In our latest episode, Sid and Erika are joined by Mick Dillon, who co-manages Brown Advisory’s Global Leaders and Global Focus strategies and has played a critical role in developing the firm’s global equity investment platform since joining Brown Advisory in 2014.
Mick joins the podcast at an especially timely moment. Many investors and pundits continue to focus their attention on the “Magnificent Seven” tech stocks that have dominated the U.S. market for several years, but there are a large number of significant geopolitical and regional matters that are impacting investments all over the globe. In this discussion, he offers his perspective to help Sid and Erika dive deep into what is going on in Europe, Japan, China and elsewhere.
Highlights:
- Mick’s investment philosophy is heavily focused on “bottom-up” investing in companies with strong fundamentals. But such philosophies can be challenged during periods when markets become overwhelmed by macroeconomic issues. The team discusses this and Mick talks about the tools he, and his global equity team, use to assess various macro risks and determine which factors are legitimate threats to the cash flows of their portfolio companies.
- Mick offers some extended thinking about the Japanese market, and he stated that he is more excited about that market now than he has ever been in his career, due to the big-picture changes sweeping through that market recently.
- After living in China for nearly a decade earlier in his career, Mick always has excellent insights about that country and where he sees investment potential. He used case studies of portfolio holdings Taiwan Semiconductor and AIAA in a discussion of opportunities and risks.
- Building from the discussion about Taiwan Semi, the team dives deeper into the discussion of technology and supporting infrastructure. Asked if he is seeing a lot of activity driven by economic stimulus like the Inflation Reduction Act, Mick said he is really seeing the impact of the new U.S. and European programs to support domestic semiconductor development. Here is where bottom-up investors can get creative in their search for exposure to macro trends; Mick discusses three companies that he thinks stand to benefit from a revived Western chip manufacturing industry—none of whom are actual chipmakers
Mick, Sid and Erika covered a number of other topics in a freewheeling conversation including Mick’s Summer reading recommendations. Sid and Erika offered their periodic roundup of key issues impacting the markets and how they are positioning portfolios for their clients.
We hope you enjoy the episode and welcome your questions and feedback.
Global Leaders Strategy: Reporting on the impact of our investment decisions
We believe our investments generate a wide variety of positive impacts. In this impact report for our Global Leaders Strategy, Portfolio Managers Mick Dillon and Berite Thomson reflect on the past year. Read the report >
CIO Perspectives: A New Bull Market?
In this episode, Erika Pagel and Sid Ahl are joined by Brown Advisory’s David Schuster, portfolio manager of the firm’s Small Cap Fundamental Value strategy, for a discussion about the surprising resilience of capital markets in the face of a challenging economic environment. Listen now >
The views and opinions expressed in this podcast are those of the speaker(s) and do not necessarily reflect those of Brown Advisory. 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. The information provided in this podcast is not intended to be and should not be considered 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.
Alternative Investments may be available for Qualified Purchasers and/or Accredited Investors only.
ESG considerations are one of multiple informational inputs into the investment process, alongside data on traditional financial factors, and so are not the sole driver of decision-making. ESG analysis may not be performed for every holding in every strategy.
ESG considerations that are material will vary by investment style, sector/industry, market trends and client objectives. Certain strategies seek to identify companies that Brown Advisory believes may have desirable ESG outcomes, but investors may differ in their views of what constitutes positive or negative ESG outcomes. As a result, certain strategies may invest in companies that do not reflect the beliefs and values of any particular investor. These strategies may also invest in companies that would otherwise be screened out of other ESG oriented funds. Security selection will be impacted by the combined focus on ESG assessments and forecasts of return and risk.
Certain Strategies intend to invest in companies with measurable ESG outcomes, as determined by Brown Advisory, and seek to screen out particular companies and industries. Brown Advisory relies on third parties to provide data and screening tools. There is no assurance that this information will be accurate or complete or that it will properly exclude all applicable securities. Investments selected using these tools may perform differently than as forecasted due to the factors incorporated into the screening process, changes from historical trends, and issues in the construction and implementation of the screens (including, but not limited to, software issues and other technological issues). There is no guarantee that Brown Advisory’s use of these tools will result in effective investment decisions.
Sectors are based on the Global Industry Classification Standard (GICS) sector classification system. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and Standard & Poor’s. “Global Industry Classification Standard (GICS), “GICS” and “GICS Direct” are service marks of Standard & Poor’s and MSCI. “GICS” is a trademark of MSCI and Standard & Poor’s.
An investor cannot invest directly into an index.