Brown Brothers Harriman, an investment management company, released its Q2 2026 investor letter for the "BBH Select Mid Cap ETF". A copy of the letter can be downloaded here. In the quarter, the fund increased 9.7% on a total return basis compared to the Russell Midcap Index's 13.8% return. Artificial intelligence is a key factor influencing market performance, with high-valuation and high-beta companies consistently outperforming others. The portfolio saw gains from being overweight in technology and industrials but missed opportunities due to underweighting more cyclical stocks. At the end of Q2 2026, the Fund held positions in 27 companies, with 48% of ******* ets concentrated in the top 10 holdings. The Fund's strategy focuses on companies priced below intrinsic value to ensure a margin of safety, rather than on whether valuations are high or low. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.
In its Q2 2026 investor letter, BBH Select Mid Cap ETF highlighted Arista Networks, Inc. (NYSE:ANET) as one of its leading performance contributors. Arista Networks, Inc. (NYSE:ANET) is a high-speed switching and cloud networking solutions provider for hyperscale users. On August 19, 2026, Arista Networks, Inc. (NYSE:ANET) closed at $186.45 per share, reflecting a market capitalization of $235.15 billion. Arista Networks, Inc. (NYSE:ANET) posted a one‑month return of 5.94%, while its shares gained 41.71% over the past 52 weeks.
BBH Select Mid Cap ETF stated the following regarding Arista Networks, Inc. (NYSE:ANET) in its Q2 2026 investor letter:
"For the quarter, the Fund's largest positive contributors were Entegris Inc. (Entegris) and Arista Networks, Inc. (NYSE:ANET), both clear beneficiaries of the AI infrastructure buildout. Arista returned 38.4% during the quarter, ending with a weight of 5.1%. Arista is the leading provider of data center switches to cloud network customers. Arista reported strong first quarter results with record revenue and free cash flow ahead of expectations, but guidance fell short of high expectations due to increasing supply chain short ages. In addition, extended customer acceptance cycles on new AI products have pushed a growing volume of contracted demand into deferred revenue ahead of recognition, temporarily understating reported revenue growth and creating some investor confusion. However, management subsequently clarified this dynamic, clearly delin eating 54% growth inclusive of deferred product revenue. Management also expressed confidence in the outlook for 2026 along with a constructive demand backdrop for 2027. Finally, rising component costs are an industry-wide challenge, but Arista's multiyear supply commitments and execution track record leave us confident in their ability to execute throughout the next several years. Gross margin guidance of 62% to 64% was maintained despite the rising input cost pressures. Management also continues to expect one or pos
In its Q2 2026 investor letter, BBH Select Mid Cap ETF highlighted Arista Networks, Inc. (NYSE:ANET) as one of its leading performance contributors. Arista Networks, Inc. (NYSE:ANET) is a high-speed switching and cloud networking solutions provider for hyperscale users. On August 19, 2026, Arista Networks, Inc. (NYSE:ANET) closed at $186.45 per share, reflecting a market capitalization of $235.15 billion. Arista Networks, Inc. (NYSE:ANET) posted a one‑month return of 5.94%, while its shares gained 41.71% over the past 52 weeks.
BBH Select Mid Cap ETF stated the following regarding Arista Networks, Inc. (NYSE:ANET) in its Q2 2026 investor letter:
"For the quarter, the Fund's largest positive contributors were Entegris Inc. (Entegris) and Arista Networks, Inc. (NYSE:ANET), both clear beneficiaries of the AI infrastructure buildout. Arista returned 38.4% during the quarter, ending with a weight of 5.1%. Arista is the leading provider of data center switches to cloud network customers. Arista reported strong first quarter results with record revenue and free cash flow ahead of expectations, but guidance fell short of high expectations due to increasing supply chain short ages. In addition, extended customer acceptance cycles on new AI products have pushed a growing volume of contracted demand into deferred revenue ahead of recognition, temporarily understating reported revenue growth and creating some investor confusion. However, management subsequently clarified this dynamic, clearly delin eating 54% growth inclusive of deferred product revenue. Management also expressed confidence in the outlook for 2026 along with a constructive demand backdrop for 2027. Finally, rising component costs are an industry-wide challenge, but Arista's multiyear supply commitments and execution track record leave us confident in their ability to execute throughout the next several years. Gross margin guidance of 62% to 64% was maintained despite the rising input cost pressures. Management also continues to expect one or pos
7 days ago
