Competitive Advantages

Robert W. Baird

  • Financial strength and deep resources of Baird allow us to focus on 1 thing: Managing money for our clients
  • Fortune "100 Best Companies to Work For" and Pensions and Investments #1"Best Places to Work- Asset Management"- Culture matters
  • For almost 100 years Baird has been focused squarely on the middle-market- it’s engrained in our culture
  • Nationally recognized sell-side expertise in mid-cap stock research supporting our team- Research edge
  • 100% employee-owned. Every member of our team is an owner of Baird stock and directly invested in the product- Alignment of interests

Baird Investment Management (BIM)

  • Entrepreneurial, boutique-like environment fosters creativity and independent thinking that is essential to our investment process
  • DNA of the practice is the relentless pursuit of the highest quality growth companies in the mid cap space
  • 20 year track record with lead-PM Chuck Severson- one of the longest tenures in the space o Understand intricacies of mid cap stocks
    - Managed through many different market cycles
    - Information edge- team has developed a strong and reliable network of industry contacts over the last 25 years
  • Deeply experienced team - 106 years of combined investment experience averaging over 20 years each

Baird Mid-Cap Growth Strategy

  • True mid-cap manager- stay focused between $2-12B market cap
  • Style pure- always high quality growth
  • Strong performance-strategy has out-performed the benchmark over the last 3, 5, 7, 10, 15, and 20 year periods and since inception (1993)
  • Less risk/volatility-lower standard deviation than the benchmark over every one of these time periods
  • Attractive upside/downside capture ratio
  • Robust risk management framework embedded in the investment process
  • 50-60 stocks- High conviction portfolio with good diversification
  • No big sector bets- stay between 75%-125% the benchmark sector weights
  • Smaller asset base is a big competitive advantage in the space as larger managers are forced to move up-cap for liquidity (lose style purity) and increase the number of stocks in the portfolio (closet index)