Brown Advisory Mid-Cap Growth Trails in Q3 as Portfolio Tilts to Secular Growth

Overview

• The strategy underperformed the Russell Midcap Growth Index, which rose about 3% in the third quarter of 2025.
• Brown Advisory initiated DraftKings to gain exposure to online sports betting and iCasino, citing a DraftKings–FanDuel duopoly and the potential lift from further state legalization.
• A new Carvana position reflects confidence in sustained 20–40% growth targets and improving profitability as expanded reconditioning capacity scales.
• Comfort Systems was highlighted as a clear data-center beneficiary, with roughly one-third of revenue tied to that market, a raised mid-teens organic growth outlook, and a longer-duration backlog.
• The firm characterized several headwinds as temporary, viewing Verisk’s slowdown and large acquisition as strategically sound despite dilution, noting DexCom’s G7 issues have been addressed, and acknowledging Chipotle’s near-term traffic softness even as Roblox showed accelerating bookings.