Brown Advisory has launched a new fund to give institutional, intermediary and retail investors outside the US access to its US small-cap fundamental value strategy.
The strategy invests in American smaller companies the team considers mispriced relative to their intrinsic value. It targets both classic value opportunities and situations where the team believes the market has not fully reflected a company’s long-term potential.
It has delivered annualised returns of 12.6% gross of fees and 11.5% net of fees since its 2008 inception to 31 March 2026. Over the same period, the Russell 2000 Value index returned 10.4%
David Schuster, who has managed Brown Advisory’s US small-cap fundamental value strategy since its 2008 launch, said: “The market price of a stock often does not reflect a company's true value – particularly in the small-cap universe. We focus on businesses with persistent free cash flow and management teams that allocate capital effectively.”
Charlie van Straubenzee, global head of institutional business development at Brown Advisory, cited “increased dispersion in company fundamentals and valuations” as a factor behind the timing of the launch.
The new UCITS fund will sit alongside the strategy’s existing US mutual fund and separately managed account vehicles.