Brown Advisory, an investment management company, released its “Brown Advisory Global Leaders Strategy” for the second quarter of 2026 investor letter. A copy of the letter can be downloaded here. Brown Advisory’s Global Leaders Strategy delivered a net return of 4.6% in the second quarter of 2026, underperforming its benchmark, the MSCI ACWI Net Index, which returned 14.9%. The relative weakness was driven mainly by underexposure to semiconductors and technology hardware, while software, cloud services, and financial holdings also weighed on performance. The strategy benefited from holdings in areas tied to AI infrastructure, with semiconductor exposure and AI-related investments gaining from strong demand. Looking ahead, Brown Advisory sees an attractive environment for active stock-picking, with its ready-to-buy list at its highest level since the COVID-19 period and an estimated 12%-13% average five-year base-case IRR, while maintaining a focus on quality, valuation discipline, and long-term cash-flow generation. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Brown Advisory Global Leaders Strategy Fund highlighted stocks like Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s leading contract chip manufacturer, producing advanced semiconductors for major global technology companies. The one-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was -0.37% while its shares traded between $223.70 and $479.00 over the last 52 weeks. On August 7, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at approximately $418.20 per share, with a market capitalization of about $2.18 trillion.
Brown Advisory Global Leaders Strategy Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q2 2026 investor letter:
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) benefits from its leadership in advanced node manufacturing, which allows it to gain market share and benefit from strong demand for high-performance computing and AI infrastructure. As we have moved through 2026, TSMC has continued to raise its capex plans, supported in part by demand from Nvidia and other leading AI customers.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is in 6th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 234 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the first quarter, which was 224 in the previous quarter. While we acknowledge the risk and potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) 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 Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and shared Sands Capital’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.
