United States
Equities Fixed Income External Managers 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.

Brown Advisory Equity Strategies

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.

Brown Advisory Fixed Income Strategies

External Managers

Investment Solutions Group

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.

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.

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.

Investment Insights and Thoughts from Brown Advisory
Navigating Our World

NOW 2018 | Is Blockchain the New Internet?

Stockett Marr
May 30, 2018

Despite the countless benefits of the internet, it suffers from a glaring gap in its fundamental design. To hear popular science author Steven Johnson describe it, this fundamental flaw is that the internet lacks an open-source feature to map each user’s identity. This functionality, or lack thereof, can be viewed as the primary driver behind dominant internet business models that track users’ identities and behaviors, and sell that information to advertisers. But as Johnson discussed in his presentation at NOW, the advent of blockchain technology—the internet buzzword of 2017 and the core engine of cryptocurrencies like Bitcoin—is poised to disrupt the traditional architecture of the internet. And like the internet revolution that came before it, blockchain may just change everything.

The discussion of identity and anonymity online tends to produce a strong gut reaction for most of us. It is too easy to envision an Orwellian nightmare where dystopian autocracies track the public’s every digital move. But what if the internet’s lack of functionality to track identity was filled by something other than advertising companies that persuade users to cough up their personal data, then sell that data to the highest bidder?

Tim Berners-Lee, the oft-credited father of the internet, is pushing for exactly that. He is drawing from his experience at CERN in the 1980s, where he shepherded the open-source creation of the internet’s core protocols. An international cohort of academics share his vision, and they hope to develop an open-source solution to track digital identity. But Johnson believes that any open-source identity solutions will be impossible to get off the ground.

Johnson’s reasoning: He refers to the environment that spawned the internet as “Internet One,” and describes it as an early and relatively utopian environment that was absent any geopolitical or corporate interests. It was simply a group of academics who understood the need for universal standards and protocols to make the nascent internet work. Those early developers were free to collaborate and build their optimal design for the internet, without needing to contend with commercial forces.

Today’s “Internet Two” environment is completely different: Corporate behemoths are now motivated by profit to develop closed protocols and compete for their share of captive web traffic, leaving little room for open-source academic consortiums to gain any traction. In addition to the corporate influence over the internet, we now live in a world where nations themselves compete in various ways online—try to imagine internet regulators from Washington to Brussels to Beijing agreeing on a common framework for addressing digital privacy, and you begin to see why Johnson and others doubt that any open-source proposal can succeed.

Enter blockchain technology, which Johnson refers to as “digitized trust.” Blockchain circumvents the traditional need for a centralized database like Facebook or Google to ensure that identity, information and transactions are accurate. Instead, a replicated and encrypted database, or “ledger,” is distributed to and shared by all users. Blockchain technology simultaneously allows any user to edit the ledger to record valid transactions, and because the latest verified version of the ledger is constantly replicated and shared among participants, in theory no one can erroneously or maliciously tamper with it.

In short, it removes—again, in theory—the need for a trusted third party. In ideal applications, banks would not be needed to stand between buyers and sellers, and firms like Google or Facebook would not be needed to facilitate identity verification across the many websites you use every day.

Blockchain is still in its infancy, and we can’t yet predict the direction this technology will take—new paradigm for digital communication, passing fad or somewhere in between. But Johnson views it as a path to taking back our privacy.

The views expressed are those of 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.

WITHIN THIS SERIES