The Brown Capital Management Mid Company Fund
Name
As of 04/18/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
Vitals
YTD Return
-3.2%
1 yr return
7.3%
3 Yr Avg Return
-5.3%
5 Yr Avg Return
7.4%
Net Assets
$73.8 M
Holdings in Top 10
42.0%
52 WEEK LOW AND HIGH
Expenses
OPERATING FEES
Expense Ratio 1.81%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover 11.00%
Redemption Fee N/A
Min Investment
Standard (Taxable)
$500,000
IRA
N/A
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 04/18/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
BCMIX - Profile
Distributions
- YTD Total Return -3.2%
- 3 Yr Annualized Total Return -5.3%
- 5 Yr Annualized Total Return 7.4%
- Capital Gain Distribution Frequency Annually
- Net Income Ratio -0.66%
- Dividend Yield 0.0%
- Dividend Distribution Frequency Annual
Fund Details
-
Legal NameThe Brown Capital Management Mid Company Fund
-
Fund Family NameBrown Capital Management
-
Inception DateDec 15, 2011
-
Shares OutstandingN/A
-
Share ClassInstl
-
CurrencyUSD
-
Domiciled CountryUS
-
ManagerEddie Brown
Fund Description
The Mid Company Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in a portfolio of equity securities of companies with total operating revenues of $500 million to $2.5 billion at the time of initial investment (“mid sized companies”). It is important to note that the Mid Company Fund does NOT choose its portfolio companies based on a reference to market capitalization. Rather, the focus of the Mid Company Fund is on the revenue produced by the issuer of the securities.
The Mid Company Fund typically invests in common stocks. The Advisor seeks to build a portfolio of exceptional mid companies with the wherewithal to become exceptional larger companies. The Mid Company Fund typically holds a portfolio of between 40 to 60 securities which the Advisor believes have the potential for growth.
The Advisor’s Philosophy
The Advisor believes that a sustained commitment to a portfolio of exceptional companies will, over time, generate attractive long-term returns. The Advisor believes exceptional companies save time, lives, money or headaches or provide an exceptional value proposition to consumers. The Advisor views these differentiated organizations as having the wherewithal to provide unique solutions that include, but are not limited to, the utilization of innovative technology and insight to help address or redefine the challenges faced by institutions or consumers. These companies often retain a long-term growth plan, durable revenue growth, defensible market presence and profitability to fuel and sustain earnings per share growth. While investing in exceptional growth companies is paramount, the Advisor believes in being disciplined and deliberate about what it is willing to pay for growth opportunities and doing so in a benchmark agnostic manner (meaning that the Advisor selects companies without consideration of benchmarks by which the Fund is measured). Because the Mid Company Fund is managed in a benchmark agnostic manner, an unintended consequence is that the Fund may have sector exposure.
The Advisor’s Investment Approach
The Advisor believes an investment program establishes the processes necessary to identify, research and construct a portfolio. The Advisor distinguishes Mid Company from mid capitalization by its use of revenue not market capitalization to identify and invest in exceptional mid companies that have the wherewithal to become exceptional larger companies. The Advisor sources ideas from many places. Companies eligible for investment typically generate between $500 million and $2.5 billion in revenue at the time of initial investment. The Advisor’s investment professionals retain dual duties, managing the portfolio as a team and serving as generalists in their analytical role. They discuss prospective portfolio candidates with teammates before any in-depth research is performed to ensure the commitment of time dedicated to understanding the company makes sense to all team members.
The Advisor believes in-depth fundamental research, when applied over a three to five-year time horizon, and implemented with a benchmark agnostic framework, has the potential to generate attractive long-term returns.
Therefore, the foundation of the Advisor’s investment process is fundamental analysis. Valuation analysis is also part of the Advisor’s investment process.
The Advisor constructs the Mid Company Fund’s portfolio to generally be fully invested with no more than 5% in cash. The Advisor believes a diversified portfolio of 40 to 60 securities and their research efforts may, collectively, reduce portfolio risk.
The Advisor generally expects to hold securities for the long term. The Advisor typically sells securities from the Mid Company Fund’s portfolio when the investment thesis driving the purchase of the company changes, the Advisor has a better investment idea, and/or its valuation no longer meets expectations.
