While large-cap equities, managed through Core Select, together with municipal, corporate and government bonds, constitute the largest part of most client portfolios at BBH, there are a significant number of clients whose individual needs will dictate additional investments such as small-cap stocks, private equity funds, or hedge funds. For most of these investments, the Bank [BBH] uses a limited number of proven outside managers with investment philosophies that are similar to the Core Select approach.

Outside Manager Products:

Our open architecture approach combines the experience of Brown Brothers Harriman and the expertise of specialty asset class investment managers. Where appropriate, BBH will offer investment options across various asset classes to complement our proprietary strategies. Our selection of third party managers is driven by our core investment philosophy and demands managers who place a similar degree of importance on protecting capital and requiring a margin of safety.

Alternative Investments:

The Alternative Investments Group expects to develop complementary investment strategies in other sectors with low correlation to conventional asset classes, either on a fully proprietary basis or in concert with leading managers within specific disciplines.