hardware companies benefiting from heavy data center investment: copper and optical-cable provider Credo Technology Group Holding (CRDO), semiconductor materials company Entegris Inc (ENTG) (owned in SCG), manufacturing partner Flex Ltd (FLEX), test and measurement provider Keysight (previously owned), and analog and mixed-signal semiconductor company MACOM Technology Solutions Holdings Inc (MTSI). Each company serves a different part of the AI infrastructure buildout, giving us exposure to rising compute, networking and power requirements without relying on a single narrow product cycle.

MSA

MSA Safety Inc (MSA), another Small-Cap Growth Strategy holding, provides mission-critical safety equipment, including fire-service gear, gas detection systems and industrial protective products. The company benefits from recurring replacement demand, a strong brand reputation and opportunities to drive steady earnings growth through product innovation, pricing and margin expansion.

NOVT

Novanta Inc (NOVT) supplies precision photonics, vision and motion-control technologies to medical and advanced industrial customers. We believe the company has a long runway for growth through innovation, share gains and disciplined acquisitions in markets where its components are critical to customers' end products.

TFX

Teleflex Inc (TFX) is a diversified medical technology company with products used in vascular access, interventional procedures, anesthesia, emergency medicine and urology. Procedure normalization, new product adoption and better execution across the portfolio should support a return to steadier growth.

THC

Tenet Healthcare Corp (THC) operates hospitals and ambulatory surgery centers, with a growing mix of higher-margin outpatient procedures through its surgery-center business. We believe the company can continue to improve earnings quality as it shifts toward ambulatory care, manages costs and benefits from durable demand for surgical capacity.

TTWO

Take-Two Interactive Software Inc (TTWO) owns a portfolio of leading interactive entertainment franchises, including several of the industry's most valuable long-duration intellectual-property assets. The upcoming launch of Grand Theft Auto VI, along with recurrent consumer spending and scaled development and publishing infrastructure, should drive meaningful earnings growth over time.

TWLO

Twilio Inc (TWLO) provides communications software that allows businesses to embed messaging, voice, email and customer engagement tools into digital workflows. After a period of decelerating growth and muted profitability, the company has returned to double-digit growth while expanding margins. We also see early evidence that the company may benefit from the proliferation of AI voice agents over the coming years.

BFAM

Bright Horizons Family Solutions Inc (BFAM) continues to benefit from improving capacity utilization and solid demand for backup care, but the pace of recovery in its core child care center business remains uneven. We exited the position to fund opportunities with more attractive upside and clearer near-term earnings visibility.

CASY

We sold Casey's General Stores Inc (CASY) after a period of strong execution and share-price appreciation left less upside in our three-year forecast.

ROST

We sold Ross Stores Inc (ROST) after the company's recovery from pandemic-era and inflation-related disruptions largely played out. While we believe Ross Stores remains a strong off-price retailer with a compelling value proposition, the share price better reflected the margin and merchandising improvement we had underwritten.

DPZ

We exited our position in Domino's Pizza Inc (DPZ) as difficult comparisons and lack of visibility into near-term catalysts are compounded by a sluggish pizza category, raising questions on the company's long-term growth algorithm.

HUBS

HubSpot Inc (HUBS) is struggling to figure out how to monetize AI in its customer base while core demand for its solutions is decelerating. We exited to fund relatively more attractive growth opportunities.

TOST

The key metric that we track for restaurant software and payment provider Toast Inc (TOST), location growth, continues expanding at impressive rates but shares remain weak due to AI fears and concerns around rising memory costs. We exited in favor of better opportunities.

TYL

We sold our small position in Tyler Technologies in the quarter to fund new investments.

We exited Zscaler when its core business decelerated faster than we expected. We have growing concern around an intensifying competitive environment as Cloudflare (a current holding) maintains momentum and the larger Palo Alto competes with scale and a broad product portfolio.

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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 Infrastructure

AI Disruption Risk

Software

Portfolio Turnover

Valuation Discipline

Consumer Services

Healthcare

Market Leadership Broadening

AI

Software

Energy

Data Centers

AI

Value

Gold

Berkshire Hathaway

Dollar Stores

AI

Healthcare

Gaming

Cybersecurity

E-commerce

AI

Data Centers

Defense

Onshoring

Energy

Investor Pitches

Current Portfolio as of ( 30th June 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

George Sakellaris Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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Brown Advisors Mid-Cap Growth strategy