Brown Advisory US Smaller Companies £ B

US Equities

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. 

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Name
Brown Advisory US Smaller Companies £ B
Manager
Brown Advisory LLC
Type
Open Ended Investment Company
ISIN
IE00B0PVDH59
Sector
North American Smaller Companies
Launched
19/06/2015
OCF
0.94 %
Risk Rating
2
3 Year Sharpe
1.35
3 Year Alpha
7.23
Yield
0 %
Benchmark
Russell 2000 Growth TR USD
The objective of the Fund is to achieve capital appreciation by investing primarily in US equities. The Fund invests at least 80% of its net assets in equity securities of small US companies (“80% Policy”). The Fund seeks to invest primarily in small companies with above average growth prospects and which are listed or traded on the US markets and exchanges listed in Appendix I of the Prospectus. Small companies are companies whose market capitalizations are equal to or less than $5 billion at the time the Fund purchases the issuer’s securities (“Market Capitalization Range”).
Holding %
Waste Connections Inc 4.65 %
Bright Horizons Family Solutions Inc 4.20 %
Genpact Ltd 3.22 %
Catalent Inc 3.07 %
Mimecast Ltd 2.92 %
Charles River Laboratories International Inc 2.80 %
GCI Liberty Inc A 2.28 %
EVO Payments Inc 2.25 %
Choice Hotels International Inc 2.05 %
Aspen Technology Inc 2.03 %
Region %
United States 88.66 %
Asia - Emerging 5.82 %
Sector %
Industrials 26.20 %
Technology 24.26 %
Healthcare 17.02 %
Consumer Cyclical 16.79 %
Consumer Defensive 5.41 %
Financial Services 5.07 %
Name
Brown Advisory LLC
Address
21231, Baltimore, United States
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Christopher Berrier
Joined 11/09/2007

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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