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.

INNOVATION BEYOND SILICON VALLEY

Uncertainty and disruption have been recurrent themes across the business world in the last few years. Our panel of entrepreneurial experts discussed a “second-derivative” disruption: the emergence of new startup ecosystems outside Silicon Valley, the “traditional” epicentre of technological disruption itself. These new ecosystems are proving their influence and impact across a wide range of industries.

Brown Advisory | NOW London 2017 | Navigating Our World | Innovation Beyond Silicon Valley

Watch the session highlights video above.

Stan Boland, CEO of U.K.-based FiveAI, has spent his career innovating in the communication sector, mainly in the semiconductor and telecom space, and is acutely focused on how artificial intelligence (AI) has the potential to revolutionize many industries. Academia is a primary source of innovation in AI; for example, the science to improve autonomous driving is evolving in top universities around the world. Boland says that the current technology cannot assure safe driving despite the hype, and experts are working to solve the problem of reconstructing the world dynamically with predictive capabilities. A key ingredient, he says, may be a more extensive sensor set on vehicles; today this could add as much as $40,000 to the cost of the car, but Boland believes this could be amortised over the duration of ownership, at least in the developed world.

Mellie Price, a serial entrepreneur, who is the Executive Director of Commercialization at The Dell Medical Center at The University of Texas at Austin, now focuses on the health care sector and mentioned that AI is playing a game-changing role in radiology. Universities such as hers are newer players in the innovation ecosystem, particularly in the realm of early-stage ventures. She believes that people working in communities that nurture startups are more collaborative than those working in environments populated by larger, more traditional companies.

Speaking about Silicon Valley, Price noted that term sheets for deals based there are, in her view, too optimistic, which contributes to higher failure rates. Further, she feels that entrepreneurship in the San Francisco Bay Area is being commoditised—and she values startups that have taken the time to work with accelerator programs.

David Blumberg, Founder and Managing Director of Blumberg Capital and Mellie Price, Executive Director of Commercialization at The Dell Medical School at The University of TexasDavid Blumberg, Founder and Managing Director of Blumberg Capital, has a global perspective on innovation, supported by the presence of his firm in San Francisco and Tel Aviv. From this perspective, he finds a range of investment opportunities. For example, he talked about the role of technology in changing transportation from a product to a service, and cited a German company looking at ways in which people in the developing world who require cost-effective transportation can share seats in cars.

Against that backdrop, he sees his firm as not just an investor in startups but also an intermediary between startups and larger corporations. Venture firms are often able to offer a solution to corporations seeking a certain capability or an entrée into a particular niche; he also looks to share opportunities that may not be ideal for venture backing but could be a good strategic fit for a larger business.

Blumberg added that regulatory and structural changes on Wall Street have led to less frequent IPOs for venture-backed firms, and that those IPOs now only occur when companies are more mature. As a result, a larger proportion of value accrues to entrepreneurs and venture backers.

Stan Boland, CEO of FiveAIWhen asked about macro risks for new companies, the panellists tended to minimise such factors and emphasise a greater focus on selecting the right opportunities. For Blumberg, one area of focus is financial technology, which tends to be heavily regulated for large institutions but offers more opportunity in the small and medium enterprise segment. Price noted that the time frame to invest in health care is often incompatible with the investment horizon of most funds, with the exception of health care information technology.

Overall, the discussion demonstrated the breadth of opportunities available across a number of disparate industries, regions and technology realms, and highlighted the fact that investors who ignore innovation outside of Silicon Valley do so at their peril.

 

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. 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 mentioned. It should not be assumed that investments in such securities 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.


NOW London 2017 Session Summaries and Videos

(Please click on any session title below to navigate to the recap and video page for that session.)

 

Introduction:
Thriving in Uncertain Times: Investment Takeaways

Session 1:
What Next? Making Sense of the Global Economy

Session 2:
Creating Value in an Age of Disruption

Session 3:
Innovation Beyond Silicon Valley

Session 4:
Shifting Alliances: America’s Changing Relationship with Asia and the Middle East

Session 5:
Cultivating the Seventh Sense: An Essential Instinct in the Age of Networks

 

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