The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
During the third quarter of 2026, the Brown Advisory Mid-Cap Growth Composite delivered a net return of -2.7% (-2.5% gross), outperforming the benchmark Russell Midcap Growth Index, which declined 5.8% (down approximately 6%). Year-to-date, the strategy has generated a net return of 4.0% compared to 1.0% for the benchmark. Portfolio turnover reached approximately 15% during the quarter amid heightened single-stock dispersion. Cash and cash equivalents stood at 3.1% as of September 30, 2026, with active share at 65.7% across 67 equity holdings. The broader market regime was dominated by macroeconomic and geopolitical volatility following renewed conflict in Iran and rising energy costs, with crude oil briefly topping $100 per barrel. In response to persistent inflation, the Federal Reserve instituted a 25 basis point short-term rate hike in September, sending 10-Year Treasury yields up 85 basis points to 5.29%. This spurred a rotation favoring size and value over growth, while triggering a sharp reversal in the high-beta artificial intelligence infrastructure trade as investors scrutinized capital expenditure and financing. Portfolio management actively rotated capital by eliminating ten positions and initiating seven new ones. Complete divestments included Arxis, Inc. on valuation, along with regulatory and fundamental exits in Equifax, Fair Isaac Corporation, and CoStar Group. Capital was redeployed into durable compounders with visible demand, highlighted by new positions in Lumentum Holdings, ATI Inc, Rocket Lab Corporation, Valmont Industries, and Plexus Corp, while software compounders Snowflake and Cloudflare served as the primary performance contributors.
Achieve attractive risk-adjusted returns over a full market cycle by owning a diversified portfolio of high-quality mid- and small-cap compounders capable of growing significantly larger over time.
The Strategy maintains its commitment to compounding capital over full market cycles by owning diversified high-quality mid- and small-cap companies with durable business models. Management expects single-stock dispersion to persist as markets digest higher interest rates and scrutinize capital spending returns, creating opportunities to buy market-leading businesses at valuation discounts.
As of Oct 12, 2026
Moderate Conviction Bullish
Market Conviction
Growth Outlook
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Forward Guidance
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