Brown Advisory CIO Perspectives

Brown Advisory
  • 4.4 (7)
  • Investing
  • Updated Bimonthly

Welcome to our Investment Podcast where our CIOs explore issues of the day with leading investors from inside and outside Brown Advisory.

  1. 2d ago

    Activism, Edge and Finding Underappreciated AI Winners

    In this episode of CIO Perspectives, host Sid Ahl explores how active investors can seek an edge in markets increasingly shaped by passive investing, short-term trading and artificial intelligence.   The conversation examines how shifting market structures may create opportunities for patient, fundamentally oriented investors, including the role active engagement can play as a potential catalyst for change. The discussion also looks beyond the U.S. to evolving opportunities in Europe and changing corporate governance and shareholder dynamics in Japan.   The episode also explores the rapid buildout of AI infrastructure, where opportunities may emerge across the broader AI ecosystem, and how investors can weigh potential upside against the risks of a significant capital expenditure cycle. --The views and opinions expressed in this podcast are those of the speakers and do not necessarily reflect those of Brown Advisory. These views are not intended to be and should not be relied upon as investment advice and are not intended to be a forecast of future events or a guarantee of future results. The information provided in this podcast is not intended to be and should not be considered a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell or hold any securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the speakers on an objective basis to illustrate views expressed in the podcast and do not represent all the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy and is not a complete summary or statement of all available data. This piece is  for informational purposes only and is not individually tailored for or directed to any particular client or prospective client. Past performance is not a guarantee of future performance. Price targets are based on Sachem Head’s internal research estimates and are subject to change.  Any return expectations are hypothetical, based on current market conditions and assumptions, and are not guarantees of future results. Actual returns may differ materially and may be lower or negative. Hedge Funds may involve complex tax and legal structures. Investment in any particular Fund or hedge funds, generally, is only suitable for sophisticated investors for whom such an investment does not constitute a complete investment program and who fully understand and are willing to assume the risks involved in such investment. Alternative investments are generally available only to investors who meet applicable eligibility requirements, including accredited investor and qualified purchaser standards where applicable. Certain statements in this podcast constitute forward-looking statements. When used in this podcast, the words may, will, should, project, anticipate, believe, estimate, intend, expect, pro forma, continue and similar expressions or the negatives thereof are generally intended to identify forward-looking statements. Such forward looking statements, including the intended actions and performance objectives of the securities or managers involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the securities or managers to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. No representation or warranty is made as to future performance or such forward-looking statements. All forward-looking statements in this podcast speak only as of the date hereof. Sources: Certain market, company and investment data referenced in this podcast are derived from Sachem Head Capital Management, Bloomberg®, Ionic Digital, Toshiba Corporation, public company filings, public company disclosures and public news reporting, as of the recording date unless otherwise indicated. Terms and Definition ADR (American Depositary Receipt): A negotiable certificate issued by a U.S. depositary bank that represents shares in a foreign company and allows those shares to trade in U.S. markets.   A-share: A share of a company incorporated in mainland China that is traded on a mainland Chinese stock exchange, generally in renminbi.   Beta: A measure of the volatility of a security or portfolio relative to the broader market. A beta greater than 1 indicates greater volatility than the market, while a beta below 1 indicates lower volatility.   CapEx (Capital Expenditures): Funds used by a company to acquire, maintain or improve long-term physical assets such as property, equipment or infrastructure.   DRAM (Dynamic Random-Access Memory): A type of semiconductor memory commonly used in computers, servers and other electronic devices to temporarily store data that needs to be accessed quickly.   EBIT (Earnings Before Interest and Taxes): A measure of a company's profitability before interest expenses and income taxes are deducted.   EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): A measure of a company's operating performance before the impact of interest, taxes, depreciation and amortization.   FTSE: Financial Times Stock Exchange. FTSE Russell produces a range of market indices used to measure the performance of securities and markets globally. "FTSE®" is a trademark of the LSE Group and is used by FTSE International Limited ("FTSE") under license.   Gross Margin: A company's revenue less its cost of goods sold, generally expressed as a percentage of revenue.   HBM (High-Bandwidth Memory): A type of high-performance computer memory designed to provide significantly greater data-transfer speeds than conventional memory and commonly used in advanced computing and artificial intelligence applications.   LBO (Leveraged Buyout): The acquisition of a company using a significant amount of borrowed capital to finance the transaction.   LOI (Letter of Intent): A document outlining the preliminary terms and intentions of parties considering a transaction or other agreement. An LOI is generally entered into before a definitive agreement.   LTA (Long-Term Agreement): An agreement between parties establishing terms for the purchase or supply of goods or services over an extended period.   M&A (Mergers and Acquisitions): Transactions involving the combination of companies or assets through mergers, acquisitions or related corporate transactions.   NAND: A type of non-volatile flash memory that retains stored data without power and is commonly used in solid-state drives and other data-storage devices.   P/E ...

