Brown Advisory

DECEMBER 14, 2017

Balancing Act | Pulling the FANGs Apart achen Thu, 12/14/2017 - 11:34 The “FANG” companies—Facebook, Amazon, Netflix and Google—have been a dominant investment story in recent years. All of these companies have generated attractive returns in recent years, and in 2017 in particular. Through Nov.

Valuation 52

Valuation Advertising Clients Investing 52

Brown Advisory

DECEMBER 14, 2017

Thu, 12/14/2017 - 11:34. All of these companies have generated attractive returns in recent years, and in 2017 in particular. Their fear is bolstered by historical precedent: In the 1960s and 1970s, the “Nifty Fifty” ran up to extremely high valuations, and many performed quite poorly during the 1970s bear market. Through Nov.

Valuation 52

Valuation Advertising Clients Investing 52

Brown Advisory

NOVEMBER 1, 2019

Each year, we send a letter to clients to help guide year-end planning discussions and to offer ideas for them to consider with their other advisors. As detailed in prior publications, the 2017 Tax Act changed important aspects of federal income, estate, gift, and generation-skipping transfer (GST) tax law. Fri, 11/01/2019 - 13:44.

Planning 52

Planning Taxes Clients Assets 52

Brown Advisory

MAY 31, 2017

EUROPEAN RE-ENTRY: Why We Are Shifting Portfolios Toward European Stocks achen Thu, 06/01/2017 - 02:47 Asset allocation—at least for us—is an exercise in nuance. Most investors look at price-to-earnings (P/E) ratios as their gauge of stock valuation, and by this metric, the disparity between Europe and the U.S. is much clearer.

Portfolio 52

Portfolio Asset Allocation Valuation Economics 52

Brown Advisory

MAY 31, 2017

Thu, 06/01/2017 - 02:47. Throughout this period, we often saw windows in which we believed that European valuations were more attractive, but we were cautious due to Europe’s high debt levels and struggles to generate economic growth. stocks as of the end of 2015 on an EV/EBITDA basis; that gap widened to 20% by the end of April 2017.

Portfolio 52

Portfolio Asset Allocation Valuation Economics 52

Brown Advisory

MARCH 30, 2018

Throughout 2017, our meetings and conversations with clients very frequently focused on the topic of risk. Economic growth and corporate earnings across the world improved notably throughout 2017, led by an acceleration in Europe, a rebound in emerging markets and improved sentiment in some U.S. Fri, 03/30/2018 - 11:57.

Asset Allocation 52

Asset Allocation Portfolio Assets Valuation 52

Brown Advisory

APRIL 18, 2018

Balancing Act | For Good Measure: How We Value Global Leaders achen Wed, 04/18/2018 - 11:03 Valuation is a critical component of active investment management, yet many investors restrict themselves to a very narrow view of valuation by focusing on simple metrics like the price/earnings (P/E) ratio.

Valuation 52

Valuation Portfolio Investing Investments 52

Brown Advisory

APRIL 18, 2018

Valuation is a critical component of active investment management, yet many investors restrict themselves to a very narrow view of valuation by focusing on simple metrics like the price/earnings (P/E) ratio. This makes ratios like the P/E ratio dangerous as a valuation tool. Wed, 04/18/2018 - 11:03.

Valuation 52

Valuation Portfolio Investing Investments 52

Brown Advisory

MAY 3, 2018

It's All Relative ajackson Thu, 05/03/2018 - 15:32 We are hearing a lot of questions from our clients about how rising interest rates may affect their municipal bond holdings. For one, we reduced our exposure to shorter-duration fixed-rate municipals, as their valuations grew increasingly unattractive last year. (We

Taxes 52

Taxes Portfolio Valuation Clients 52

Brown Advisory

MAY 3, 2018

We are hearing a lot of questions from our clients about how rising interest rates may affect their municipal bond holdings. Whether rates are rising or falling, we manage risk using the same consistent process: We look for bonds with attractive valuation relative to our view of their potential cash flows. It's All Relative.

Taxes 52

Taxes Portfolio Valuation Clients 52

Brown Advisory

OCTOBER 16, 2017

Family Wealth Transfer Options achen Mon, 10/16/2017 - 10:49 Families can use a variety of strategies to reduce their estate tax burden. There are other ways to generate valuation discounts through indirect gifting strategies. One of those is gifting assets from one generation to the next.

Taxes 52

Taxes Assets Estate Planning Valuation 52

Brown Advisory

OCTOBER 16, 2017

Mon, 10/16/2017 - 10:49. There are other ways to generate valuation discounts through indirect gifting strategies. 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.

