Small Cap Value Strategy

OVERVIEW

Baird Equity Asset Management’s Small Cap Value portfolio invests in domestic small-cap companies and seeks to provide superior risk-adjusted returns and consistently outperform the benchmark Russell 2000 Value Index over a full market cycle (typically 3–5 years). The portfolio comprises companies we expect to exceed street expectations and that trade at discounts to our proprietary calculations of fair value. To help control risks, the portfolio is generally diversified among companies in a broad range of industries and economic sectors.

Portfolio Construction

  • A concentrated portfolio of generally 40–50 stocks
  • A market cap range typically from $100 million to $2.5 billion at purchase 
  • Top holdings generally limited to 5% at cost, 8% at market
  • Sectors capped at 30% excluding financials 
  • A buy-and-hold approach
TEAM

For more information, contact Rob Zwiebel or the Intermediary Specialist in your region.

COMMENTARY

Q1 2020 Small/Mid Value and Small Value Commentary

At the time of this writing, most of the nation is locked down with shelter-at-home orders as we approach in the coming weeks what we hope to be the peak of the COVID-19 outbreak in the United States. The global pandemic has virtually shut down much of the global economy, making financial analysis for many investments near impossible in the short run.

Read Full Small or Small/Mid Value Commentary

PERFORMANCE

Annualized Returns (%)*

 3 MonthsYTD1-Year3-Year5-Year10-YearSince InceptionInception Date
Baird Small Cap Value (gross) -27.7 -27.7 -23.4 -4.8 -0.9 6.4 6.2 3/1/05
Baird Small Cap Value (net) -27.8 -27.8 -23.7 -5.3 -1.5 5.8 5.5 3/1/05
Russell 2000 Value Index -35.7 -35.7 -29.6 -9.5 -2.4 4.8 3.9

*Returns less than one year are not annualized.



Annual Total Returns (%)

20192018201720162015201420132012201120102009
Baird Small Cap Value (gross) 18.10 -14.88 19.43 16.35 -4.06 1.45 41.48 16.51 4.76 10.72 17.86
Baird Small Cap Value (net) 17.51 -15.23 18.78 15.76 -4.56 0.89 40.81 15.77 3.72 9.62 16.70
Russell 2000 Value Index 22.39 -12.86 7.84 31.74 -7.47 4.22 34.50 18.05 -5.50 24.51 20.58

Data as of 3/31/20


Past performance does not guarantee future results.