The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Baird Chautauqua International Growth Fund returned 10.39% in Q2 2026, underperforming the MSCI ACWI ex-U.S. Index which returned 14.49%, as extreme market concentration favored a narrow AI capex trade. The fund benefited from overweights in TSMC, ASML, Keyence, and Fanuc but was hurt by underweight in memory stocks that posted triple-digit gains and by holdings in software, health care, and Greater China that continued to de-rate. Manager trimmed appreciated semiconductor and automation positions and redirected proceeds into higher conviction laggards including Adyen, Constellation Software, 3i, and AIA. Year-to-date portfolio declines have been driven by valuation compression rather than earnings deterioration, with revenues, profitability, and cash flow continuing to build even as multiples contracted. This divergence between rising intrinsic value and falling stock prices creates foundation for conviction over five-year investment horizon. Portfolio maintains deliberate overweights in Greater China secular growth areas and owns de-rated software and health care franchises whose competitive moats remain intact despite market treating them as structural AI casualties. Manager views current valuation compression as unusually attractive entry point for patient capital.
Concentrated quality portfolio of businesses with durable competitive advantages, healthy margins, strong balance sheets, and consistent cash generation has experienced valuation compression disconnected from operational reality, creating unusually attractive entry point for patient capital over five-year horizon.
Manager maintains conviction over five-year investment horizon despite difficult Q2 relative performance. Extreme market concentration and AI capex trade sustainability remain key uncertainties alongside unresolved trade policy and newly hawkish central banks. Valuation compression in holdings has been function of multiple compression rather than earnings deterioration, creating coiled spring as gap between rising intrinsic value and falling stock prices closes. Portfolio positioned to participate in AI buildout economics through semiconductor picks and shovels while also owning de-rated growth franchises that benefit as market leadership broadens. International markets trade at considerably lower valuations than U.S., and paired with intact earnings, manager believes this tilts odds in favor of patient capital.
As of Jul 15, 2026
The Baird Chautauqua International Growth Fund is managed by an experienced team at Chautauqua Capital Management, led by managing partner Haicheng Li, CFA, and partner Jesse Flores. The fund employs a concentrated portfolio approach with 25-45 stocks, primarily in medium-to-large growth companies with market capitalizations exceeding $5 billion at purchase. Since inception on April 15, 2016, the fund has delivered a net annualized return of 10.00% for the Institutional Class, outperforming the MSCI ACWI ex-U.S. Index's 8.52% over the same period. The fund maintains $1.55 billion in assets under management and operates with a low portfolio turnover rate of 18% and an active share of 90.72%, reflecting a portfolio significantly different from its benchmark. The fund has received Morningstar Silver and Bronze Medalist Ratings and earned 3 and 4-star Morningstar Overall Ratings over 3- and 5-year periods respectively.
Chautauqua Capital Management believes the securities of advantaged, wealth-generating businesses are often mispriced because most investors do not fully comprehend the companies' potential for sustained high growth and improved profitability. Their investment philosophy emphasizes that portfolios should be invested for the long-term, on a conviction-weighted basis, in a concentrated set of best idea investments. The firm focuses on identifying wealth-generating businesses with sustainable competitive advantages, benefiting from long-term secular trends, and available at reasonable valuations. They emphasize businesses that benefit from secular trends and possess strong competitive advantages and market positions, with focus on companies exposed to secular growth themes like cloud computing, AI, e-commerce, and healthcare. The portfolio contains high-quality companies that employ better governance and disclosure, more conservative accounting, less financial leverage, and best-in-class management, reducing the risk of negative surprises and creating both upside market participation and downside protection.
Lead Portfolio Manager
The Partners of Chautauqua Capital Management
Managing Partner
Moderate Conviction Bullish
Market Conviction
Manager names 20+ individual positions with specific weightings and detailed company-level commentary. Explicitly states 'concentrate capital where our conviction is highest' and provides specific position sizing actions (trimmed TSMC, ASML, Keyence, Fanuc; added to Adyen, Constellation, 3i, AIA). Maintains deliberate overweights in underperforming areas (Greater China 18% International) with clear thesis defense. However, portfolio appears to hold 25-35 positions based on attribution tables, which is moderately concentrated but not extreme. Language is declarative about specific holdings but acknowledges uncertainty about macro outcomes. Score reflects named positions with sizing plus willingness to concentrate, but not Berkshire-level concentration.
Growth Outlook
The manager describes navigating a more uncertain environment than at any point since the pandemic, with multiple unresolved macro risks including the Strait of Hormuz situation, stagflationary pressures, and policy uncertainties. However, they also see the valuation reset as providing compelling entry points, creating a cautiously negative but not deeply pessimistic outlook.
