Brown Brothers Harriman, an funding administration firm, launched its This fall 2025 investor letter for the BBH Choose Collection – Mid Cap ETF. A duplicate of the letter is obtainable for obtain right here. Within the quarter, the ETF decreased by 3.9% on a complete return foundation in comparison with the Russell Midcap Index’s 0.2% return. The yr was characterised by the outperformance of unprofitable and extremely risky corporations. Healthcare and supplies had been the top-performing sectors within the fourth quarter, whereas communication providers and actual property had been down. The agency is assured that the market will finally return its focus to monetary fundamentals, akin to profitability and money circulation. Please overview the Fund’s prime 5 holdings to achieve insights into their key choices for 2025.
In its fourth-quarter 2025 investor letter, BBH Choose Collection – Mid Cap Fund highlighted shares like Guidewire Software program, Inc. (NYSE:GWRE). Guidewire Software program, Inc. (NYSE:GWRE) is a number one supplier of cloud-based software program for property and casualty (P&C) insurance coverage corporations. On March 10, 2026, Guidewire Software program, Inc. (NYSE:GWRE) inventory closed at $158.93 per share. Guidewire Software program, Inc. (NYSE:GWRE) delivered a 21.87% return prior to now month, and its shares misplaced 9.90% over the previous twelve months. Guidewire Software program, Inc. (NYSE:GWRE) has a market capitalization of $13.45 billion.
BBH Choose Collection – Mid Cap Fund acknowledged the next concerning Guidewire Software program, Inc. (NYSE:GWRE) in its fourth quarter 2025 investor letter:
“The Fund’s largest detractors to efficiency within the quarter had been Shift4 Funds Inc. (Shift4), and Guidewire Software program, Inc. (NYSE:GWRE). Each had robust basic efficiency however declined on elevated destructive sentiment for funds and software program sectors, respectively. Guidewire declined -12.6% throughout the quarter, ending with a weight of 5.5%. Guidewire is the main supplier of core programs software program to the property and casualty (P&C) insurance coverage trade. Guidewire reported one other robust quarter with annual recurring income (ARR), income, and working earnings all above steerage and expectations. ARR development accelerated to +21% in fixed foreign money, the corporate’s quickest development since beginning to report the metric in 2020, highlighting the sustained drivers of demand. Subscription income development of +36% delivered 82% incremental margins as Guidewire continues to show wonderful value effectivity as properly. Full-year steerage was raised for all metrics, whereas Guidewire additionally launched two new modules in PricingCenter and UnderwritingCenter, which is able to additional improve the chance set for patrons. The corporate’s Investor Day and Person Convention mid-fourth quarter strengthened Guidewire’s trade management and engaging alternative within the years forward. However these robust fundamentals, the software program sector was broadly out of favor on considerations that AI will commoditize software program coding and decrease obstacles to entry for enterprise software program. That is troublesome to disprove within the quick time period, however our view is that, as a market-leading incumbent with deep vertical area experience, Information wire will probably be a beneficiary of AI because it drives elevated adoption of its cloud-based core programs software program, lowers inner growth prices, and facilitates quicker incremental product introductions.”
