Brown Advisory Fund

Portfolio Insights

Apple & HASI

On February 18 during our class meeting, we voted on reducing our position in Apple (AAPL) from 11% to 6%. The reason behind this decision was because we felt having an 11% position  adds a high level of portfolio volatility to our portfolio.This decision to reduce the AAPL holding will benefit the portfolio as we look for more opportunities to diversify our portfolio. While we still like the outlook for AAPL, we think that a lower level of exposure will reduce overall price volatility in the fund.

In addition, over the past few months following a campus visit from President and CEO, Jeffrey Eckel of Hannon Armstrong (HASI) , we have studied the company anddecided to initiate a 2% position in HASI. Hannon Armstrong makes debt and equity investments in clean energy infrastructure projects. The company primarily focuses on projects that focus in energy efficiency, provide cleaner energy, and have a major impact on the environment in terms of natural resources. We believe HASI has strong future potential earnings as the quarterly cash dividend grew to $0.26 per share, up 18% in December 2014. The dividend represents an annualized yield of 7.6%.” As more companies and government entities seek to reduce carbon emissions and improve energy efficiency, we believe that HASI has a positive outlook