Brown Capital Management, an investment management company, released its “The Brown Capital Management Mid Company Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The Mid Company Fund returned 5.43% in the quarter compared to a 6.90% return for the Russell Midcap Growth Index. For the full year, the fund declined 37.12% compared to a -26.72% return for the benchmark. In addition, check the fund’s top five holdings to know its best picks in 2022.
The Brown Capital Management Mid Company Fund highlighted stocks like HubSpot, Inc. (NYSE:HUBS) in the Q4 2022 investor letter. Headquartered in Cambridge, Massachusetts, HubSpot, Inc. (NYSE:HUBS) provides a cloud-based customer relationship management platform. On March 17, 2023, HubSpot, Inc. (NYSE:HUBS) stock closed at $397.48 per share. One-month return of HubSpot, Inc. (NYSE:HUBS) was -1.77%, and its shares lost 19.17% of their value over the last 52 weeks. HubSpot, Inc. (NYSE:HUBS) has a market capitalization of $19.713 billion.
The Brown Capital Management Mid Company Fund made the following comment about HubSpot, Inc. (NYSE:HUBS) in its Q4 2022 investor letter:
“We have seen a sell-off in 2022 of high-growth companies, but we do not know if we are near the end. In some cases, valuations have gotten cheaper, which has allowed us to add to some of our holdings in small increments. One company we have added to incrementally this year is HubSpot, Inc. (NYSE:HUBS). Hubspot was down more than 40% when we started adding to it in early 2022. Hubspot is a leading provider of cloud-based marketing and sales software used primarily by mid-market companies. Hubspot has developed the leading platform to address the entire marketing lifecycle, from attracting visitors to companies’ websites, to converting visitors into leads, and turning those leads into customers. We like Hubspot and believe the company is likely to experience exceptional growth. The company was founded as a marketing-automation platform offering a single app, but the company has now transformed into a platform vendor with five key anchor Hubs supporting multiple vectors of growth. Hubspot is adding features and functionality to the Enterprise platform particularly in the Service and Operations Hubs, which we believe should help the company gain market share over time with small and mid-size businesses. Also, Hubspot is focused on organic product development while adding new features and functionality to each platform. Furthermore, we view organic product innovation as key to driving high customer satisfaction, lower costs and long-term profitability. We believe Hubspot can continue to grow net customer additions even in the current difficult macro-environment due to an under-penetrated market opportunity. Moreover, Hubspot’s attractive entry-level pricing is winning market share for the company and gives Hubspot the opportunity to grow with customers over time. Hubspot currently has approximately 159,000 customers or only 3% market share of its identifiable market opportunity.”
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HubSpot, Inc. (NYSE:HUBS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held HubSpot, Inc. (NYSE:HUBS) at the end of the fourth quarter which was 55 in the previous quarter.
We discussed HubSpot, Inc. (NYSE:HUBS) in another article and shared the list of biggest SaaS companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
