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 Fund's investment strategy is focused on company fundamentals, which showed strong revenue and earnings growth in 2025 [1] Company Focus: Veracyte, Inc. - Veracyte, Inc. is highlighted as a key holding in the Fund, with a market capitalization of $2.817 billion [2] - The stock price of Veracyte, Inc. closed at $35.63 on February 20, 2026, with a one-month return of -12.18% and a 52-week loss of 9.48% [2] - Veracyte holds a dominant market position with over 50% market share in its core products, Decipher and Afirma, which contributed more than 90% of revenue in 2024 [3] - The Decipher product has a market penetration of only 40%, indicating potential for double-digit growth in the coming years, while Afirma offers stability due to higher market penetration [3] - Veracyte's product pipeline could expand its market opportunity by over $3 billion, including tests for breast cancer, prostate cancer, and lung cancer [3] - The company turned profitable in 2024 and has shown significant margin expansion, with expectations for further growth [3] - Veracyte maintains a strong balance sheet with over $400 million in cash and has been free cash flow positive since 2023 [3]