What Makes Fair Isaac Corporation (FICO) a Good Investment?

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Brown Advisory Large-Cap Growth strategy has shown resilience this year amid heightened volatility, protecting investor capital during market declines and participating in the strong rebound since early April. The strategy returned 16% during the second quarter, slightly underperforming the benchmark, the Russell 1000® Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Brown Advisory Large-Cap Growth Strategy highlighted stocks such as Fair Isaac Corporation (NYSE:FICO). Fair Isaac Corporation (NYSE:FICO) develops analytic, software, and digital decision-making technologies and services. The one-month return of Fair Isaac Corporation (NYSE:FICO) was 17.28%, and its shares lost 13.95% of their value over the last 52 weeks.  On September 09, 2025, Fair Isaac Corporation (NYSE:FICO) stock closed at $1,546.56 per share, with a market capitalization of $37.123 billion.

Brown Advisory Large-Cap Growth Strategy stated the following regarding Fair Isaac Corporation (NYSE:FICO) in its second quarter 2025 investor letter:

“We initiated positions in DraftKings (DKNG) and Fair Isaac Corporation (NYSE:FICO) during the quarter. Fair Isaac Corporation (FICO) is one of the leading providers of credit scoring solutions in the United States, with its FICO score serving as the industry benchmark for consumer credit risk assessment among lenders. Despite recent headwinds from higher interest rates suppressing mortgage originations, we believe FICO remains indispensable within the mortgage ecosystem. The company is well-positioned to benefit from a cyclical recovery in home purchases and to drive revenue growth through its critical role in credit risk management. With its dominant market share and strong reputation for innovation, FICO is poised to deliver sustained growth as the need for reliable credit assessment remains essential.

Fair Isaac Corporation (FICO) was added to the portfolio during the quarter. As a leading provider of credit scores in the U.S., its FICO score is the standard metric used by most lenders to evaluate consumer credit risk. While the stock finished essentially flat for the quarter, concerns about rising mortgage origination costs, raised by the head of the FHFA, led to an intra-quarter decline of nearly 30%.”

In another article, we covered Fair Isaac Corporation (NYSE:FICO) and shared the list of most promising technology stocks to invest in. Baron FinTech Fund noted in its Q2 2025 investor letter that Fair Isaac Corporation (NYSE:FICO) stock underperformed due to heightened scrutiny and regulatory measures imposed by the Federal Housing Finance Agency. In addition, please check out our hedge fund investor letters Q2 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.