Growing to Meet Clients' Evolving Needs
As the equity market environment grows more complex and dynamic, investors' needs are evolving. This is why Baird has made enhancing its equity asset management business to meet those needs a top strategic priority in recent years.
Baird's equity asset management business serves institutional and individual investors by combining fundamental equity research and disciplined investment management. These are strengths on which Baird has already built a solid reputation within the asset management industry.
In recent years, Baird has made several strategic investments in our equity asset management business to enhance the scope of the product offerings and expertise available to our clients. These investments have resulted in a more well-rounded equity asset management platform that positions Baird well for the years ahead.
In 2016, Baird's Mid Cap Growth Strategy had $2 billion in assets at the end of the first quarter, nearly triple the assets under management in this strategy from the same point in 2013. The success and growth of this product is a result of the strong 20-year investment track record assembled by Mid Cap managers Chuck Severson and Ken Hemauer.
Also at the end of Q1, Baird's Specialized Asset Management team reach $460 million in assets, nearly doubling the assets from the same point in 2013. This was a result of the product leadership and investment expertise of managers Randy McLaughlin and Brenda Hutchinson.
Earlier in 2016, Baird acquired Chautauqua Capital Management, a well-regarded global asset management firm based in Boulder, Colo. Under the leadership of Brian Beitner, this team manages global and international equity portfolios for both individual and institutional clients. They also manage the Chautauqua Global Growth Equity and International Growth Equity funds, which were added to the Baird Funds platform in 2016.
Meanwhile, veteran value manager Michelle Stevens and her team launched the firm's Small Cap and Small/Mid Cap Value Equity investment strategies after joining Baird in 2012. Assets in these portfolios have continued to grow and corresponding mutual funds were made available through Baird Funds in 2012 and 2015, enabling individual clients to benefit from the Value team's expertise.
A New Name, The Same Trusted Expertise.
In light of these successes, and to position our equity asset management business for the bright future ahead, recently the business made a strategic decision to change its name from Baird Investment Management to Baird Equity Asset Management.
"We believe that as we continue to grow to meet clients' evolving needs, this new brand reaffirms for them and for the market where our focus and commitment remain – on delivering value-added equity asset management solutions," said Bill Mahler, Chairman of Baird Equity Asset Management.
Underlying this new brand are several distinguishing features that the team believes separate our equity asset management business in an increasingly crowded and complex marketplace:
- Independent investment teams with deep market expertise in their investment style
- Time-tested, risk-managed investment processes
- The financial strength and operational support of Baird
"Our managers will tell you that being a part of Baird makes a crucial difference," said Reik Read, Director of Baird Equity Asset Management. "The firm has shown a commitment to this business over time, providing financial stability and tremendous back-office support that enable our investment teams to focus on delivering value-added equity portfolios and performance to clients."
Risk Management a Common Theme
Today Baird Equity Asset Management offers seven distinct investment strategies and six mutual funds:
While each investment team has developed and honed their own process over years of managing money together, they are united by a common underlying philosophy that balances seeking superior performance relative to benchmarks with risk mitigation and asset protection.
"Properly balancing the risk and growth objectives of our equity portfolios is a key focus for all of our teams, and can be a key differentiator for us across different market environments," said Reik.
Important information about Baird Equity Asset Management, the advisory services it offers, and certain risks of investing, is contained in its Form ADV Part 2A Brochure. The Baird Equity Asset Management Form ADV Part 2A Brochure can be found on its website at bairdequityassetmanagement.com.