United States
Equities Fixed Income External Managers 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.

Brown Advisory Equity Strategies

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.

Brown Advisory Fixed Income Strategies

External Managers

Investment Solutions Group

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.

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.

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.

Investment Insights and Thoughts from Brown Advisory
Navigating Our World

NOW 2017 | Shifting Alliances: America’s Changing Relationship with Asia and the Middle East

Billy Mathews, CFA
July 17, 2017
Global markets have rewarded patient investors during a broad, albeit slow, recovery over the past eight years. However, the global geopolitical landscape has become more complex and worrisome. Tony Blinken, Former U.S. Deputy Secretary of State, took the NOW 2017 attendees on a fascinating journey around the world to cover current and future geopolitical issues facing the United States and its allies while shedding some light on key U.S. foreign policy decisions during the Obama administration.

Under Secretary of State Clinton, the U.S. began to pivot its diplomatic and military focus toward Asia. Asia encompasses 40% of global gross domestic product, four of the top 10 trading partners of the U.S. and almost two-thirds of the world’s middle class. (Blinken described the Trump administration’s decision to abandon the Trans-Pacific Partnership in January 2017 as “pulling the gun out of the holster, finding your foot, aiming very carefully and pulling the trigger.” The idea that the U.S. would limit its economic access to Asia is “criminal,” in his words.) He believes that going forward, the true wealth of a nation should be measured largely by its ability to liberate its human resources. Focusing on China, he applauded the efforts to loosen the country’s economic reins in recent years but noted that there has not yet been an accompanying easing of the social and political restrictions and pressures. At some point, Blinken believes, the rapidly growing middle class will ask for this.

Antony Blinken, Former United States Deputy Secretary of State at Brown Advisory's NOW Conference with Peter Mallinson, Vice Chairman, Brown Advisory LimitedTurning to India, he described the world’s largest democracy as being in a very strong economic position. With favourable demographics, 40% of its gross domestic product from foreign trade and status as the world’s leading defense importer in recent years, India is poised to drive global growth over the coming decade. Where it falls short is human development and ease of doing business—areas that will need to improve if India hopes to attract continued investment from the developed world.

The U.S. and its allies are facing a number of threats around the world—Blinken listed North Korea, Iran and ISIS, among others. Blinken was deeply concerned about North Korea and its leader, Kim Jong-un, believing the situation there has reached “an acute phase.” In recent years, North Korea has sped up its progress on nuclear arms development and, in Blinken’s opinion, is “a few years away” from having the capability to reach the continental U.S. with a nuclear intercontinental ballistic missile. He noted that “we looked very hard at military options, and the truth of the matter is that there is simply not a good one.” He believes that the only hope is to try to get Kim Jong-un to the negotiating table by convincing China, which represents 90% of North Korean trade, to implement sustained economic sanctions.

Antony Blinken, Former United States Deputy Secretary of State at Brown Advisory's NOW Conference with Peter Mallinson, Vice Chairman, Brown Advisory LimitedWith recent terrorist events in the U.K., Blinken’s comments about curbing the influence of ISIS were especially relevant. The good news, he said, is that the U.S. and its allies will shortly take away ISIS’ self-declared caliphate in Mosul, Iraq, and that should render impotent one of the organisation’s primary narratives—that it is building a physical state. The bad news: Given how difficult it has become to travel to Iraq and Syria, ISIS is now telling followers around the world to “stay at home, attack at home.” To combat this more dispersed threat, intelligence and information sharing among countries is now even more essential. The U.S. has worked very hard to convince countries around the world to connect to Interpol so that information can quickly be used to monitor and detain individuals that have become radicalised. 

 

The views expressed are those of the author and Brown Advisory as of the date referenced and are subject to change at any time based on market or other conditions. These views are not intended to be and should not be relied upon as investment advice and are not intended to be a forecast of future events or a guarantee of future results. Past performance is not a guarantee of future performance. The information provided in this material is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the author on an objective basis to illustrate views expressed in the commentary and do not represent all of the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy, and is not a complete summary or statement of all available data. This piece is intended solely for our clients and prospective clients, is for informational purposes only, and is not individually tailored for or directed to any particular client or prospective client.

AUTHOR

Billy Mathews, CFA

Associate Portfolio Manager