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 Darling Ingredients Inc. (NYSE:DAR). Darling Ingredients Inc. (NYSE:DAR) is a leader in converting edible and inedible bio-nutrients to sustainable natural ingredients. On August 19, 2026, Darling Ingredients Inc. (NYSE:DAR) closed at $66.94 per share, reflecting a market capitalization of $10.56 billion. Darling Ingredients Inc. (NYSE:DAR) posted a one-month return of 5.58%, while its shares gained 110.37% over the past 52 weeks.
BBH Select Mid Cap ETF stated the following regarding Darling Ingredients Inc. (NYSE:DAR) in its Q2 2026 investor letter:
"The Fund's largest detractors to performance in the quarter were Guidewire Software Inc. (Guidewire) and Darling Ingredients Inc. (NYSE:DAR). Darling returned -11.7% during the quarter, ending with a weight of 4.0% after trimming the position early in the quarter on strength. Darling is the global leader in rendering animal byproducts and used cooking oil into fats and proteins for a variety of end uses, including animal feed, specialty health products, and renewable diesel through a joint venture with Valero called Diamond Green Diesel (DGD). Darling reported stronger than expected first quarter 2026 results, driven by better performance in the core Feed and Food segments, as well as stronger margins at DGD. Notwithstanding lower oil prices at quarter- end, Darling is extremely well-positioned for significantly improved profitability, with long-awaited certainty on government mandates finalized at the end of first quarter 2026, which will support both margins at DGD and higher Feed prices. These end markets are further benefiting from higher prices as a result of the recent conflict in the Middle East. The full benefit of recent development will start to be apparent in second quarter 2026."

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