Small/Mid Cap Value Strategy

OVERVIEW

Baird Equity Asset Management’s Small/Mid Cap Value portfolio invests in small- to medium-cap U.S. companies and seeks to provide superior risk-adjusted returns and consistently outperform the benchmark Russell 2500 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 $300 million to $10 billion at purchase 
  • Top holdings generally limited to 5% at cost, 8% at market
  • Sectors capped at 30% excluding financials 
  • Buy-and-hold approach
TEAM

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

COMMENTARY

Q2 2021 Small/Mid Value and Small Value Commentary

Perhaps the most interesting financial story from the pandemic period is the exceptionally unusual impact of “meme stocks” on index returns. The Russell 2000 Value consists of more than 1500 stocks with weights typically under 0.05%. However, the eye-popping returns of a handful of heavily shorted stocks turned retail-investor darlings resulted in outsized weightings and effects on benchmark performance.


Read Full Small or Small/Mid Value Commentary

PERFORMANCE

Annualized Returns (%)*

 3 MonthsYTD1-Year3-Year5-Year10-YearSince InceptionInception Date
Baird Small/Mid Cap Value (gross) 2.24 12.96 39.91 5.18 8.54 10.29 10.97 1/1/00
Baird Small/Mid Cap Value (net) 2.02 12.48 38.74 4.31 7.64 9.41 10.01 1/1/00
Russell 2500 Value Index 5.00 22.68 63.23 10.60 12.29 10.93 10.28

*Returns less than one year are not annualized.



Annual Total Returns (%)

2020201920182017201620152014201320122011
Baird Small/Mid Cap Value (gross) 1.44 19.34 -14.51 22.55 9.80 0.17 9.47 36.87 17.32 6.09
Baird Small/Mid Cap Value (net) 0.61 18.38 -15.22 21.54 8.91 -0.50 8.65 35.93 16.36 5.09
Russell 2500 Value Index 4.88 23.56 -12.36 10.36 25.20 -5.49 7.11 33.32 19.21 -3.36

Data as of 6/30/21


Past performance does not guarantee future results.