Brown Capital Management, an investment management company, released its “The Brown Capital Management Small Company Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Small Company Fund fared worse compared to its benchmark in the first quarter and declined 16.03% vs 11.12% decline for the Russell 2000® Growth index. The underperformance in the quarter was led by negative investor sentiment due to geopolitical shocks or the sudden deterioration of the macroeconomic outlook. In addition, check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, The Brown Capital Management Small Company Fund highlighted stocks such as Inogen, Inc. (NASDAQ:INGN). Inogen, Inc. (NASDAQ:INGN) is a medical device company that develops respiratory health products. The one-month return of Inogen, Inc. (NASDAQ:INGN) was 8.14%, and its shares lost 19.81% of their value over the last 52 weeks. On June 9, 2025, Inogen, Inc. (NASDAQ:INGN) stock closed at $6.64 per share, with a market capitalization of $178.531 million.
The Brown Capital Management Small Company Fund stated the following regarding Inogen, Inc. (NASDAQ:INGN) in its Q1 2025 investor letter:
“In the first quarter of 2025, we eliminated four companies. Two companies, Inari Medical (NARI) and Smartsheet (SMAR), were acquired, and two companies, Inogen (INGN) and 10X Genomics (TXG), we sold as mistakes. Inogen, Inc. (NASDAQ:INGN) is the leading producer of Portable Oxygen Concentrators (POCs) for use by people with Chronic Obstructive Pulmonary Disease (COPD). Typical treatment for patients with moderate to severe COPD is oxygen therapy using heavy, stationary oxygen cylinders which are inconvenient and limit the mobility of the patient. Inogen makes portable oxygen concentrators that are smaller, lighter and more convenient than oxygen cylinders. We originally invested in Inogen back in 2016, based on the company’s strong product position in a large market. Over the past few years, the company has faced a series of issues that hurt sales growth, some self inflicted and others market-related. These included salesforce productivity declines, loss of a large client due to a merger, supply chain disruptions from COVID-19, and loss of regulatory approval in Europe. While we believe that the company has the opportunity to help far more patients with COPD, we have lost faith in its ability to execute. As a result, we eliminated Inogen from the portfolio during the quarter.”
A close-up of a medical technician wearing lab coat and a face mask preparing a portable oxygen concentrator for a patient.
Inogen, Inc. (NASDAQ:INGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Inogen, Inc. (NASDAQ:INGN) at the end of the first quarter, which was 21 in the previous quarter. Inogen, Inc. (NASDAQ:INGN) reported revenue of $82.3 million in the first quarter of 2025, an increase of 5.5% on a reported basis, and 7.1% on a constant currency basis compared to Q1 2024. While we acknowledge the potential of Inogen, Inc. (NASDAQ:INGN) 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 addition, please check out our hedge fund investor letters Q1 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.
