Here’s Why Brown & Brown (BRO) Delivered 22.1% Returns in Q1

Brown Brothers Harriman & Co., a global financial services firm, released its “The BBH Select Series – Mid Cap Fund” first quarter investor letter. A copy of the same can be downloaded here. The fund fell -6.0% in the first quarter on a total return basis, while the Russell Midcap Index decreased -3.4%. The fund generated an average annual total return of 3.1% since its inception on May 24, 2021, compared to the index’s 4.1% return. Given the increased policy uncertainty and market volatility, many of the firm’s management teams issued cautious 2025 guidance. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, The BBH Select Series – Mid Cap Fund highlighted stocks such as Brown & Brown, Inc. (NYSE:BRO). Headquartered in Daytona Beach, Florida, Brown & Brown, Inc. (NYSE:BRO) provides insurance products and services. The one-month return of Brown & Brown, Inc. (NYSE:BRO) was 0.07%, and its shares gained 22.49% of their value over the last 52 weeks. On June 24, 2025, Brown & Brown, Inc. (NYSE:BRO) stock closed at $110.95 per share, with a market capitalization of $36.593 billion.

The BBH Select Series – Mid Cap Fund stated the following regarding Brown & Brown, Inc. (NYSE:BRO) in its Q1 2025 investor letter:

“For the quarter, the Fund’s largest positive contributors were Brown & Brown, Inc. (NYSE:BRO) and Guidewire Software Inc. (Guidewire). Brown returned 22.1% during the quarter, ending with a weight of 5.2%. Brown is a leading property & casualty (P&C) insurance broker with a focus on the U.S. do mestic mid-sized commercial market. Brown delivered strong organic growth of 13.8% ahead of consensus of 8.7% and alongside strong margin expansion. Brown’s Programs business, where it partners with insurance companies to provide specialized insurance products, has been a particular strength. The company continues to be a beneficiary of the current inflationary environ ment and a hard, albeit moderating, insurance premium rate cycle. Brown has also had success expanding internationally in the U.K., Ireland, and most recently the Netherlands.”

Brown & Brown, Inc. (NYSE:BRO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Brown & Brown, Inc. (NYSE:BRO) at the end of the first quarter, which was 39 in the previous quarter. While we acknowledge the potential of Brown & Brown, Inc. (NYSE:BRO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Brown & Brown, Inc. (NYSE:BRO) and shared Renaissance Large Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of BRO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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