Brown Advisory has unveiled a new US value fund , targeting high-quality companies trading at discounts to intrinsic value.
The global investment management firm will launch the BA Beutel Goodman U.S. Value Fund, a Dublin-based UCITS fund on Monday 30 November 2020. It will initially be seeded with up to $25 million of client assets, managed out of Brown Advisory’s London office.
The new fund continues Brown Advisory's relationship with Toronto-based investment manager Beutel, Goodman & Company Ltd, which will sub-advise the fund. This follows the launch of the Brown Advisory – Beutel Goodman Large Cap Value Fund in the U.S. (BVALX) almost three years ago, which now has over $500 million in assets.
The BA Beutel Goodman U.S. Value Fund follow the Beutel Goodman U.S. equity strategy, which utilises a bottom-up approach alongside fundamental research to identify opportunities that are trading below value. The strategy has a multi-year investment horizon, typically holding 25-35 stocks in a high-conviction, low-turnover portfolio.
Rui Cardoso, managing director and portfolio manager for US and international equities at Beutel Goodman, said: “We believe value is critical to deciding where to invest our clients’ capital. Investing is not just about finding great businesses in excellent end markets that have wide moats to provide continued profitability. What you pay for expected growth and profitability is as important in the long term as what the growth and profitability actually become. Regardless of who is winning the battle between growth and value at any given time, we believe our value style will continue to deliver strong returns over a cycle while protecting capital.”
Logie Fitzwilliams, head of international business at Brown Advisory, added: “There has been increasing demand from our U.K. and European clients for U.S. value. In Beutel Goodman, we have found a partner with a similar investment philosophy to our own and an impressive long-term track record. Given the limited number of high-quality U.S. equity value strategies currently available to the U.K. market, we are now pleased to be able to bring the expertise of Beutel Goodman to our clients here.”
