Brown & Brown (BRO) Fell Following a Decline in Organic Growth

Market Overview - The stock market in 2025 was solid but volatile, influenced by AI enthusiasm, economic uncertainty, and monetary policy concerns [1] - The summer rally was driven by AI-related spending and economic resiliency, while the fourth quarter experienced volatility due to valuation pressures and macro uncertainty [1] - The S&P 500 Index rose by 2.66% in Q4 2025, with large-cap technology and communication services sectors leading the market [1] Fenimore Asset Management Performance - Fenimore Small Cap Strategy returned -4.12% in Q4 2025, underperforming the Russell 2000 Index, which returned 2.19% [1] - Fenimore Dividend Focus Strategy declined -4.41% in Q4 compared to the Russell Midcap Index's 0.16% return [1] - Fenimore Value Strategy declined -1.17% in Q4, also underperforming the Russell Midcap Index [1] - The underperformance in these strategies was attributed to underweight exposure to low-quality stocks and investments in the financial and industrial sectors [1] Brown & Brown, Inc. (NYSE:BRO) Analysis - Brown & Brown, Inc. was a key performance detractor in Fenimore Value Strategy during Q4 2025 [2] - The stock closed at $79.75 per share on January 15, 2026, with a one-month return of -0.87% and a 52-week loss of 24.70% [2] - Brown & Brown, Inc. has a market capitalization of $27.122 billion [2] - The company's underperformance was linked to slowed organic growth rates and a decline in pre-tax margins due to integration costs from a recent merger [3]