Brown Advisors Mid-Cap Growth Strategy Exited Guidewire (GWRE) on Valuation

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Soumya EswaranTue, Sep 9, 2025, 2:54 PM 2 min readBrown Advisory, an investment management company, released its “Brown Advisory Mid-Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed its benchmark, the Russell Midcap® Growth Index, in the second quarter of 2025, which increased 18%. High tariff levels announced on Liberation Day triggered a sudden spike in the Volatility Index (VIX). However, fear quickly gave way to strong gains as tariffs were partially rolled back and corporate first-quarter earnings showed resilience. 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 Mid-Cap Growth Strategy highlighted stocks such as Guidewire Software, Inc. (NYSE:GWRE). Guidewire Software, Inc. (NYSE:GWRE) offers a platform for property and casualty (P&C) insurance companies. The one-month return of Guidewire Software, Inc. (NYSE:GWRE) was 25.98%, and its shares gained 56.38% of their value over the last 52 weeks. On September 08, 2025, Guidewire Software, Inc. (NYSE:GWRE) stock closed at $261.88 per share, with a market capitalization of $22.049 billion.Brown Advisory Mid-Cap Growth Strategy stated the following regarding Guidewire Software, Inc. (NYSE:GWRE) in its second quarter 2025 investor letter:"We exited our position in Guidewire Software, Inc. (NYSE:GWRE) on valuation, as the stock approached our three-year price target. Early signs of moderating insurance premium inflation—which had provided a multi-point growth tailwind since COVID-19—also contributed to our decision to sell. We sold our position in Guidewire due to valuation after 160% - 190% gains from our initial purchases in late 2023."Why Guidewire Software Inc (GWRE) is Skyrocketing So Far in 2025?Guidewire Software, Inc. (NYSE:GWRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Guidewire Software, Inc. (NYSE:GWRE) at the end of the second quarter, which was 55 in the previous quarter. While we acknowledge the potential of Guidewire Software, Inc. (NYSE:GWRE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.In another article, we covered Guidewire Software, Inc. (NYSE:GWRE) and shared Artisan Small Cap Fund's views on the company. 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