| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.16% | -4.76% | -4.76% |
Baird's Small/Mid Cap Growth strategy declined 4.8% in Q1 2026 versus the Russell 2500 Growth Index's 3.5% decline, as geopolitical tensions and inflation concerns drove market volatility. The team made significant portfolio changes, exiting software holdings and adding semiconductor exposure including Lattice Semiconductor, Rambus, and Astera Labs. Technology outperformed with portfolio holdings down 5% versus the benchmark's 14% decline. Industrials also contributed positively through aerospace, defense, and AI infrastructure plays like Woodward, XPO, and FTAI Aviation. The team added seven new industrial ideas and five healthcare names including former holdings Dexcom and Illumina. Consumer discretionary faced headwinds from Middle East conflict and oil price spikes, though selective positions like Cava and Kontoor Brands generated positive returns. Healthcare remained challenging but benefited from acquisitions of Penumbra and Masimo. The portfolio remains well-diversified in differentiated SMID-cap companies, positioned to use volatility opportunistically for long-term return enhancement.
Baird focuses on investing in differentiated small and mid-cap growth companies with attractive risk/reward characteristics, using market volatility opportunistically to enhance portfolio fundamentals and long-term return potential.
The portfolio remains well diversified in differentiated SMID-cap companies with attractive risk/reward characteristics. Goal is to use periods of volatility opportunistically to enhance overall portfolio fundamentals and long-term return potential. Despite slight relative underperformance to start the year, the team looks forward to the work ahead.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 22 2026 | 2026 Q1 | ADMA, AFRM, ALGN, BMI, BRBR, BSX, BURL, CASY, CRBG, CROX, DHR, DXCM, ELF, EQH, EXAS, FIX, FN, FND, FOUR, FTAI, HLI, HUBB, ILMN, INSP, JBL, KNSL, KTOS, LFUS, LII, MASI, MTDR, NSA, PEN, PODD, PSA, RGEN, SOFI, TMDX, TTAN, TWST, VSCO, WWD, XPO | AI, defense, growth, healthcare, industrials, semiconductors, small caps, technology | - | Baird's SMID-cap growth strategy underperformed in Q1 2026 amid geopolitical volatility, declining 4.8% versus benchmark's 3.5%. Technology outperformed through semiconductor additions while industrials benefited from aerospace and AI infrastructure exposure. Active portfolio management included exiting software, adding semiconductors, and initiating new positions across industrials and healthcare. Portfolio remains well-positioned for opportunistic deployment during volatile periods. |
| Feb 3 2026 | 2025 Q4 | ABT, AFRM, BOOT, BRBR, BROS, BURL, BWXT, CASY, CHDN, COCO, CRDO, CW, DKNG, DT, ELF, EME, EXAS, FOUR, GKOS, KTB, LII, MASI, MNDY, MTSI, PEN, PODD, RGEN, RKLB, TARS, TWLO, ULS, VERX, WAY, WSO | AI, defense, growth, healthcare, mid cap, semiconductors, small cap, technology | - | Baird Small/Mid Cap Growth outperformed in Q4 2025 but significantly lagged for the year. Healthcare led by Exact Sciences acquisition and semiconductor strength drove quarterly gains. The team made strategic position changes while acknowledging recent underperformance. Management remains committed to high-quality growth philosophy and sees improving portfolio response when fundamentals are rewarded over momentum factors. |
| Nov 8 2025 | 2025 Q3 | AAON, ADMA, AFRM, ALAB, BMI, BOOT, BRBR, BROS, BURL, BWXT, CASY, CAVA, CLWD, COCO, DKNG, ELF, EXAS, FDS, FOUR, FSS, HLI, INSM, INSP, IONQ, LII, MASI, MKTX, MTSI, NBIX, PEN, PODD, QBTS, RGTI, SOFI, TARS, TTAN, TWLO, TXRH, WAY, WING, WSO | AI, growth, healthcare, momentum, Quality, semiconductors, small cap, software | - | Baird Small/Mid Cap Growth suffered its worst relative performance since inception, declining 3.2% versus benchmark's 10.7% gain as AI enthusiasm and momentum factors overwhelmed their quality-focused approach. Multiple headwinds including earnings disappointments, consumer weakness, and extreme valuations in quantum computing stocks drove underperformance. Management remains confident in their fundamentals-based philosophy despite acknowledging potential factor exposure adjustments. |
| Aug 4 2025 | 2025 Q2 | ADMA, ALAB, ALHC, BJ, BMI, BOOT, BRBR, BWXT, CASY, CAVA, CHDN, COCO, CWAN, DKNG, DSGX, ELF, EQH, EXLS, FDS, FND, FOUR, FSS, GLOB, HLI, HQY, INSM, INSP, KAI, KNSL, LII, MANH, MKTX, MNDY, MTSI, NBIX, ONTO, PODD, PSTG, SPSC, SRPT, SSD, TARS, TECH, TREX, ULS, VERX, WAY, WSC, WSO, XPEL | AI, Biotech, growth, healthcare, semiconductors, small cap, technology, underperformance | - | Baird's small/mid cap growth strategy underperformed in Q2 as speculative momentum stocks drove benchmark returns. The team maintained discipline, avoiding unprofitable companies while adding quality names like Insmed, CAVA Group, and e.l.f. Beauty. Despite near-term headwinds from elevated valuations and geopolitical risks, the portfolio is positioned for long-term outperformance through selective exposure to sustainable growth companies. |
