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

Q3 2020 Small/Mid Value and Small Value Commentary

As we pass the six-month mark since the U.S. COVID-19 lockdowns, we reflect upon recent and potential long-term changes in consumer spending trends. The market ricochet off the March lows disproportionately rewarded the stocks of those businesses that have benefited the most from the economy reopening. The S&P 600 Small Cap Hotel Restaurant and Leisure Index, to illustrate, has more than doubled in the past six months to within 10% of its all-time high.


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) -0.49 -18.50 -14.38 -3.98 2.26 8.75 9.58 1/1/00
Baird Small/Mid Cap Value (net) -0.70 -19.00 -15.06 -4.76 1.43 7.88 8.62 1/1/00
Russell 2500 Value Index 3.54 -18.39 -12.62 -2.69 4.65 8.01 8.27

*Returns less than one year are not annualized.



Annual Total Returns (%)

20192018201720162015201420132012201120102009
Baird Small/Mid Cap Value (gross) 19.34 -14.51 22.55 9.80 0.17 9.47 36.87 17.32 6.09 10.29 29.40
Baird Small/Mid Cap Value (net) 18.40 -15.22 21.54 8.91 -0.50 8.65 35.93 16.36 5.09 9.26 28.20
Russell 2500 Value Index 23.56 -12.36 10.36 25.20 -5.49 7.11 33.32 19.21 -3.36 24.85 27.68

Data as of 9/30/20


Past performance does not guarantee future results.