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.

HOW WE ADVISE CLIENTS WITH CONCENTRATED POSITIONS

We provide a wide range of investment management and long-term planning services and solutions, but if we had to choose one phrase to describe what we try to deliver to clients, it would be “strategic advice.”

“Strategic advice” is a very open-ended term, but when we use it, we have a specific meaning in mind. We think of our role in relatively simple terms: Our job is to listen to each of our clients, understand the unique nature of their challenges and aspirations, and then deliver effective and creative solutions that help them achieve their goals. The listening component of our work is very important; we can only do good work for clients if we truly devote ourselves to understanding their subjective perspective as well as their objective circumstances.

In many cases, the solution we deliver to a client may be a straightforward answer to a clear request. For example, if an institution asks us for a well-managed small-cap equity strategy with a documented track record, we can provide that. But in other cases, our clients face complex challenges for which there are no universally applicable solutions. It is here where the concept of strategic advice becomes truly essential, so we can help clients with complicated scenarios to develop strategies tailored specifically to their situation.

This publication highlights a particular situation when this sort of approach can add value. Many of our clients have a large proportion of their wealth concentrated in a single asset—perhaps in a large block of a publicly traded company, a sizable interest in a private business or some other asset. Often these have been successful investments over time—hence, they have grown in value far beyond their cost basis. At some point, many of these clients face a similar dilemma: Holding that asset may create meaningful risk, but selling it would create a meaningful tax event.

While these situations may appear similar on the surface, each client’s circumstances and perspectives are distinct. Their situations involve variations in the attributes of the asset being examined, the client’s tax scenario, family dynamics, emotional attachment to the asset in question and many other factors. Our goal with each client is to address their challenges holistically—from a strategic advisory perspective. We seek to draw on diverse expertise from around the firm and choose the approach that best addresses the risks and opportunities that are most important to each specific client. Oftentimes, this means executing on a range of ideas. A client may wish to retain some exposure to a holding as part of a family wealth transfer plan (perhaps using Grantor Retained Annuity Trusts [GRAT] or other trust mechanisms), while also reducing risk (by selling, hedging or gifting to charity) as well as mitigating taxes through various means. A comprehensive strategy using multiple techniques can help to accomplish a variety of goals at once.

This publication seeks to summarize the nature of the challenges presented by these scenarios and offer a snapshot of the various solutions we use to deliver results to clients. Along the way, we also hope we can offer a window into how this concept of strategic advice serves as the foundation of our client relationships.

 

 

Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.

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 and you may not get back the amount invested. 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.


⚑ Topics: Asset Allocation, Equities, Planning and Strategic Advice

Other articles in this publication include:

Investment Planning Options
By Jane Korhonen, CFA, Portfolio Manager
⚑ Topics: Asset Allocation, Equities

Family Wealth Transfer Options
By Stuart Dorsett, Strategic Advisor & Head of Carolinas Office
⚑ Topics: Planning and Strategic Advice

Philanthropic Options
By Craig Standish, Strategic Advisor and Amy Seto, Strategic Operations Director
⚑ Topics: Planning and Strategic Advice

Building A Portfolio To Offset Position Risk
By Tim Hathaway, CFA, Director of Equity Research and Theresa Balaran, Portfolio Manager
⚑ Topics: Asset Allocation, Equities
 

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