Equities Fixed Income Hedge Funds Private Equity, Real Estate and Energy

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, Real Estate and Energy

Private Equity, Real Estate and Energy

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 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 jhodes@brownadvisory.com.

ACTIVE ALPHA

The latest academic research suggests that there are certain common characteristics of active equity managers who deliver persistent outperformance.

One of the major trends in equity investing over the past several decades has been a shift by both individual and institutional investors toward passive, or indexed, investments. This trend has been encouraged by two assertions that until recently were widely accepted in academic circles, namely: 1) that active equity managers as a group are unable to consistently outperform market indices after their expenses and fees are deducted; and 2) that an equity manager’s outperformance during a particular period is simply a matter of good fortune. However, a growing body of academic studies conducted over the past several years calls these assertions into question and allows investors to view certain active managers in a new light.

At Brown Advisory, we believe that our approach as active equity managers has the potential to add value for our clients, and this new body of research confirms many aspects of our approach. According to some of these studies, manager outperformance is not a random event. Instead, active equity managers with certain traits are more likely to outperform than others, and these traits generally can be identified ahead of time. Many of these characteristics, such as a high level of divergence from a strategy’s benchmark, are core components of our investment philosophy.

In this paper, we synthesize some of the recent academic literature studying the subject of active equity manager performance and examine how our firm’s approach might be evaluated in light of that research.