  2. Aug 19

    Objectives vs. Benchmarks: Absolute Return Opportunities outside of AI

    In this episode of CIO Perspectives, Objectives vs. Benchmarks: Absolute Return Opportunities outside of AI, host Sid Ahl is joined by Dan Higgins, CIO of Marylebone Partners LLP, which recently became part of Brown Advisory, to discuss how investors can look for opportunities in a market increasingly shaped by AI and concentrated benchmarks. Sid and Dan explore the similarities and differences between today’s AI-driven market and the dot-com era, how the rise of passive investing and changes in market structure are reshaping opportunities for active investors and why investment objectives should not be confused with benchmarks. They also discuss where Dan is finding opportunities outside the most crowded areas of the market, including international equities, select software companies, credit and commodities. The conversation closes with a discussion of risk, the importance of maintaining a margin of safety and why overlooked areas of the market may warrant attention even as headline valuations remain elevated. ----The views and opinions expressed in this podcast are those of the speakers and do not necessarily reflect those of Brown Advisory. These views are not intended to be and should not be relied upon as investment advice and are not intended to be a forecast of future events or a guarantee of future results. The information provided in this podcast is not intended to be and should not be considered a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell or hold any securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the speakers on an objective basis to illustrate views expressed in the podcast and do not represent all the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy and is not a complete summary or statement of all available data. This piece is  for informational purposes only and is not individually tailored for or directed to any particular client or prospective client. Any return expectations are hypothetical, based on current market conditions and assumptions, and are not guarantees of future results. Actual returns may differ materially and may be lower or negative. Alternative investments are generally available only to investors who meet applicable eligibility requirements, including accredited investor and qualified purchaser standards where applicable. Credit spread percentile represents the percentile rank of the current option-adjusted spread relative to the index’s historical spread.  Sources: Certain market, economic and company data referenced in this podcast are derived from Robert Shiller data, Goldman Sachs Research, PitchBook, FINRA, Investment Company Institute, Kiplinger, Jay R. Ritter’s Initial Public Offerings: Updated Statistics (University of Florida), TD Asset Management, TD Epoch, Bloomberg Finance L.P., the U.S. Bureau of Economic Analysis, Reuters and Morningstar, as of the recording date unless otherwise indicated. Terms and Definitions Absolute return investing is an investment approach focused on generating positive returns over time rather than outperforming a specific market benchmark. Alpha is the excess return of an investment relative to a benchmark, after accounting for market exposure or risk. Credit spread is the difference in yield between a corporate or other non-government bond and a comparable government bond, reflecting the additional compensation investors receive for assuming credit risk. Downside protection refers to investment characteristics or strategies intended to reduce losses during periods of market decline. Equity risk premium is the additional return investors expect to receive from owning equities relative to a risk-free investment. Exchange-traded fund (ETF) is an investment vehicle that holds a basket of securities and trades on an exchange like a stock. Free cash flow (FCF) is the cash a company generates after capital expenditures that can be used for dividends, buybacks or reinvestment. Initial public offering (IPO) is the process through which a private company first offers its shares to public investors. Margin of safety is the valuation cushion that may help protect against downside risk when an investment’s market price is below an investor’s estimate of its intrinsic value. MSCI All Country World Index (MSCI ACWI) captures large- and mid-cap representation across developed and emerging markets. The Index covers approximately 85% of the global investable equity opportunity set. MSCI® and MSCI Indexes are trademarks and service marks of MSCI Inc. or its subsidiaries. Producer Price Index (PPI) measures changes over time in the prices domestic producers receive for their output. Renminbi (RMB) is the official currency of the People’s Republic of China. Shiller cyclically adjusted price-to-earnings (CAPE) ratio is a valuation measure that compares the price of an equity market or security with its average inflation-adjusted earnings over the previous 10 years. S&P 500® Index represents the large-cap segment of the U.S. equity markets and consists of approximately 500 leading companies in leading industries of the U.S. economy. S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), a subsidiary of S&P Global Inc. Special purpose acquisition company (SPAC) is a publicly traded company formed to raise capital through an IPO for the purpose of acquiring or merging with an existing private company. Tokyo Stock Exchange (TSE) is a Japanese stock exchange that lists many of the country’s publicly traded companies. Toronto Stock Exchange (TSX) is a Canadian stock exchange that lists companies across a range of sectors and is one of the largest stock exchanges in North America.

