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 The Trade Desk, Inc. (NASDAQ:TTD). The Trade Desk, Inc. (NASDAQ:TTD) is a leading technology company that specializes in digital advertising campaigns. On July 2, 2026, The Trade Desk, Inc. (NASDAQ:TTD) closed at $19.10 per share, reflecting a market capitalization of $8.98 billion. The Trade Desk, Inc. (NASDAQ:TTD) posted a one-month return of -4.26%, and its shares lost 74.33% over the past 52 weeks.
Brown Advisory Large-Cap Growth Strategy stated the following regarding The Trade Desk, Inc. (NASDAQ:TTD) in its Q1 2026 investor letter:
“We chose to exit The Trade Desk, Inc. (NASDAQ:TTD following a period of increased uncertainty driven by ongoing negative headlines and evolving competitive dynamics and swap into Spotify. While The Trade Desk remains a leader in digital advertising technology, recent developments have created near-term noise around customer engagement and demand trends. Given this backdrop, we prioritized opportunities with greater visibility.”
The Trade Desk, Inc. (NASDAQ:TTD) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 45 hedge fund portfolios held The Trade Desk, Inc. (NASDAQ:TTD) at the end of the first quarter, compared to 60 in the previous quarter. In Q1 2026, The Trade Desk, Inc. (NASDAQ:TTD) reported revenue of $689 million, representing 12% year-over-year increase. While we acknowledge the risk and potential of The Trade Desk, Inc. (NASDAQ:TTD) 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 The Trade Desk, Inc. (NASDAQ:TTD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered The Trade Desk, Inc. (NASDAQ:TTD) and shared the list of best growth stocks under $30 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.
