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 2019 Small/Mid Value and Small Value Commentary

The second quarter of 2019 was defined by deteriorating economic data and a subsequently soured global growth outlook that ultimately was looked upon as ”so bad that it’s good” enabling market participants to evoke the Fed put option. Expectations for the Federal Reserve to cut interest rates had soared to 100% by June as manufacturing data disappointed, labor markets softened and the trade war dragged on. Indeed, double digit year-to-date returns and new market highs make it difficult to believe that economic conditions are anything but ideal.

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) 2.47 13.93 -3.08 7.86 6.35 13.09 11.12 1/1/00
Baird Small/Mid Cap Value (net) 2.29 13.51 -3.85 6.97 5.53 12.17 10.15 1/1/00
Russell 2500 Value Index 1.89 15.26 -1.92 8.98 5.55 13.28 9.58

*Returns less than one year are not annualized.



Annual Total Returns (%)

201820172016201520142013201220112010200920082007
Baird Small/Mid Cap Value (gross)  -14.51 22.55 9.80 0.17 9.47 36.87 17.32 6.09 10.29 29.40 -38.74 24.22
Baird Small/Mid Cap Value (net) -15.22  21.54 8.91 -0.50 8.65 35.93 16.36 5.09 9.26 28.20 -39.34 23.06
Russell 2500 Value Index -12.36  10.36 25.20 -5.49 7.11 33.32 19.21 -3.36 24.80 27.68 -31.98 -7.27

Data as of 6/30/19


Past performance does not guarantee future results.