Risk Appetite
The fund executed decisive portfolio triage by exiting vulnerable positions and concentrating capital in highest conviction names like Taiwan Semiconductor. They maintained positions through volatility and used the drawdown to trade up in quality, indicating a selective risk-on approach despite the challenging environment.
Capital Deployment
Manager trimmed appreciated positions and redirected proceeds into laggards, which is capital rotation rather than net deployment. No explicit cash level changes mentioned. Added to 'small number of higher conviction positions' and 'continued to build recently initiated positions' suggests modest net deployment but primarily rotation. Exited one position (Bank Rakyat) and reduced many others while increasing fewer names. Net activity is selective rebalancing with slight deployment bias, not aggressive putting cash to work.
Forward Guidance
The manager expresses confidence in their portfolio companies' ability to compound value over their five-year horizon and views the valuation reset as attractive, but also acknowledges significant uncertainties requiring patience. The guidance is balanced between opportunity recognition and cautious monitoring.
Language Signal
Language contains meaningful risk framing ('extreme concentration,' 'fragile,' 'unresolved,' 'uncertainty,' 'skepticism') balanced against opportunity language ('attractive,' 'conviction,' 'intact,' 'coiled spring,' 'foundation'). Directional language is mixed with both cautious macro framing and constructive positioning commentary. Risk language slightly outweighs bullish language in frequency, but bullish language is more declarative when present. Net slightly positive but close to neutral.
Perceived Risk
The manager identifies multiple significant macro risks including the Strait of Hormuz situation as a key variable determining stagflationary outcomes, Fed policy constraints with potential rate hikes, tariff policy cliffs, European energy vulnerability, and Fed leadership transition uncertainty. The detailed discussion of systemic risks and their potential impacts indicates high perceived risk in the environment.
Opportunity Density
Manager describes 'unusually attractive entry point' and states 'we have used this volatility to concentrate capital where our conviction is highest,' indicating selective opportunities in specific areas. However, also notes market rewarded 'very little outside of the AI capex trade' and describes 'extreme concentration' limiting breadth. Opportunities exist in de-rated quality names (software, health care, Greater China) but are characterized as selective rather than abundant. Manager is finding enough to deploy into but emphasizes concentration into 'small number of higher conviction positions' rather than broad opportunity set.
Time Horizon
Manager explicitly states 'five-year investment horizon' multiple times and describes portfolio as positioned for 'patient capital.' Language emphasizes long-term value realization with phrases like 'coiled spring,' 'foundation for conviction,' and 'historically been well-positioned to recover as valuations normalize.' No near-term catalyst dependency discussed. Willing to hold through volatility and add to positions during drawdowns. However, not permanent capital structure (mutual fund with redemptions) and does discuss some near-term catalysts (July tariff cliff, November trade truces). Score reflects multi-year thesis with explicit 5-year framing but not decade-plus permanent capital.
Top Conviction Themes
Key Catalysts
Every insight in this database connects to the original source. Read the actual thesis, see the actual concerns, and make your own call.
Buyside Digest has no business relationship, partnership, agency, sponsorship, endorsement, or affiliation with The Baird Chautauqua International Growth Fund or any other manager whose content appears on the Service, except where expressly stated. We do not receive Manager Content directly from managers in most cases; content is collected from publicly available sources. Managers have not necessarily reviewed, approved, authorized, or endorsed our display of their content, our editorial commentary, our metadata extraction, or our classifications. Use of a manager’s name is for accurate attribution and identification purposes only, under principles of nominative fair use.
Buyside Digest does not independently verify the regulatory status, registrations, licensing, qualifications, credentials, or professional standing of managers whose content appears on the Service. We do not represent that managers are properly registered with applicable regulatory bodies, that their content complies with applicable securities laws, or that their performance representations are accurate. Inclusion of a manager in our database is based on the publicly available nature of their content, not on our verification of their regulatory status or content compliance. Users are responsible for conducting their own due diligence on any manager.
Performance data, returns, assets under management (“AUM”), and similar figures displayed on this page are sourced from publicly available manager communications (including investor letters), public filings, or other third-party sources. Buyside Digest does not independently verify performance figures, calculate returns, or audit manager-reported data. Such figures: May be selectively reported by the manager; May use non-standard calculation methodologies; May not reflect fees, expenses, taxes, or other costs; May be inconsistent across reporting periods; May be outdated. Past performance is not indicative of future results. Performance figures should not be relied upon for investment decisions without independent verification. Users should request audited performance data directly from the manager and conduct their own due diligence.
