Here's Why Apple (AAPL) is on the Detectors List of Brown Advisory Large-Cap Growth Strategy

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned -0.88% (net) during the third quarter, underperforming the benchmark, the Russell 1000 Growth Index. Even though the portfolio has significant exposure to AI, its underweight to the most speculative momentum-driven parts of the trade was a headwind to performance. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brown Advisory Large-Cap Growth Strategy highlighted stocks such as Apple Inc. (NASDAQ:AAPL). Apple Inc. (NASDAQ:AAPL) is an American multinational company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. Apple Inc. (NASDAQ:AAPL) posted a one-month return of 5.33%, and its shares gained 16.91% over the last 52 weeks. On December 03, 2025, Apple Inc. (NASDAQ:AAPL) stock closed at $284.15 per share, with a market capitalization of $4.2 trillion.

Brown Advisory Large-Cap Growth Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its third quarter 2025 investor letter:

"The Information Technology sector was a meaningful absolute contributor to performance in the third quarter, but it was the largest detractor from relative performance. Apple Inc. (NASDAQ:AAPL), a stock that we do not own, which returned nearly 25%, was the single largest detractor to the portfolio during the period. While we have owned the stock in the past and it is covered by our team, it does not meet the strategy’s growth criteria -- consensus estimates for Fiscal Year 2028 show earnings per share (EPS) growth of 8% and low single-digit sales growth."

Apple Inc. (NASDAQ:AAPL) is in 8th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 166 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the third quarter, which was 156 in the previous quarter. Apple Inc. (NASDAQ:AAPL) reported revenue of $102.5 billion in the September quarter, reflecting an 8% year-over-year increase. While we acknowledge the potential of Apple Inc. (NASDAQ:AAPL) 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 Apple Inc. (NASDAQ:AAPL) and shared the list of stocks Jim Cramer discussed. In Q3 2025, Apple Inc. (NASDAQ:AAPL) detracted from Baron Opportunity Fund's performance due to its lack of ownership in the stock. In addition, please check out our hedge fund investor letters Q3 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.