Equities Fixed Income Hedge Funds Private Equity and Real Estate Sustainable Investing

Equities

We follow a philosophy that low-turnover, concentrated portfolios derived from sound bottom-up fundamental research provide an opportunity for attractive performance results over time. We have a culture and firm equity ownership structure that help us attract and retain professionals who share those beliefs, and we follow a repeatable investment process that helps us stay true to our philosophy.

We construct balanced portfolios for private clients, nonprofits and institutions depending on the needs of the client. We can be 100% open architecture, using third-party managers only, or we can put together a mix of internal and external strategies, whatever is in the client's best interest.

Fixed Income

We follow a philosophy that fixed income strategies built from a foundation of stability coupled with fundamental credit research can seek to generate alpha and control risk. We have a culture and firm equity ownership structure that attract and retain professionals who share those beliefs, and we follow a repeatable investment process that helps us stay true to our philosophy.

We construct balanced portfolios for private clients, nonprofits and institutions depending on the needs of the client. We can be 100% open architecture, using third-party managers only, or we can put together a mix of internal and external strategies, whatever is in the client's best interest. Meet the Investment Solutions Group.

Hedge Funds

Hedge Funds

The Investment Solutions Group is an investment-management team within Brown Advisory that specializes in asset allocation, manager selection, hedge funds and other alternative investment strategies. Dedicated to open-architecture solutions, our team has established a strong track record of identifying high-quality, third-party investment managers across the hedge fund, long-only and private equity universes. We leverage this expertise to help clients assemble portfolios that we believe best fit their needs and goals, offering clients a range of solutions from complete portfolio management to fulfillment of specific hedge-fund and alternative-asset mandates.

Founded in June 2002, the Investment Solutions Group now manages in excess of $3.4 billion for clients (data as of January 31, 2017) in a combination of managed accounts, advisory relationships and fund-of-fund offerings.

Private Equity and Real Estate

Private Equity and Real Estate

Brown Advisory has incorporated private equity and real estate investments in client portfolios since our founding. Today, we can provide that exposure in three distinct ways.

Feeder Funds and Multimanager Funds
We introduce clients to investment opportunities in early- and late-stage venture capital and buyout funds, as well as select real estate funds. We also construct these feeder funds into multimanager funds through our Private Equity Partners (PEP) and Real Estate Partners (REP) vehicles to make private equity investing as easy as possible for our clients.

Customized Private Equity Portfolios
For most clients, private equity is one component of a balanced portfolio that we manage. Other clients, however, come to us specifically for custom-built private equity and real estate portfolios.

For more information on private equity please click here or contact Jacob Hodes at 410-537-5315 or [email protected].

Sustainable Investing

Sustainable Investing Strategies

  • Multi-Manager Strategies
  • For clients seeking an open-architecture solution, we have access to several of the premier sustainable managers in the industry - all vetted by internal research.
  • Private Equity
  • Our private equity team is focused on evaluating the growing universe of private impact investments to identify standout opportunities that target various issues of particular concern to our clients. To date, we have placed assets in investments targeting a variety of impact themes such as community impact, microfinance, education technology, sustainable real estate, water initiatives and others.*
  • *Many alternative investments by regulation may only be sold to Accredited Investors (institutions with at least $5 million in assets) or Qualified Purchasers (institutions with at least $25 million in investments).

Customized Portfolios

This diverse assortment of solutions will meet many clients’ sustainability objectives; however, we understand the continued evolution of this space and seek to be able to react quickly to client needs.

For clients with unique missions, value-aligned investing programs, or who simply wish to ensure that they do not own certain controversial companies or have access to certain industries, we offer the following customized options:

Additional Screening: To the extent we have reliable data and can build rules into our compliance systems, we can add specific screens to a separate account to restrict companies (e.g. oil and gas providers) or industries (e.g. tobacco or weaponry).

Customized and Thematic Portfolios: Within a separate account, we can work together to solve for a sustainability need. From a universe of securities researched from both the bottom-up and for their ESG profile, we can assemble a custom portfolio of securities designed to meet many specific sustainable goals or outcomes.

KARINA FUNK AND DAVID POWELL PUBLISH “ESG AND THE STOCK PICKER’S DILEMMA” IN THE JOURNAL OF ENVIRONMENTAL INVESTING
 

New Haven, Ct. – On September 22, 2017, The Journal of Environmental Investing accepted “ESG and the Stock-Picker’s Dilemma”—an article authored by Karina Funk and David Powell, co-portfolio managers of Brown Advisory’s Large-Cap Sustainable Growth Strategy—for publication; it will appear in Volume 8, Issue 1.

At the heart of this discussion is a simple question: Can companies and investment managers who incorporate environmental, social and governance (ESG) considerations into their strategies deliver better performance?

The authors offer a clear takeaway in their article: Regardless of the quality and availability of ESG data, there is no substitute for fundamental research. “As active managers that are more focused on alpha than beta, even well-defined, statistically valid, and perfectly clairvoyant ESG metrics would not help much with our primary task: diving deep on individual companies and finding the select few that are poised to produce exceptional long-term business results.” Funk and Powell also offer suggestions for future research on company-specific sustainability data that may identify market-independent sources of risk and return (alpha), to complement the current literature that is focused on finding quantifiable ESG factors that are correlated with the risk and return of the broad market (beta).

Brown Advisory President and CEO Mike Hankin believes that Funk and Powell’s approach to the Large-Cap Sustainable Growth Strategy is ahead of the industry curve in terms of investing with an eye on sustainable factors. “Karina and David do a lot of proprietary, primary research on various companies’ sustainable business drivers, and they have repeatedly built investment hypotheses for individual stocks that hinge on sustainable growth drivers, well before the rest of the market catches up,” Hankin said.

Brown Advisory currently manages over $3.5 billion for clients using ESG or sustainable mandates. The firm’s suite of sustainable investing strategies currently includes the Large-Cap Sustainable Growth Equity, Sustainable Core Fixed Income, Tax-Exempt Sustainable Fixed Income and Sustainable Balanced strategies, among others. The firm is a leading participant in the green bond market and was an early adopter of International Capital Market Association’s (ICMA) Green Bond Principles (GBP).

About Brown Advisory

Brown Advisory is an independent investment and strategic advisory firm committed to providing its clients with a combination of first class investment performance, strategic advice and the highest level of service. Founded in 1993 as an affiliate of Alex. Brown & Sons, a leading U.S. investment bank, Brown Advisory became independent in 1998.

Today the firm serves private clients and institutions in 34 countries from eight offices globally and is responsible for approximately $56 billion in client assets as of June 30, 2017. The firm’s colleague equity ownership, experienced investment professionals, collaborative investment process, and client‐first culture help to make a material difference in the lives of its clients. For more information, please visit http://www.brownadvisory.com.

Media Contact:

Stephanie Dressler
Dukas Linden Public Relations
(646) 808-3701
[email protected]

Richard Gamper
Brown Advisory
(410) 537-5560
[email protected]

References

Funk, K., and D. Powell. 2017. “ESG and the Stock-Picker’s Dilemma.” The Journal of Environmental Investing. 8(2): 287-299.

Download a PDF of the Press Release

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