Brown Advisory , an investment management company, released its "Mid-Cap Growth Strategy" Q3 2026 investor letter. A copy of the letter can be downloaded here . The strategy outperformed its benchmark in the third quarter of 2026, as sharp market volatility and a reversal in investor sentiment toward artificial intelligence infrastructure created opportunities for active stock selection. The Strategy returned -2.7% net of fees, compared with a 5.8% decline in the Russell Midcap Growth Index, while its year-to-date net return reached 4.0%, versus a 1.0% gain for the benchmark. Performance benefited from stronger relative results in Industrials and Information Technology, where selected holdings in AI-related data infrastructure, software, and communications performed well despite weakness across parts of the market. However, several AI-hardware and infrastructure investments declined as investors reassessed valuations and the pace and financing of AI capital expenditure. The managers made substantial portfolio adjustments, exiting ten positions and initiating seven new ones, while maintaining a focus on businesses with durable competitive advantages and long-term growth potential. Industrials became the portfolio's largest overweight, while Information Technology rose to approximately 34% of assets. Looking ahead, Brown Advisory remains focused on identifying high-quality mid-cap companies capable of compounding earnings over time, while treating share-price volatility as a potential source of opportunity and seeking attractive risk-adjusted returns across a full market cycle. In addition, please check the Fund's top five holdings to know its best picks in 2026.
In its third-quarter 2026 investor letter, Brown Advisory Mid-Cap Growth Strategy highlighted Everpure, Inc. (NYSE: P ). The strategy discussed the company's expanding opportunity in AI infrastructure and data management. Everpure, Inc. (NYSE:P), formerly known as Pure Storage, attracted attention after winning another major hyperscaler customer and outlining fiscal 2028 targets above Wall Street expectations. The one-month return of Everpure, Inc. (NYSE:P) was 14.28%, while its shares traded between $124.01 and $78 over the last 52 weeks. On October 20, 2026, Everpure, Inc. (NYSE:P) stock closed at approximately $127.09 per share, with a market capitalization of about $42.16 billion.
Brown Advisory Mid-Cap Growth Strategy stated the following regarding Everpure, Inc. (NYSE:P) in its Q3 2026 investor letter:
The strategy highlighted the company's expanding business opportunity, including its growing role in hyperscale data infrastructure. Winning another major hyperscaler customer strengthened the growth outlook, while fiscal 2028 targets exceeded Wall Street expectations. These developments supported the strategy's interest in businesses positioned to benefit from sustained AI infrastructure investment.
Everpure, Inc. (NYSE:P) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . As per our database, 51 hedge fund portfolios held Everpure, Inc. (NYSE:P) at the end of the second quarter, compared with 47 in the previous quarter. While we acknowledge the risk and potential of Everpure, Inc. (NYSE:P) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .
In another article , we covered Everpure, Inc. (NYSE:P) and shared Jim Cramer's views on the company. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.
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This article is originally published at Insider Monkey .
