Mid Cap Growth Strategy

OVERVIEW

The Baird Mid Cap Growth Strategy invests in U.S. mid-cap companies and is managed with a strong emphasis on risk control and a long-term perspective. The team strongly believes in having a true mid-cap product, with the majority of the portfolio invested in companies between $2B and $15B in market cap. The primary investment goal is to provide consistent, superior-to-market returns at a risk posture less than that of the market (vs. the Russell Midcap Growth Index). The team does this by finding companies for inclusion in the portfolio that have better growth prospects and capital structures than peers.

Portfolio Construction

  • A concentrated portfolio of generally 50–60 stocks
  • A majority of market cap range from $2 billion to $15 billion
  • The average position is 1%–3%, not to exceed 5% 
  • Sector weights 75%–125% relative to the benchmark, generally limited to 30% of portfolio
TEAM

For more information, contact Todd Haschker or the Intermediary Specialist in your region.

COMMENTARY

Q3 2019 Mid Cap Growth Commentary

The domestic equity market posted a strong advance through the first nine months of the year. However, further slowing of global growth, ongoing trade tensions and most recently the specter of impeachment proceedings resulted in a step up in volatility and muted stock returns in the third quarter. A continuation of good consumer fundamentals, highlighted by low unemployment and favorable housing trends, and the efforts of central banks to lower rates have offset the negative impact of trade issues, particularly on the domestic manufacturing front. Expecting continued volatility appears reasonable given that political noise should remain high, and time is needed to determine if lower global rates can re-accelerate economic activity.

Read Full Baird Mid Cap Growth Commentary

PERFORMANCE

Annualized Returns (%)*

 3 MonthsYTD1-Year3-Year5-Year10-YearSince InceptionInception Date
Baird Mid Cap Growth Equity (gross) 1.98 29.65 9.67 18.31 12.11 15.01 12.32 6/30/93
Baird Mid Cap Growth Equity (net) 1.81 28.97 8.89 17.48 11.32 14.26 11.69 6/30/93
Russell MidCap® Growth Index -0.67 25.23 5.20 14.50 11.12 14.08 10.04

*Returns less than one year are not annualized.



Annual Total Returns (%)

201820172016201520142013201220112010200920082007
Baird Mid Cap Growth Equity (gross)  -0.79 28.00 6.37 -2.78 5.80 34.13 17.64 5.60 28.17 41.75 -40.25 21.18
Baird Mid Cap Growth Equity (net) -1.5  27.10 5.63 -3.49 5.06 33.09 16.79 5.06 27.70 41.14 -40.54 20.59
Russell Midcap Growth Index -4.75  25.27 7.33 -0.20 11.90 35.75 15.82 -1.66 26.38 46.29 -44.32 11.43

Data as of 9/30/19


Past performance does not guarantee future results.