Brown Advisors Mid-Cap Growth Strategy Exited Zscaler (ZS) on Valuation

Core Insights - Brown Advisory Mid-Cap Growth Strategy underperformed its benchmark, the Russell Midcap® Growth Index, which increased approximately 3% in Q3 2025 [1] - The investor letter highlighted Zscaler, Inc. (NASDAQ:ZS) as a key stock, which experienced a one-month return of -15.97% but gained 23.33% over the last 52 weeks [2] Company Performance - Zscaler, Inc. closed at $231.09 per share on December 18, 2025, with a market capitalization of $36.852 billion [2] - Brown Advisory exited its position in Zscaler, citing valuation concerns despite the company's strong execution and margin expansion [3] Hedge Fund Activity - Zscaler, Inc. was held by 50 hedge fund portfolios at the end of Q3 2025, a decrease from 60 in the previous quarter [3] - The company is not listed among the 30 Most Popular Stocks Among Hedge Funds, indicating a potential shift in investor sentiment [3]