Here’s Why The Brown Capital Management Small Company Fund Sold Tandem Diabetes Care (TNDM)

2 hours ago 2

Soumya Eswaran

Mon, February 23, 2026 astatine 8:19 AM CST 3 min read

Brown Capital Management, an concern absorption company, released its 4th fourth 2025 capitalist missive for “The Brown Capital Management Small Company Fund”. A transcript of the missive tin beryllium downloaded here. In the 4th fourth of 2025, the Small Company Fund (Investor shares) fell 1.50%, down the Russell 2000® Growth index's 1.22% gain. Real property and telecommunications businesses led the benchmark's show for the quarter. The Fund was down 11.46% successful 2025, importantly lagging the Index’s 13.01% return. The firm’s concern decisions are driven by institution fundamentals, and its holdings performed good successful presumption of gross and net maturation successful 2025. Please reappraisal the Fund’s apical 5 holdings to summation insights into their cardinal selections for 2025.

In its fourth-quarter 2025 capitalist letter, The Brown Capital Management Small Company Fund highlighted stocks similar Tandem Diabetes Care, Inc. (NASDAQ:TNDM). Headquartered successful San Diego, California, Tandem Diabetes Care, Inc. (NASDAQ:TNDM) offers exertion solutions for radical surviving with diabetes. On February 20, 2026, Tandem Diabetes Care, Inc. (NASDAQ:TNDM) banal closed astatine $24.57 per share. One-month instrumentality of Tandem Diabetes Care, Inc. (NASDAQ:TNDM) was 21.63%, and its shares mislaid 24.77% implicit the past 52 weeks. Tandem Diabetes Care, Inc. (NASDAQ:TNDM) has a marketplace capitalization of $1.666 billion.

The Brown Capital Management Small Company Fund stated the pursuing regarding Tandem Diabetes Care, Inc. (NASDAQ:TNDM) successful its 4th fourth 2025 capitalist letter:

"In the 4th fourth of 2025, we deleted 2 companies from the portfolio—PROS Holdings (PRO) and Tandem Diabetes Care, Inc. (NASDAQ:TNDM). Tandem Diabetes Care develops and manufactures insulin pumps that assistance patients negociate their diabetes. The company’s insulin pumps person a much modern idiosyncratic interface, broader capabilities, and easier way to bundle upgrades compared to astir different insulin pumps connected the market. Tandem, successful concern with Continuous Glucose Monitoring (CGMs) providers, has 1 of the astir precocious Automated Insulin Delivery (AID) systems connected the market. Tandem’s gross maturation has not been arsenic beardown arsenic we had expected successful 2025, owed to expanding contention and greater saturation of insulin pump usage among Type 1 diabetes patients. The institution remained unprofitable during 2025 and has not followed our expected way towards profitability. Given the poorer gross and profitability picture, we see Tandem a mistake and sold it retired of the portfolio."

Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge money portfolios held Tandem Diabetes Care, Inc. (NASDAQ:TNDM) astatine the extremity of the 4th quarter, up from 26 successful the erstwhile quarter. In Q4 2025, Tandem Diabetes Care, Inc. (NASDAQ:TNDM) reported worldwide income of $290 million, representing a 15% year-over-year growth. While we admit the imaginable of Tandem Diabetes Care, Inc. (NASDAQ:TNDM) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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