2010 Annual Report - Robert W. Baird

the Baird 

difference 

At Baird, we’re committed to 

continuity our clients can 

count on. Values that endure. 

Great outcomes. Done well. 

Advice that’s 2010 trusted. AnnuAl RepoRt Teamwork 

that delivers. Every single day. 

In every type of market.

2010 Annual Report 

2 Focus 

4 Expertise 

6 Culture 

8 A Message from Paul Purcell 

12 Businesses at a Glance 

14 Private Wealth Management 

18 Equity Capital Markets 

24 Private Equity 

28 Fixed Income Capital Markets 

32 Asset Management 

36 Our Community 

38 Financial Information 

40 Managing Directors 

42 Corporate Offices

We believe that great outcomes begin 

with a clear focus on the best interests of 

clients and associates, every day, in every 

type of market. That trust grows from deep 

expertise and objective advice. And that 

strong partnerships are built when a culture 

is dedicated to real teamwork and enduring 

values. That’s the Baird Difference. 

Baird 2010 Annual Report 

1

2 

Success 

Middle Market 

Focus 

Continuity 


Clients 

Long Term 

Partnership

We’re focused on what our clients value 

most. Like creating a strong partnership 

that centers on their needs for deep 

expertise and objective advice. One with 

a clear emphasis on their long-term goals. 

A partnership defined by continuity in 

relationships and disciplined execution 

they can count on year after year. 

Staying focused means staying true to 

our core strengths. That’s why Baird is 

financially conservative, committed to 

the middle market and always guided by 

the values that form the bedrock of our 

client relationships. 

. 

“ What attracted me to Baird was its focus on building 

the whole business around the best interests of 

clients. Associates across Baird support me so that 

I can provide truly customized wealth management 

solutions to my clients.” 

Karen Ogard, Financial Advisor 

Quintin Lai Mike Liang Karen Ogard 

Associate Director of Research Partner, Baird Venture Partners Financial Advisor, Denver 


3

4 

Trusted 

Solutions 


Collaborative 

Expertise 

Objective 

Performance Accessible

We believe that objective advice is trusted 

advice. That means expert advice rooted in 

rigorous analysis and aligned to the needs 

of clients. It means developing solutions 

that are effective and appropriate as well 

as creative. 

Laura Thurow Gary Elfe Steve Janaszak 

Co-Director of Private Wealth Director of Research, Fixed Income 

Management Research Baird Advisors Institutional Sales 

At Baird, expertise is also accessible. From 

managing directors to senior portfolio 

managers, from industry conferences to 

white papers, Baird’s experts are readily 

available to provide the depth of insight 

that contributes to great outcomes. 

“ Our advice comes from years of experience and 

a deep understanding of each client’s needs. 

We’re thoughtful and disciplined in our approach, 

so we can make recommendations best suited to 

their goals.’‘ 

Gary Elfe, Director of Research, Baird Advisors 


5

6 

Authentic 

Community 

Culture 

Teamwork 


Integrity 

Dedicated 

Caring

For the past eight years, Baird has been 

recognized as a great place to work through 

some of the best, and the most challenging, 

market conditions our clients and industry 

have ever experienced. That’s because the 

values we share as Baird associates are the 

heart of everything we do. Our values drive 

honest communication, caring and real 

collaboration on behalf of clients, each 

other and the communities in which we live. 

“ How we do things – with integrity, teamwork and 

caring – is as important to us as the results we achieve 

for clients. The alignment of our practices with our 

values is the real strength of the Baird culture.” 

Leslie Dixon, Chief Human Capital Officer 

Sheryl Lenzke Peter Kies Heidi Engelhardt Alan Bago 

Best Practices Consultant, Co-Director, International Partner, New Accounts 

Private Wealth Management Equity Capital Markets Human Capital Representative, Operations 


7

Paul Purcell 

Chairman, President & 

Chief Executive Officer 

“ Because Baird is independent and employee-owned, we 

determine our own strategic priorities. We can take a 

conservative, long-term view of what is in the best interests 

of our clients and our businesses.” 

8 Baird 2010 Annual Report

A Message 

from Paul Purcell 

By many objective measures, 2010 was a dramatic 

improvement over the two preceding years of global 

economic decline. Investors’ confidence, however, 

remained challenged. Volatile equity markets, historically 

low interest rates and uncertainty about the sustainability 

of the economic recovery continued to raise concerns 

for many clients. More than ever, they sought advice 

and perspective from Baird. 