| Mar 31 2025 | 2025 Q1 | BJ, BOOT, BRBR, BROS, DKNG, EXL, GKOS, ITCI, JNJ, KAI, MASI, PEN, PLNT, PODD, POOL, PRCT, RGEN, TECH, ULS, WSO | AI, consumer, growth, healthcare, industrials, small cap, technology, volatility | - | Baird's small/mid cap growth strategy slightly outperformed in a challenging Q1, declining 10.6% versus benchmark's 10.8% drop. AI spending concerns and tariff uncertainty drove market volatility. Portfolio benefited from consumer holdings like BJ's Wholesale Club and healthcare M&A activity, while reducing cyclical tech exposure. Manager maintains focus on quality businesses to navigate market fragility. |
| Jan 20 2025 | 2024 Q4 | ACLS, ALAB, APPF, CACI, CHX, CYBR, GKOS, LW, MASI, MEDP, MNDY, NBIX, ONTO, PEN, PODD, PSTG, RXST, SITM, TARS, VERX, VITA | AI, growth, healthcare, Outperformance, semiconductors, small caps, technology | - | Baird Small/Mid Cap Growth outperformed in Q4 with strong healthcare and technology stock selection, led by Tarsus Pharmaceuticals product launch success and Astera Labs AI infrastructure surge. Despite full-year underperformance, the fund maintains conviction in its balanced approach versus concentrated benchmarks, actively rotating positions while facing ongoing challenges from benchmark concentration and interest rate sensitivity. |
| Oct 30 2024 | 2024 Q3 | AAON, ACLS, ALAB, APPF, BMI, BOOT, BROS, BSY, BURL, BWXT, CACI, CASY, CWA, CYBR, EXLS, FANG, FDS, FIVE, FND, FOUR, IEX, INSP, IRTC, JKHY, KAI, KNSL, LFUS, LGIH, LSCC, LW, MANH, MEDP, MNDY, NBIX, ONTO, PCOR, PODD, POOL, PRCT, RXST, SITM, SMPL, TARS, TREX, TYL, ULS, VNOM, WSC | financials, growth, healthcare, industrials, semiconductors, small caps, software, technology | - | Baird Small/Mid Cap Growth matched benchmark returns in Q3 with strong technology performance led by AI and cybersecurity additions. The fund made significant portfolio changes while maintaining disciplined SMID focus, exiting Tyler Technologies due to size constraints. After a challenging eight-month period, the manager remains committed to their investment philosophy and encouraged by Q3's improved relative performance. |
| Jun 30 2024 | 2024 Q2 | AAON, APPF, BAH, CACI, CNMD, DECK, FIVE, FND, FSS, GKOS, HEI, INSP, ITCI, JNJ, LGIH, LII, MANH, MEDP, NBIX, PODD, POOL, PRCT, RBC, RGEN, RXST, SPSC, SSD, TARS, TREX, TXRH, VERX, XPEL, ZBRA | AI, Defense Spending, growth, healthcare, small caps, software, technology | - | Baird Small/Mid Cap Growth underperformed in Q2 as market concentration in large-cap tech continued pressuring smaller stocks. The team actively repositioned the portfolio, adding defense contractor CACI, software names, and healthcare innovators while exiting underperformers. Despite near-term headwinds from narrow market leadership, management expects mean reversion to eventually favor their high-quality growth approach. |
| Mar 31 2024 | 2024 Q1 | BOOT, BROS, BSY, BWXT, CELH, CHDN, CNMD, CWAN, DAVA, DECK, DT, EXAS, FIVE, FOUR, GLBE, GLOB, GXO, HALO, ICLR, INSP, KAI, KNSL, KNX, LFUS, LGIH, LSCC, LW, MNDY, MSTR, MTDR, ONTO, PCOR, PEN, PODD, QDEL, RGEN, SAM, SITM, SMCI, SMPL, SWAV, TARS, TECH, TREX, VITA, WNS, WSO, XPEL | AI, growth, healthcare, Performance, semiconductors, small cap, technology | - | Baird Small/Mid Cap Growth returned 2.1% in Q1 but lagged the benchmark's 8.5% gain due to limited AI exposure and momentum headwinds. Technology underperformed despite adding three new positions, while healthcare showed mixed results highlighted by Shockwave Medical's 70% gain from acquisition. Management maintains disciplined approach despite recent underperformance. |
| Dec 31 2023 | 2023 Q4 | BJ, BOOT, BSY, BWXT, COCO, CWAN, DAVA, DECK, DSGX, DT, EXLS, FIVE, FND, FOUR, GLOB, GNRC, GTLS, HALO, IEX, INSP, KAI, KNSL, LGIH, LSCC, LW, MTZ, NEO, NSA, PCTY, PODD, POOL, PTC, PWSC, RBC, RVNC, SAM, SWAV, TREX, TTC, TYL, WNS, WSO | financials, growth, healthcare, industrials, rates, small cap, technology | - | Baird Small/Mid Cap Growth underperformed in Q4 as speculative small caps rallied on rate cut expectations. The quality-focused strategy faced headwinds from market preference for highly-levered, lower-margin companies. Portfolio adjustments included exits from conviction-lacking positions and new investments in analytics and educational software. Management maintains focus on profitable, well-managed businesses across economic scenarios. |
