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 |
|---|---|---|---|---|---|---|
As of Jun 30, 2024
Brown Capital Management's Mid Company Fund returned -7.85% in Q2 2024, underperforming the Russell MidCap Growth index's -3.21% return. The fund faced significant headwinds from what the manager describes as a shadow recession, where many portfolio companies operate in markets experiencing recessionary demand levels despite no technical U.S. recession. Higher interest rates have particularly impacted biotech funding, hurting companies like Charles River Laboratories, which saw consecutive quarterly revenue declines for the first time since 2008-2009. Top detractors included Align Technologies, Charles River, Veeva Systems, Five9, and Paycom Software, all showing significant revenue growth deceleration from pre-pandemic levels. Contributors included Guidewire Software, which reached an inflection point in its cloud transition with 16% revenue growth, and Insulet, which delivered strong results despite GLP-1 drug concerns. The fund added Natera, a diagnostic testing company with significant market opportunities in cancer-recurrence testing. The manager maintains a long-term approach with an average holding period of seven years, expecting stabilization as economic conditions improve.
Brown Capital seeks to identify Exceptional Growth Companies with durable revenue growth, sustainable competitive advantages, and differentiated products that provide exceptional value, combining early identification with long-term patience to hold through cycles.
The manager expects sales growth for affected companies to stabilize in coming quarters, though a stronger economic backdrop is likely required for growth to meaningfully accelerate. They maintain confidence in the long-term prospects of their holdings despite current macro headwinds.
Moderate Conviction Bullish
Market Conviction
Growth Outlook
Risk Appetite
Capital Deployment
Forward Guidance
Language Signal
Perceived Risk
Opportunity Density
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Top Conviction Themes
Key Catalysts
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