Brown Advisory Mid-Cap Growth Strategy Sold Figma (FIG) on Strength

Brown Advisory, an investment management company, released its “Brown Advisory Mid-Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed its benchmark, the Russell Midcap® Growth Index, in the third quarter of 2025, which increased approximately 3%.  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 Mid-Cap Growth Strategy highlighted stocks such as Figma, Inc. (NYSE:FIG). Figma, Inc. (NYSE:FIG) is a leading technology company that develops a browser-based tool for designing user interfaces. The one-month return of Figma, Inc. (NYSE:FIG) was 11.59%, and its shares lost 35.87% of their value over the last three months. On December 17, 2025, Figma, Inc. (NYSE:FIG) stock closed at $37.36 per share, with a market capitalization of $18.56 billion.

Brown Advisory Mid-Cap Growth Strategy stated the following regarding Figma, Inc. (NYSE:FIG) in its third quarter 2025 investor letter:

"Figma, Inc. (NYSE:FIG), a newly public company and one of the leaders in user experience design software, has built a large and engaged user community. The company’s expansion into tailored SKUs for different user types has driven strong, sustained growth. Shares rose more than 150% above the IPO price—well beyond our estimate of intrinsic value—and we exited the position."

Figma, Inc. (NYSE:FIG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Figma, Inc. (NYSE:FIG) at the end of the third quarter, which was 0 in the previous quarter. Figma, Inc. (NYSE:FIG) delivered revenue of $274 million in Q3 2025, marking a 38% increase from Q3 2024. While we acknowledge the potential of Figma, Inc. (NYSE:FIG) 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 Figma, Inc. (NYSE:FIG) and shared Baron Fifth Avenue Growth Fund's views on the company. 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.