| Sep 30 2023 | 2023 Q3 | BJ, CHDN, CHPX, CNMD, CWAN, FIVE, FND, FOUR, INSP, KNSL, LFUS, LGIH, MTDR, MTZ, PODD, RBC, SAM, SWAV, TTC, WSC | consumer, growth, healthcare, industrials, inflation, rates, small caps, technology | - | Baird's small/mid-cap growth strategy underperformed in Q3 as GLP-1 drug developments hammered medical device holdings and rising rates pressured consumer names. The team added to oversold healthcare positions while reducing exposure to companies with weakening fundamentals. Energy and select financials provided bright spots amid challenging market conditions for growth stocks. |
| Jun 30 2023 | 2023 Q2 | CHDN, CNMD, COCO, CTLT, CWAN, DECK, EXAS, ICLR, INSP, IRTC, KNSL, LGIH, MKTX, PODD, POOL, RGEN, RVNC, SEDG, SWAV, TECH | consumer discretionary, financials, growth, healthcare, industrials, small caps, technology | - | Baird's small/mid-cap growth strategy underperformed in Q2 as their bias toward profitable, higher-multiple stocks faced headwinds. Consumer discretionary led by Deckers performed well, while technology lagged despite AI enthusiasm. Healthcare showed mixed results with device companies benefiting from surgical volume recovery but biotech facing spending constraints. Management maintains focus on quality companies with strong competitive advantages. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIPortfolio positioned to benefit from AI infrastructure demand through semiconductor and contract manufacturing holdings. Added positions in Lattice Semiconductor, Rambus, Astera Labs, Jabil, and Fabrinet due to outsized demand from datacenter construction and AI infrastructure. Multiple holdings continue to see massive demand from data center construction. |
Data Centers Semiconductors Infrastructure Contract Manufacturing Demand |
DefenseStrong performance from aerospace and defense holdings including Woodward, Curtiss-Wright, BWX Technologies, and new position Kratos Defense. Woodward positioned to benefit from structural aerospace and defense tailwinds with significant aftermarket and defense exposure. Added Kratos for advanced drone systems and national security products. |
Aerospace Defense Spending Tailwinds Aftermarket Drones | |
SemiconductorsBroadened semiconductor holdings to include Lattice Semiconductor, Rambus, and Astera Labs after exiting software positions. Technology sector outperformed with portfolio holdings down roughly 5% compared to negative 14% for benchmark. Decision to add semiconductor exposure proved beneficial to performance. |
Semiconductor Cycle Technology Outperformance Exposure Beneficial | |
Data CentersMultiple holdings benefiting from massive demand from data center construction including Jabil, Fabrinet, Comfort Systems USA, Hubbell, and Littlefuse. Littlefuse positioned at center of rising power density with data center wins set to 2-4x over next several years. World needs far more electrical equipment as we consume and move more electricity behind data centers. |
Construction Power Density Electrical Equipment Infrastructure Growth | |
HealthcareChallenging sector on both relative and absolute basis. Benefited from acquisitions of Penumbra by Boston Scientific and Masimo by Danaher. Added five new healthcare ideas including former holdings Dexcom and Illumina, plus Align Technologies, Transmedics Group, and Twist Biosciences. Continued growth prospects despite market worries. |
Biotechnology Medical Devices M&A Growth Prospects Challenging | |
| 2025 Q4 |
Healthcare ITCareCloud helps smaller U.S. health practices manage data and collect payments. High switching costs lock in practices but also lock out competitors. Most RCMs have high fixed costs and too few clients, creating consolidation opportunities for CareCloud to buy cheaply and cut costs. |
EHR RCM Healthcare Consolidation Switching Costs |
CementICG owns cement plants in Kazakhstan and Tajikistan with significant energy and transport cost advantages. Newest dry process plants with heat recovery versus competitors' older wet process plants. Geographic proximity to customers reduces transport costs substantially. |
Energy Efficiency Transport Kazakhstan Cost Advantage Infrastructure | |
ConstructionCTR Holdings builds structural frames and handles finishing work in Singapore. Most projects are public with stable government payments guaranteeing cash flow. Company had significant net cash and signed project backlog. |
Singapore Government Cash Flow Backlog Public Projects | |
| 2025 Q3 |
