In this episode, Erika Pagel and Sid Ahl are joined by Mike Poggi for a wide-ranging discussion about some of the forces currently disrupting capital markets:

  • Ongoing struggles within regional banks
  • Rapid progression of AI
  • Lingering impacts of COVID and the re-opening of the economy

The conversation begins with a discussion of the recent financial-sector “tremors,” and looks at various ways that rapidly rising rates are impacting companies—not just in the banking sector, but in commercial real estate and industrial companies. Mike digs into how Brown Advisory is viewing holdings like Bank of America in light of these developments as well as how some real-estate sensitive companies (e.g. HVAC, building products) are showing continued strength and should not be painted with a broad brush. Mike also discusses the potential for a strong U.S. domestic capital expenditure cycle.


In our last episode, Sid and Erika did a moderately deep dive on Artificial Intelligence, and with Mike they look more specifically at the business risks and opportunities stemming from AI, and in particular some of the emerging competitive dynamics between tech giants Google and Microsoft that are driving progress at a seemingly breakneck pace. They also touch on how value investors approach investing in technology, as well as the sector’s burgeoning status as a flight to safety asset like consumer staples was for so many years.

The last major topic explored was the economy’s gradual return to “normal” after the multi-year lockdown conditions of the pandemic. Mike shares insights into industrial and consumer companies that struggled to pass along their rising costs early on in the pandemic but which now are seeing strong price increases and improving margins. And he adds insights into how he thinks about sustainability in his discussion of ChampionX – a great example of seeking outperformance within the energy sector with an efficiency lens.

As always, we welcome your thoughts, feedback and questions. 

Corporate Engagement Spotlight: Ethical AI Practices

AI is a broad term, and it brings with it a broad pool of risks. By focusing on transparency, protection and bias risks, our ESG research team seeks to assess a company’s ability to proactively respond to potential harm before it happens. We also engage with company management teams to encourage best practices for mitigating risks, and to monitor implementation of those practices. Read more >

2023 Asset Allocation Perspectives and Outlook

We are pleased to share Brown Advisory’s 2023 Outlook. Each year, the Annual Outlook report assesses the current investment landscape and discusses some of the main themes being expressed in client portfolios. Read more >

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