We deeply appreciate the trust our clients place in us. 

Baird associates work hard to earn that trust every day, 

through a deep understanding not only of financial 

markets and investment banking transactions, but also of 

what matters most to each client. That is why, across all 

of our businesses, our goal is to provide expert advice and a 

long-term view of financial markets and clients’ objectives. 

Preserving that bond of trust is also why Baird’s first 

priority during the challenges of the last several years 

was to protect and serve the interests of our clients. 

We believed this required two forms of investment on 

our part. The first was to keep our teams together, not 

only to ensure continuity of service to clients, but also 

to maintain the partnership culture for which Baird is 

recognized. The second investment was to take advantage 

of the opportunity to hire many talented professionals 

who were looking for Baird’s combination of a collaborative, 

client-focused work environment and strong financial 

condition. Over the past three years, Baird has increased 

employment 15%, including many new associates who 

are senior-level industry veterans. Meanwhile, many 

competitors have restructured or downsized, and U.S. 

securities industry employment has dropped 6%. 

While expertise and relationships are important in 

hiring, they cannot trump values. The values we share 

both distinguish Baird in the marketplace and help 

make Baird a great place to work. That is why we are 

deeply honored to be recognized – for the eighth 

consecutive year – as one of the FORTUNE 100 Best 

Companies to Work For.® We placed No. 14 on the 

2011 list, released in January, our third consecutive year 

among the top 15. 

Core strengths. Our ability to make a substantial 

commitment to hiring during some of the most difficult 

markets in 70 years speaks to our core strengths. These 

investments are made with our own money at stake. 

Because Baird is independent and employee-owned, we 

determine our own strategic priorities. We can take a 

conservative, long-term view of what is in the best interests 

of our clients and our businesses. What’s more, we are 

aligned behind that view as an organization. Nearly half 

of all Baird associates own shares in the firm, and those 

shares have grown in book value at a compound annual 

rate of 11% over the past decade. This growth is strong 

confirmation that working in our clients’ best interests is 

always in our own best interest. 


9

A Message 

from Paul Purcell 

We can also afford to stay focused on what matters most 

because we have a strategic balance of complementary 

middle-market businesses – Private Wealth Management, 

Equity Capital Markets, Private Equity, Fixed Income 

Capital Markets and Asset Management. Terrific 

results from Fixed Income Capital Markets and Asset 

Management in 2009, for example, helped offset declines 

in other businesses. That balance of revenues gave us the 

leeway to hire top talent while maintaining Baird’s 

excellent financial condition. 

In 2010, the commitment we made to both maintain and 

deepen the team enabled Baird’s businesses and financial 

performance to rebound more quickly than many in the 

industry. All five businesses performed very well last year, 

and some, like Investment Banking and Private Equity, 

improved dramatically. Net revenues for 2010 grew 18% 

over 2009 results to a record $847 million. Operating 

income increased 35% to $84 million.* We ended the year 

as we began it: in excellent financial condition, with 

modest debt and a very strong capital base. 

Other important investments. During 2010, we also 

completed a record year of investment in Baird’s 

information technology capabilities. We not only expanded 

the team and expertise, we added momentum to the rollout 

of new systems and client capabilities across our businesses. 

This is an ongoing program of substantial, incremental 

investment in IT and a key component of Baird’s strategy 

to become the leading middle-market financial services 

firm in the world. 

* Financial results do not reflect the consolidation of certain private 

equity partnerships. 

10 


Among the 2010 highlights to be found throughout this report: 

For the seventh consecutive year, Baird ranked No. 1 for 

“most trusted” research in Greenwich Associates’ annual 

survey of U.S. small-cap and mid-cap fund managers. 

Baird Financial Advisors managed or oversaw $63 billion 

in client assets at the end of 2010. As a firm, we managed 

or oversaw more than $82 billion in client assets. 

Investment Banking completed a record number of 

financings and M&A advisory transactions, which had a 

combined value of $26 billion. 

Baird Capital Partners was again named a top 

“Consistent Performer” in Private Equity 

Intelligence’s 2010 survey, moving up to No. 7 

in the global ranking of buyout managers. 

For the second straight year, Baird ranked No. 1 in 

the United States for the number of municipal bond 

issues it lead-managed during the year, according to 

Thomson Reuters. 