  3. Jul 22

    Midyear Market Outlook: AI, Inflation and Where Investors See Opportunity

    In this episode of CIO Perspectives, Midyear Market Outlook: AI, Inflation and Overlooked Opportunities, host Sid Ahl is joined by Brown Advisory colleagues Christopher “Kif” Hancock, CIO International, and Sarge McGowan, CIO of U.S. Endowments and Foundations, for a midyear discussion on the forces shaping markets and portfolios. The conversation explores why AI continues to dominate market returns and economic growth, how investors should think about growing market concentration and where opportunities may emerge beyond the technology sector. They also discuss inflation, geopolitical risks, private markets and the challenges of balancing exposure to AI with a diversified, long-term investment philosophy. -----The views and opinions expressed in this podcast are those of the speakers and do not necessarily reflect those of Brown Advisory. These views are not intended to be and should not be relied upon as investment advice and are not intended to be a forecast of future events or a guarantee of future results. The information provided in this podcast is not intended to be and should not be considered a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell or hold any securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the speakers on an objective basis to illustrate views expressed in the podcast and do not represent all the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy and is not a complete summary or statement of all available data. This piece is  for informational purposes only and is not individually tailored for or directed to any particular client or prospective client. Alternative Investments may be available for Qualified Purchasers and Accredited Investors only.  Private equity investments involve substantial risks, including illiquidity and the potential for loss of capital. Prospective investors should carefully review the applicable offering materials and determine whether such an investment is appropriate in light of their investment objectives, financial circumstances, and tolerance for risk. Sources: Certain market, economic and company data referenced in this podcast are derived from Bloomberg®, Bureau of Labor Statistics (BLS), OpenRouter, public company filings, public news reporting and Brown Advisory analysis, as of the recording date unless otherwise indicated. American Depositary Receipt (ADR) is a negotiable certificate issued by a U.S. bank that represents shares of a foreign company and trades on U.S. exchanges. Capital expenditures (CapEx) are funds used by a company to acquire, maintain or upgrade physical assets such as property, equipment or technology. Duration measures a bond's sensitivity to changes in interest rates. EBITDA (earnings before interest, taxes, depreciation and amortization) is a measure of a company's operating performance used to evaluate profitability and compare companies across industries. Free cash flow (FCF) is the cash a company generates after capital expenditures that can be used for dividends, buybacks or reinvestment. Graphics Processing Unit (GPU) is a specialized computer chip designed to process complex calculations and widely used in artificial intelligence applications. Hyperscalers are large technology companies that operate massive cloud computing and data center networks. Internal rate of return (IRR) is the annualized rate of return that makes the net present value of an investment's expected cash flows equal to zero. It is commonly used to evaluate private investments. The MSCI All Country World Index (MSCI ACWI) captures large and mid-cap representation across Developed Markets (DM) and Emerging Markets (EM) countries. The Index covers approximately 85% of the global investable equity opportunity set. MSCI® and MSCI Indexes are trademarks and service marks of MSCI Inc. or its subsidiaries. NASDAQ refers to the Nasdaq Stock Market, a U.S. stock exchange that lists many technology and growth-oriented companies. The S&P 500® Index represents the large-cap segment of the U.S. equity markets and consists of approximately 500 leading companies in leading industries of the U.S. economy. S&P®, S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), a subsidiary of S&P Global Inc. Price-to-earnings (P/E) multiple is a valuation metric that compares a company's share price to its earnings per share and is used to assess how the market values a company's earnings. Sectors are classifications of companies based on their primary business activities under the Global Industry Classification Standard (GICS®). GICS® was developed by MSCI Inc. and S&P Dow Jones Indices LLC to provide a consistent framework for categorizing companies into 11 sectors. The GICS® structure and related classifications are the exclusive property of MSCI and S&P Dow Jones Indices and are used with permission.

