BBH Principles of Public Equity Investing

Investment objective
We aim to provide investors with long term growth of capital on an after-tax basis. Our strategies seek to generate attractive returns over time, but do not attempt to mirror any benchmark or index.

Ownership perspective
We approach equity investing with the perspective of owning fractional shares of strong businesses for relatively long periods of time. We base our investment decisions on fundamental analysis of the underlying businesses.

Emphasis on capital preservation
We view risk not as the price volatility of an investment, but instead as the likelihood of a permanent capital loss. To mitigate this risk, we apply rigorous selection criteria and invest only in companies we believe have a significant margin of safety as measured between the purchase price and our estimate of intrinsic value.

Long-term perspective
Many investment strategies are built around short-term expectations, momentum- following and frequent trading. We believe that a longer-term view of both companies and investments leads to stronger results and risk control over market cycles.

Minimize trading costs and taxes
High portfolio turnover often generates taxable short-term gains and substantial trading costs, both of which can significantly erode the long-term compounding of returns. Our targeted holding period of 3-5 years helps us reduce these costs.

Invest alongside clients
Key principals of BBH are invested personally in our strategies signifying a high level of shared conviction in the investment philosophy and process, and a clear alignment of interests with our clients.

Research-focused process
We believe that the strong research and analysis is the primary driver of investment success. Prior to any investment we strive to have a deep understanding of the long-term fundamental characteristics of the business. It is also important to control business risk through domain knowledge, carefully selected investment criteria, and a thoughtful investment process.