Brown Advisory US Smaller Companies £ B
Rated Fund 2018-19. Seeks companies with competitive advantages
Brown Advisory US Smaller Companies has been going since 2007 and has produced solid returns since that time. It invests in a portfolio of small US companies that are expected to produce above-average growth. Through a disciplined, bottom-up investment process, Christopher Berrier, its manager since inception, and George Sakellaris, who joined him later as associate portfolio manager, strive to exploit market inefficiencies in the small company universe.
While business tax cuts and a steady approach to the normalisation of monetary policy has been positive, Berrier has some concerns around the difficult earnings outlook companies will likely face in 2019, particularly as undifferentiated businesses will likely see the earnings benefit of the tax cut competed away overtime.
The types of companies he looks for are diversified, high-quality businesses with sound management teams and competitive advantages that he believes can grow faster than the wider market over a full market cycle.
The fund typically has 50 to 80 holdings (79 at the end of 2018) and is significantly overweight information technology, industrials and consumer discretionary stocks.
Much of his recent activity has involved recycling capital out of more mature, long-tenured holdings into smaller company names where he believes there is greater opportunity for a higher rate of compounding.
Brown Advisory’s investment philosophy is based on a belief that a portfolio derived from sound fundamental research, coupled with low turnover, can generate attractive outperformance. The manager, who is based in Baltimore, Maryland, is able to draw upon an investment network of venture capital, private equity and other fund managers within the firm, which he says give him a potential information advantage.
Narrative as of January 2019.See all Money Observer rated funds
|Waste Connections Inc||4.66 %|
|Bright Horizons Family Solutions Inc||3.86 %|
|Mimecast Ltd||3.48 %|
|Genpact Ltd||3.24 %|
|Charles River Laboratories International Inc||3.13 %|
|Catalent Inc||3.10 %|
|EVO Payments Inc||2.24 %|
|GCI Liberty Inc A||2.23 %|
|TopBuild Corp||2.01 %|
|Choice Hotels International Inc||1.98 %|
|United States||88.58 %|
|Asia - Emerging||5.80 %|
|Consumer Cyclical||15.44 %|
|Consumer Defensive||5.87 %|
|Financial Services||5.43 %|
Christopher Berrier is the portfolio manager of the Midl-Cap Growth strategy. Prior to joining the firm in September 2005, he was a senior equity analyst at T. Rowe Price, covering multiple sectors with a primary focus on small- and mid-capitalization growth companies. Chris is also a portfolio manager of the Brown Advisory Small-Cap Growth strategy.
Data provided by Morningstar.
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