Investment Solutions Group

We are investors, first and foremost.

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, and we leverage this expertise to help clients assemble portfolios that we believe best fit their needs and goals. We offer clients a range of solutions, from complete portfolio management to fulfillment of specific hedge-fund and alternative-asset mandates.

Our clients are a small group of individuals, family offices, endowments & foundations and nonprofits located in the United States, Europe and Latin America.

Investment Philosophy

Long-Term Investment Horizon

A longer-term approach provides an opportunity to compound wealth at higher rates.

Relatively Concentrated Portfolios

There are a limited number of high-quality investors in the industry—we try to find them and concentrate our exposure to them. We prefer managers who run concentrated portfolios of their best ideas as well. We facilitate appropriate diversification through our overall investment program.

Fundamental, Discretionary, Transparent, Low-Leverage Investment Strategies

We invest in what we know, and we seek to avoid "black-box" strategies and leveraged strategies that remove our ability to control our own destiny.

Focus on Variant Perception and Primary Research

We seek investment managers that buy and sell securities at a significant discount or premium to their own assessment of intrinsic value, an assessment made based on rigorous fundamental analysis and primary research.

Invest Globally

We invest globally with managers headquartered in Asia and Latin America as well as in the U.S. and Europe.

Low Turnover With Longer-Term Tactical Asset Allocation

We typically keep turnover within diversified portfolios quite low. We make tactical allocation decisions based on long-term (multiyear) opportunities such as the distressed credit cycle. We don't "trade" managers, we seek long-term partnerships.

What We Look for in Managers

• A focus on generating a variant perception of the intrinsic value of securities
• Rigorous fundamental analysis and an emphasis on primary research
• Performance orientation and alignment of interests
• Appropriate strategy for the market environment
• Appropriate size for the strategy
• Flexible approach and measured change
• Clear philosophy and process
• Originality and conviction
• Passion
• Talent and pedigree

ADVISORY SERVICES

The Investment Solutions Group offers both discretionary and non discretionary investment advisory services to a small number of individuals, families and institutions. In addition to advising on portfolios across all asset classes (long-only, hedge funds, private equity, credit), The group also works with clients exclusively on specific mandates such as hedge funds.

INVESTMENT ADVISORY PROCESS

1. Investment Objectives

   We help clients articulate their risk and liquidity tolerances as well as their unique investment preferences, and we use that information to create a portfolio that seeks to maximize long-term returns within each client's specific limitations.

2. Asset Allocation

   We create bespoke asset allocations for each client that emphasize a long-term orientation, low turnover and the use of tactical allocations to capture multiyear opportunities such as the distressed credit cycle.

3. Portfolio Construction

   We invest clients' assets in portfolios of strategies and funds managed by third-party investment managers, with the ability to help access and evaluate select co-investment opportunities with those managers. We seek to construct concentrated portfolios of our best ideas, and we prefer to invest with a select group of managers that we follow more closely. We believe that there are a small number of high quality managers with whom we want to invest and we will be patient to gain the opportunity to access these managers. Underlying manager portfolios tend to be more concentrated as well, with a large percentage of capital allocated to their top ideas. We emphasize efficient diversification, seeking out managers with differing portfolios, strategies, or niche focuses to help moderate volatility and downside without overly diluting returns.

4. Service and Reporting

   Since we work with only a select group of clients, we provide the personal attention and responsiveness that each client demands. Fewer than 10 of our group's clients represent more than 75% of our advisory assets.

MULTIMANAGER STRATEGIES

• Global Select Hedged Managers

  A multistrategy, multimanager fund of 15 to 20 hedge funds with a global focus.

• Hedged Emerging Markets Equity Managers

  A concentrated multimanager fund of five to 10 hedge funds with a focus on hedged equity strategies within emerging markets.

• Hedged U.S. Equity Managers

  A concentrated multimanager fund of four to eight hedge funds with a focus on U.S. hedged equity managers.

• Long Equity Managers

  A concentrated portfolio of four to eight long equity managers with a focus on long-term capital appreciation.