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 | What is the Economic Impact of Political Polarization?

Lyn White, CFA
May 31, 2018

SPEAKER: Ted Gayer, Ph.D., Director of Economic Studies, Brookings Institution

 

The U.S. economy has improved markedly since the 2008–09 credit crisis. We’ve had 90 straight months of positive job growth and a near-record 36 consecutive quarters of economic expansion. But while all may appear rosy on the surface, when you dig deeper, you can find some worrying trends. Ted Gayer, a leading economic thinker at the Brookings Institution, joined us at NOW for a discussion about some of these trends and how they have been exacerbated by policy and political factors.

Productivity growth has been weak in the U.S. for more than a decade—it began to decline in 2005 through the credit crisis and since then has recovered, but at a tepid pace. Despite adding workers, we’re not seeing big gains in output: “We’ve added lots and lots of jobs, but we haven’t gotten a lot of growth out of it,” Gayer noted.

Gayer homed in on a specific statistic: labor force participation for “prime-age” men (aged 25–54). Gayer noted, “In the 1940s and 1950s, if you were [in this group], you were either working, looking for work or dead. There was nothing else.” But this figure has steadily declined since World War II, from nearly 100 percent to less than 90 percent today. For several decades, rising employment for women made up the gap, but starting about 20 years ago, labor force participation among women also started to decline. Participation in other developed nations has also fallen, but the decline has been more severe in the U.S. The weakness in participation is compounded by weakness in productivity.

Many factors are weighing on productivity; Gayer commented on a few during the session. Many of us spend “2,000 hours a year or more spent watching some screen.” Nearly half of the men who have dropped out of the labor force are on pain medication, and more middle-aged men are dying from suicide and from alcohol and opioid abuse. Gayer raised other questions: Is technological advancement actually driving inequality and a shift in the economic pie toward capital and away from labor? “It’s easy for economists to say, ‘Look—this is what happens all the time. You get a technological innovation, people adjust and you get growth.’ But when ‘people adjust,’ it can be socially dislocating. The ‘adjustment’ that happens to dad will affect the son and daughter a generation later. These adjustment costs are substantial and long lasting. This gets mixed in with opioid abuse and other indicators of social problems. And, indeed, that does contribute to the political climate that we’re in.”

To address poor growth, policymakers cut taxes and increase government spending. But they usually do so when unemployment is high and economic conditions are weak. “This time around, we’ve put our foot on the gas at a time when unemployment is really low.” And even before the recent stimulus, debt levels were growing. Why does this matter? Historically, government spending on mandatory items, like Medicare and Medicaid, was proportionally low, while discretionary items, like defense spending, were a larger chunk of the budget. Today, the budget is increasingly dominated by required spending and interest expense on debt. “Everything gets a little bit harder if your federal budget is devoting more and more money just to paying off interest on previous borrowing.”

While the Fed is raising interest rates, those rates remain low in historical context. This leads to an important political question, according to Gayer: “Is our partisan environment preparing us for what inevitably will be a recession?” With very low interest rates, tax cuts already in place and government spending pushing debt ever higher, will we have tools available to deal with a recession when it happens? What happens if current policy solutions don’t ultimately address the weak productivity growth they hope to correct and instead simply spark inflation? While we hope that the economy and our policy toolkit evolve with the changing environment, as investors, we need to prepare for a future where we can’t take a robust economy for granted—all the more reason for us to remain devoted to fundamental investment research so we can parse the wheat from the chaff. 

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.

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