Brown Advisory, an investment management company, released its “Brown Large-Cap Growth Strategy” for the first-quarter 2026 investor letter. A copy of the letter is available to download here. The Brown Advisory Large-Cap Growth Strategy experienced a decline in the first quarter of 2026, modestly trailing the Russell 1000 Growth Index. Despite negative absolute returns amidst volatility, relative performance improved significantly as the quarter progressed. Initial pressures stemmed from weaknesses in the software sector, affected by concerns over AI disrupting traditional models. Conversely, sectors like Industrials and Consumer Discretionary positively contributed to performance, while Information Technology and Health Care were the largest detractors. The strategy’s ability to outperform in a down market indicates the quality of holdings. As market leadership broadens, the firm’s focus remains on maintaining a diversified portfolio of high-quality growth companies, aiming for strong long-term results. Please review the Strategy’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Brown Advisory Large-Cap Growth Strategy highlighted Netflix, Inc. (NASDAQ:NFLX). Netflix, Inc. (NASDAQ:NFLX) is a leading subscription-based streaming entertainment platform. On July 1, 2026, Netflix, Inc. (NASDAQ:NFLX) closed at $74.19 per share. One-month return of Netflix, Inc. (NASDAQ:NFLX) was -9.04%, and its shares lost 42.81% over the past 52 weeks. Netflix, Inc. (NASDAQ:NFLX) has a market capitalization of $312.4 billion.
Brown Advisory Large-Cap Growth Strategy stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q1 2026 investor letter:
“Netflix, Inc. (NASDAQ:NFLX): Operates as an online video streaming platform. Netflix, Inc. (NFLX) outperformed during the period as investor concerns around a potential acquisition of Warner Bros. Discovery subsided. Management’s decision to walk away from the transaction reinforced its disciplined approach to capital allocation and reduced concerns around leverage and integration risk. As a result, focus shifted back to the company’s core fundamentals, including strong engagement and improving monetization initiatives.”
Netflix, Inc. (NASDAQ:NFLX) ranks 13th on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 144 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the first quarter, compared to 146 in the previous quarter. While we acknowledge the potential of Netflix, Inc. (NASDAQ:NFLX) 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.
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