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 Costco Wholesale Corporation (NASDAQ:COST). Costco Wholesale Corporation (NASDAQ:COST) is a leading US based multinational retailer specializes in the operation of membership-only warehouses. On July 2, 2026, Costco Wholesale Corporation (NASDAQ:COST) closed at $951.67 per share, reflecting a market capitalization of $422.05 billion. Costco Wholesale Corporation (NASDAQ:COST) posted a one-month return of -2.08%, and its shares lost 3.58% over the past 52 weeks.
Brown Advisory Large-Cap Growth Strategy stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its Q1 2026 investor letter:
“Costco Wholesale Corporation (NASDAQ:COST) was a top contributor during the quarter, supported by continued share gains in retail and industry-leading traffic growth. The company continues to benefit from its strong value proposition, driving consistent performance across both in-store and e-commerce channels. In a more uncertain consumer environment, investors have gravitated toward businesses with stable demand and durable growth, further supporting sentiment around the stock.”
Costco Wholesale Corporation (NASDAQ:COST) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 107 hedge fund portfolios held Costco Wholesale Corporation (NASDAQ:COST) at the end of the first quarter, up from 106 in the previous quarter. While we acknowledge the risk and potential of Costco Wholesale Corporation (NASDAQ:COST) 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 Costco Wholesale Corporation (NASDAQ:COST) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Costco Wholesale Corporation (NASDAQ:COST) and shared the list of best stocks to buy according to billionaire Richard Chilton. 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.