  4. Jun 22

    The Energy Opportunity: AI, Power and the Next Investment Cycle

    In this episode of CIO Perspectives, host Sid Ahl is joined by Eliza Erikson, Head of Impact Investing and Advice, for a wide-ranging discussion on the intersection of artificial intelligence, energy demand and long-term investment opportunities.   Sid and Eliza explore how the rapid acceleration of AI is reshaping global energy markets and creating an urgent need for new power generation, storage and infrastructure. They discuss why energy innovation is increasingly being driven by economics rather than ideology, how investors should think about the evolving energy landscape and where opportunities are emerging across public and private markets. The conversation also examines the role of regulation, affordability and energy security, as well as the challenges of balancing AI-driven growth with the needs of communities, consumers and the broader economy. Sid and Eliza consider what this new era of technological and energy transformation could mean for investors, and why a disciplined, long-term perspective may be critical to navigating both the risks and opportunities ahead. ---The views and opinions expressed in this podcast are those of the speakers and do not necessarily reflect those of Brown Advisory. These views are not intended to be and should not be relied upon as investment advice, nor are they intended to be a forecast of future events or a guarantee of future results. The information provided in this podcast is not intended to be, and should not be considered, a recommendation or suggestion to engage in, or refrain from, a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the author on an objective basis to illustrate views expressed in the commentary and do not represent all the securities purchased, sold, or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy and is not a complete summary or statement of all available data. 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. Impact investments are made with the primary objective to generate positive social and environmental impact. While financial returns are also an objective of impact investments, impact investments will vary in levels of financial risk and the targeted level of financial return based on the impact the investment is seeking to achieve. Impact investment considerations will vary by investment style, sector/industry, market trends and client objectives. Some impact investments may create a positive impact at time of investment, where others will seek to create a positive impact at some point in the future. Clients may seek to leverage impact investments as part of a broader effort to invest according to their values. Investments selected for purposes of generating positive, social and environmental impact may perform differently than as forecasted due to the factors incorporated in the analysis of the investments. There is no guarantee of positive impact nor financial return. Efforts to measure impact will vary by the investment’s objective, sector/industry, availability of data and client directed tools of measurement. There is no assurance that data will be accurate, complete or easily comparable to other investments. All investments involve risk. The value of the investment and the income from it will vary. There is no guarantee that the initial investment will be returned. CERTAIN RISK FACTORS  Prospective investors should be aware that investments in private equity involve a high degree of risk and, therefore, should be undertaken only by investors capable of evaluating such risks of and bearing the risks it represents. There can be no assurance that any investment objectives will be achieved or that investors will receive a return of their capital. Accordingly, investors should only invest in private equity investments if such investors are able to withstand a total loss of their investment. Prospective investors should carefully review the matters discussed in the section regarding risk factors contained in the Offering Memorandum relating to any investment opportunity. Alternative Investments may be available for Qualified Purchasers and Accredited Investors only. Bloomberg® refers to Bloomberg L.P., a global provider of financial data, analytics, and news. The Bloomberg® name and related trademarks are owned by Bloomberg Finance L.P. and its affiliates. Baseload power refers to a consistent and reliable source of electricity generation that operates continuously to meet minimum levels of demand. CapEx (Capital expenditures) refers to funds a company uses to acquire, upgrade, or maintain physical assets such as property, buildings, or equipment. These investments are intended to support long-term growth and are typically recorded on the balance sheet rather than expensed immediately. Data centers are facilities that house computing infrastructure used to store, process and distribute digital information. Earnings growth measures the rate at which a company’s net income increases over a specified period, often expressed as a percentage. It is a key indicator of a company’s profitability trend and financial health. Free cash flow is the cash a company generates from its operations after accounting for capital expenditures. It represents the cash available to return to shareholders, pay down debt, or reinvest in the business. Geothermal energy is energy generated from heat stored beneath the Earth's surface. Gigawatt (GW) is a unit of power equal to one billion watts and commonly used to measure large-scale electricity generation capacity. Grid infrastructure refers to the transmission and distribution systems that deliver electricity from power generators to consumers. Hyperscalers are large technology companies that operate massive cloud computing and data center networks. Market capitalization is the total market value of a company’s outstanding shares of stock, calculated by multiplying the current share price by the total number of shares outstanding. It is commonly used to classify companies as small-cap, mid-cap, or large-cap. Nasdaq® refers to the Nasdaq Stock Market®, a global electronic marketplace for buying and selling securities. Nasdaq, Inc. is the owner of the Nasdaq® trademark and related marks. The S&P 500® Index is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S. and is widely regarded as a benchmark for the overall equity market. The S&P 500® is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use. Sectors are classifications of companies based on their primary business activities under the Global Industry Classification Standard (GICS®). GICS® was developed by MSCI Inc. and S&P Dow Jones Indices LLC to provide a consistent framework for categorizing companies into 11 sectors. The GICS® structure and related classifications are the exclusive property of MSCI and S&P Dow Jones Indices and are us...