Strong inflows to our bond mutual funds during the past 

two years drove Baird Funds’ assets under management 

to $4.7 billion at the end of 2010, a 142% gain since the 

end of 2008.

“ Baird associates have proven that their commitment 

to ensuring the best possible outcomes for clients can 

help transcend some of the most challenging economic 

conditions in the history of our business.” 

Our diversity efforts continue to get a great deal of attention 

at all levels of the firm, and deservedly so: they remain a 

key priority. Our four associate resource groups – women’s 

issues, African-American perspective, community 

involvement and the environment – are doing a terrific job 

of furthering their mandates, as well as giving additional 

voice and leadership opportunities to more associates 

throughout the organization. We’re strengthening our 

talent acquisition strategies and continuing to develop 

our robust internship and scholarship programs to create 

more opportunities for women and people of color. As I 

have said in the past, the gains do not come quickly enough, 

but we are making progress toward achieving a workforce 

that, over time, will be more representative of the clients 

and communities we serve. 

I am privileged, and proud, to lead a remarkable team of 

associates at Baird. Our associates have proven beyond 

any doubt that their commitment to ensuring the best 

possible outcomes for clients – and for each other – can 

help transcend some of the most challenging economic 

conditions in the history of our business. They have 

also shown that, while markets may redefine how great 

outcomes are measured at times, they will remain focused 

on delivering outcomes that are done well – with expert 

advice, honest communication and genuine caring. That 

will always be the Baird Difference. 

Paul E. Purcell 

Chairman, President & 

Chief Executive Officer 


11

Baird’s independence and employee 

ownership give us the freedom to 

do what we believe is in the best 

long-term interests of our clients. 

Despite extremely challenging 

markets in recent years, we have 

made significant investments in our 

team and global reach, while 

maintaining substantial capital and 

a strong balance sheet. Nearly half 

of all Baird associates own shares 

in the company, which promotes 

a very strong alignment with the 

interests of our clients. 

Baird’s culture is a true competitive advantage. 

In January 2011, we were recognized as one 

of the FORTUNE 100 Best Companies to Work 

For® for the eighth consecutive year. Ranked 

No.14, we celebrated our third straight year 

among the top 15. 

FORTUNE is a registered trademark of Time Inc. and is used under 

license. From FORTUNE Magazine, February 7, 2011 © 2011 Time Inc. 

FORTUNE and Time Inc. are not affiliated with, and do not endorse 

products or services of, Licensee. 

12 


12 Baird 2010 Annual Report 

Structured 

for Success 

Private Wealth 

Management 

Baird’s Private Wealth Management 

professionals provide comprehensive 

wealth management strategies 

and solutions for high-net-worth 

individuals and their families across 

the United States. 

• $63 billion in client assets overseen or 

managed by 680 highly skilled Financial 

Advisors and their teams 

• More than 60 in-house specialists 

provide advice for all aspects of wealth 

management, retirement planning, 

charitable giving and wealth transfer 

• Serves clients coast to coast from 71 

locations in 23 states 

• Barron’s Top Wealth Managers list, 

2007–2010 


Management 

Revenues 

($ millions) 

339 

320 

352 

298 296 

Financial Advisors 

660 

591 592 600 

680 

06 07 08 09 10 

06 07 08 09 10 

06 07 08 09 10 

63 billion 

dollars in 

client assets 

Equity Capital 

Markets 

Equity Research – Institutional Equity Services – 

Investment Banking 

Our Equity Capital Markets team 

delivers expertise in research and 

sales and trading to domestic and 

international institutions. Baird’s 

Investment Banking group provides 

equity underwriting and mergers 

and acquisitions advisory services to 

middle-market companies. 

• 633 companies under research coverage 

• Ranked No. 1 once again for “most trusted” 

and “most important”research firm in 2010 

Greenwich small/mid-cap survey* 

• Advised on more than 125 financing and 

global M&A transactions in 2010 with a 

total value of $26.4 billion 

• A Top 10 U.S. underwriter of initial public 

offerings in 2010, according to Dealogic 

Equity Capital 

Markets Revenues 

($ millions) 

183 

224 

188 173 

255 

No.1 

Institutional 

Shares Traded 

(billions) 

2.3 

2.1 

most trusted 

research in 2010 

Greenwich survey * 

* Greenwich Associates U.S. Equity Investors – Small/Mid-Cap Funds, 

April 2010. Surveys conducted with 93 U.S. small-cap and mid-cap fund 

managers. Rankings based on top 10 research firms in survey. 

