Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTAttiya ZainibMon, August 10, 2026 at 3:09 PM GMT+2 4 min readBrown Advisory, an investment management company, released its "Brown Advisory Global Leaders Strategy" for the second quarter of 2026 investor letter. A copy of the letter can be downloaded here. Brown Advisory's Global Leaders Strategy delivered a net return of 4.6% in the second quarter of 2026, underperforming its benchmark, the MSCI ACWI Net Index, which returned 14.9%. The relative weakness was driven mainly by underexposure to semiconductors and technology hardware, while software, cloud services, and financial holdings also weighed on performance. The strategy benefited from holdings in areas tied to AI infrastructure, with semiconductor exposure and AI-related investments gaining from strong demand. Looking ahead, Brown Advisory sees an attractive environment for active stock-picking, with its ready-to-buy list at its highest level since the COVID-19 period and an estimated 12%-13% average five-year base-case IRR, while maintaining a focus on quality, valuation discipline, and long-term cash-flow generation. In addition, please check the Fund's top five holdings to know its best picks in 2026.In its second-quarter 2026 investor letter, Brown Advisory Global Leaders Strategy Fund highlighted stocks like Zoetis Inc. (NYSE:ZTS). Zoetis Inc. (NYSE:ZTS) is a global animal health company developing medicines, vaccines, and diagnostic products for livestock and companion animals. The one-month return of Zoetis Inc. (NYSE:ZTS) was -3.62% while its shares traded between $71.47 and $160.48 over the last 52 weeks. On August 7, 2026, Zoetis Inc. (NYSE:ZTS) stock closed at approximately $77.27 per share, with a market capitalization of about $30.02 billion.Brown Advisory Global Leaders Strategy Fund stated the following regarding Zoetis Inc. (NYSE:ZTS) in its Q2 2026 investor letter:We exited Zoetis Inc. (NYSE:ZTS) in May. We were attracted to the investment due to its position as the largest pure-play animal health company, benefiting from significant scale in R&D and as the highest-quality marketer to veterinarians and livestock producers, which increases switching costs. The company had further shifted its business mix meaningfully toward a higher and more profitable contribution from its companion animal segment. Our investment in Zoetis began to face increased growth headwinds in 2025 due to incremental competition in its industry-leading dermatology and Simparica Trio products. Additionally, the launch of Librela—the first available therapy for osteoarthritis pain in dogs—underperformed our expectations. Furthermore, we have observed increased competition across Zoetis's main franchises and, most recently, Zoetis also saw generic competition in therapeutic categories. Several concerns have emerged: (1) despite the high barriers to entry in animal health, competition in the sector has intensified during our ownership; (2) we do not have enough visibility on their pipeline to assess the path of future contribution at this point; and (3) we misinterpreted Zoetis's ability to contribute to the portfolio from a deferrable demand perspective, as it did not deliver the defensiveness we expected. As such, we see our investment thesis in Zoetis as broken and have fully exited the position.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info