Brown Advisory, an investment management company, released its “Brown Advisory Global Leaders Strategy” for the first quarter of 2026 investor letter. A copy of the letter can be downloaded here. The strategy focused on delivering strong long-term performance by investing in a focused portfolio of companies that solve customer problems and provide good returns for shareholders. The first quarter of 2026 saw intensified challenges in capital markets, marked by a general weakness in risk assets and negative perceptions around the “AI loser” narrative, significantly impacting the portfolio’s concentrated holdings. Additionally, not being invested in the Energy sector contributed to the underperformance, accounting for about 20% of the Strategy’s relative decline year-to-date. Overall, the Strategy experienced an absolute correction of about 8.3% in the quarter, underperforming relative to the MSCI ACWI Net Return Index’s -3.2% return. In addition, please check the fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Brown Advisory Global Leaders Strategy highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a notable contributor. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s leading contract chip manufacturer, producing advanced semiconductors for major global technology companies. On June 2, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) closed at $446.69 per share. One-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 6.48%, and its shares gained 120.70% over the past 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a market capitalization of $2.317 trillion.
Brown Advisory Global Leaders Strategy stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2026 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM): Manufactures, distributes and tests integrated circuits, silicon wafers, diodes and related semiconductor components. Taiwan Semiconductor Manufacturing benefits from its leadership in leading node manufacturing which allows it to take market share and benefit from the strong demand environment for high-performance computing and AI infrastructure.”
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is in 6th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 234 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the first quarter, up from 224 in the previous quarter. In Q1 2026, Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) revenue increased 6.4% (in U.S. dollar terms) sequentially to $35.9 billion, modestly exceeding the first quarter guidance. While we acknowledge the potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. 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.