06 

07 

3.2 

2.9 

3.3 

08 

09 

10

Baird is a privately held, employee-owned financial 

services company that oversees or manages more 

than $82 billion in client assets. Over our 91-year 

history, we’ve built a strong platform of five 

complementary businesses that help diversify and 

balance revenue through all types of market 

Private 

Equity 

Baird Capital Partners – Baird Venture Partners – 

Baird Capital Partners Europe – Baird Capital 

Partners Asia 

Baird Private Equity makes venture 

capital, growth equity and buyout 

investments in lower middle-market 

companies in the Manufactured 

Products, Business Services and 

Healthcare/Life Sciences sectors. 

• $2.7 billion in capital raised since inception 

and investments made in 244 portfolio 

companies 

• Baird Capital Partners ranked as a Top 10 

“Consistent Performer” in 2010 Preqin survey 

of 570 private equity funds worldwide 

• 61 investment and operating professionals 

in the United States, Europe and Asia 

• 15 operating professionals in Beijing, Hong 

Kong, Shanghai and Bangalore support our 

portfolio companies 

Private Equity 

Revenues 

($ millions) 

28 

06 

47 

07 

23 

08 

15 

09 

30 1.8 

10 

2.7 dollars 

Cumulative Capital 

Raised and Managed 

($ billions) 

06 

2.7 

2.6 

2.5 

2.4 

07 

08 

09 

10 

billion 

raised 

and managed 16.9 

Fixed Income 

Capital Markets 

Baird’s Fixed Income Sales and 

Trading team provides investment 

ideas and trade execution 

for institutional clients in the 

United States and Europe. Our 

Public Finance professionals 

meet the debt underwriting and 

advisory needs of public- and 

private-sector clients. 

• 100+ institutional sales, trading and 

analytics professionals in 25 offices 

• $233 billion in face value of taxable and 

tax-exempt bonds traded in 2010 

• 30 Public Finance bankers in 11 

offices nationally 

• A leading U.S. municipal underwriter: in 

2010, No. 1 in issues of $50 million or less 

and No. 5 in competitive underwritings 

of all sizes, based on par value, according 

to Thomson Reuters 

conditions. These advantages give us the financial 

strength to make ongoing investments in the 

professional expertise and distinctive culture that 

make Baird a trusted partner for corporations, 

institutions and individuals across the United 

States, Europe and Asia. 

Asset 

Management 

Fixed Income Sales and Trading – Public Finance Baird Advisors – Baird Investment Management – 

Baird Public Investment Advisors 

Fixed Income Capital 

Markets Revenues 

($ millions) 

54 57 

06 

07 

110 

08 

211 

09 

170 

10 

No.1 

Sales Professionals, 

Traders and Bankers 

municipal bond 

underwriter 

nationwide * 

*Based on number of issues, according to Thomson Reuters 

90 

06 

105 

96 

07 

08 

128 133 

09 

10 

Baird’s experienced fixed income 

and equity portfolio managers offer 

disciplined investing and outstanding 

service to institutional investors 

and high-net-worth individuals 

through customized portfolios and 

mutual funds. 

• $15.2 billion in institutional fixed income 

portfolios and mutual funds under 

management by Baird Advisors 

• Nearly $1.1 billion under management 

for municipalities and school districts by 

Baird Public Investment Advisors 

• $550 million in mid-cap and large- 

cap equity portfolios and mutual 

funds managed by Baird Investment 

Management 

• Minority interest in RiverFront Investment 

Group, which manages $2.5 billion 

Asset Management 

Revenues 

($ millions) 

29 

06 

23 

07 

24 

08 

25 

09 

29 

10 

billion 

dollars in 

assets under 

management 

06 


Total Assets Under 

Management 

($ billions) 

16.6 

15.3 15.0 

13.8 

16.9 

07 

08 

09 

10 

13

In Private Wealth Management, sound advice 

begins with active listening by our Financial 

Advisors. Because genuine caring backed by deep 

expertise is the foundation of comprehensive 

solutions for high-net-worth clients. 

14 

Baird 2009 2010 Annual Report 

14 Baird 2009 Annual Report 

Jim Furletti Ana Ebaugh Mike Levin 

Financial Advisor and Administrative Office Manager Financial Advisor 

Associate Branch Manager Baltimore Baltimore 

Baltimore

Katie Schoen Todd Parrish 

Research Analyst Research Analyst 


Management 

Responding to real concerns and changing priorities 

Several years of equity market volatility and low interest rates, combined with uncertainty 

over income tax and estate tax legislation, have caused significant concern for many investors. 

