Brown Advisory's Large-Cap Growth Strategy exited its entire position in Veralto Corp (VLTO) during Q1 2026, citing limited near-term growth prospects. The exit coincided with Veralto's removal from several Russell growth indexes, which triggered mechanical selling by index-tracking funds and impacted trading liquidity. Furthermore, the company increased its debt load by issuing $725 million in senior notes, even as market analysis suggests the stock remains 14.8% undervalued relative to its fair value.
