Brown Advisory Company Review and Comparison

Brown Advisory is a well-established investment management company with a long history of providing expert financial guidance. Founded in 1873, it has been serving clients for over 140 years.

With a team of experienced investment professionals, Brown Advisory offers a range of investment services, including portfolio management, research, and advice.

Their investment approach is based on a thorough understanding of their clients' goals and risk tolerance, allowing them to create personalized investment plans.

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Brown Advisory is a well-established investment management firm with a rich history dating back to 1800 when its parent company, Alex Brown & Sons, was founded. The firm was formed in 1993 as the investment management branch of Alex Brown & Sons.

Brown Advisory became independently owned in 1998 through an employee-led buyout, marking a significant milestone in its growth. Today, it's a wholly owned subsidiary of Brown Advisory Management, LLC (BAM).

With over 200 investment advisors on board, Brown Advisory is led by CEO and President Michael D. Hankin, who has been in the financial services industry since the 1970s. Hankin also serves as trustee and vice chair of Johns Hopkins Medicine and chair of the board of managers of the Johns Hopkins University Applied Physics Lab.

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Brown Advisory's mission is to provide strategic advice to achieve first-rate investment performance. The firm's commitment to excellence is evident in its impressive statistics.

Here are some key facts about Brown Advisory:

Brown Advisory offers a range of investment options to suit the needs of its clients. With over $147 billion in assets, the firm has a proven track record in professional investment management, especially in the association industry.

Brown Advisory's investment management solution is designed to relieve investment committees of some of the heavy fiduciary burden weighing on them. They serve clients in a variety of ways, from fully discretionary relationships to situations where they act in a more consultative role.

For clients with assets over $5 million, Brown Advisory offers a combination of internally and externally managed strategies that leverage the firm's equity, fixed income, private equity, and alternatives research teams. This approach balances the organization's core portfolio, operating account, and opportunistic allocation to ensure appropriate near-term liquidity, long-term discipline, and flexibility to act on timely investments.

Brown Advisory's investment philosophy is centered around actively selecting securities for investment, aiming to outperform the market in the long term. Their equity investment strategies seek long-term capital appreciation, while their fixed-income strategies focus on bonds with capital appreciation potential.

Here are the investment options available through Brown Advisory:

Brown Advisory is a top-notch investment management firm that offers a range of solutions for associations, endowments, and foundations. They have approximately $147 billion in assets and over 350 clients as of December 31, 2023.

Their team of experts, led by Matt Gray, Portfolio Manager, is committed to delivering exceptional performance, strategic advice, and top-notch client service. They aim to relieve investment committees of the heavy fiduciary burden and empower their clients to achieve their investment objectives and fulfill their organizational missions.

Brown Advisory's investment solutions include a combination of internally and externally managed strategies that leverage their research teams in equity, fixed income, private equity, and alternatives. They also offer a three-bucket approach to balance an organization's core portfolio, operating account, and opportunistic allocation.

Their investment approach is not limited to traditional advice, but also includes counsel on association governance, member engagement, values-based investing, and more. They even offer sustainable investment research that considers qualitative, quantitative, and financially material information to help clients reflect their values and generate impact with their portfolios.

Here are some of the ways Brown Advisory can support your investments:

• Combination of internally and externally managed strategies

• Three-bucket approach to balance core portfolio, operating account, and opportunistic allocation

• Counsel on association governance, member engagement, values-based investing, and more

• Sustainable investment research to reflect values and generate impact

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Brown Advisory's investment philosophy is centered around actively selecting securities to seek long-term capital appreciation. Unlike some firms, they don't aim to track the performance of an equity index of securities, but instead try to outperform it in the long term.

Their approach is what differentiates active investing from passive investing. By using their own expertise and research, they attempt to beat the market.

Brown Advisory applies this method to its fixed-income strategies, which focus on bonds with capital appreciation potential that isn't related to interest rates. This approach is unique compared to other investment firms.

Their balanced strategies combine the objectives of their equity and fixed-income strategies, offering a comprehensive approach to investment.

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Brown Advisory's client base is comprised of high net worth individuals, families, and institutions. They offer a range of investment services tailored to these clients' needs.

