Sustainable International Leaders Strategy

The Brown Advisory Sustainable International Leaders strategy is an actively managed, concentrated portfolio of international companies that we believe are and will continue to be leaders in their sector or industry in terms of benefitting from durable competitive advantages and consequently their ability to generate strong free cash flows. We believe these companies have strong fundamentals and meaningful risk mitigation.

INVESTMENT PHILOSOPHY

We believe companies with strong competitive advantages and moats that have reinvestment opportunities at high returns on invested capital (ROIC), capable and rightly incentivized management teams and are undervalued over a long-term investment horizon, have the ability to compound returns and generate attractive risk-adjusted excess returns throughout the economic cycle.

We believe in

Concentration
Long-term investing
Active Management
Constant Learning

Our research process enables us to identify high-quality businesses that we believe possess competitive advantages.

We focus on companies that demonstrate strength across three key dimensions—each with the potential to generate attractive risk-adjusted performance through the economic cycle:

Business
- Exceptional business models with strong competitive advantages / moats
- High returns on invested capital (ROIC)
- Strong free cash flow generation
Management
- Excellent track record
- Alignment of incentives with shareholders
- Strong corporate governance
Price:
- Free cash flow driven valuation
- Conservative assumptions
- Focus on long-term assessment of intrinsic value