Brown Advisory Small-Cap Growth Strategy Sold Neogenomics (NEO) Following the News of CEO Departure

Brown Advisory, an investment management company, released its "Brown Advisory Small-Cap Growth Strategy" second-quarter 2025 investor letter. During the first half of the year, the Brown Advisory Small-Cap Growth Strategy delivered results consistent with its historical performance. A copy of the letter can be downloaded here. In the first quarter of 2025, the portfolio remained robust, outperforming the declines of -9.5% for the Russell 2000 Index and -11.1% for the Russell 2000 Growth Index. However, in the second quarter, unprofitable companies within the Russell 2000 Index outperformed profitable ones, reversing a previous quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Brown Advisory Small-Cap Growth Strategy highlighted stocks such as NeoGenomics, Inc. (NASDAQ:NEO). Headquartered in Fort Myers, Florida, NeoGenomics, Inc. (NASDAQ:NEO) is a network of clinical laboratories that focuses on cancer testing. The one-month return of NeoGenomics, Inc. (NASDAQ:NEO) was 42.19%, and its shares lost 49.48% of their value over the last 52 weeks. On September 03, 2025, NeoGenomics, Inc. (NASDAQ:NEO) stock closed at $8.19 per share, with a market capitalization of $1.06 billion.

Brown Advisory Small-Cap Growth Strategy stated the following regarding NeoGenomics, Inc. (NASDAQ:NEO) in its second quarter 2025 investor letter:

"NeoGenomics, Inc. (NASDAQ:NEO): Provides genetic and molecular testing services. Neogenomics, Inc. (NEO) was eliminated following surprising announcement departure of its CEO. After a review of the succession plan, we did not have enough confidence to re-underwrite the position."

NeoGenomics, Inc. (NASDAQ:NEO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held NeoGenomics, Inc. (NASDAQ:NEO) at the end of the second quarter, which was 17 in the previous quarter. NeoGenomics, Inc. (NASDAQ:NEO) reported revenue of $181 million in the second quarter 2025, an increase of 10% over prior year. While we acknowledge the potential of NeoGenomics, Inc. (NASDAQ:NEO) 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 NeoGenomics, Inc. (NASDAQ:NEO) and shared the list of top medical AI companies to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 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.