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Brown Advisory US Flexible Equity

Elite Rated by FundCalibre

This fund seeks long-term growth of capital by searching across a broad investment universe to find attractive or improving businesses at bargain prices. Managed by Hutch Vernon and Mike Foss, the fund was launched in the UK in 2014, but a parallel version has been run by Hutch for more than 20 years in the United States.

Company Description

Brown Advisory, as it is today, was formed in 1993, but has a 200-year investment heritage. It offers a wide variety of funds providing exposure to the US market. Based in Baltimore and Washington D.C., but with offices elsewhere the US, it opened its London office in 2008. The majority of its 400+ staff own stock in the firm, maximising alignment with client interest.

Factsheet_brown_advisory_logo

Fund Manager

The 30+ year industry veteran, R Hutchings Vernon (Hutch), and his co-manager Michael Foss head up the fund. The two of them are backed by Brown’s team of 21 analysts and fund managers. Both are chartered financial analysts.

Factsheet_hutch_vernon_brown_advisory

We believe our flexible approach allows us to capitalise on undervalued shares in attractive businesses no matter whether the stocks are statistically characterised as 'value' or 'growth' investments.

Michael Foss & R. Hutchings Vernon - Fund Managers

The Investment Process

Hutch and Mike use a flexible strategy with a bias to value but also looking for growth opportunities. They mainly seek out undervalued medium to large improving businesses, which rewards the fund with good liquidity and decent growth prospects. They invest in a wide universe of US stocks and have a low turnover. Companies with management change offer particular appeal.

Risk

The fund is likely to underperform if the market becomes too focused on growth or one area of the market, as the fund will always be more diversified. This was the case in 1999, with the technology boom, and again in 2007 when commodities were strong. The managers’ approach tends to result in the fund falling less when markets go down.

Our Opinion

Finding funds with long-term out performance of the S&P 500 is very difficult and this strategy has more than 25 years of doing just that. Very experienced fund managers and a strong team of analysts make this fund a solid candidate for those looking for a core US equity fund.

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