BCMIX - Performance
Return Ranking - Trailing
Period | BCMIX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | -3.2% | -27.2% | 20.7% | 90.33% |
1 Yr | 7.3% | -14.9% | 47.3% | 90.48% |
3 Yr | -5.3%* | -29.6% | 78.0% | 75.56% |
5 Yr | 7.4%* | -5.0% | 97.2% | 72.29% |
10 Yr | 0.1%* | -0.3% | 36.3% | 99.74% |
* Annualized
Return Ranking - Calendar
Period | BCMIX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 27.5% | -27.7% | 68.0% | 9.71% |
2022 | -45.8% | -85.6% | 350.1% | 93.00% |
2021 | 11.3% | -77.0% | 238.3% | 16.10% |
2020 | 37.6% | -44.1% | 2474.5% | 23.68% |
2019 | 38.1% | -50.2% | 44.0% | 4.44% |
Total Return Ranking - Trailing
Period | BCMIX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | -3.2% | -27.2% | 20.7% | 90.33% |
1 Yr | 7.3% | -14.9% | 47.3% | 90.48% |
3 Yr | -5.3%* | -29.6% | 78.0% | 75.56% |
5 Yr | 7.4%* | -5.0% | 97.2% | 72.29% |
10 Yr | 0.1%* | -0.3% | 36.3% | 99.74% |
* Annualized
Total Return Ranking - Calendar
Period | BCMIX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 27.5% | -26.1% | 68.0% | 10.99% |
2022 | -37.0% | -67.0% | 440.7% | 89.87% |
2021 | 14.1% | -23.5% | 342.2% | 40.91% |
2020 | 41.2% | 2.6% | 2549.1% | 37.38% |
2019 | 44.6% | 14.6% | 44.8% | 0.40% |
NAV & Total Return History
BCMIX - Holdings
Concentration Analysis
BCMIX | Category Low | Category High | BCMIX % Rank | |
---|---|---|---|---|
Net Assets | 73.8 M | 2.73 M | 100 B | 89.96% |
Number of Holdings | 41 | 25 | 3644 | 86.86% |
Net Assets in Top 10 | 30.5 M | 449 K | 9.69 B | 84.85% |
Weighting of Top 10 | 41.96% | 0.4% | 99.9% | 17.88% |
Top 10 Holdings
- Fleetcor Technologies, Inc. 4.67%
- Charles River Laboratories Int'l, Inc. 4.65%
- Shopify, Inc. Class A 4.42%
- Manhattan Associates, Inc. 4.30%
- Tyler Technologies, Inc. 4.21%
- HubSpot, Inc. 4.18%
- Autodesk, Inc. 4.08%
- Bentley Systems, Inc. Class B 3.88%
- RBC Bearings, Inc. 3.79%
- Dexcom, Inc. 3.77%
Asset Allocation
Weighting | Return Low | Return High | BCMIX % Rank | |
---|---|---|---|---|
Stocks | 99.64% | 0.92% | 101.49% | 21.90% |
Cash | 0.41% | 0.00% | 99.08% | 72.08% |
Preferred Stocks | 0.00% | 0.00% | 5.46% | 57.48% |
Other | 0.00% | -0.18% | 16.96% | 66.06% |
Convertible Bonds | 0.00% | 0.00% | 0.40% | 51.64% |
Bonds | 0.00% | -3.27% | 1.87% | 54.38% |
Stock Sector Breakdown
Weighting | Return Low | Return High | BCMIX % Rank | |
---|---|---|---|---|
Technology | 46.16% | 0.04% | 62.17% | 3.10% |
Healthcare | 32.08% | 0.00% | 37.06% | 2.01% |
Consumer Cyclical | 10.60% | 0.00% | 57.41% | 78.83% |
Industrials | 7.74% | 0.00% | 38.23% | 89.78% |
Financial Services | 3.43% | 0.00% | 43.01% | 86.68% |
Utilities | 0.00% | 0.00% | 12.94% | 63.32% |
Real Estate | 0.00% | 0.00% | 19.28% | 89.78% |
Energy | 0.00% | 0.00% | 62.10% | 81.93% |
Communication Services | 0.00% | 0.00% | 18.33% | 93.80% |
Consumer Defense | 0.00% | 0.00% | 16.40% | 92.34% |
Basic Materials | 0.00% | 0.00% | 17.25% | 88.32% |
Stock Geographic Breakdown
Weighting | Return Low | Return High | BCMIX % Rank | |
---|---|---|---|---|
US | 99.64% | 0.64% | 101.49% | 17.88% |
Non US | 0.00% | 0.00% | 34.57% | 62.96% |
BCMIX - Expenses
Operational Fees
BCMIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 1.81% | 0.02% | 17.54% | 15.60% |
Management Fee | 0.75% | 0.00% | 1.50% | 57.59% |
12b-1 Fee | N/A | 0.00% | 1.00% | N/A |
Administrative Fee | N/A | 0.00% | 0.40% | N/A |
Sales Fees
BCMIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 3.00% | 5.75% | N/A |
Deferred Load | N/A | 1.00% | 5.00% | N/A |
