Overview
- Brown Advisory disclosed its Q2 2026 investor letter showing the Global Leaders Strategy returned 4.6% in the quarter, trailing the MSCI ACWI Net Index’s 14.9%.
- The fund said it exited Unilever after an 11-year holding in May because, despite better execution and restructuring, the consumer-staples industry no longer meets its double-digit return target as moats have narrowed.
- Brown Advisory reported it sold Autodesk in June, citing higher substitution risk from world models for the 3D creation stack and rising competition from well-funded physical‑AI startups such as Prometheus.
- Proceeds from the exits were reallocated into new positions including Compass Group and initiations in Nvidia and Progressive, reflecting a move to boost exposure to AI infrastructure and select non-tech ideas.
- The letter says the firm’s ready‑to‑buy list is the largest since the COVID period and it estimates a 12%–13% five‑year base‑case IRR, while noting underweight exposure to semiconductors and tech hardware was a key reason for recent relative underperformance.