Taxes 52

Taxes Assets Estate Planning Valuation 52

Brown Advisory

NOVEMBER 28, 2017

Balancing Act | A New Publication Series achen Tue, 11/28/2017 - 13:39 We believe that investing in equities should be a balancing act, not an exercise in placing bets on one side of the market. We will also talk about tools we use to better understand how our portfolios might behave in a downturn.

Clients 52

Clients Portfolio Investing Investments 52

Brown Advisory

NOVEMBER 28, 2017

Tue, 11/28/2017 - 13:39. We will hear equity research analysts talk about risk and opportunity within the sectors they cover, and portfolio managers discuss the dangers of relying too heavily on traditional valuation metrics. Balancing Act | A New Publication Series. A Series Discussing Active Management In Late-Cycle Equity Markets.

Clients 52

Clients Portfolio Investing Investments 52

Brown Advisory

JULY 19, 2017

A Moment of Zen: The Wisdom of Staying Invested achen Wed, 07/19/2017 - 15:28 When discussing the merits of cash as an investment, Warren Buffett doesn’t pull his punches, saying that those who hold cash or its equivalents “have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value.”

Investing 52

Investing Investments Portfolio Clients 52

Brown Advisory

JULY 19, 2017

Wed, 07/19/2017 - 15:28. We strongly believe that clients should hold an appropriate reserve of cash for operating needs and emotional security. We are long-term investors, focused on plans that help our clients pursue their long-term goals. Valuations of the U.S. A Moment of Zen: The Wisdom of Staying Invested.

Investing 52

Investing Investments Portfolio Clients 52

Brown Advisory

APRIL 20, 2022

To help meet this return objective, we find that our clients’ investment portfolios are becoming increasingly complex as a result of their reliance on private equity, real estate and other less liquid “alternatives” to sustain their growth objectives and, ultimately, their charitable objectives. Define the type of investments involved, (e.g.,

Investment Advisor 52

Investment Advisor Investing Investments Nonprofit 52

Brown Advisory

OCTOBER 16, 2017

Building A Portfolio To Offset Position Risk achen Mon, 10/16/2017 - 11:53 For years, our firm has built equity strategies that fit squarely into traditional style boxes, like “U.S. Today, we are focused on developing strategies that specifically address our clients’ stated needs. large-cap growth” or “small-cap value.”

Portfolio 52

Portfolio Clients Risk Tolerance Financial Services 52

Brown Advisory

OCTOBER 16, 2017

Mon, 10/16/2017 - 11:53. But when our clients tell us what keeps them up at night, they don’t speak in terms of style boxes; they ask for things like income, protection against a market correction or (of particular relevance to this publication) a way to offset the risks of a large, concentrated stock position they hold.

Portfolio 52

Portfolio Clients Risk Tolerance Financial Services 52

Brown Advisory

AUGUST 1, 2018

We tend to be strategic rather than tactical in our approach to investing, but a combination of recent fundamental developments and valuation changes has caused us to add a note of caution in conversations with clients and in the management of their portfolios. Just to be clear, this is not a sudden or abrupt shift in our thinking.

Management 52

Management Investing Investments Valuation 52

Brown Advisory

AUGUST 1, 2018

We tend to be strategic rather than tactical in our approach to investing, but a combination of recent fundamental developments and valuation changes has caused us to add a note of caution in conversations with clients and in the management of their portfolios. Just to be clear, this is not a sudden or abrupt shift in our thinking.

Management 52

Management Investing Investments Valuation 52

Brown Advisory

MAY 10, 2018

After an unnaturally serene 2017, volatility roared back into equity markets this year, fueled by worries over interest rates, inflation, tariffs and data privacy. imports of washing machines and solar panels (see chart below) in 2017 accounted for approximately 0.4% trillion in imports in 2017) and an even smaller slice of U.S.

Economy 52

Economy Portfolio Clients Sales 52

Brown Advisory

MAY 10, 2018

After an unnaturally serene 2017, volatility roared back into equity markets this year, fueled by worries over interest rates, inflation, tariffs and data privacy. imports of washing machines and solar panels (see chart below) in 2017 accounted for approximately 0.4% trillion in imports in 2017) and an even smaller slice of U.S.

Economy 52

Economy Portfolio Clients Sales 52

Brown Advisory

AUGUST 25, 2017

Manager Q&A: Mick Dillon and Bertie Thomson, Global Leaders Strategy achen Fri, 08/25/2017 - 11:34 Indeed a host of macro-economic and political events have impacted global markets since Mick Dillon and Bertie Thomson launched the Brown Advisory Global Leaders strategy. In our view, this decline presented a great valuation opportunity.

Management 52

Management Valuation Financial Services Investing 52

Brown Advisory

AUGUST 25, 2017

Fri, 08/25/2017 - 11:34. as featured in the book, “Valuation: Measuring and Managing the Value of Companies, University Edition." Beyond that indicator, the managers look for companies with three other qualities: solid fundamentals, strong leadership and reasonable valuations. src="[link] />?. 6th Edition, 2015.