Their clients have a strong focus on long-term growth and wealth preservation, with many having a long-standing relationship with the firm. Brown Advisory's clients are often sophisticated investors with a high level of financial acumen.

The firm's client base is global, with a presence in major financial centers around the world.

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Brown Advisory works with a diverse range of clients, including high-net-worth and non-high-net-worth individuals, as well as other investment companies and advisors.

The firm also caters to banking and thrift institutions, pooled investment vehicles, pension and profit sharing plans, charitable organizations, state and municipal governments, and insurance companies.

A minimum investment of $5 million is typically required, but this can be waived at the discretion of Brown Advisory, depending on the client relationship and service requirements.

Brown Advisory's parent rating is Above Average, thanks to its strong ownership structure and investment culture. President and CEO Michael Hankin has led the firm since 1998, overseeing its expansion to more than 900 employees across two main businesses.

The company's ownership base is unique, with essentially all employees owning equity in the firm. No person controls more than 5% of the company.

Brown Advisory has a global presence, operating 18 offices worldwide. As of mid-2024, the firm managed $157 billion in assets.

The firm's investment culture is centered around growth equities, but it's also made significant strides in environmental, social, and governance investing.

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Brown Advisory's fees are based on a percentage of your account balance, with a tiered structure that decreases as your balance increases. The firm's current fee schedule is as follows:

You'll pay fees quarterly, as one-fourth of the applicable annual fee. Keep in mind that these fees don't include other expenses associated with managing your account, like fees charged by your custodian or fees related to underlying funds.

Fees Under Brown Advisory are structured as annual fees based on a percentage of your account balances. Brown Advisory charges a 1% fee on the first $5 million under management.

The fee schedule breaks down as follows: 0.75% on the next $5 million, 0.5% on the next $15 million, 0.35% on the next $75 million, and 0.3% on amounts over $100 million. This fee structure is typical in the investment management industry.

These fees are charged annually, but Brown Advisory collects them on a quarterly basis, so you'd pay one-fourth of the applicable annual fee each quarter.

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Other expenses, such as custodian fees and management fees for underlying funds, are not included in Brown Advisory's fees. These expenses will reduce your account size, but they're standard in the industry.

Here's a comparison of Brown Advisory's fees to those of similar financial advisor firms:

Note that these estimates are based on median fee levels and don't include additional expenses.

It's essential to be aware of potential risks when working with a financial advisor like Brown Advisory.

Brown Advisory may have relationships with other firms in the financial services industry, which can create potential conflicts of interest.

These relationships can lead to advisors being registered representatives of a broker-dealer, further increasing the risk of conflicts.

Brown Advisory is legally required to disclose any potential conflicts of interest to its clients.

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Brown Advisory has made a significant move by absorbing Majedie Investments' manager, Marylebone Partners. This deal is subject to regulatory approval.

The acquisition follows talks between the two parties over the summer, aiming to expand Brown Advisory's US offering. Brown Advisory will pay a cash payment for Majedie's 7.5% stake in Marylebone.

Fees for Majedie's services will be reduced, with new rates of 0.8% on market caps up to £150m, 0.675% between £150m and £250m, and 0.6% on higher values.

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Burnham Securities and BTIG are two prominent players in the financial sector, each offering unique services to their clients. Burnham Securities focuses on wealth management and investment advisory services for high net worth individuals, families, and institutional clients.

BTIG, on the other hand, specializes in investment banking, institutional trading, research, and related brokerage services. Its services include equity sales and trading, fixed income trading, and foreign exchange trading.

Both companies have a strong presence in New York, with Burnham Securities based there and BTIG founded in the city in 2005. BTIG primarily serves institutional clients and corporate entities across various sectors of the economy.

Burnham Securities, however, serves a broader range of clients, including high net worth individuals and families. Its focus on value creation and wealth building sets it apart from BTIG's more diversified service offerings.

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Brown Advisory recently announced a deal to absorb Marylebone Partners, its manager, to expand its US offering. The deal is subject to regulatory approval.

Majedie Investments, the owner of Marylebone Partners, will receive a cash payment for its 7.5% stake in the manager. Fees will be reduced for Majedie's clients, with new rates ranging from 0.8% to 0.6% depending on market capitalization.

There will be no change to the mandate, investment approach, or the team's decision-making autonomy.