Baird said Tuesday that it has agreed to buy Chautauqua Capital Management. Financial terms weren’t announced. Boulder, Colorado-based Chautauqua Capital, an investment manager, will operate under the Chautauqua Capital Management name. It will become part of Baird Investment Management, Baird’s institutional equity asset management business.
MILWAUKEE–(BUSINESS WIRE)–Baird announced today that it has signed a definitive agreement to acquire Chautauqua Capital Management, a highly regarded global investment manager based in Boulder, Colo. Joining Baird will enable Chautauqua Capital to focus solely on the performance of their time-tested global and international investment strategies while Baird provides the back office services and support for Chautauqua Capital clients. The transaction is expected to close in early 2016.
Chautauqua Capital’s globally experienced investment team is led by Chief Investment Officer Brian Beitner, CFA. Beitner is a veteran investor who was previously a senior portfolio manager of Trust Company of the West’s Concentrated Core Equities portfolio management team, which he joined in 1998, and which was responsible for the management of up to $27 billion in assets. In 1999 he was named Director of Equity Research after which, in 2003, he became a Senior Equity Strategist. Beitner has deployed the same investment philosophy and process for 17 straight years. He began managing international and global equity portfolios in 2005 and formed Chautauqua Capital in 2009 to focus exclusively on that space.
Chautauqua Capital’s investment team includes veteran investors who average 19 years of investment experience each. In addition to TCW, they have previously worked at firms such as American Century, Wasatch Advisors and Lehman Brothers, and have advanced degrees from notable schools including Stanford, University of Southern California and Yale.
Chautauqua Capital’s investment team has made long-term commitments to Baird and will join the firm as equity owners in the business. To continue to benefit from its recognized name and track record as an institutional asset manager, Chautauqua Capital will operate under the Chautauqua Capital Management name and will become part of Baird Investment Management, Baird’s institutional equity asset management business.
“Our business is increasingly global, and enhancing our capabilities to best serve clients’ needs in a global economy is a key focus for many of our businesses,” said Paul E. Purcell, Baird Chairman & Chief Executive Officer. “A strategic priority for Baird has been adding global and international capabilities to our Asset Management business. Chautauqua Capital has a great track record and a world class team. They have a strong, client-first culture like ours and an investment philosophy and approach that is similar to our current equity asset management offerings where we seek to balance performance and risk control to provide long-term value across market cycles.”
Chautauqua Capital actively manages high quality, growth-oriented international and global equity portfolios for institutional investors. They currently offer two strategies – International Growth and Global Growth – and invest in companies that have sustainable competitive advantages, are the beneficiaries of long-term trends, and can be purchased at reasonable values. Chautauqua Capital’s portfolios draw from a worldwide opportunity set and are invested for the long-term on a conviction weighted basis. Chautauqua Capital seeks to control risk by emphasizing quality, diversifying portfolios, and considering regional and macro factors.
“With the increasingly complex nature of various back office, support and oversight functions, our joining Baird enables us to focus 100 percent of our attention on providing superior returns in our international and global strategies,” said Brian Beitner. “Their employee-owned model and emphasis on putting clients first make them the best fit for our team and our clients.”
“Given Chautauqua Capital’s compelling long-term investment track record of risk adjusted returns and Baird’s back-office capabilities and experience, we see an exceptional opportunity for both Chautauqua Capital and Baird clients,” said Reik Read, Managing Director, Baird Investment Management.
The Chautauqua Capital team will continue to be based in Boulder, Colorado, where Baird has an office.
Baird has invested to grow its asset management business which includes Baird Advisors, a fixed income manager with assets totaling $36 billion, and Baird Investment Management, an equity asset manager with nearly $3 billion in assets under management. The Baird Funds include Baird Ultra Short Bond Fund, Baird Short-Term Bond Fund, Baird Short-Term Municipal Bond Fund, Baird Quality Intermediate Municipal Bond Fund, Baird Core Intermediate Municipal Bond Fund, Baird Intermediate Bond Fund, Baird Aggregate Bond Fund, Baird Core Plus Bond Fund, Baird SmallCap Value Fund, Baird MidCap Fund and Baird LargeCap Fund. In addition, Baird has minority stakes in Greenhouse Funds LP, an equity asset manager based in New York, and Riverfront Investment Group, an investment advisor based in Richmond, Va.
Baird is an employee-owned, international wealth management, capital markets, private equity and asset management firm with offices in the United States, Europe and Asia. Established in 1919, Baird has more than 3,200 associates serving the needs of individual, corporate, institutional and municipal clients. Baird has $152 billion in client assets. Committed to being a great place to work, Baird ranked No. 5 on FORTUNE’s 100 Best Companies to Work For in 2015 – its 12th consecutive year on the list. Baird’s principal operating subsidiaries are Robert W. Baird & Co. in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird’s investment banking and private equity operations. For more information, please visit Baird’s Web site at www.rwbaird.com.