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 Axon Enterprise, Inc. (NASDAQ:AXON) as a newly established position. Axon Enterprise, Inc. (NASDAQ:AXON) is a public-safety technology company focused on developing connected law enforcement products and services, including taser, body camera, drone, and other hardware solutions. On July 1, 2026, Axon Enterprise, Inc. (NASDAQ:AXON) closed at $593.96 per share. One-month return of Axon Enterprise, Inc. (NASDAQ:AXON) was 15.74%, and its shares lost 25.33% over the past 52 weeks. Axon Enterprise, Inc. (NASDAQ:AXON) has a market capitalization of $47.87 billion.
Brown Advisory Large-Cap Growth Strategy stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its Q1 2026 investor letter:
“We initiated a position in Axon Enterprise, Inc. (NASDAQ:AXON). It is a leading provider of technology solutions to the public safety market, including TASER devices, body cameras, and a growing software platform. We initiated the position during a broader selloff in software, which provided an attractive entry point into a company benefiting from strong demand for mission-critical solutions. Axon Enterprises is increasingly generating revenue from AI-enabled products, including its DraftOne platform, which is gaining traction across customers. We believe the company’s integrated ecosystem and expanding product set positions it well for continued growth.”
Axon Enterprise, Inc. (NASDAQ:AXON) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 59 hedge fund portfolios held Axon Enterprise, Inc. (NASDAQ:AXON) at the end of the first quarter, compared to 68 in the previous quarter. In Q1 2026, Axon Enterprise, Inc. (NASDAQ:AXON) revenue grew 34% year-over-year to $807 million. While we acknowledge the risk and potential of Axon Enterprise, Inc. (NASDAQ:AXON) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Axon Enterprise, Inc. (NASDAQ:AXON) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Axon Enterprise, Inc. (NASDAQ:AXON) and shared the list of high-growth large-cap stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2026 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.