Trading Fees
BCMIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 1.00% | 2.00% | N/A |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
BCMIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 11.00% | 0.00% | 250.31% | 8.91% |
BCMIX - Distributions
Dividend Yield Analysis
BCMIX | Category Low | Category High | BCMIX % Rank | |
---|---|---|---|---|
Dividend Yield | 0.00% | 0.00% | 34.57% | 60.58% |
Dividend Distribution Analysis
BCMIX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Annual | Annual | Annual | Annual |
Net Income Ratio Analysis
BCMIX | Category Low | Category High | BCMIX % Rank | |
---|---|---|---|---|
Net Income Ratio | -0.66% | -2.24% | 2.75% | 56.11% |
Capital Gain Distribution Analysis
BCMIX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually | Annually |
BCMIX - Fund Manager Analysis
Managers
Eddie Brown
Start Date
Tenure
Tenure Rank
Sep 30, 2002
19.68
19.7%
Chairman, Chief Executive Officer, and Founder Eddie C. Brown started Brown Capital Management on July 1, 1983. He is chairman of the firm’s board of directors and a member of the firm’s Management Committee, the governing body of Brown Capital Management. Eddie boasts over 40 years of investment experience, serving as VP and portfolio manager at T. Rowe Price Associates, Inc. for 10 years before starting his own firm in 1983. He earned a BS in electrical engineering from Howard University, an MS in electrical engineering from New York University, and an MBA from Indiana University Kelley School of Business. He holds the professional designations of CFA and CIC.
Walton Pearson
Start Date
Tenure
Tenure Rank
Feb 28, 2005
17.26
17.3%
Managing Director and Senior Portfolio Manager Walton D. Pearson joined Brown Capital Management in 2005. He is a member of the Management Committee, which is the firm’s governing body. Prior to joining Brown Capital Management, Walt served as a managing director and senior portfolio manager at Putnam Investments and as an SVP and senior portfolio manager at Alliance Bernstein Capital Management. He holds an MBA in finance from the Harvard Graduate School of Business Administration and a BS in management from St. Francis College, where he graduated cum laude.
Kayode Aje
Start Date
Tenure
Tenure Rank
Dec 31, 2018
3.42
3.4%
Director and Senior Analyst Kayode O. Aje joined Brown Capital Management in April 2016. Previously, Kayode was a global equity research analyst at Chevy Chase Trust, a senior analyst/portfolio manager at Legg Mason Capital Management, and an account officer in JPMorgan Chase’s Private Banking Division. Kayode earned his MBA from the Yale School of Management where he was a Yale MBA Scholar. He graduated cum laude with a BS in finance from the University of Maryland, College Park and is a CFA charterholder.
Kwame Webb
Start Date
Tenure
Tenure Rank
Dec 31, 2018
3.42
3.4%
Director and Senior Analyst Kwame C. Webb joined Brown Capital Management in 2017. Previously, Kwame was a senior equity analyst at Morningstar, Inc. and an investment analyst and VP at T. Rowe Price Group, Inc. Kwame earned an MBA in finance from the Wharton School of the University of Pennsylvania as a Robert Toigo Fellow. He earned a BA in finance from the College of William & Mary, where he was a William & Mary scholar and graduated magna cum laude. Kwame is a CFA charterholder and a member of the Chicago CFA society.
Tenure Analysis
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.04 | 36.3 | 9.2 | 2.25 |