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

Q3 2018 Mid Cap Growth Commentary

Market Update

On the back of broad economic growth, elevated consumer and business confidence, and the benefit of lower tax rates, corporate profits continue to advance. This fundamental strength overwhelmed trade and tariff angst as well as the looming mid-term elections and stocks moved higher during the third quarter of the year.
 

Portfolio Commentary

Clients of the Baird Mid Cap Growth portfolios experienced positive returns on both an absolute and relative basis. Portfolio returns were roughly 9.2%, outpacing our primary benchmark, the Russell® Midcap Growth Index, which climbed 7.6% during the quarter. Strength in the healthcare, technology and consumer discretionary sectors was notable, with all three delivering strong absolute and relative gains. The financial, materials and energy sectors contributed as well. The producer durables and consumer staples sectors were detractors on a relative basis. As we closed the first three quarters of the year, portfolio returns led the benchmark also. A more in depth discussion of sector performance and portfolio changes follow.

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