Brown Brothers Harriman, an investment management company, released its Q3 2025 investor letter for the BBH Select Series – Mid Cap Fund. A copy of the same can be downloaded here. In the quarter, the fund decreased by -0.9% on a total return basis compared to the Russell Midcap Index’s 5.3% return. The Fund has decreased by a total return of -1.8%, YTD, compared to 10.4% for the Index. The third quarter experienced a boost in the low-quality rally that started late last year and gained momentum throughout 2025. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its third-quarter 2025 investor letter, BBH Select Series – Mid Cap Fund highlighted stocks such as Globant S.A. (NYSE:GLOB). Globant S.A. (NYSE:GLOB) is a Luxembourg-based technology services company. The one-month return of Globant S.A. (NYSE:GLOB) was 11.28%, and its shares lost 68.83% of their value over the last 52 weeks. On December 09, 2025, Globant S.A. (NYSE:GLOB) stock closed at $68.74 per share, with a market capitalization of $3.028 billion.
BBH Select Series – Mid Cap Fund stated the following regarding Globant S.A. (NYSE:GLOB) in its third quarter 2025 investor letter:
“The Fund’s largest detractors to performance in the quarter were Shift4 Payments Inc. (Shift4), Globant S.A. (NYSE:GLOB), and Bruker Corp. (Bruker). We exited both Globant and Bruker during the quarter following sustained underperformance and to opportunistically harvest tax losses. These two companies have been our most impacted by tariffs and life science and academic funding cuts, and any re-entry would be predicated on a stabilization in performance.
Globant declined -37.5% during the quarter through the date of our exit. Globant is the second-largest pure-play digital software engineering vendor with a focus on front-end, custom-designed software engineering applications that are mission critical to its customers. Globant has been a strong outperformer in recent years, with double-digit revenue growth throughout 2023 and 2024. Revenue growth was well ahead of peers during this period, sup ported by industry-leading AI studios that help large enterprises implement and leverage AI capabilities. However, Globant has been significantly impacted by tariffs, especially among its Latin American customers, who have reduced or paused IT spending against a weak macroeconomic backdrop in the region. North American customers have also experienced a deceleration. While Globant’s AI studios continue to grow at a double-digit rate, this has not been enough to offset slowing growth elsewhere, and market sentiment has also soured out of concern that AI could compress revenues due to efficiency gains and the prevalence of new AI coding tools. The overwhelming consensus of our channel checks is that the slowdown in the industry is macroeconomic and not AI driven. The geographic locus of the slowdown in Globant’s revenues also seems consistent with a macroeconomic-driven de cline, as revenue growth in Europe, Asia-Pacific, and the Middle East has not decelerated. Despite our frustration with the repeated cuts to guidance this year, we believe the preponderance of evidence is that Globant’s business model is not permanently impaired. While its growth has slowed to low single digits for 2025, Globant’s margins and cash flows have held up and the balance sheet remains strong with a net leverage ratio of 0.5x. However, given the decline in the share price and lack of near-term catalysts, we believe it was opportune to exit our position to harvest the tax loss for the Fund.”
Globant S.A. (NYSE:GLOB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Globant S.A. (NYSE:GLOB) at the end of the third quarter, which was 26 in the previous quarter. Globant S.A. (NYSE:GLOB) generated revenues of $617.1 million in Q3 2025, up 0.4% year over year and 0.5% sequentially. While we acknowledge the risk and potential of Globant S.A. (NYSE:GLOB) 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 Globant S.A. (NYSE:GLOB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Globant S.A. (NYSE:GLOB) and shared Harding Loevner Global Equity Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.
