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Brown Advisory exits Autodesk, citing AI substitution risk
The firm’s Global Leaders Strategy returned 4.6% in Q2 2026 versus 14.9% for the MSCI ACWI Net Index.
Brown Advisory, an investment management company, said it exited Autodesk in June as part of its Q2 2026 investor letter for the Brown Advisory Global Leaders Strategy. The firm pointed to “substitution risk” for Autodesk, focusing on how “world models” could replace large parts of the 3D creation stack.
Brown Advisory also cited evidence of increased investment in engineering-grade physical models, noting that physical-AI startups such as Jeff Bezos’ Prometheus have been investing heavily in that area. The company linked its review of Autodesk to concerns that AI systems could change demand for design and engineering software used across architecture, construction, manufacturing, and media.
In the same Q2 2026 update, Brown Advisory reported that the strategy delivered a net return of 4.6% for the quarter, underperforming its benchmark, the MSCI ACWI Net Index, which returned 14.9%. Brown Advisory said relative weakness was mainly driven by underexposure to semiconductors and technology hardware, while software, cloud services, and financial holdings also weighed on performance.
Looking ahead, the firm said it sees an environment supportive of active stock picking, with its “ready-to-buy list” at its highest level since the COVID-19 period and an estimated 12% to 13% average five-year base-case IRR, while continuing to emphasize quality, valuation discipline, and long-term cash-flow generation.