HubSpot (HUBS) Fell on Investors’ Concerns

Brown Advisory, an investment management company, recently released its “Brown Advisory Mid-Cap Growth Strategy” fourth-quarter 2025 investor letter. The Strategy, which focuses on achieving solid risk-adjusted returns by investing in high-quality compounders with fair valuations and market capitalizations between $2 billion and $50 billion, lagged the Russell Midcap® Growth Index in the fourth quarter due to stock selection. However, the performance was in line with expectations for the full year.

One of the key reasons for underperformance in 2025, according to Brown Advisory, was the absence of Palantir Technologies Inc (PLTR) from the Strategy’s holdings. To gain insights into the key selections for 2025, it is important to review the Strategy’s top five holdings.

In its fourth-quarter 2025 investor letter, Brown Advisory Mid-Cap Growth Strategy highlighted HubSpot, Inc. (NYSE:HUBS) as a key stock. HubSpot, Inc. is a software company that offers a cloud-based customer relationship management (CRM) platform for businesses. As of March 20, 2026, HubSpot, Inc. stock closed at $258.81 per share, with a one-month return of 19.07% and a 52-week loss of 58.72%. The company has a market capitalization of $13.65 billion.

Brown Advisory Mid-Cap Growth Strategy expressed confidence in HubSpot, Inc. in its fourth-quarter 2025 investor letter, despite the stock underperforming in 2025. The company highlighted meaningful AI-driven enhancements across its platform at its annual user conference, positioning it as a preferred partner for SMBs adopting AI.

While HubSpot, Inc. is not on the list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026, 56 hedge fund portfolios held the stock at the end of the fourth quarter. Brown Advisory sees potential in HubSpot, Inc. as an investment but believes that certain AI stocks offer greater upside potential and carry less downside risk.

For investors looking for an undervalued AI stock that could benefit significantly from Trump-era tariffs and the onshoring trend, Brown Advisory recommends exploring their free report on the best short-term AI stock.

Overall, Brown Advisory’s fourth-quarter 2025 investor letter provides valuable insights into their investment strategy and key stock selections for the year. Investors can download a copy of the letter for a more in-depth analysis of the Strategy’s performance and outlook.