Management 52

Management Valuation Financial Services Investing 52

The Big Picture

AUGUST 20, 2024

And so in the 1990s, I developed the, the late 1980s, early 1990s, I developed a skillset around valuation, in particular discounted cash flow or residual income type models, along with a couple of peers out of the consulting industry. And those folks are very often my clients. Now my observation was twofold.

Assets 173

Assets Management Portfolio Marketing 173

Brown Advisory

MAY 12, 2020

Every part of using a coach is about seeking to move the probabilities into our favour, to help create better returns for our clients. Further reading on this subject: Q1 2017 Investment Letter and Q1 2018 Investment Letter. Managers often lose alpha when selling and so did we until we implemented this rule in January 2017.

Investments 52

Investments Investing Clients Portfolio 52

Brown Advisory

MAY 12, 2020

S&P 500® Index, ROIC, 2003-2013 Data based on a McKinsey & Company study, “Valuation: Measuring and Managing the Value of Companies”. Chart reproduced with permission from McKinsey & Company as featured in the book, “Valuation: Measuring and Managing the Value of Companies, University Edition.” 6th Edition, 2015.

Investments 52

Investments Investing Clients Portfolio 52

Brown Advisory

JUNE 19, 2018

While valuations are rising in the space, earnings growth has also been notable this year in the technology sector, with earnings up 8.1% According to Morningstar, 43% of active managers outpaced their passive counterparts in 2017, a notable improvement from 2016 when only 26% outperformed. so far in 2018 vs. 4.3% equity markets.

Management 52

Management Retail Clients Investing 52

Brown Advisory

JUNE 19, 2018

While valuations are rising in the space, earnings growth has also been notable this year in the technology sector, with earnings up 8.1% According to Morningstar, 43% of active managers outpaced their passive counterparts in 2017, a notable improvement from 2016 when only 26% outperformed. so far in 2018 vs. 4.3% equity markets.

Management 52

Management Retail Clients Investing 52

Brown Advisory

MARCH 13, 2018

Further, 2017 overall was extraordinary for its lack of market volatility; the S&P 500 Index rose steadily throughout the year without so much as a 3% pullback—a first in the Index’s long history. For most of 2017, the VIX was exceptionally depressed, signaling that investors expected very little volatility in prices.

Investing 52

Investing Investments Economy Assets 52

Brown Advisory

MARCH 13, 2018

Further, 2017 overall was extraordinary for its lack of market volatility; the S&P 500 Index rose steadily throughout the year without so much as a 3% pullback—a first in the Index’s long history. For most of 2017, the VIX was exceptionally depressed, signaling that investors expected very little volatility in prices.

Investing 52

Investing Investments Economy Assets 52

Brown Advisory

JUNE 19, 2019

As a result, investors have been flocking to short-term bond funds at a staggering pace; these funds have seen inflows of more than $150 billion since the beginning of 2017, and more than $50 billion just in the first four months of 2019. Treasuries. intermediate and longer-term) allocation to U.S. Downside Protection From Fixed Income.

Investing 52

Investing Investments Clients Government 52

Brown Advisory

OCTOBER 2, 2018

Our clients in Europe have a different starting point for geographic equity weightings than those in the U.S. Then, after six years we regained a greater degree of optimism about Europe and began shifting assets back in that direction, as we noted in an article in 2017. stock market. traded stocks which represent about 98% of all U.S

Investing 52

Investing Investments Clients Assets 52

Brown Advisory

OCTOBER 2, 2018

Our clients in Europe have a different starting point for geographic equity weightings than those in the U.S. Then, after six years we regained a greater degree of optimism about Europe and began shifting assets back in that direction, as we noted in an article in 2017. stock market. traded stocks which represent about 98% of all U.S

Investing 52

Investing Investments Clients Assets 52

Brown Advisory

JANUARY 1, 2023

Download it here > Dear Fellow Investors, If we had to sum up 2022 in one word it would be valuation. War, inflation, recession, deglobalisation, decoupling, strikes, crypto-crash and energy (crisis) all featured but for us the overriding focus for 2022 was valuation. which was greater than our -1.1% relative underperformance.

Investing 52

Investing Investments Valuation Clients 52

Brown Advisory

OCTOBER 18, 2019

We know that equity valuations in the U.S. CURRENT VALUATION PREMIUMS, S&P 500 INDEX Metric Most Recent Long-Term Average Premium vs. Average Timeframe Trailing P/E 19.4 Any number of factors could cause valuations to quickly readjust or correlations to spike. 17% 3/31/1954- 9/30/2019 Price/Book Value 3.4 Further, U.S.

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Marketing Marketing Valuation Numbers 52