Brown Brothers Harriman, an investment management firm, has released its Q4 2025 investor prospectus for the BBH Select Series – Mid Cap ETF. A copy of the book is available for download here. For the quarter, the ETF fell 3.9% in total return compared to the Russell Midcap Index’s 0.2% return. The year was characterized by the overperformance of unprofitable and highly volatile companies. Health care and utilities were the best-performing sectors in the fourth quarter, while telecommunications services and real estate underperformed. The company 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 for details on their key options for 2025.
In its investor letter for the fourth quarter of 2025, BBH Select Series – Mid Cap Fund highlighted stocks like Guidewire Software, Inc. (NYSE:GWRE). Guidewire Software, Inc. (NYSE:GWRE) is a leading provider of cloud-based software for property and casualty (P&C) insurance companies. On March 10, 2026, the stock of Guidewire Software, Inc. (NYSE:GWRE) closed at $158.93 per share. Guidewire Software, Inc. (NYSE:GWRE) delivered a return of 21.87% over the past month, and its shares have lost 9.90% over the past twelve months. Guidewire Software, Inc. (NYSE:GWRE) has a market capitalization of $13.45 billion.
BBH Select Series – Mid Cap Fund says the following about Guidewire Software, Inc. (NYSE:GWRE) in its fourth quarter 2025 investor letter:
“The Fund’s major contributors to the quarter’s performance were Shift4 Payments Inc. (Shift4), and Guidewire Software, Inc. (NYSE:GWRE). Both had strong underlying performance but declined on increasing negative sentiment in the payments and software sectors, respectively. Guidewire fell -12.6% during the quarter, ending with a weight of 5.5%. Guidewire is a leading provider of core systems software for the property and casualty (P&C) insurance industry. Guidewire reported another strong quarter with annual recurring revenue (ARR), revenue, and operating income all exceeding guidance and expectations. ARR growth increased to +21% in constant currency, the fastest growth for the company since it began reporting the metric in 2020, highlighting the continued drivers of demand. Subscription revenue growth of +36% delivered increased margins of 82% as Guidewire continues to demonstrate cost efficiencies once again. Full-year guidance has been raised across all metrics, while Guidewire has also introduced two new modules in PricingCenter and UnderwritingCenter, which will further enhance the customer experience. The Investor Day and User Conference in the middle of the fourth quarter reinforced Guidewire’s industry leadership and attractive opportunity for years to come. Despite these strong foundations, the software industry was not attuned to concerns that AI would outsell software code and low barriers to entry for enterprise software. This is hard to argue with in the short term, but our view is that, as a market leader with extensive vertical domain expertise, Guidewire will benefit from AI as it drives adoption of its cloud-based software, lowers internal development costs, and facilitates rapid product launches. “
Guidewire Software, Inc. (NYSE:GWRE) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. According to our database, 69 hedge fund portfolios hold Guidewire Software, Inc. (NYSE:GWRE) at the end of the third quarter, compared to 72 in the previous quarter. Guidewire Software, Inc. (NYSE:GWRE) reported $359 million in net income for the second quarter of fiscal 2026, an increase of 24% YoY. Although we acknowledge the power of Guidewire Software, Inc. (NYSE:GWRE) as an investment, we believe certain AI stocks offer great potential and carry little downside risk. If you’re looking for an extremely overlooked AI stock that will benefit greatly from the Trump-era costs and sea trend, check out our free report best short term AI stock.
In another article, we covered Guidewire Software, Inc. (NYSE:GWRE) and shared a list of beaten-down tech stocks that could bounce back in 2026. In addition, please check our hedge fund investor letters page Q4 2025 for other investor letters from hedge funds and other leading investors.
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Disclosure: None. This article was originally published on Insider Monkey.
