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 jhodes@brownadvisory.com.

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.

BALANCING ACT | A NEW PUBLICATION SERIES

We believe that investing in equities should be a balancing act, not an exercise in placing bets on one side of the market.

A Series Discussing Active Management In Late-Cycle Equity Markets

Many investors are worried about the age of the bull market, how much longer it can last and what might happen to their investments in a downturn. We can understand these concerns about a market reversal. As of early November, the S&P 500 Index was trading at roughly 20 times earnings, well above its historical average. The bull market has indeed lasted for some time now, and the current geopolitical environment offers plenty of potential scenarios that could shock the market.

But we can’t emphasize strongly enough that it is largely impossible to predict the near-term path of the stock market. Skewing one’s portfolio heavily toward a strong bullish or strong bearish belief is speculation, pure and simple. We believe that investing in equities should be a balancing act, not an exercise in placing bets on one side of the scale or the other. At any given time, we need to weigh the risk and opportunity we see in the economy, in the stock market and in individual companies—all in an effort to balance the possible positive and negative outcomes of every investment we make.

Perhaps the risk of a downturn is elevated after a nine-year bull market, but that doesn’t mean it makes sense to blindly reduce or eliminate exposure to equities. One’s timing needs to be nearly perfect in order to justify a decision to temporarily pull out of the stock market, and then re-enter at a later date. As such, we believe strongly in maintaining consistent, permanent allocation to equities as a core mechanism for generating long-term returns.

We also believe that active, selective management of equity portfolios is a powerful tool for directing capital to companies that, in our view, offer a favorable mix of upside potential and downside risk. And if history is any indication, being selective in the stock market often generates particularly strong benefits during time periods when the market or the economy falters.

In this series of articles, members of our research teams will share their perspectives on this philosophy. We will hear equity research analysts talk about risk and opportunity within the sectors they cover, and portfolio managers discuss the dangers of relying too heavily on traditional valuation metrics. We will also talk about tools we use to better understand how our portfolios might behave in a downturn. The common thread in each of these pieces: To the extent that an “aging bull market” conundrum exists, we have no interest in trying to address it through market timing. We believe in a consistent approach to investing at all stages of the market cycle, in which we embrace the value we hope to create through active, selective equity investment.

 

Part One: A Stroll Down Hindsight Lane

In this article: Head of Asset Allocation Research Taylor Graff looks at the folly of market timing, the role that the economy has played in determining the length and severity of downturns historically, and how active management has fared during periods of economic weakness.

 

Part Two: Pulling the FANGs Apart

In this article: The “FANG” companies—Facebook, Amazon, Netflix and Google—have been a dominant investment story in recent years. They have attracted attention as a group—as a success story and, more recently, as a target of skeptics— but these companies have far less in common than the “FANG” acronym and associated media coverage suggest.

 

 

 

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 or asset classes mentioned. It should not be assumed that investments in such securities or asset classes 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. Private investments mentioned in this article may only be available for qualified purchasers and accredited investors. All charts, economic and market forecasts presented herein are for illustrative purposes only. Note that this data does not represent any Brown Advisory investment offerings.

Mutual Funds Attestation

 

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