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 DraftKings Inc. (NASDAQ:DKNG). DraftKings Inc. (NASDAQ:DKNG) is an American digital sports entertainment and gaming company. On July 2, 2026, DraftKings Inc. (NASDAQ:DKNG) closed at $25.89 per share. One-month return of DraftKings Inc. (NASDAQ:DKNG) was 3.85%, and its shares lost 36.50% over the past 52 weeks. DraftKings Inc. (NASDAQ:DKNG) has a market capitalization of $12.85 billion.
Brown Advisory Large-Cap Growth Strategy stated the following regarding DraftKings Inc. (NASDAQ:DKNG) in its Q1 2026 investor letter:
“DraftKings, Inc. Class A: Provides online fantasy sports and sports betting services. DraftKings Inc. (NASDAQ:DKNG) underperformed during the quarter amid continued negative news flow related to predicted market competition and the company’s own investment in that area. Investor sentiment has been pressured by increased volatility in handling growth, with even modest fluctuations interpreted as potential share loss.”
DraftKings Inc. (NASDAQ:DKNG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 61 hedge fund portfolios held DraftKings Inc. (NASDAQ:DKNG) at the end of the first quarter, compared to 72 in the previous quarter. While we acknowledge the risk and potential of DraftKings Inc. (NASDAQ:DKNG) 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 DraftKings Inc. (NASDAQ:DKNG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered DraftKings Inc. (NASDAQ:DKNG) and shared Janus Henderson Forty Fund’s views 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.
