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Orbis Investment Management, an investment management company, released its Q2 2026 investor letter for "Orbis Global Equity Strategy". The letter can be downloaded here. In the first half of 2026, the Global Equity Strategy returned 19.9%, surpassing the MSCI All Country World Index by 7.8%. The market faced narrow breadth in the quarter. The strategy focuses on AI investments categorized into four groups: "Core" (direct exposure), "Enablers" (supporting businesses), "AI Powered" (companies enhanced by AI), and "Overlooked" (misjudged resilient companies). The firm emphasizes maintaining strong but flexible convictions in a fluctuating market, prioritizing disciplined, evidence-based investment over emotional decision-making. Also, check the fund's top five holdings to see its best picks in 2026.

In its Q2 2026 investor letter, Orbis Global Equity Strategy highlighted Brown & Brown, Inc. (NYSE:BRO). Brown & Brown, Inc. (NYSE:BRO) is a leading insurance brokerage firm operating through Retail and Specialty Distribution segments. On August 24, 2026, Brown & Brown, Inc. (NYSE:BRO) closed at $74.62 per share, reflecting a market capitalization of $24.97 billion. Brown & Brown, Inc. (NYSE:BRO) posted a one‑month return of 1.32%, while its shares lost 22.31% over the past 52 weeks.

Orbis Global Equity Strategy stated the following regarding Brown & Brown, Inc. (NYSE:BRO) in its Q2 2026 investor letter:

"The biggest winners have been concentrated in AI. But not all AI exposure is equal. We frame ours in four groups. The first is the "Core": direct exposure through companies like Samsung Electronics, Taiwan Semiconductor, and SK Square. The second is "Enablers": the businesses providing the power, materials, and real estate that hyperscalers need to operate. The third is AI "Powered": companies where AI accelerates an already compelling model, like Alphabet. The fourth is the "Overlooked": resilient businesses the market has mispriced as AI casualties. The first three are widely understood. The fourth is where we believe the market is most wrong, and where we are hunting.

Take insurance brokerage. Brown & Brown, Inc. (NYSE:BRO) and Ryan Specialty are brokers: they sit between companies and insurers, matching clients to the right coverage and placing it for a fee, without carrying the risk themselves. Both are priced as AI casualties. Two fears weigh on the stocks: a softening pricing cycle and AI disintermediation. The pricing cycle is already in the price. On AI, we disagree. AI may automate commodity cover like personal auto, but that is under 5% of Brown & Brown's book. The rest is commercial and specialty insurance, where the broker exercises judgement and answers for a denied claim. It is a people business, and Brown & Brown has spent more than eighty years serving mid sized companies that lack the in-house expertise in insurance."

Brown & Brown, Inc. (NYSE:BRO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 44 hedge fund portfolios held Brown & Brown, Inc. (NYSE:BRO) at the end of the second quarter, compared to 42 in the previous quarter. While we acknowledge the potential of Brown & Brown, Inc. (NYSE:BRO) 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.

Our coverage of Brown & Brown, Inc. (NYSE:BRO) in another article included commentary from Artisan Partners, another investment advisor. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.