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 CoStar Group, Inc. (NASDAQ:CSGP). CoStar Group, Inc. (NASDAQ:CSGP) is an information, analytics, and online marketplace services provider for commercial and residential property markets. On July 2, 2026, CoStar Group, Inc. (NASDAQ:CSGP) closed at $30.00 per share. One-month return of CoStar Group, Inc. (NASDAQ:CSGP) was -11.48%, and its shares lost 63.47% over the past 52 weeks. CoStar Group, Inc. (NASDAQ:CSGP) has a market capitalization of $12.25 billion.
Brown Advisory Large-Cap Growth Strategy stated the following regarding CoStar Group, Inc. (NASDAQ:CSGP) in its Q1 2026 investor letter:
“CoStar Group, Inc. (NASDAQ:CSGP) was eliminated from the portfolio during the quarter as our conviction in the near-term outlook declined. While the company’s core business remains strong, the ramp of its residential platform has taken longer and required greater investment than expected. Combined with increasing strategic uncertainty and a poor environment for mortgages, we chose to reallocate capital to higher conviction opportunities. Proceeds were redeployed into Arthur J. Gallagher & Co.”
CoStar Group, Inc. (NASDAQ:CSGP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 62 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of the first quarter, up from 58 in the previous quarter. While we acknowledge the risk and potential of CoStar Group, Inc. (NASDAQ:CSGP) 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 CoStar Group, Inc. (NASDAQ:CSGP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CoStar Group, Inc. (NASDAQ:CSGP) and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s insights on the company. 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.