AIAI enthusiasm drove significant benchmark outperformance through semiconductor and infrastructure plays, with quantum computing stocks adding over 2% to benchmark weight despite extreme valuations. The market's insatiable desire for AI beneficiaries created meaningful factor headwinds for the portfolio. |
Semiconductors Infrastructure Quantum Data Centers Computing |
QualityThe portfolio's focus on high-quality companies with strong fundamentals was punished as factors representing quality (long-term earnings growth, ROE, ROIC) generated negative returns. Quality metrics underperformed beta and momentum factors significantly. |
Fundamentals ROE ROIC Earnings Balance Sheets | |
MomentumMomentum factor exposure drove strong benchmark returns since April, creating headwinds for the portfolio's bottom-up approach. The strategy added momentum exposure through new positions in Affirm Holdings and SoFi Technologies. |
Factor Beta Volatility Story Stocks Narrative | |
| 2025 Q2 |
AIThe benchmark's rally was led by companies with AI-exposure that drove rapid multiple expansion. The portfolio underperformed due to underexposure to more speculative AI areas including small cap semiconductors and AI-hardware. Defensive positions with minimal AI-exposure were the largest detractors to relative performance. |
Semiconductors Hardware Technology Speculation Multiple Expansion |
BiotechnologyBiotech continues to be a significant weight in the Russell 2500 Growth index. The team believes commercial stage companies with marketed products have strong growth prospects. They added several new biotech positions including Insmed, which reported early clinical data much stronger than expected. |
Clinical Trials Commercial Stage Drug Development M&A Growth Prospects | |
SemiconductorsThe portfolio was underexposed to small cap semiconductors during the quarter's rally. They added to semiconductor exposure by purchasing Astera Labs and MACOM Technology Solutions. MACOM Technology Solutions was mentioned as generating nice gains during the quarter. |
Small Cap Technology Hardware Exposure Rally | |
| 2025 Q1 |
AIAI-related spending faced questions regarding untethered pace as DeepSeek emerged as a potentially cheaper alternative platform from China. Microsoft's datacenter appetite showed signs of moderation, slowing positive market sentiment. Portfolio holdings with AI data center spending exposure experienced volatility. |
Data Centers Cloud Semiconductors Technology Spending |
Trade PolicyPresident's commitment to enact meaningful global tariffs created policy uncertainty and provided catalyst for sharp negative market reversal. Boot Barn sold off due to worries over future tariff exposure despite solid quarterly results. Uncertainty surrounding draconian tariff levels impacted consumer confidence. |
Tariffs Policy Consumer Uncertainty Global | |
Consumer FinanceDraftKings positioned as digital sports entertainment company in two-player online sports betting market. Company expected to inflect to material earnings growth as promotional and customer acquisition costs decline behind favorable competitive dynamics. |
Sports Betting Gaming Digital Competition Growth | |
FitnessPlanet Fitness is largest franchisor and operator of high value, low price gyms in US. Under new management, company raising membership pricing and leaning into better marketing and enhanced club layout to improve franchisee sentiment and drive revenue growth. |
Gyms Franchising Pricing Management Revenue | |
Biopharma M&AIntra-cellular Therapies was acquired by Johnson & Johnson early in the year at roughly 50% premium. While biotech companies often lack stability from strong balance sheet and positive free cash flow, manager continues seeking commercial stage businesses with strong top-line growth. |
Biotech Acquisition Premium Commercial Growth | |
NuclearBWX Technologies is unique provider of nuclear power solutions that experienced volatility from conflicting headlines about potential budget changes to military programs for nuclear submarines and ships. AI enthusiasm pulled company into alternative energy narrative with microreactors capabilities. |
Nuclear Power Military Submarines Microreactors Energy | |
| 2024 Q4 |
AIThe fund holds Astera Labs, a fast-growing semiconductor company with exposure to AI and data center infrastructure. The company's stock increased over 150% in the quarter following new product announcements and stronger than expected sales growth. Pure Storage was initiated as a new position, expected to benefit from hyperscaler AI spending with recent design wins. |
Data Centers Semiconductors Hyperscaler Infrastructure Growth |
