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 2020 Mid Cap Growth Commentary

Stock prices continued their remarkable ascent from the March pandemic low, shaking off a rise in new COVID-19 cases and a heated political environment to finish the third quarter near all-time highs. Stronger economic data and broader participation across the market were at work. Heading into the third quarter, more cyclical areas of the market such as producer durables, materials, consumer discretionary, and energy had generated the worst absolute returns through the first half of the year. However, in the third quarter these sectors delivered some of the best performance and joined healthcare and technology in reporting positive returns. The change was driven by an improvement in economic fundamentals reflected in further employment gains, a rebound in manufacturing activity, and strong housing data, underpinned by an accommodative monetary stance and prospects for more fiscal help.

Read Full Baird Mid Cap Growth Commentary

PERFORMANCE

Annualized Returns (%)*

 3 MonthsYTD1-Year3-Year5-Year10-YearSince InceptionInception Date
Baird Mid Cap Growth Equity (gross) 8.90 14.34 21.18 18.12 16.44 15.15 12.63 6/30/93
Baird Mid Cap Growth Equity (net) 8.70 13.73 20.36 17.28 15.62 14.37 12.00 6/30/93
Russell MidCap® Growth Index 9.37 13.92 23.23 16.23 15.53 14.55 10.50

*Returns less than one year are not annualized.



Annual Total Returns (%)

20192018201720162015201420132012201120102009
Baird Mid Cap Growth Equity (gross) 37.43 -0.79 28.00 6.37 -2.79 5.80 34.13 17.64 5.60 28.17 41.75
Baird Mid Cap Growth Equity (net) 36.47 -1.50  27.10  5.63 -3.49 5.06 33.09 16.79 5.06 27.70  41.14
Russell Midcap Growth Index 35.47 -4.75 25.27 7.33 -0.20  11.90  35.75 15.82 -1.66 26.38 46.29

Data as of 9/30/20


Past performance does not guarantee future results.