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

Q2 2020 Mid Cap Growth Commentary

As stay-at-home restrictions eased across the country during the second quarter and consumers and businesses started to resume normal activities, equity prices quickly began discounting a recovery. Company updates in many cases revealed weekly improvement, driven by some combination of pent-up demand and extra spending power from significant fiscal stimulus. The result was a remarkable “V” in the first half of the year as the sharp and painful decline of the first quarter gave way to a sizable ascent in the second. We are certainly encouraged by signs of fundamental improvement but also know that recoveries do not unfold in a straight line, and the build in new virus cases as the quarter closed is a case in point. Investors should expect bouts of volatility as companies work through a challenging time.

Read Full Baird Mid Cap Growth Commentary

PERFORMANCE

Annualized Returns (%)*

 3 MonthsYTD1-Year3-Year5-Year10-YearSince InceptionInception Date
Baird Mid Cap Growth Equity (gross) 29.77 4.99 13.50 16.25 12.64 15.41 12.40 6/30/93
Baird Mid Cap Growth Equity (net) 29.55 4.63 12.71 15.43 11.85 14.63 11.77 6/30/93
Russell MidCap® Growth Index 30.26 4.16 11.91 14.76 11.60 15.09 10.23

*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 6/30/20


Past performance does not guarantee future results.