BiotechnologyHealthcare was the strongest performing sector with positive fundamentals across holdings. Tarsus Pharmaceuticals continued its lead product launch, Neurocrine Biosciences received pipeline drug approval, and the fund initiated a position in Masimo as a cleaner pure-play healthcare company with consistent growth prospects. |
Pharmaceuticals Product Launch Pipeline Healthcare Growth | |
Small CapsThe fund focuses on small and medium-sized growth companies in the Russell 2500 Growth Index. Small- and SMID-cap growth benchmarks trailed the S&P 500 and Nasdaq during the quarter, with benchmark concentration in AI-related stocks presenting ongoing challenges for the investment style. |
SMID Cap Growth Benchmark Concentration Outperformance | |
| 2024 Q3 |
AIThe fund initiated a position in Astera Labs, a fast-growing and profitable developer of semiconductor products known as retimers that are key enablers of AI workloads and help prevent GPU bottlenecks. The manager believes this business adds further profitable AI-exposure to the portfolio. |
Semiconductors GPU Infrastructure Data Centers Computing |
CybersecurityThe fund initiated a position in CyberArk Software, which has the leading market position in cybersecurity software known as Privileged Access Management. The manager believes this should deliver solid revenue growth along with profit margin expansion. |
Software Enterprise Security Identity Access Management SaaS | |
Data CentersAAON was a strong contributor in the quarter due to data center exposure. The company benefits from the growing demand for data center infrastructure and cooling solutions. |
HVAC Cooling Infrastructure Cloud Computing | |
NuclearBWX Technologies benefited from favorable nuclear industry trends during the quarter. The company is positioned to benefit from the growing interest in nuclear power as part of the energy transition. |
Energy Power Generation Clean Energy Infrastructure Defense | |
WaterThe fund initiated a position in Badger Meter, which provides a comprehensive suite of digital water offerings that allows their customers to improve operating efficiency, resiliency, and sustainability. This small cap company has a track record of consistent, secular revenue growth and margin expansion. |
Infrastructure IoT Sustainability Utilities Efficiency | |
| 2024 Q2 |
AIArtificial intelligence continues to drive outperformance in technology-related businesses. The portfolio benefits from AI tailwinds through utilities and telecommunications sectors. AAON's recent BASX Solutions acquisition provides exposure to datacenter infrastructure builds driven by AI needs. |
Datacenter Infrastructure Technology HVAC Commercial |
HealthcareHealthcare sector experienced volatility with mixed results across holdings. Positive developments included new product cycles at Glaukos and key catalysts at Insulet. However, concerns over GLP-1 therapeutics impact on device therapies affected Inspire Medical performance. |
Medical Devices Biotechnology GLP1 Therapeutics Innovation | |
Defense SpendingStrong demand environment for government IT services driven by increased U.S. defense spending. CACI benefits from this trend with multiple large project ramps expected to drive higher organic revenue growth in the defense contractor space. |
Government IT Defense Contractors Projects Growth | |
SoftwareSoftware holdings drove positive technology sector performance with both long-time holdings and newer positions contributing. The portfolio added multiple software companies including SPS Commerce for EDI solutions and AppFolio for real estate management solutions. |
SaaS Enterprise Software Cloud Technology Growth | |
| 2024 Q1 |
AIAI spending expectations drove significant outperformance in technology stocks, particularly benefiting companies like Super Micro Computer which investors view as the next Nvidia. The fund has limited direct AI exposure through Lattice Semiconductor and has not reached comfort levels on sustainable AI impact for many benchmark holdings. AI headwinds affected both technology and industrial sectors as datacenter and semiconductor manufacturing equipment companies saw outsized gains. |
Artificial Intelligence Data Centers Semiconductors Technology Spending |
SemiconductorsThe fund added Onto Innovation, a semiconductor capital equipment business with expertise in advanced packaging, believing this could prove more secular than cyclical as semiconductor size and complexity increases. Lattice Semiconductor provides the fund's primary semiconductor exposure. The sector benefited from AI-related spending expectations during the quarter. |
Chip Equipment Advanced Packaging Capital Equipment Technology | |
