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 stocks like Tradeweb Markets Inc. (NASDAQ:TW). Tradeweb Markets Inc. (NASDAQ:TW) is a global financial technology company that builds and operates an electronic marketplace and trading platform. The one-month return of Tradeweb Markets Inc. (NASDAQ:TW) was 8.53%, and its shares lost 6.35% of their value over the last 52 weeks. On March 10, 2026, Tradeweb Markets Inc. (NASDAQ:TW) stock closed at $124.83 per share, with a market capitalization of $27.273 billion.
BBH Select Series – Mid Cap Fund stated the following regarding Tradeweb Markets Inc. (NASDAQ:TW) in its fourth quarter 2025 investor letter:
“We initiated one new position in the fourth quarter in Tradeweb Markets Inc. (NASDAQ:TW) and exited one position in NVR Inc. (NVR). Tradeweb is an electronic marketplace and trading platform for rates, credit, equities, and money markets. Instead of negotiating over the phone or by chat, electronic trading occurs on a centralized digital platform that facilitates price discovery and automates execution and post-trade processing. Tradeweb pioneered electronic trading in U.S. Treasuries and has since expanded into multiple asset classes, connecting over 2,500 clients across institutional, dealer, and retail networks. U.S. Treasuries are now approximately 70% electronic vs. approximately 40% a decade ago, and most asset classes including credit and swaps are moving in a similar direction.
The company primarily generates revenue through transaction fees linked to trading volumes, subscription-like platform access fees, and fees from distribution of its market data. Tradeweb’s competitive positioning is strongest in rates, including government bonds, interest rate swaps, and mortgages – where it holds leading market share – while continuing to grow in corporate credit through adoption of newer protocols like portfolio trading. The plat form integrates across the full trade lifecycle with self-reinforcing network effects that drive liquidity concentration and make the platform difficult to displace.
Tradeweb is growing earnings at a double-digit rate with free cash flow conversion above 100% of net income and consistent margin expansion. The business model is all-weather, as trading activity in certain asset classes tends to rise in volatile or choppy macro backdrops. CEO Billy Hult is a 25-plus-year veteran of the firm with an eye for product innovation and widely regarded for his ability to cultivate deep relationships with banks and key customers. With secular adoption of electronic protocols across asset classes, ongoing share gain opportunities, and a strong management team, Tradeweb offers a rare combination of sustained earnings growth and defensibility.”
Tradeweb Markets Inc. (NASDAQ:TW) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 46 hedge fund portfolios held Tradeweb Markets Inc. (NASDAQ:TW) at the end of the fourth quarter, up from 39 in the previous quarter. In Q4 2025, Tradeweb Markets Inc. (NASDAQ:TW) reported record revenues of $521 million marking an increase of 12.5% year-over-year on a reported basis and 9.9% on a constant currency basis. While we acknowledge the risk and potential of Tradeweb Markets Inc. (NASDAQ:TW) 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 Tradeweb Markets Inc. (NASDAQ:TW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Tradeweb Markets Inc. (NASDAQ:TW) and shared a list of best 52-week low stocks to invest in. 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.
