Brown Advisors Large-Cap Growth Strategy Sold Workday (WDAY) Due to Slower Than Anticipated Revenue Growth

WDAY +0.11%

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned -0.88% (net) during the third quarter, underperforming the benchmark, the Russell 1000 Growth Index. Even though the portfolio has significant exposure to AI, its underweight to the most speculative momentum-driven parts of the trade was a headwind to performance. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brown Advisory Large-Cap Growth Strategy highlighted stocks such as Workday, Inc. (NASDAQ:WDAY). Workday, Inc. (NASDAQ:WDAY) is a technology company that offers enterprise cloud applications. The one-month return of Workday, Inc. (NASDAQ:WDAY) was -8.20%, and its shares lost 20.76% of their value over the last 52 weeks. On December 02, 2025, Workday, Inc. (NASDAQ:WDAY) stock closed at $213.06 per share, with a market capitalization of $56.887 billion.

Brown Advisory Large-Cap Growth Strategy stated the following regarding Workday, Inc. (NASDAQ:WDAY) in its third quarter 2025 investor letter:

"We exited our position in Workday, Inc. (NASDAQ:WDAY) during the quarter following slower-than anticipated revenue growth. While Workday remains a leading provider of enterprise solutions for finance and human resources teams, we reallocated capital to what we view as a more compelling growth opportunity in the software space—Samsara Inc."

Workday, Inc. (NASDAQ:WDAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 64 hedge fund portfolios held Workday, Inc. (NASDAQ:WDAY) at the end of the third quarter, compared 76 in the previous quarter. In the fiscal third quarter of 2026, Workday, Inc. (NASDAQ:WDAY) reported total revenue of $2.432 billion, representing a growth of 13% year-over-year. While we acknowledge the potential of Workday, Inc. (NASDAQ:WDAY) 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 Workday, Inc. (NASDAQ:WDAY) and shared the list of AI stocks on the market’s radar. ClearBridge Large Cap Growth Strategy also sold its position in Workday, Inc. (NASDAQ:WDAY) during Q3 2025. In addition, please check out our hedge fund investor letters Q3 2025 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.