Mid Cap Growth Strategy

OVERVIEW

The Baird Mid Cap Growth Strategy invests in U.S. mid-cap companies and is managed with a strong emphasis on risk control and a long-term perspective. The team strongly believes in having a true mid-cap product, with the majority of the portfolio invested in companies between $2B and $15B in market cap. The primary investment goal is to provide consistent, superior-to-market returns at a risk posture less than that of the market (vs. the Russell Midcap Growth Index). The team does this by finding companies for inclusion in the portfolio that have better growth prospects and capital structures than peers.

Portfolio Construction

  • A concentrated portfolio of generally 50–60 stocks
  • A majority of market cap range from $2 billion to $15 billion
  • The average position is 1%–3%, not to exceed 5% 
  • Sector weights 75%–125% relative to the benchmark, generally limited to 30% of portfolio
TEAM

For more information, contact Todd Haschker or the Intermediary Specialist in your region.

COMMENTARY

Q2 2018 Mid Cap Growth Commentary

Market Update

Trade related headlines grew in frequency as the second quarter progressed, responding to the expanding list of products and countries potentially subject to tariffs.  Strong equity market returns early in the quarter fell subject to the heightened trade related risks, with returns positive, but more muted by quarter end.  Despite trade uncertainty, business and consumer confidence remain at elevated levels as we enter the second half.
 

Portfolio Commentary

Clients of the Baird Mid Cap Growth portfolio experienced absolute gains during the quarter, while lagging our primary benchmark, the Russell® Midcap Growth Index.  Portfolio returns were roughly 2.61% for the quarter, compared with 3.16% for the benchmark.  Performance was led by the consumer discretionary, technology, and healthcare sectors, while financials, industrials, and materials trailed their respective benchmark equivalents.  Overall, four of the eight sectors outperformed during the three months.  As we closed the first half of the year, our portfolios led the benchmark.

Read Full Baird Mid Cap Growth Commentary

PERFORMANCE

Annualized Returns (%)

 3 MonthsYTD1-Year3-Year5-Year10-YearSince InceptionInception Date
Baird Mid Cap Growth Equity (gross) 2.61 7.38 17.82 10.80 12.52 12.03 12.16 6/30/93
Baird Mid Cap Growth Equity (net) 2.44 7.01 17.04 10.03 11.74 11.33 11.55 6/30/93
Russell MidCap® Growth Index 3.16 5.40 18.52 10.73 13.37 10.45 10.02


Annual Total Returns (%)

20172016201520142013201220112010200920082007
Baird Mid Cap Growth Equity (gross) 29.97 6.37 -2.78 5.80 34.13 17.64 5.60 28.17 41.75 -40.25 21.18
Russell Midcap Growth Index 25.27 7.33 -0.20 11.90 35.75 15.82 -1.66 26.38 46.29 -44.32 11.43

*Data as of 6/30/18