Brown Advisory, an investment management company, recently released its “Brown Advisory Mid-Cap Growth Strategy” fourth-quarter 2025 investor letter. The Strategy, which focuses on achieving solid risk-adjusted returns by investing in high-quality compounders with fair valuations and market capitalizations between $2 billion and $50 billion at the time of purchase, lagged the Russell Midcap® Growth Index in the fourth quarter due to stock selection. However, the performance was in line with expectations for the full year.
One of the key reasons cited for the underperformance in 2025 was the absence of Palantir Technologies Inc (PLTR) in the Strategy’s portfolio. To gain insights into their key selections for 2025, investors are encouraged to review the Strategy’s top five holdings.
In the fourth-quarter 2025 investor letter, Brown Advisory Mid-Cap Growth Strategy highlighted Hilton Worldwide Holdings Inc. (NYSE:HLT) as one of its leading contributors. Hilton Worldwide Holdings Inc. is a leading hospitality company that manages franchises and leases hotels and resorts globally. As of March 23, 2026, Hilton Worldwide Holdings Inc. stock closed at $300.67 per share, with a one-month return of -4.63% and a 27.11% gain over the past 52 weeks. The company boasts a market capitalization of $69.89 billion.
In the investor letter, Brown Advisory Mid-Cap Growth Strategy expressed optimism about Hilton Worldwide Holdings Inc., stating that the company’s mix of business travel exposure and asset-light, franchise-based model should provide insulation even in a more moderate demand environment.
Despite its potential, Hilton Worldwide Holdings Inc. is not among the 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. However, 67 hedge fund portfolios held the stock at the end of the fourth quarter, up from 65 in the previous quarter. While Hilton Worldwide Holdings Inc. presents investment opportunities, some AI stocks may offer greater upside potential and carry less downside risk.
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Overall, Brown Advisory’s Mid-Cap Growth Strategy continues to focus on high-quality compounders with fair valuations, aiming to deliver solid risk-adjusted returns for investors. With a strategic approach to stock selection and a keen eye on market trends, the Strategy remains poised for success in the ever-evolving investment landscape.
