Brown Advisory, an investment management company, released its “Brown Advisory Mid-Cap Growth Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Strategy lagged the Russell Midcap® Growth Index in the fourth quarter due to stock selection. While the performance was in line with the expectations for the full year. The firm believes that the Strategy underperformed in 2025 because it did not own Palantir Technologies Inc (PLTR). The Strategy focuses on achieving solid risk-adjusted returns by investing in high-quality compounders with fair valuations and market capitalizations between $2 billion and $50 billion at the time of purchase. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Brown Advisory Mid-Cap Growth Strategy highlighted stocks like Roblox Corporation (NYSE:RBLX). Roblox Corporation (NYSE:RBLX) is an online gaming and virtual experience platform, supported by AI-driven innovation and infrastructure advantages. On March 20, 2026, Roblox Corporation (NYSE:RBLX) stock closed at $56.96 per share. One-month return of Roblox Corporation (NYSE:RBLX) was -8.76%, and its shares lost 6.90% over the past 52 weeks. Roblox Corporation (NYSE:RBLX) has a market capitalization of $40.368 billion.
Brown Advisory Mid-Cap Growth Strategy stated the following regarding Roblox Corporation (NYSE:RBLX) in its fourth quarter 2025 investor letter:
“Roblox Corporation (NYSE:RBLX): Develops online video game platform. Roblox (RBLX) delivered a breakout year driven by multiple record-setting game launches that significantly expanded engagement on the platform. However, growth began to moderate in the fourth quarter, and investors grew more cautious amid rising investment spending and challenging comparisons heading into 2026.”
Roblox Corporation (NYSE:RBLX) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 84 hedge fund portfolios held Roblox Corporation (NYSE:RBLX) at the end of the fourth quarter, compared to 90 in the previous quarter. While we acknowledge the risk and potential of Roblox Corporation (NYSE:RBLX) 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 Roblox Corporation (NYSE:RBLX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Roblox Corporation (NYSE:RBLX) and shared the list of best metaverse stocks to buy according to analysts. Roblox Corporation (NYSE:RBLX) detracted from Carillon Eagle Mid Cap Growth Fund’s performance in Q4 2025, due to concerns of slow growth. In addition, please check out our hedge fund investor letters Q4 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.
