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Progressive-linked strategy lags as AI bets lift returns
Brown Advisory Global Leaders Strategy gained 4.6% in the second quarter of 2026, versus 14.9% for the MSCI ACWI Net Index.
Brown Advisory’s Global Leaders Strategy, highlighted in a second-quarter 2026 investor letter, posted a net return of 4.6% for the quarter, but underperformed its benchmark, the MSCI ACWI Net Index, which returned 14.9%. According to the letter, the relative weakness was driven largely by underexposure to semiconductors and technology hardware, while software, cloud services, and financial holdings also weighed on performance.
The strategy’s AI-focused positioning helped support results, with holdings tied to AI infrastructure benefiting as semiconductor and other AI-related investments gained from strong demand. Looking ahead, Brown Advisory said it sees an “attractive environment” for active stock picking, citing its ready-to-buy list at the highest level since the COVID-19 period and an estimated 12% to 13% average five-year base-case IRR.
The investor letter also points to The Progressive Corporation as one of its top holdings for 2026. Progressive is described as a property and casualty insurer offering auto, home, and commercial insurance, with the article noting that the company’s shares closed around $215.34 on August 7, 2026, and that the fund initiated a position in June.
In addition, the article says Progressive is a leading auto insurance carrier and a dominant US P&C personal insurer, attributing its scale to a low-cost offering, data-driven customer segmentation, and the ability to reinvest in product enhancements and competitive pricing, supporting market share gains across hard and soft insurance pricing environments.