Brown Capital Management, an investment management company, released its “The Brown Capital Management International All-Company Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund-Investor shares lost 4.46% compared to a 2.84% total return for the MSCI World ex-US Growth-Net Index. YTD, the fund returned 6.67% underperforming the 19.32% return for the index. The underperformance of the fund was driven by a mix of company-specific challenges and missing out on some of the best-performing industries. In addition, check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, The Brown Capital Management International All-Company Fund highlighted stocks such as Shopify Inc. (NASDAQ:SHOP). Shopify Inc. (NASDAQ:SHOP) is a commerce technology company that provides a cloud-based platform to start, scale, market, and run a business. The one-month return of Shopify Inc. (NASDAQ:SHOP) was 1.38%, and its shares gained 39.72% of their value over the last 52 weeks. On December 05, 2025, Shopify Inc. (NASDAQ:SHOP) stock closed at $161.08 per share, with a market capitalization of $209.701 billion.
The Brown Capital Management International All-Company Fund stated the following regarding Shopify Inc. (NASDAQ:SHOP) in its third quarter 2025 investor letter:
“Shopify Inc. (NASDAQ:SHOP), a Canada-based global leader in digital commerce solutions, provides turnkey services that enable merchants to seamlessly manage their online stores. Offering a comprehensive suite of features—including web design, inventory management, payment processing, analytics and reporting—Shopify simplifies business operations for merchants. By continuously innovating with user-friendly tools and unique offerings like the Shop Pay button, Shopify removes friction and empowers merchants to grow and thrive. Its all-in-one platform delivers extensive capabilities that create significant switching costs, as many merchants depend on its robust ecosystem to build and sustain their businesses.
Shopify delivered another impressive quarter, generating 31% year-over-year revenue growth and modest margin expansion. Gross Merchandise Value (GMV), or the total dollar value of orders processed through Shopify’s platform grew 31% year-over-year to $87.8 billion. Despite concerns about tariffs pressuring consumer spending, Shopify has seen its sales growth accelerate, notably second quarter sales growth was 400 bps higher than the first quarter. In fact, Shopify noted that it is seeing GMV and revenue growth rates accelerating in all regions, including North America, Europe and APAC. Notably, European GMV growth led the business, rising 42% year over-year on a constant currency basis. Additionally, the company announced new business wins with iconic brands like Starbucks, Canada Goose, and Burton snowboards during the quarter. Riding continued digitization of commerce both online and in-store, Shopify is well positioned to continue delivering strong growth with its differentiated and leading-edge commerce solutions.”
Shopify Inc. (NASDAQ:SHOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 91 hedge fund portfolios held Shopify Inc. (NASDAQ:SHOP) at the end of the third quarter, compared to 69 in the previous quarter. In Q3 2025, Shopify Inc.’s (NASDAQ:SHOP) revenue increased 32% year-over-year. While we acknowledge the risk and potential of Shopify Inc. (NASDAQ:SHOP) 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 Shopify Inc. (NASDAQ:SHOP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Shopify Inc. (NASDAQ:SHOP) and shared the list of stocks to buy from Cathie Wood’s stock portfolio. In addition, please check out our hedge fund investor letters Q3 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.
