Brown Advisors Mid-Cap Growth Strategy Exited Guidewire (GWRE) on Valuation

Brown Advisory, an investment management company, released its “Brown Advisory Mid-Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed its benchmark, the Russell Midcap® Growth Index, in the second quarter of 2025, which increased 18%. High tariff levels announced on Liberation Day triggered a sudden spike in the Volatility Index (VIX). However, fear quickly gave way to strong gains as tariffs were partially rolled back and corporate first-quarter earnings showed resilience. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Brown Advisory Mid-Cap Growth Strategy highlighted stocks such as Guidewire Software, Inc. (NYSE:GWRE). Guidewire Software, Inc. (NYSE:GWRE) offers a platform for property and casualty (P&C) insurance companies. The one-month return of Guidewire Software, Inc. (NYSE:GWRE) was 25.98%, and its shares gained 56.38% of their value over the last 52 weeks. On September 08, 2025, Guidewire Software, Inc. (NYSE:GWRE) stock closed at $261.88 per share, with a market capitalization of $22.049 billion.

Brown Advisory Mid-Cap Growth Strategy stated the following regarding Guidewire Software, Inc. (NYSE:GWRE) in its second quarter 2025 investor letter:

“We exited our position in Guidewire Software, Inc. (NYSE:GWRE) on valuation, as the stock approached our three-year price target. Early signs of moderating insurance premium inflation—which had provided a multi-point growth tailwind since COVID-19—also contributed to our decision to sell. We sold our position in Guidewire due to valuation after 160% – 190% gains from our initial purchases in late 2023.”

Why Guidewire Software Inc (GWRE) is Skyrocketing So Far in 2025?

Guidewire Software, Inc. (NYSE:GWRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Guidewire Software, Inc. (NYSE:GWRE) at the end of the second quarter, which was 55 in the previous quarter. While we acknowledge the risk and potential Guidewire Software, Inc. (NYSE:GWRE) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Guidewire Software, Inc. (NYSE:GWRE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Guidewire Software, Inc. (NYSE:GWRE) and shared Artisan Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.