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 Veeva Systems Inc. (NYSE:VEEV). Veeva Systems Inc. (NYSE:VEEV) is a technology company that provides a cloud-based software platform for the life sciences industry. On July 2, 2026, Veeva Systems Inc. (NYSE:VEEV) closed at $192.74 per share, reflecting a market capitalization of $31.31 billion. Veeva Systems Inc. (NYSE:VEEV) posted a one-month return of 11.66%, while its shares gained 32.20% over the past 52 weeks.
Brown Advisory Large-Cap Growth Strategy stated the following regarding Veeva Systems Inc. (NYSE:VEEV) in its Q1 2026 investor letter:
“While we believe Veeva Systems Inc. (NYSE:VEEV) remains well positioned within life sciences software, increasing uncertainty around competitive dynamics— particularly in CRM following Salesforce’s push into the vertical—as well as the role of vertical software in an evolving AI landscape weighed on near term visibility. Given this backdrop, we chose to exit the position and invest the proceeds into Alnylam Pharmaceuticals.”
Veeva Systems Inc. (NYSE:VEEV) 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 Veeva Systems Inc. (NYSE:VEEV) at the end of the first quarter, compared to 75 in the previous quarter. While we acknowledge the risk and potential of Veeva Systems Inc. (NYSE:VEEV) 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 Veeva Systems Inc. (NYSE:VEEV) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Veeva Systems Inc. (NYSE:VEEV) and shared the list of best SaaS stocks to buy according to Reddit. 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.