  5. Apr 22

    Iran Headlines vs. Strong Earnings, AI Acceleration and Cheap Quality Stocks

    In this episode of CIO Perspectives, host Sid Ahl is joined by Brown Advisory’s CIO Paul Chew for a timely discussion on how geopolitical headlines have dominated investor attention even as the underlying earnings environment remains remarkably strong. Sid and Paul explore why recent developments involving Iran have unsettled markets in the short term, while fundamentals such as earnings growth, capital investment and valuation continue to drive long‑term outcomes. They discuss how fears around energy prices briefly pressured international markets, creating opportunities in high‑quality stocks that sold off despite improving fundamentals. The conversation also highlights the unprecedented revenue acceleration among leading AI companies and why the current AI investment cycle is translating into real earnings growth rather than speculation. The episode closes with a broader outlook on portfolio positioning, emphasizing the role of earnings, valuation discipline and patience as markets work through geopolitical noise. ---The views and opinions expressed in this podcast are those of the speakers and do not necessarily reflect those of Brown Advisory. These views are not intended to be and should not be relied upon as investment advice, nor are they intended to be a forecast of future events or a guarantee of future results. The information provided in this podcast is not intended to be, and should not be considered, a recommendation or suggestion to engage in, or refrain from, a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the author on an objective basis to illustrate views expressed in the commentary and do not represent all the securities purchased, sold, or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy and is not a complete summary or statement of all available data. 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. Alternative Investments may be available for Qualified Purchasers and Accredited Investors only.   Stagflation is an economic environment characterized by slow economic growth, high inflation and elevated unemployment. Valuation is the price investors pay relative to a company’s earnings, cash flow or assets.

