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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
Buyside Digest is not affiliated with, and does not endorse, Baird Small/Mid Cap Growth Equity Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"Baird Small/Mid Cap Growth outperformed its benchmark by nearly 1% in Q4 2025, benefiting from healthcare M&A and a shift back to high-quality profitability metrics (ROE/ROIC). The managers are actively rotating into high-quality industrial and tech compounders to repair 2025's full-year underperformance."
Baird Small/Mid Cap Growth strategy returned +1.2% (+1.18% net for the composite) in Q4 2025, outperforming the Russell 2500 Growth Index's +0.33%. Despite Q4's positive relative performance, the strategy significantly lagged the benchmark for the full year 2025. Healthcare was the largest contributor, boosted by Abbott's acquisition of Exact Sciences (+86% return). Technology also outperformed, led by Twilio and MACOM Technology, although software digested broader AI concerns. The fund active-managed several positions: exiting Astera Labs and DraftKings due to competitive/concentration risks, while initiating high-quality positions in Credo Technology, Curtiss-Wright, and EMCOR Group. Consumer Staples and Consumer Discretionary performed positively overall, despite headwinds in e.l.f. Beauty. Industrials detracted on relative terms, heavily impacted by not owning Rocket Lab (+46%). The portfolio managers are focused on discipline, balance sheet strength, and sizing as the market transitions toward rewarding fundamentals over high-beta and unprofitable volatility.
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Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
High-conviction positioning: Baird Small/Mid Cap Growth outperformed its benchmark by nearly 1% in Q4 2025, benefiting from healthcare M&A and a shift back to high-quality profitability metrics (ROE/ROIC). The...
Growth Outlook
Market outlook remains above average conviction: Baird Small/Mid Cap Growth outperformed its benchmark by nearly 1% in Q4 2025, benefiting from healthcare M&A and a shift back to high-quality profitability metrics (ROE/ROIC). The...
Risk Appetite
Risk appetite posture is moderate conviction: Baird Small/Mid Cap Growth outperformed its benchmark by nearly 1% in Q4 2025, benefiting from healthcare M&A and a shift back to high-quality profitability metrics (ROE/ROIC). The...
Capital Deployment
Manager actively deployed capital into high-conviction opportunities. Baird Small/Mid Cap Growth outperformed its benchmark by nearly 1% in Q4 2025, benefiting from healthcare M&A and a shift back to high-quality profitability metrics (ROE/ROIC). The...
Forward Guidance
Forward guidance signal: Baird Small/Mid Cap Growth outperformed its benchmark by nearly 1% in Q4 2025, benefiting from healthcare M&A and a shift back to high-quality profitability metrics (ROE/ROIC). The...
Language Signal
Tone analysis indicates above average conviction language: Baird Small/Mid Cap Growth outperformed its benchmark by nearly 1% in Q4 2025, benefiting from healthcare M&A and a shift back to high-quality profitability metrics (ROE/ROIC). The...
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Baird Small/Mid Cap Growth outperformed its benchmark by nearly 1% in Q4 2025, benefiting from healthcare M&A and a shift back to high-quality profitability metrics (ROE/ROIC). The...
Opportunity Density
Opportunity density index indicates above average conviction actionable entry points. Baird Small/Mid Cap Growth outperformed its benchmark by nearly 1% in Q4 2025, benefiting from healthcare M&A and a shift back to high-quality profitability metrics (ROE/ROIC). The...
Time Horizon
Investment time horizon reflects a high conviction orientation. Baird Small/Mid Cap Growth outperformed its benchmark by nearly 1% in Q4 2025, benefiting from healthcare M&A and a shift back to high-quality profitability metrics (ROE/ROIC). The...
