Here’s Why The Brown Capital Management Small Company Fund Sold Tandem Diabetes Care (TNDM)

Core Insights - Brown Capital Management's Small Company Fund underperformed in Q4 2025, with a decline of 1.50% compared to the Russell 2000® Growth index's gain of 1.22% [1] - The Fund's performance for the entire year of 2025 was down 11.46%, significantly lagging behind the Index's return of 13.01% [1] - The investment strategy is focused on company fundamentals, with holdings showing strong revenue and earnings growth in 2025 [1] Fund Performance - The Small Company Fund's Investor shares fell by 1.50% in Q4 2025 [1] - The Fund's total decline for 2025 was 11.46% [1] - The Russell 2000® Growth index achieved a return of 13.01% in 2025 [1] Company Focus: Tandem Diabetes Care, Inc. - Tandem Diabetes Care, Inc. (NASDAQ:TNDM) was highlighted in the Fund's Q4 2025 letter, with a stock price of $24.57 as of February 20, 2026 [2] - The company experienced a one-month return of 21.63% but a 52-week decline of 24.77% [2] - Tandem Diabetes Care has a market capitalization of $1.666 billion [2] Portfolio Adjustments - The Fund removed Tandem Diabetes Care, Inc. from its portfolio in Q4 2025 due to disappointing revenue growth and ongoing unprofitability [3] - The company faced increased competition and market saturation in the insulin pump sector, leading to a reassessment of its investment potential [3] - Tandem's revenue for Q4 2025 was reported at $290 million, reflecting a 15% year-over-year growth [5] Hedge Fund Interest - Tandem Diabetes Care, Inc. was held by 33 hedge fund portfolios at the end of Q4 2025, an increase from 26 in the previous quarter [5] - Despite its potential, the Fund believes that certain AI stocks present greater upside potential and lower downside risk compared to Tandem [5]