The decision-making process of the Baird Large Cap portfolio (subadvised by L2 Asset Management LLC) is primarily quantitative and driven by proprietary models that rank securities based on fundamental measures of value, past performance and indicators of recent positive changes.
In addition to a quantitative assessment, the portfolio manager evaluates the outputs from the models based on regular fundamental analyses and uses such evaluation to identify process-oriented items to improve the model. More specifically, characteristics or items identified as potential risks or opportunities on a fundamental level are tested to see if they are actionable and can be part of a repeatable investment process.
In selecting investments, the process focuses on securities that are out of favor in the marketplace but have experienced favorable risk-adjusted returns. While the portfolio manager considers both growth and value factors in its investment processes, the selection process may have a tendency to be more value-oriented.
For more information, contact Skip McGregor or the Intermediary Specialist in your region.
Matthew Malgari and Sanjeev Bhojraj co-manage the Baird Large Cap Strategy together.