  6. Mar 23

    Quality Stocks on Sale: Value Investing in an AI-driven Market

    In this episode of CIO Perspectives, host Sid Ahl speaks with portfolio manager Mike Poggi, who manages the Brown Advisory Large-Cap Sustainable Value strategy, about the return of value investing and why quality stocks are being overlooked in an AI-focused market. Mike shares how sentiment toward value has shifted, why free cash flow and balance sheet strength matter more today, and how recent pullbacks in Software and other industries are creating opportunities for disciplined investors. They also discuss the challenges facing quality-focused strategies, the role of sustainability in cash flow durability, and the catalysts emerging across Industrial, Technology and Health Care companies. ---The views and opinions expressed in this podcast are those of the speakers and do not necessarily reflect those of Brown Advisory. These views are not intended to be and should not be relied upon as investment advice, nor are they intended to be a forecast of future events or a guarantee of future results. The information provided in this podcast is not intended to be, and should not be considered, a recommendation or suggestion to engage in, or refrain from, a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the author on an objective basis to illustrate views expressed in the commentary and do not represent all the securities purchased, sold, or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy and is not a complete summary or statement of all available data. 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. Alternative Investments may be available for Qualified Purchasers and Accredited Investors only. Risk of Capital Loss: Private investments are characterized by a high degree of risk, volatility and illiquidity due, among other things, to the nature of the investments. Portfolio information based on a representative Large-Cap Sustainable Value account as of 03/06/2026. Sustainable investment considerations are one of multiple informational inputs into the investment process, alongside data on traditional financial factors, and so are not the sole driver of decision-making. Sustainable investment analysis may not be performed for every holding in the strategy. Sustainable investment considerations that are material will vary by investment style, sector/industry, market trends and client objectives. Certain strategies seek to identify companies that they believe may be desirable based on our analysis of sustainable investment related risks and opportunities, but investors may differ in their views. As a result, these strategies may invest in companies that do not reflect the beliefs and values of any particular investor. Certain strategies may also invest in companies that would otherwise be excluded from other funds that focus on sustainable investment risks. Security selection will be impacted by the combined focus on sustainable investment research assessments and fundamental research assessments including the return forecasts. These strategies incorporate data from third parties in their research process but do not make investment decisions based on third-party data alone. Sectors are based on the Global Industry Classification Standard (GICS) sector classification system. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and Standard & Poor’s. “Global Industry Classification Standard (GICS), “GICS” and “GICS Direct” are service marks of Standard & Poor’s and MSCI . “GICS” is a trademark of MSCI and Standard & Poor’s. Buyback yield is the percentage of a company’s market value returned to shareholders through share repurchases. Capital discipline is the way a company manages leverage, allocates cash and maintains balance sheet flexibility to support long-term value creation Capital expenditures (CapEx) are funds used by a company to acquire, maintain or upgrade physical assets such as property, equipment or technology. Dividend yield is the annual dividend paid by a company divided by its share price, expressed as a percentage. EBITDA (earnings before interest, taxes, depreciation and amortization) is a measure of a company’s operating performance used to evaluate profitability and compare companies across industries. Enterprise value (EV) is the combined value of a company’s equity and net debt.  Earnings Per Share (EPS) is a financial metric that indicates the profitability of a company. It is calculated by dividing the company’s net income by the number of outstanding shares of its common stock. EV/EBITDA is a valuation metric that compares a company’s enterprise value to its EBITDA, used to assess relative value across companies. Free cash flow (FCF) is the cash a company generates after capital expenditures that can be used for dividends, buybacks or reinvestment.  Free cash flow conversion is the percentage of EBITDA that becomes free cash flow, used to evaluate quality and cash efficiency.  Free cash flow yield is free cash flow divided by equity value, used to measure valuation and expected return.  Index reconstitution is the annual process where companies are added to or removed from benchmarks such as the Russell 1000 Value Index.  Leverage is the amount of debt a company carries relative to earnings or cash flow.  Margin of safety is the valuation cushion that helps protect against downside risk in value investing. Market Capitalization is the total value of a company’s outstanding shares.  Net leverage is a measure of debt adjusted for cash relative to earnings or cash flow.  Organic growth refers to revenue or earnings growth generated from a company’s existing operations, excluding acquisitions or divestitures. Quality investing is an investment approach focused on companies with durable earnings, strong balance sheets and stable free cash flow.  Return on invested capital (ROIC) is a measure of how efficiently a company generates profit from the capital it deploys. Russell 1000® Value Index is a market index that measures the performance of large- and mid-cap U.S. value stocks. The Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell ® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.  Stock-based compens...

