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 Generac Holdings Inc. (NYSE:GNRC). Generac Holdings Inc. (NYSE:GNRC) is a leading energy technology products manufacturer, offering residential automatic standby generators, automatic transfer switch, air-cooled engine home standby generators, and liquid-cooled engine generators. On July 2, 2026, Generac Holdings Inc. (NYSE:GNRC) closed at $252.66 per share, reflecting a market capitalization of $14.87 billion. Generac Holdings Inc. (NYSE:GNRC) posted a one-month return of -3.40%, while its shares gained 65.82% over the past 52 weeks.
Brown Advisory Large-Cap Growth Strategy stated the following regarding Generac Holdings Inc. (NYSE:GNRC) in its Q1 2026 investor letter:
“Generac Holdings Inc. (NYSE:GNRC) traded higher during the quarter, rebounding from prior weakness tied to an unusually mild storm season in late 2025. Shares were supported by improving demand signals, including increased outage activity early in the year, as well as continued strength in Commercial & Industrial sales. Management also highlighted progress in building its data center-related backlog, reinforcing the company’s long-term growth opportunity. We believe Generac Holdings remains well positioned to benefit from growing demand for backup power solutions tied to infrastructure investment and data center expansion.”
Generac Holdings Inc. (NYSE:GNRC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 66 hedge fund portfolios held Generac Holdings Inc. (NYSE:GNRC) at the end of the first quarter, up from 56 in the previous quarter. While we acknowledge the risk and potential of Generac Holdings Inc. (NYSE:GNRC) 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 Generac Holdings Inc. (NYSE:GNRC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Generac Holdings Inc. (NYSE:GNRC) and shared a bullish thesis 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.
