Brown Brothers Harriman, an investment management company, released its Q2 2026 investor letter for the “BBH Select Mid Cap ETF”.
A copy of the letter can be downloaded here
In the quarter, the fund increased 9.7% on a total return basis compared to the Russell Midcap Index’s 13.8% return. Artificial intelligence is a key factor influencing market performance, with high-valuation and high-beta companies consistently outperforming others. The portfolio saw gains from being overweight in technology and industrials but missed opportunities due to underweighting more cyclical stocks.
At the end of Q2 2026, the Fund held positions in 27 companies, with 48% of assets concentrated in the top 10 holdings. The Fund’s strategy focuses on companies priced below intrinsic value to ensure a margin of safety, rather than on whether valuations are high or low. Additionally, reviewing the Fund’s top five holdings could help identify its best picks for 2026.