In this episode of CIO Perspectives, host Sid Ahl speaks with Kif Hancock, International CIO, and Campbell Donley, CIO Investment Analyst, about the sharp market reaction to AI, the so‑called AI Death Star and the recent pressure in private credit — and how today’s volatility is creating opportunity. The conversation covers why quality has trailed, where dislocation is creating opportunity and how the most concentrated U.S. market in decades affects portfolio construction. The team also examines a K-shaped consumer, rising youth unemployment, the case for international diversification and why private credit requires manager-by-manager scrutiny in a software-heavy cycle.
---
The views and opinions expressed in this podcast are those of the speakers and do not necessarily reflect those of Brown Advisory. These views are not intended to be and should not be relied upon as investment advice, nor are they intended to be a forecast of future events or a guarantee of future results. The information provided in this podcast is not intended to be, and should not be considered, a recommendation or suggestion to engage in, or refrain from, a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the author on an objective basis to illustrate views expressed in the commentary and do not represent all the securities purchased, sold, or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy and is not a complete summary or statement of all available data. This piece is intended solely for our clients and prospective clients, is for informational purposes only, and is not individually tailored for or directed to any particular client or prospective client.
Alternative Investments may be available for Qualified Purchasers and Accredited Investors only.
Private investments are characterized by a high degree of risk, volatility, and illiquidity due, among other things, to the nature of the investments. A prospective investor should thoroughly review the Offering Materials pertaining to any investment and carefully consider whether such an investment is suitable to the investor’s financial situation and goals. Investors should have the financial ability and willingness to accept the risks and lack of liquidity that are characteristic of these types of investments. There can be no assurance that any investment objectives will be achieved, or that investors will receive a return of their capital. Accordingly, investors should only invest in private credit investments if such investors are able to withstand a total loss of their investment.
The S&P 500® Index represents the large-cap segment of the U.S. equity markets and consists of approximately 500 leading companies in leading industries of the U.S. economy. S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), a subsidiary of S&P Global Inc.
The MSCI All Country World Index (ACWI) is a global equity benchmark covering developed and emerging markets.
The MSCI World Index is a developed-markets equity benchmark that excludes emerging markets.
Agentic AI is artificial intelligence that can plan, take multi step actions and perform tasks autonomously within workflows.
Broadly syndicated loans (BSLs) are corporate loans arranged by banks and sold to multiple institutional investors.
Direct lending is private lending directly to companies, often those backed by private equity sponsors.
Enterprise value (EV) is a company’s total value, including equity and net debt.
Free cash flow (FCF) is the cash a company generates after capital expenditures that is available for dividends, buybacks, or reinvestment.
Initial public offering (IPO) is the first sale of a company’s shares to the public on a stock exchange.
K-shaped recovery is an economic pattern where higher earners experience stronger growth while lower earners face weaker outcomes.
Market capitalization is the total value of a company’s outstanding shares, calculated as share price multiplied by shares outstanding.
Net profit margin is a measure of profitability calculated by dividing net income by revenue.
Payment-in-kind (PIK) interest is interest paid using additional debt rather than cash.
Quality investing is an investment approach focused on companies with durable earnings, strong balance sheets, high returns on invested capital, and stable free cash flow.
Return on invested capital (ROIC) is a measure of how efficiently a company generates profits from the capital it uses.
Stablecoins are crypto assets designed to maintain a stable value relative to a reference such as the U.S. dollar.
Brown Advisory CIO Perspectives 
