Brown Advisory, an investment management company, released its “Brown Advisory Mid-Cap Growth Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Strategy lagged the Russell Midcap® Growth Index in the fourth quarter due to stock selection. The performance was in line with expectations for the full year. The firm believes that the Strategy underperformed in 2025 because it did not own Palantir Technologies Inc (PLTR). The Strategy 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. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Brown Advisory Mid-Cap Growth Strategy highlighted stocks like CoStar Group, Inc. (NASDAQ:CSGP). CoStar Group, Inc. (NASDAQ:CSGP) is an information, analytics, and online marketplace services provider for commercial and residential property markets. On March 23, 2026, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $42.91 per share. One-month return of CoStar Group, Inc. (NASDAQ:CSGP) was -12.70%, and its shares lost 46.52% of their value over the last three months. CoStar Group, Inc. (NASDAQ:CSGP) has a market capitalization of $18.01 billion.
Brown Advisory Mid-Cap Growth Strategy stated the following regarding CoStar Group, Inc. (NASDAQ:CSGP) in its fourth quarter 2025 investor letter:
“CoStar Group, Inc. (NASDAQ:CSGP): Operates as commercial and residential real estate information, analytics and online marketplace platform. The market grew increasingly impatient with CoStar Group’s (CSGP) heavy investment in its residential portal, particularly as concerns grow around AI agents potentially disintermediating traditional advertising models. Early 2026 represents a key inflection point, when the company’s standstill agreement with activist investors expires.”
CoStar Group, Inc. (NASDAQ:CSGP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 58 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of the fourth quarter, up from 57 in the previous quarter. While we acknowledge the risk and potential of CoStar Group, Inc. (NASDAQ:CSGP) 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 CoStar Group, Inc. (NASDAQ:CSGP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CoStar Group, Inc. (NASDAQ:CSGP) and shared a list of best non-tech stocks to buy and hold for 5 years. Conestoga Capital Advisors attributed the same reason for CoStar Group, Inc. (NASDAQ:CSGP) share price weakness in its Q4 2025 investor letter. In addition, please check out our hedge fund investor letters Q4 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.
