Radio Interview – Sr. Portfolio Mgr Michelle Stevens Discusses Small Cap Investing Strategy with Chuck Jaffe

 
August 17, 2012
 
Baird Investment Management Senior Portfolio Manager Michelle Stevens was recently interviewed by MoneyLife's Chuck Jaffe about Baird’s Small Cap investing strategy.

Listen to the interview.

 
Please click here for important information about the Baird SmallCap Value Fund, including the performance and primary risks of the fund.

With the exceptions of ID Systems and Valmont Industries, Baird makes a market in the securities mentioned during the interview. Additionally, Baird managed or co-managed a public offering of Linn Energy’s securities in the past 12 months.

Linn Energy’s stated dividend yield was 7.5% as of August 13, 2012. While the company believes it has the ability to pay and potentially increase dividends, there is no guarantee that the dividend may be reduced, suspended or eliminated altogether and an investor should not base an investment decision on expected future dividend payments alone.

Short selling (or "shorting") a stock is a technique used to try to profit from the falling price of a stock. Short selling is a very risky technique as it involves precise timing and goes contrary to the historical direction of the market over long-term periods. It is not an appropriate investment strategy for most investors and has the potential for unlimited losses.

The Fund normally invests at least 80% of its net assets in common stocks of value companies with small market capitalizations. The Fund seeks to identify industries and business models that it believes are priced at a discount to their true value because they are currently out of favor with the market or have earnings or profit potential that may be underestimated by Wall Street analysts. The Fund seeks to purchase small-cap securities believed to have favorable valuation characteristics and opportunities for increased growth. The Fund may invest up to 15% of its total assets in equity securities (consisting of common stocks, ordinary shares and ADRs) of foreign companies that are traded on U.S. exchanges. Small capitalization stocks often are more volatile and face greater risks than larger, more established companies. Securities of foreign issuers and ADRs are subject to certain inherent risks, such as political or economic instability of the country of issue and greater fluctuation in price than the securities of domestic corporations. Foreign companies generally are not subject to uniform auditing and financial reporting standards comparable to those applicable to domestic companies.

Top Ten Holdings

Security      % of Portfolio 
Omega Healthcare (OHI)   3.9% 
Jarden Corporation (JAH)   3.8%
Verisign (VRSN)   3.8% 
EZCorp (EZPE)   3.8%
ICU Medical (ICUI)   3.5% 
First Cash Financial (FCFS)   3.4%
LTC Properties (LTC)   3.3%
Valmont Industries (VMI)   3.0% 
Portfolio Recovery Associates (PRAA)   2.6%
Diamond Hill Investment Group (DHIL)    2.6%

Past performance is not a guarantee of future results.

Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. This and other information is found in the prospectus and summary prospectus. For a prospectus or summary prospectus, contact Baird Funds directly at 800-444-9102 or contact your Baird Financial Advisor. Please read the prospectus or summary prospectus carefully before investing.


 
                                  

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