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 high-quality compounders with fair valuations and market capitalizations between $2 billion and $50 billion, 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. Notably, the Strategy underperformed in 2025 due to its lack of ownership of Palantir Technologies Inc (PLTR).
One of the key holdings highlighted in the investor letter was HubSpot, Inc. (NYSE:HUBS). HubSpot is a software company that offers a cloud-based customer relationship management platform for businesses. As of March 20, 2026, HubSpot stock closed at $258.81 per share, with a one-month return of 19.07% and a 52-week loss of 58.72%. The company has a market capitalization of $13.65 billion.
Brown Advisory Mid-Cap Growth Strategy shared its thoughts on HubSpot in the fourth quarter 2025 investor letter, stating that the company underperformed in 2025 as investors questioned the durability of traditional SaaS models. However, HubSpot showcased meaningful AI-driven enhancements at its annual user conference, leading the firm to believe that the company will continue to be a preferred partner for SMBs adopting AI.
While HubSpot is not among the 40 most popular stocks among hedge funds heading into 2026, 56 hedge fund portfolios held the stock at the end of the fourth quarter. Brown Advisory sees potential in HubSpot as an investment but believes that certain AI stocks may offer greater upside potential with less downside risk.
Overall, Brown Advisory’s Mid-Cap Growth Strategy continues to focus on identifying high-quality companies with growth potential. HubSpot’s AI-driven enhancements and strong customer trust position it well for future growth, despite its underperformance in 2025. Investors interested in AI stocks may want to explore opportunities beyond HubSpot to maximize their investment potential.
