Brown Capital Management, an investment management company, released its “The Brown Capital Management International All-Company Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund-Investor shares lost 4.46% compared to a 2.84% total return for the MSCI World ex-US Growth-Net Index. YTD, the fund returned 6.67% underperforming the 19.32% return for the index. The underperformance of the fund was driven by a mix of company-specific challenges and missing out on some of the best-performing industries. In addition, check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, The Brown Capital Management International All-Company Strategy highlighted stocks such as Monday.com Ltd. (NASDAQ:MNDY). Monday.com Ltd. (NASDAQ:MNDY) develops software applications and work management tools. The one-month return of Monday.com Ltd. (NASDAQ:MNDY) was -8.58%, and its shares lost 45.92% of their value over the last 52 weeks. On November 28, 2025, Monday.com Ltd. (NASDAQ:MNDY) stock closed at $156.94 per share, with a market capitalization of $8.09 billion.
The Brown Capital Management International All-Company Strategy stated the following regarding Monday.com Ltd. (NASDAQ:MNDY) in its third quarter 2025 investor letter:
“Monday.com Ltd. (NASDAQ:MNDY) is an Israel-based leader in the workflow-management software space. It integrates systems of records (such as ERP or CRM software) with other tools (email/calendar/storage/communication), as well as structures and automates tasks. We think Monday.com saves clients time, money and headaches. It differentiates itself from the competition in flexibility and ease of use. First, Monday.com uses a rather unique schema-less (NoSQL) database architecture. With a schema-less database, one does not have to worry about designing and maintaining a more rigid relational-type database with structured rows and columns, like an Excel spreadsheet. One can change the data structure on the fly without having to migrate or alter existing data. Second, Monday.com has added more verticals to its offerings (such as CRM and HR) without compromising ease of use. This allows Monday.com to adopt a “land and expand” strategy, where the adoption often starts with one team (such as marketing/sales) within an organization and expands grassroots more broadly. The company currently serves more than 245,000 customers globally across various industries.
Monday.com reported strong results during the quarter. Most notably, sales grew 27% year over year and GAAP operating margin improved 500 basis points from the year-ago level. The company raised its sales outlook for the full year to 26%-plus sales growth, a figure that was slightly less than what some investors had hoped for. Two comments appeared to unnerve investors. First, the company noted that it is seeing some weakness in small and medium-sized business customers. Second, it warned that Google’s push to have a more AI-centric search experience is spurring Monday.com to reconfigure its customer acquisition model. Software companies have been hounded by concerns about how they will adapt to a new age of AI and potentially fewer customers who will buy their software on a “per seat” basis. We recently engaged with management and attended the company’s 2025 Investor Day in New York City. We remain encouraged by its differentiation and market position but we note that strong execution will be key in reaffirming the long-term investment case.”
Monday.com Ltd. (NASDAQ:MNDY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 55 hedge fund portfolios held Monday.com Ltd. (NASDAQ:MNDY) at the end of the third quarter, compared to 67 in the previous quarter. In the third quarter of 2025, Monday.com Ltd. (NASDAQ:MNDY) reported total revenue of $317 million, marking a 26% increase from the year-ago quarter. While we acknowledge the risk and potential of Monday.com Ltd. (NASDAQ:MNDY) 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 Monday.com Ltd. (NASDAQ:MNDY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Monday.com Ltd. (NASDAQ:MNDY) and shared Sands Capital Technology Innovators Fund’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.
