Brown Brothers Harriman, an investment management company, recently released its Q3 2025 investor letter for the BBH Select Series – Mid Cap Fund. The fund experienced a decrease of -0.9% on a total return basis in the quarter, compared to the Russell Midcap Index’s 5.3% return. Year-to-date, the Fund has decreased by a total return of -1.8%, as opposed to the Index’s 10.4% return. The third quarter saw a boost in the low-quality rally that began late last year and gained momentum throughout 2025.
One of the highlighted stocks in the fund’s Q3 2025 investor letter was Globant S.A. (NYSE:GLOB), a Luxembourg-based technology services company. The one-month return of Globant S.A. (NYSE:GLOB) was 11.28%, and its shares lost 68.83% of their value over the last 52 weeks. As of December 09, 2025, Globant S.A. (NYSE:GLOB) stock closed at $68.74 per share, with a market capitalization of $3.028 billion.
In the investor letter, BBH Select Series – Mid Cap Fund mentioned that Globant S.A. (NYSE:GLOB) was one of the largest detractors to performance in the quarter. The fund decided to exit positions in both Globant and another company following sustained underperformance and to opportunistically harvest tax losses. These companies were most impacted by tariffs and cuts in life science and academic funding. Any potential re-entry into these positions would be contingent on a stabilization in performance.
It’s worth noting that Globant S.A. (NYSE:GLOB) is not among the 30 Most Popular Stocks Among Hedge Funds. However, 32 hedge fund portfolios held positions in Globant S.A. (NYSE:GLOB) at the end of the third quarter, up from 26 in the previous quarter. In Q3 2025, Globant S.A. (NYSE:GLOB) reported revenues of $617.1 million, representing a 0.4% year-over-year increase and a 0.5% sequential increase.
While the potential of Globant S.A. (NYSE:GLOB) as an investment is acknowledged, BBH Select Series – Mid Cap Fund believes that certain AI stocks offer greater upside potential with lower downside risk. For investors looking for undervalued AI stocks with significant potential, the fund suggests exploring other options.
In conclusion, the decision to sell positions in Globant S.A. (NYSE:GLOB) was based on performance considerations and the fund’s strategic approach to managing its portfolio. As the market continues to evolve, BBH Select Series – Mid Cap Fund remains vigilant in its investment decisions to optimize returns for its investors.
