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 Fair Isaac Corporation (NYSE:FICO). Fair Isaac Corporation (NYSE:FICO) is a technology company that develops analytic, software, and digital decision-making technologies and services. On July 2, 2026, Fair Isaac Corporation (NYSE:FICO) closed at $1,270.83 per share, reflecting a market capitalization of $29.47 billion. Fair Isaac Corporation (NYSE:FICO) posted a one-month return of 11.74%, while its shares lost 31.51% over the past 52 weeks.
Brown Advisory Large-Cap Growth Strategy stated the following regarding Fair Isaac Corporation (NYSE:FICO) in its Q1 2026 investor letter:
“Fair Isaac Corporation (NYSE:FICO) was a detractor during the quarter as mortgage rates moved back above 6% and the credit bureaus introduced lower-priced alternatives to the traditional FICO score. These developments weighed on sentiment and near-term growth expectations within the mortgage segment. While FICO remains a leading provider of credit scoring solutions, the evolving backdrop reduced visibility.
We exited our position in Fair Isaac Corporation (FICO) following a period of heightened volatility and increasing uncertainty around its mortgage-related business. Rising interest rates, evolving competitive dynamics, and pricing pressure from alternative scoring models reduced near-term visibility. While FICO remains a high-quality franchise, the backdrop has been further complicated by ongoing political and regulatory uncertainty, which contributed to increased volatility and investor frustration.”
Fair Isaac Corporation (NYSE:FICO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 60 hedge fund portfolios held Fair Isaac Corporation (NYSE:FICO) at the end of the first quarter, compared to 81 in the previous quarter. Fair Isaac Corporation (NYSE:FICO) announced second-quarter fiscal 2026 revenue of $692 million, reflecting a 39% year-over-year growth. While we acknowledge the risk and potential of Fair Isaac Corporation (NYSE:FICO) 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 Fair Isaac Corporation (NYSE:FICO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Fair Isaac Corporation (NYSE:FICO) and shared the list of most profitable software stocks to buy. 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.
