Here are the Concerns Affecting Mister Car Wash (MCW)

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 Mister Car Wash, Inc. (NASDAQ:MCW). Mister Car Wash, Inc. (NASDAQ:MCW) is a US-based conveyorized car wash services company. The one-month return of Mister Car Wash, Inc. (NASDAQ:MCW) was -3.13%, and its shares lost 10.16% of their value over the last 52 weeks. On September 03, 2025, Mister Car Wash, Inc. (NASDAQ:MCW) stock closed at $5.57 per share, with a market capitalization of $1.823 billion.

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

"Mister Car Wash, Inc. (NASDAQ:MCW): Provides car wash services. Mister Car Wash, Inc. (MCW) continues to demonstrate financial progress driven by improved same-store-sales on a modestly better industry backdrop and internal initiatives. The industry remains mired by concerns regarding over-capacity in certain markets and a weakening consumer."

Mister Car Wash, Inc. (NASDAQ:MCW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Mister Car Wash, Inc. (NASDAQ:MCW) at the end of the second quarter, which was 24 in the previous quarter. In the second quarter, Mister Car Wash, Inc.'s (NASDAQ:MCW) revenue increased 4% to $265 million. While we acknowledge the potential of Mister Car Wash, Inc. (NASDAQ:MCW) 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 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.