Brown Brothers Harriman, an investment management company, released its Q4 2025 investor letter for the BBH Select Series – Mid Cap ETF. A copy of the letter is available for download here. In the quarter, the ETF decreased by 3.9% on a total return basis compared to the Russell Midcap Index’s 0.2% return. The year was characterized by the outperformance of unprofitable and highly volatile companies. Healthcare and materials were the top-performing sectors in the fourth quarter, while communication services and real estate were down. The firm is confident that the market will eventually return its focus to financial fundamentals, such as profitability and cash flow. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, BBH Select Series – Mid Cap Fund emphasized stocks such as NVR, Inc. (NYSE:NVR). Headquartered in Reston, Virginia, NVR, Inc. (NYSE:NVR) is a home builder that operates through Homebuilding and Mortgage Banking segments. On March 10, 2026, NVR, Inc. (NYSE:NVR) stock closed at $6,783.24 per share. One-month return of NVR, Inc. (NYSE:NVR) was -16.23%, and its shares lost 7.72% over the past 52 weeks. NVR, Inc. (NYSE:NVR) has a market capitalization of $19.261 billion.
BBH Select Series – Mid Cap Fund stated the following regarding NVR, Inc. (NYSE:NVR) in its fourth quarter 2025 investor letter:
“We initiated one new position in the fourth quarter in Tradeweb Markets Inc. (Tradeweb) and exited one position in NVR, Inc. (NYSE:NVR).
NVR is a regional homebuilding company with a focused strategy of low capital intensity, high local market share, and vertical integration. NVR has been a very successful investment for the strategy over our four-year holding period. NVR grew earnings per share by over 50% between 2021 and 2024, benefiting from tight supply conditions, as existing inventory remained sidelined due to higher mortgage rates, combined with robust demand in the company’s core markets of the Mid-Atlantic, Northeast, and eastern Midwest. NVR’s capital-light business model enjoyed sustained margins above pre-Covid-19 levels during this period and consistent, strong free cash flow which was utilized for accretive stock buybacks. We exited as margins have begun to decline alongside slowing demand.”
NVR, Inc. (NYSE:NVR) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 50 hedge fund portfolios held NVR, Inc. (NYSE:NVR) at the end of the fourth quarter, up from 46 in the previous quarter. While we acknowledge the risk and potential of NVR, Inc. (NYSE:NVR) 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 NVR, Inc. (NYSE:NVR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered NVR, Inc. (NYSE:NVR) and shared Bretton Fund’s views on the company. 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.
