Brown Advisory Large Cap sustainable Value

What it bought and sold

• ExitedNexstar Media Group, Inc.Mar 2026

  we took advantage of that opportunity to exit our position.

• New positionHoneywell International Inc.Mar 2026

  Early in the quarter we initiated a position in Honeywell International (HON), which is nearing the end of a multi-year simplification process.

• ExitedVersant Media Group, Inc. Class AMar 2026

  We exited the position shortly after receiving it.

• New positionMondelez International, Inc. Class AMar 2026

  Finally, we established a new position in Mondelez International (MDLZ), one of the global snacking leaders, after the company witnessed over a 700 basis points (bps) decline in its gross margin and 300 bps decline in its earnings before interest tax (EBIT) last year from cocoa inflation.

• AddedICON PlcMar 2026

  we used the weakness to add to our position.

• TrimmedCRH public limited companyMar 2026

  We trimmed our large position in CRH earlier in the year but still view it as a core position within the sector.

• New positionBecton, Dickinson and CompanyMar 2026

  We also established a new position in Becton, Dickinson, & Co (BDX) ahead of the company combining its Biosciences & Diagnostics business with Waters Corporation (WAT) through a Reverse Morris Trust.

• ExitedEquitable Holdings, Inc.Mar 2026

  We eliminated our position in Equitable Holdings (EQH) near the end of the quarter due to a capital allocation decision that violated our thesis.

• ExitedWaters CorporationMar 2026

  We sold our shares in WAT and used the proceeds to add to our existing position in BDX.

• ExitedHologic, Inc.Mar 2026

  We sold our position in Hologic (HOLX) as it approached the closure of its acquisition by Blackstone and TPG Inc.

• AddedIcon PlcMar 2026

  we used the weakness in the stock to add to our position.

Also held

• Applied Materials, Inc.
• Weatherford International plc
• TD SYNNEX Corporation
• Constellation Energy Corporation
• Willis Towers Watson Public Limited Company
• Wyndham Hotels & Resorts, Inc.
• T-Mobile US, Inc.
• SLB Limited
• Comcast Corporation
• Dell Technologies, Inc. Class C

Its investment theses

• Becton, Dickinson and CompanyMar 2026Becton, Dickinson has a dominant consumables franchise, high market share, and an attractive valuation after the divestiture.
• Honeywell International Inc.Mar 2026Honeywell offers a simplification story, sustainability-linked cash flow, and a compelling valuation.
• Mondelez International, Inc. Class AMar 2026Mondelez combines leading snacking market share, resilient cash flow, and a potential earnings acceleration from lower cocoa costs.
• HologicSep 2025Hologic (HOLX) is a leading global diagnostics company specializing in women's health, particularly in breast imaging and molecular diagnostics, with a strong focus on consumables and service contracts that drive robust margins and free cash flow.
• Smurfit WestrockSep 2025Smurfit Westrock is a leading packaging company undergoing a transformation that presents significant value opportunities due to its management's operational discipline, the potential for "self help," and a strong focus on sustainability amidst industry changes.
• Equitable HoldingsMar 2025Equitable Holdings (EQH) is positioning itself as a leading player in insurance and asset management, with a focus on sustainable cash flow generation and shareholder returns, while benefitting from a stronger earnings profile through increased ownership in AllianceBernstein.
• ICON PlcMar 2025ICON Plc is a leading contract research organization benefiting from sustainable cash flow and attractive valuation despite recent industry pressures.
• LKQ CorporationMar 2025LKQ Corporation is an attractive investment opportunity in a leading vehicle parts distribution business undergoing a transformation, focusing on sustainable cash flow through salvage processes and returning significant capital to shareholders.

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