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 The Progressive Corporation (NYSE:PGR). The Progressive Corporation (NYSE:PGR) is an insurance company offering auto, home, and commercial insurance products to consumers and businesses. The one-month return of The Progressive Corporation (NYSE:PGR) was -8.17% while its shares traded between $189.20 and $254.93 over the last 52 weeks. On August 7, 2026, The Progressive Corporation (NYSE:PGR) stock closed at approximately $215.34 per share, with a market capitalization of about $125.19 billion.
Brown Advisory Global Leaders Strategy Fund stated the following regarding The Progressive Corporation (NYSE:PGR) in its Q2 2026 investor letter:
We initiated a position in Progressive Corporation (NYSE:PGR) in June. Progressive is a dominant property and casualty (P&C) personal insurance carrier in the US and the leading auto insurance carrier. Its scale advantage is driven by its' low-cost offering to customers, which allows it to reinvest in product enhancements, offer more competitive prices, and benefit from marketing scale. In addition, Progressive's ability to leverage data for customer segmentation has resulted in consistent market share gains, in both hard and soft insurance pricing markets, and consistent profitability. The currently soft insurance market, characterized by generally lower premium levels and greater availability of insurance, has provided us with an attractive entry point to purchase the industry leader at a double-digit, five-year IRR. We expect the company to gain market share, drive 10% FCF growth, and offer a non-deferrable demand profile within the Strategy.

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