HealthcareMixed performance across healthcare holdings with Shockwave Medical delivering over 70% returns following its Johnson & Johnson acquisition. New addition Tarsus Pharmaceuticals showed strong physician reception for its novel eyelid infection treatment. The fund continues to favor companies with strong new product cycles like Penumbra, Inspire Medical, and Insulet, while exiting positions in QuidelOrtho, Exact Sciences, and Halozyme due to execution concerns and competitive risks. |
Medical Devices Pharmaceuticals M&A Innovation Competition | |
| 2023 Q4 |
RatesLower-than-expected inflation report in late October led markets to declare an end to Fed tightening and begin discounting multiple rate cuts in 2024. Interest-rate-sensitive stocks rallied sharply late in the quarter, benefiting housing-related and financial stocks. The changed outlook on rates drove significant market movements throughout the quarter. |
Interest Rates Fed Policy Rate Cuts Inflation Monetary Policy |
Small CapsSmall, speculative, unprofitable stocks rallied sharply in December, particularly biotech where the fund is underweight. The portfolio lagged in December as factors were broadly negative for their style of management, with more highly-levered, lower-margin, and lower-earnings growth companies outperforming. |
Small Cap Speculation Biotech Leverage Growth | |
| 2023 Q3 |
GLP1GLP-1 drugs emerged as a solution for obesity and reducing long-term cardiovascular risks, leading to sharp negative reactions across the medical equipment industry. The market views it as a zero-sum game with inevitable shrinkage of addressable markets for diabetes and sleep apnea devices. |
Obesity Diabetes Medical Devices Cardiovascular Sleep Apnea |
RatesRising interest rates throughout the quarter impacted various sectors, particularly housing-related holdings and homebuilders. The notable run-up in rates reflected above-trend inflation and healthy labor market conditions. |
Interest Rates Mortgage Rates Housing Inflation Fed Policy | |
InflationInflation has receded sharply from its peak but not yet to the Fed's desired level. The cumulative impact of inflation and interest rate increases has taken a toll across sectors, particularly affecting smaller companies differently than large-cap stocks. |
Price Increases Fed Target Economic Impact Small Caps Pricing Power | |
| 2023 Q2 |
HealthcareHealthcare sector showed mixed performance with surgical volumes returning to normal seasonal patterns, benefiting medical technology holdings like Shockwave and Inspire. However, constrained biotech spending hurt companies like Catalent, which faced operational issues and CFO termination. |
Medical Devices Biotechnology Surgical Bioprocessing Diagnostics |
TechnologyTechnology sector was the largest relative detractor despite strong benchmark returns over 10%. AI focus drove appreciation in many tech stocks, but the portfolio experienced setbacks in companies like Sprout Social and Endava due to recession concerns and reduced technology spending. |
AI Enterprise Software Semiconductors IT Services SaaS | |
Consumer DiscretionaryBest performing sector led by Deckers with strong HOKA brand growth, LGI Homes and Pool Corp benefiting from housing demand despite higher mortgage rates. Initiated position in Churchill Downs based on superior management and capital allocation track record. |
Footwear Homebuilders Casinos Consumer Electronics Housing | |
IndustrialsSector was a relative detractor despite solid gains in several stocks as recession fears never materialized. Companies like Trex, MasTec, and GXO Logistics showed improving fundamentals, while Chart Industries benefited from acquisition-driven growth potential. |
Industrial Machinery Construction Logistics Industrial Services Automation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| TTAN | We also trimmed our position in Service Titan. we decided to slightly increase our positions in Service Titan |
| JBL | We also added new positions in contract manufacturers Jabil, as both companies continue to see outsized demand due to datacenter construction and other areas of AI infrastructure. we decided to slightly increase our positions in Jabil |
| FN | We also added new positions in contract manufacturers Fabrinet, as both companies continue to see outsized demand due to datacenter construction and other areas of AI infrastructure. we decided to slightly increase our positions in Fabrinet |
| WWD | Positive contributors included new ideas Woodward. Woodward is a leading supplier of mission-critical aircraft engine control systems, with significant aftermarket and defense exposure. The business is well positioned to benefit from structural aerospace and defense tailwinds, and we feel margins have meaningful room for improvement. |
