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 ITT Inc. (NYSE:ITT). ITT Inc. (NYSE:ITT) manufactures and distributes engineered critical components and customized technology solutions. The one-month return for ITT Inc. (NYSE:ITT) was -6.97%, and its shares gained 12.95% over the last 52 weeks. On December 10, 2025, ITT Inc. (NYSE:ITT) stock closed at $171.87 per share, with a market capitalization of $14.607 billion.
BBH Select Series – Mid Cap Fund stated the following regarding ITT Inc. (NYSE:ITT) in its third quarter 2025 investor letter:
“We initiated two new positions in the third quarter in ITT Inc. (NYSE:ITT) and BJ’s Wholesale Club Holdings Inc. (BJ’s). In addition to exiting Globant and Bruker, we exited Bright Horizons Family Solutions Inc. (Bright Horizons).
ITT is a diversified industrial company with three segments, led by Motion Technologies, which contains ITT’s market-leading brake pad business with margins and returns well above competitors. Motion Technologies has very high share in electric vehicles and Chinese automakers, translating to above-market growth as both categories win greater share in the global automotive market. The Industrial Process segment includes ITT’s pumps and valves businesses, where ITT has also gained market share in both customized pump solutions as well as attractive aftermarket revenues. Industrial Process’s growth will be further driven by a new innovative motor with patented embedded variable drive functionality that significantly increases power efficiency (an increasingly important focus area for many customers including energy and chemical companies). The Connect and Control Technologies segment includes ITT’s electrical connectors and cable assemblies, primarily for the aerospace and defense end markets. Connect and Control Technologies has renegotiated decade-long supply agreements to aerospace customers at significantly higher prices starting in 2026 and has exposure to growing new aircraft builds and global defense spending. CEO Luca Savi and CFO Emmanuel Caprais have proven to be excellent operators and capital allocators, with further mergers and acquisitions building on a successful track record to supplement the CEO’s “healthy paranoia for continuous improvement”. Over the next five years, ITT expects to deliver double-digit annual organic earnings growth with further upside from successful capital allocation.”
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ITT Inc. (NYSE:ITT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held ITT Inc. (NYSE:ITT) at the end of the third quarter, which was 22 in the previous quarter. The company experienced a total revenue growth of 13% and 6% organic growth, with all segments contributing to a total of $999 million. While we acknowledge the risk and potential of ITT Inc. (NYSE:ITT) 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 ITT Inc. (NYSE:ITT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ITT Inc. (NYSE:ITT) and shared a bullish thesis 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.
