Brown Brothers Harriman, an investment management company, released its Q4 2025 investor letter for the BBH Select Series – Mid Cap ETF. A copy of the letter is available for download here. In the quarter, the ETF decreased by 3.9% on a total return basis compared to the Russell Midcap Index’s 0.2% return. The year was characterized by the outperformance of unprofitable and highly volatile companies. Healthcare and materials were the top-performing sectors in the fourth quarter, while communication services and real estate were down. The firm is confident that the market will eventually return its focus to financial fundamentals, such as profitability and cash flow. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, BBH Select Series – Mid Cap Fund highlighted Shift4 Payments, Inc. (NYSE:FOUR). Shift4 Payments, Inc. (NYSE:FOUR) is a software and payment processing solutions company. On March 10, 2026, Shift4 Payments, Inc. (NYSE:FOUR) stock closed at $46.88 per share. One-month return of Shift4 Payments, Inc. (NYSE:FOUR) was -20.19%, and its shares lost 48.10% over the past 52 weeks. Shift4 Payments, Inc. (NYSE:FOUR) has a market capitalization of $4.789 billion.
BBH Select Series – Mid Cap Fund stated the following regarding Shift4 Payments, Inc. (NYSE:FOUR) in its fourth quarter 2025 investor letter:
“The Fund’s largest detractors to performance in the quarter were Shift4 Payments, Inc. (NYSE:FOUR), and Guidewire Software Inc. (Guidewire). Both had strong fundamental performance but declined on increased negative sentiment for payments and software sectors, respectively. Shift4 declined -18.6% during the quarter, ending with a weight of 3.8%. Shift4 is an integrated payments processor specializing in the hospitality vertical, including restaurants, lodging, and leisure. Shift4 reported a strong quarter with beats on the top and bottom line combined with a reiteration of the midpoint of its annual guidance with a narrower range, although it modestly lowered the midpoint of its volume guidance. Modestly worse same store sales at its restaurant and hotel customers and foreign exchange (FX) headwinds for Global Blue were offset by continued new business wins. The company continues to rapidly sign new business in its core restaurant, hos pitality, and sports and entertainment verticals, as well as in newer verticals such as non-profits, retail, and crypto. The company also announced a $1B share buyback authorization. Notwithstanding these strong fundamentals, in late October payments bellwether Fiserv missed earnings, cut guidance again, and changed leadership. Fiserv’s troubles raised concerns about weaker consumer outlook and merchant volumes leading to slower growth and accelerating a rotation away from the payments sector more broadly. However, we see the read across as limited and continue to believe that Shift4’s outlook is sustainable.”
Shift4 Payments, Inc. (NYSE:FOUR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 49 hedge fund portfolios held Shift4 Payments, Inc. (NYSE:FOUR) at the end of the fourth quarter, up from 45 in the previous quarter. In Q4 2025. Shift4 Payments, Inc.’s (NYSE:FOUR) gross revenue increased 34% year-over-year to $1.189 billion. While we acknowledge the risk and potential of Shift4 Payments, Inc. (NYSE:FOUR) 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 Shift4 Payments, Inc. (NYSE:FOUR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Shift4 Payments, Inc. (NYSE:FOUR) and shared a list of best buy-the-dip stocks to buy according to Wall Street analysts. 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.