| XPO | Positive contributors included new ideas XPO. We added a position in XPO as we believe it operates in the most structurally attractive corner of trucking and combines meaningful self-help margin expansion, best-in-class management, AI-driven cost and yield gains, and significant operating leverage as freight demand recovers from a three-year recession. |
| FTAI | Positive contributors included new ideas FTAI Aviation. FTAI has quietly become the lowest-cost provider in a required, recurring part of aviation—engine maintenance—using a differentiated model that MROs/aircraft lessors cannot easily match, driving share gains and rising margins as it scales. |
| LII | Offsetting those relative gains were disappointing results from Lennox International. We also sold our position in Lennox International. |
| BMI | Offsetting those relative gains were disappointing results from Badger Meter. We decided to exit our position in all of those except Affirm |
| FOUR | Offsetting those relative gains were disappointing results from Shift4 Payments. We decided to exit our position in all of those except Affirm |
| AFRM | Offsetting those relative gains were disappointing results from Affirm holdings. We decided to exit our position in all of those except Affirm, as we believe the company continues to execute well despite market worries about consumer credit risk. |
| LFUS | We believe Littlefuse's valuation understated a business positioned at the center of rising power density — with data center wins set to 2-4x over the next several years, cyclical improvement emerging across core industrial and electronics end markets, and a mission-critical product set that quietly benefits as systems require more protection, control, and reliability per watt. |
| HUBB | Hubbell designs, manufactures, and sells physical electric products for construction, industrial, and utility applications. The world now needs far more of this equipment, and we continue to consume and move more electricity, particularly behind data centers and large infrastructure projects. |
| FIX | Comfort Systems USA is a leading provider of mechanical contracting services, specializing in heating, ventilation, air conditioning (HVAC), plumbing, and building automation systems. The company continues to see massive demand from data center construction. |
| KTOS | Kratos Defense & Security Solutions is a technology company that develops advanced drone systems and products for national security, including unmanned aerial systems, satellite communications, cybersecurity, and defense electronics. |
| NSA | Our lone real estate holding, National Storage Affiliates, appreciated over 30% in the quarter as the company was acquired by large industry player Public Storage. |
| PSA | Our lone real estate holding, National Storage Affiliates, appreciated over 30% in the quarter as the company was acquired by large industry player Public Storage. |
| MTDR | Given the spike in oil prices in March, we saw positive contribution from the energy sector, particularly Matador Resources, which appreciated nearly 50% in the quarter. |
| CASY | Consumer staples relative performance was neutral in the quarter as continued strong gains from Casey's General Stores was offset by losses from Bellring Brands. |
| BRBR | Consumer staples relative performance was neutral in the quarter as continued strong gains from Casey's General Stores was offset by losses from Bellring Brands. Despite the low valuation and potential for strategic changes, we decided to sell our remaining small position as we've lost patience with the continued struggle to accelerate growth. |
| KNSL | Financial services also detracted slightly from relative performance, as none of our four stocks generated positive absolute returns, all for company specific reasons. Kinsale (slowing growth) |
| HLI | Financial services also detracted slightly from relative performance, as none of our four stocks generated positive absolute returns, all for company specific reasons. Houlihan Lokey (slowing M&A activity) |
| EQH | Financial services also detracted slightly from relative performance, as none of our four stocks generated positive absolute returns, all for company specific reasons. Equitable Holdings (private credit worries). During the quarter, EQH merged with Corebridge Financial, although that did not result in a significant change to quarterly performance. |
| SOFI | Financial services also detracted slightly from relative performance, as none of our four stocks generated positive absolute returns, all for company specific reasons. Sofi Technologies (consumer credit worries) |
