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 Tyler Technologies, Inc. (NYSE:TYL). Tyler Technologies, Inc. (NYSE:TYL) offers integrated information management solutions and services for the public sector. The one-month return of Tyler Technologies, Inc. (NYSE:TYL) was 2.65%, and its shares gained 21.62% of their value over the last 52 weeks. On June 9, 2025, Tyler Technologies, Inc. (NYSE:TYL) stock closed at $580.17 per share, with a market capitalization of $25.019 billion.
The Brown Capital Management Small Company Fund stated the following regarding Tyler Technologies, Inc. (NYSE:TYL) in its Q1 2025 investor letter:
“Interestingly, we also own a company that views the new Federal Department of Government Efficiency (DOGE) as an opportunity rather than a risk. Tyler Technologies, Inc. (NYSE:TYL) provides software and technology solutions for the public sector, including state and local governments, to improve operations, transparency and citizen services. This quarter, the company reported strong results for both the fourth quarter and the fiscal year 2024. Thus far, the public sector market remains strong with healthy state and local budgets. We think the focus on government efficiency could further drive sales of Tyler products.”
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Tyler Technologies, Inc. (NYSE:TYL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Tyler Technologies, Inc. (NYSE:TYL) at the end of the first quarter, which was 44 in the previous quarter. In Q1 2025, Tyler Technologies, Inc. (NYSE:TYL) reported $565.2 million in total revenues, marking a 10.3% year-over-year increase, driven by strong subscription revenue growth. While we acknowledge the potential of Tyler Technologies, Inc. (NYSE:TYL) 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 Tyler Technologies, Inc. (NYSE:TYL) and shared the list of Jim Cramer stocks with huge upside potential. 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.
