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 Ross Stores, Inc. (NASDAQ:ROST) as one of its leading contributors. Ross Stores, Inc. (NASDAQ:ROST) is a US-based off-price retail apparel and home fashion store operator. On March 20, 2026, Ross Stores, Inc. (NASDAQ:ROST) stock closed at $211.19 per share. One-month return of Ross Stores, Inc. (NASDAQ:ROST) was 4.61%, and its shares gained 63.49% over the past 52 weeks. Ross Stores, Inc. (NASDAQ:ROST) has a market capitalization of $68.31 billion.
Brown Advisory Mid-Cap Growth Strategy stated the following regarding Ross Stores, Inc. (NASDAQ:ROST) in its fourth quarter 2025 investor letter:
“Ross Stores, Inc. (NASDAQ:ROST): Operates off-price apparel and home fashion stores. Ross Stores (ROST) reported a strong third quarter, led by 7% comparable sales growth. An emphasis on better brands at compelling value continues to resonate with increasingly value-conscious consumers, while more effective digital marketing helped drive improved engagement with Gen Z shoppers.”
Ross Stores, Inc. (NASDAQ:ROST) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 71 hedge fund portfolios held Ross Stores, Inc. (NASDAQ:ROST) at the end of the fourth quarter, up from 58 in the previous quarter. While we acknowledge the risk and potential of Ross Stores, Inc. (NASDAQ:ROST) 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 Ross Stores, Inc. (NASDAQ:ROST) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Ross Stores, Inc. (NASDAQ:ROST) and shared Madison Mid Cap Fund’s views on the company. 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.