  7. Mar 5

    SaaSpocalypse, the AI Death Star and Private Credit Indigestion

    In this episode of CIO Perspectives, host Sid Ahl speaks with Kif Hancock, International CIO, and Campbell Donley, CIO Investment Analyst, about the sharp market reaction to AI, the so‑called AI Death Star and the recent pressure in private credit — and how today’s volatility is creating opportunity. The conversation covers why quality has trailed, where dislocation is creating opportunity and how the most concentrated U.S. market in decades affects portfolio construction. The team also examines a K-shaped consumer, rising youth unemployment, the case for international diversification and why private credit requires manager-by-manager scrutiny in a software-heavy cycle. ---The views and opinions expressed in this podcast are those of the speakers and do not necessarily reflect those of Brown Advisory. These views are not intended to be and should not be relied upon as investment advice, nor are they intended to be a forecast of future events or a guarantee of future results. The information provided in this podcast is not intended to be, and should not be considered, a recommendation or suggestion to engage in, or refrain from, a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the author on an objective basis to illustrate views expressed in the commentary and do not represent all the securities purchased, sold, or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy and is not a complete summary or statement of all available data. 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. Alternative Investments may be available for Qualified Purchasers and Accredited Investors only. Private investments are characterized by a high degree of risk, volatility, and illiquidity due, among other things, to the nature of the investments. A prospective investor should thoroughly review the Offering Materials pertaining to any investment and carefully consider whether such an investment is suitable to the investor’s financial situation and goals. Investors should have the financial ability and willingness to accept the risks and lack of liquidity that are characteristic of these types of investments. There can be no assurance that any investment objectives will be achieved, or that investors will receive a return of their capital. Accordingly, investors should only invest in private credit investments if such investors are able to withstand a total loss of their investment. The S&P 500® Index represents the large-cap segment of the U.S. equity markets and consists of approximately 500 leading companies in leading industries of the U.S. economy. S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), a subsidiary of S&P Global Inc.The MSCI All Country World Index (ACWI) is a global equity benchmark covering developed and emerging markets.The MSCI World Index is a developed-markets equity benchmark that excludes emerging markets.Agentic AI is artificial intelligence that can plan, take multi step actions and perform tasks autonomously within workflows.Broadly syndicated loans (BSLs) are corporate loans arranged by banks and sold to multiple institutional investors.Direct lending is private lending directly to companies, often those backed by private equity sponsors.Enterprise value (EV) is a company’s total value, including equity and net debt.Free cash flow (FCF) is the cash a company generates after capital expenditures that is available for dividends, buybacks, or reinvestment.Initial public offering (IPO) is the first sale of a company’s shares to the public on a stock exchange.K-shaped recovery is an economic pattern where higher earners experience stronger growth while lower earners face weaker outcomes.Market capitalization is the total value of a company’s outstanding shares, calculated as share price multiplied by shares outstanding.Net profit margin is a measure of profitability calculated by dividing net income by revenue.Payment-in-kind (PIK) interest is interest paid using additional debt rather than cash.Quality investing is an investment approach focused on companies with durable earnings, strong balance sheets, high returns on invested capital, and stable free cash flow.Return on invested capital (ROIC) is a measure of how efficiently a company generates profits from the capital it uses.Stablecoins are crypto assets designed to maintain a stable value relative to a reference such as the U.S. dollar.

  8. Jan 27

    Bubble or a New Cycle? Surging Small Caps, Red Hot Venture Markets and the Evolving Winners of AI