| CRBG | During the quarter, EQH merged with Corebridge Financial, although that did not result in a significant change to quarterly performance. |
| FND | Stocks that were impacted the most included Floor and Décor. We also sold our position in Burlington Stores and purchased Floor and Décor, a previous holding. We believe there is an opportunity for improved housing activity given it has been sluggish for the last several years, and the company would benefit. |
| VSCO | During the quarter, we initiated a position in Victoria's Secret. Under new leadership, we see improved marketing and brand positioning, along with tailwinds from a broader resurgence in mall-based apparel, which should support stronger sales growth and margin expansion over time. |
| ELF | We exited e.l.f. Beauty as our confidence in the brand's growth and market share trajectory diminished. |
| BURL | We also sold our position in Burlington Stores and purchased Floor and Décor, a previous holding. |
| CROX | Lastly, we initiated a new position in Crocs. The stock's valuation is attractive as investors remain overly focused on a past acquisition misstep and near-term growth concerns. However, as the core brand stabilizes and resumes growth, strong free cash flow can meaningfully lift EPS through buybacks or debt paydown—creating substantial re-rating potential from today's depressed valuation. |
| PEN | That said, we did benefit from two holdings that were acquired, as strategic buyers did not share the market's view of challenging fundamentals and took advantage of lower valuations for both Penumbra (acquired by Boston Scientific) |
| BSX | That said, we did benefit from two holdings that were acquired, as strategic buyers did not share the market's view of challenging fundamentals and took advantage of lower valuations for both Penumbra (acquired by Boston Scientific) |
| MASI | That said, we did benefit from two holdings that were acquired, as strategic buyers did not share the market's view of challenging fundamentals and took advantage of lower valuations for both Masimo (acquired by Danaher) |
| DHR | That said, we did benefit from two holdings that were acquired, as strategic buyers did not share the market's view of challenging fundamentals and took advantage of lower valuations for both Masimo (acquired by Danaher) |
| INSP | During the quarter we exited Inspire Medical where the growth outlook became more challenging, and we lost confidence in our original thesis. |
| ADMA | During the quarter we exited ADMA Biologics where the growth outlook became more challenging, and we lost confidence in our original thesis. |
| RGEN | We also saw stock price declines larger than we expected in both Repligen where we continue to like the long-term growth prospects and disagree with the market's worries. |
| PODD | We also saw stock price declines larger than we expected in both Insulet, where we continue to like the long-term growth prospects and disagree with the market's worries. |
| DXCM | we purchased five new ideas: former holdings Dexcom (which are now back in SMID-market cap territory, in our opinion). We believe that Dexcom with continued market growth, stabilizing share dynamics, and a coming product cycle will drive strong growth and profitability not currently reflected in the valuation. |
| ILMN | we purchased five new ideas: former holdings Illumina (which are now back in SMID-market cap territory, in our opinion). For Illumina, we believe continued growth in the company's clinical sequencing market and entrenched position among clinical customers can drive upside to long term growth expectations. |
| ALGN | we purchased five new ideas: as well as Align Technologies. Lastly, Align Technology is the market leader in clear aligners. We believe the opportunity for improved revenue trends domestically and continued penetration internationally should support potential valuation expansion |
| TMDX | we purchased five new ideas: as well as Transmedics Group. TransMedics is the market leader in organ transplant logistics with a long runway of growth driven by new products, growing clinical data, and an end market looking for modernization and innovation after years of stagnation. |
| TWST | we purchased five new ideas: and Twist Biosciences. Twist Bioscience is the fastest and cheapest provider of synthetic DNA. Demand from clinical diagnostics, research laboratories, and now AI companies seeking to improve biology and drug discovery models supports many years of continued growth as the company leverages their leading technology and historical investments. |
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