Brown Capital Management, an investment management company, recently released its fourth quarter 2025 investor letter for “The Brown Capital Management Small Company Fund”. The fund experienced a decline of 1.50% in the fourth quarter of 2025, falling behind the Russell 2000® Growth index’s gain of 1.22%. Real estate and telecommunications businesses were the top performers for the benchmark during this period. However, the Fund struggled throughout the year, ending with a decrease of 11.46%, significantly underperforming the Index’s return of 13.01%.
The company’s investment decisions are rooted in company fundamentals, and despite the challenging market conditions in 2025, their holdings showed strong performance in terms of revenue and earnings growth. To gain insights into their key selections for the year, let’s take a look at the Fund’s top five holdings.
One of the highlighted stocks in Brown Capital Management’s fourth-quarter 2025 investor letter was Glaukos Corporation (NYSE:GKOS). Glaukos Corporation is a leading ophthalmic pharmaceutical and medical technology company that specializes in the treatment of glaucoma. The company’s stock had a one-month return of -3.22% and lost 3.20% of its value over the last 52 weeks. As of February 20, 2026, Glaukos Corporation’s stock closed at $120.27 per share, with a market capitalization of $6.908 billion.
In their investor letter, Brown Capital Management praised Glaukos Corporation for its innovative products and services in the field of ophthalmology. The company’s suite of products, including iStent, Infinite, and iDose, have been instrumental in treating glaucoma by lowering intraocular pressure and providing continuous drug delivery. Glaukos Corporation’s recent FDA-approved product, iDose, has been particularly successful in revolutionizing glaucoma treatment.
While Glaukos Corporation is not among the 30 Most Popular Stocks Among Hedge Funds, it remains a promising investment option. In the fourth quarter of 2025, the company reported consolidated net sales of $143.1 million, reflecting a significant increase from the previous year. Although Glaukos Corporation shows potential, investors may also consider exploring AI stocks for greater upside potential and lower downside risk.
In another article, Alger Weatherbie Specialized Fund shared their positive views on Glaukos Corporation, further highlighting the company’s growth prospects in the healthcare sector. For more investor insights and hedge fund letters from Q4 2025, readers can visit the hedge fund investor letters page.
In conclusion, Glaukos Corporation’s strong performance and innovative product offerings have positioned the company as a key player in the ophthalmic industry. With a focus on technological advancements and strategic growth initiatives, Glaukos Corporation continues to be a compelling investment opportunity for investors seeking exposure to the healthcare sector.
