Brown Capital Management, an investment management company, released its “The Brown Capital Management Small Company Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Small Company Fund fared worse compared to its benchmark in the first quarter and declined 16.03% vs 11.12% decline for the Russell 2000® Growth index. The underperformance in the quarter was led by negative investor sentiment due to geopolitical shocks or the sudden deterioration of the macroeconomic outlook. In addition, check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, The Brown Capital Management Small Company Fund highlighted stocks such as Veeva Systems Inc. (NYSE:VEEV). Veeva Systems Inc. (NYSE:VEEV) offers cloud-based software for the life sciences industry. The one-month return of Veeva Systems Inc. (NYSE:VEEV) was 17.35%, and its shares gained 53.16% of their value over the last 52 weeks. On June 9, 2025, Veeva Systems Inc. (NYSE:VEEV) stock closed at $283.33 per share, with a market capitalization of $46.3 billion.
The Brown Capital Management Small Company Fund stated the following regarding Veeva Systems Inc. (NYSE:VEEV) in its Q1 2025 investor letter:
“Veeva Systems Inc. (NYSE:VEEV) provides cloud-based software to the global life-sciences industry, including the fields of biotechnology and pharmaceuticals. The company’s products include the core Veeva Customer Relationship Management (CRM) solution, and Veeva Vault, the regulated content-management and collaboration solution. Veeva provides a modern cloud CRM solution that offers superior functionality and integration relative to competitors and has garnered a dominant market position within the pharmaceutical CRM market. The company’s Vault content management platform offers an open-ended opportunity to sell into the clinical side of life sciences companies. Veeva has been successful in launching innovative solutions like eTMF (electronic Trial Master File), CTMS (Clinical Trial Management System) and CDMS (Clinical Data Management System), regulatory, quality and safety management solutions. Veeva’s clients include many of the largest global pharmaceutical companies, including GlaxoSmithKline, AstraZeneca, Eli Lilly, Merck, Novartis and others.
Veeva enjoyed strong stock price appreciation during the quarter following an impressive earnings report in which the company reported strong fiscal year 2025 (January) results and positive 2026 guidance. Fiscal year 2025 revenue grew 16% year over year and fourth quarter revenue grew 14% year over year. The company also reported robust client wins and expansions across all product lines with one top 20 pharma company adding six major clinical applications at once. This deal is one of the largest subscription orders in the company’s history. We see a large market opportunity for Veeva to cross-sell its solutions and innovate within life sciences.”
A team of IT experts monitoring a network of computers managing the medical content and communications.
Veeva Systems Inc. (NYSE:VEEV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Veeva Systems Inc. (NYSE:VEEV) at the end of the first quarter, which was 60 in the previous quarter. The first quarter marked a solid beginning for Veeva Systems Inc. (NYSE:VEEV), with results surpassing our expectations. The total revenue for the quarter reached $759 million, and the non-GAAP operating margin remained robust. While we acknowledge the potential of Veeva Systems Inc. (NYSE:VEEV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered Veeva Systems Inc. (NYSE:VEEV) and shared TimesSquare Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.