    In our latest episode, Sid Ahl and Paul Chew discuss the early‑2026 investment backdrop—from U.S. economic momentum and Fed independence to market concentration, AI, and portfolio positioning. The conversation spans the surprising strength of recent U.S. economic data, the implications of elevated market concentration and passive flows, and how investors can think about fixed income positioning when credit spreads are tight. Sid and Paul also explore gold’s role in portfolios, what’s changing in private markets (including late‑stage venture and private credit, such as BDT MSD), and where they see diversification opportunities in 2026—such as Japan, selective international exposure and small caps. Highlights: ·        Why early‑2026 economic resilience and signs of life in housing matter for rates, risk assets and portfolio diversification. ·        Fed independence in focus: how political pressure could translate into market outcomes—and why the timing may be uncertain. ·        Fixed income positioning when credit spreads are tight: the case for mandate flexibility and the evolving role of duration. ·        Gold as a hedge and diversifier: balancing long‑cycle behavior with today’s valuation and mining‑supply dynamics. ·        Benchmark concentration and passive flows: what they mean for diversification, manager evaluation and portfolio risk. ·        Public and private opportunity sets for 2026: AI’s next phase, software differentiation, Japan, small caps, and selective private credit (including BDT MSD). -----Disclosures  The views and opinions expressed in this podcast are those of the speakers and do not necessarily reflect those of Brown Advisory. These views are not intended to be and should not be relied upon as investment advice and are not intended to be a forecast of future events or a guarantee of future results. The information provided in this podcast is not intended to be and should not be considered a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell or hold any securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the speakers on an objective basis to illustrate views expressed in the podcast and do not represent all the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy and is not a complete summary or statement of all available data. 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. Alternative Investments may be available for Qualified Purchasers and Accredited Investors only. Private investments are characterized by a high degree of risk, volatility and illiquidity due, among other things, to the nature of the investments. A prospective investor should thoroughly review the Offering Materials pertaining to any investment and carefully consider whether such an investment is suitable to the investor’s financial situation and goals. Investors should have the financial ability and willingness to accept the risks and lack of liquidity that are characteristic of these types of investments. There can be no assurance that any investment objectives will be achieved, or that investors will receive a return of their capital. Accordingly, investors should only invest in private credit investments if such investors are able to withstand a total loss of their investment. The S&P 500® Index represents the large-cap segment of the U.S. equity markets and consists of approximately 500 leading companies in leading industries of the U.S. economy. S&P®, S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), a subsidiary of S&P Global Inc. The Russell 1000® Growth Index measures the performance of the large‑ and mid‑capitalization growth segment of the U.S. equity universe. Russell® and FTSE Russell® are trademarks of the London Stock Exchange Group companies. Terms and Definitions: Artificial Intelligence (AI) refers to computer systems that can perform tasks typically requiring human intelligence, such as pattern recognition, language understanding and decision support. Capital Expenditure (Capex) refers to funds used by a company to acquire, upgrade, or maintain physical assets such as property or technology. Consumer Price Index (CPI) is a measure of inflation that tracks changes in the prices paid by consumers for a basket of goods and services. Credit Spread refers to the difference in yield between a credit‑risk instrument (such as a corporate bond) and a comparable maturity ‘risk‑free’ instrument (often a U.S. Treasury). Duration is a measure of a bond’s sensitivity to changes in interest rates; higher duration generally implies greater price sensitivity to rate moves. Exchange-Traded Fund (ETF) is an investment vehicle that trades on an exchange and typically seeks to track an index, sector or strategy. Gross Domestic Product  (GDP) is a measure of the total value of goods and services produced within an economy over a specified period. K‑shaped Economy describes an uneven recovery or growth pattern in which different segments of the economy experience materially different outcomes. Mortgage‑Backed Securities (MBS) are bonds backed by pools of residential or commercial mortgage loans. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a financial metric used to evaluate a company’s operating performance by measuring profitability from core business activities. Free Cash Flow (FCF) is the cash a company generates after accounting for cash outflows to support operations and maintain capital assets. Free Cash Flow Margin is free cash flow expressed as a percentage of revenue, often used to gauge a company’s cash‑generation efficiency. IRR (Internal Rate of Return) is the annualized rate of return at which the present value of cash flows equals the initial investment, commonly used in private investments. Passive Investing is an approach that seeks to match (rather than outperform) an index’s return, typically through index funds or ETFs. Tracking Error measures the divergence between a portfolio’s returns and its benchmark’s returns. Venture Capital refers to private investment in early‑stage companies, typically in exchange for equity ownership. Initial Public Offering (IPO) is the process by which a private company offers shares to the public for the first time.

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