That has led them to not only question their ability to meet long-term goals, but also to 

re-evaluate their tolerance for risk in their investment portfolios. Baird Financial Advisors 

have actively engaged clients to deepen their understanding of clients’ changing preferences 

and reaffirm long-term goals for retirement, charitable giving and wealth transfer. Our 

Financial Advisors are well qualified to do so. Half have earned at least one professional 

designation or qualified as a Baird Senior Investment Consultant through our program at the 

University of Chicago Booth School of Business, which focuses on the specialized needs of 

high-net-worth families and business owners. 

As the planning needs and asset-allocation concerns of our clients become more complex, 

we continue to deepen the advice we provide to help them achieve their financial goals. 

Baird Financial Advisors have ready access to a highly skilled, in-house team of more than 

60 specialists in areas such as investment research, tax and estate planning, and riskmanagement 

strategies, as well as services for business owners and corporate executives. 

It is a fully cross-functional team that brings a broad understanding of the complex wealth 

management issues facing many of our clients. 

Private Wealth Management 

“The talent pool at Baird is 

very deep. We get quality 

service from people who are 

bright, motivated and 

experienced, and who really 

want to help us and our 

clients. Coming from a much 

larger firm, it was a very 

pleasant surprise.” 

Jim Furletti, Associate 

Branch Manager, Baltimore 


15

The Epstein Calvelli Group, Milwaukee 

16 



Management 

Chris Calvelli Monica Mullen Elizabeth Kendall David Epstein 

Senior Investment Consultant Registered Client Registered Client Financial Advisor 

Relationship Associate Relationship Associate 

Baird’s in-house specialists 

continue to garner national 

media attention from 

publications such as The 

New York Times, The Wall 

Street Journal, USA Today 

and BusinessWeek for their 

insights into tax, estate and 

investment planning. 

Advice and solutions for today’s markets 

Baird Financial Advisors managed 

or oversaw $63 billion in client 

assets at the end of 2010, a 13% 

increase over the prior year. Half 

of all Financial Advisors work on 

teams to leverage each other’s 

expertise and broaden the service 

they provide clients. 

Just as our Financial Advisors seek to understand the needs of their clients, Private Wealth 

Management’s team of products and services specialists continues to expand resources 

available to our Financial Advisors. Our specialists operate as an integrated team to 

communicate, for example, how legislative changes or market conditions will impact 

wealth management strategies. Their mandate is to provide timely, client-centered advice 

on broad issues, as well as thoughtful solutions for individual investors, so that Financial 

Advisors can help clients achieve their long-term goals. 

Baird Financial Advisors are skilled at customizing the allocation of assets to meet clients’ 

specific wealth management objectives through the many stages of their financial lives. 

During 2010, Baird continued to expand its product offerings beyond traditional asset 

classes to include investments that have the ability to be effective in dynamic market 

conditions. Our advisory programs also have been enhanced to include tactical portfolio 

and alternative strategies, as well as traditional asset classes.

Barbara Griffin 

Senior Investment Consultant 

Grand Rapids 


• Select Baird Financial Advisors 

and Branch Managers were 

included in 2010 rankings of 

“Top 100 Financial Advisors” 

and “Branch Manaagers of 

the Year” by Barron’s and 

On Wall Street. 

Kim Haws Falasco Mike Schroeder 

Financial Advisor President, Private Wealth Management, talks with Baird’s 

Akron Network of Women Financial Advisors 

18 Our Financial Advisors 

average more than 18 years 

of industry experience, and 

half have earned at least 

one professional designation 

or qualified as a Baird Senior 

Investment Consultant. 

Approximately 75% of our 

Client Relationship Assistants 

are licensed professionals. 

Expanding our platform 

• Baird is very committed to 

increasing the number and role 

of women advisors. The Baird 

Network of Women Financial 

Advisors provides a forum to 

connect, share best practices 

and promote the profession as 

an attractive career choice. 

In Private Wealth Management, as in all Baird businesses, we place great importance on the 

continuity of our relationships with clients. In contrast to many larger firms in recent years, 

we enjoy strong retention of senior Financial Advisors with long service at Baird. We have 

also had continuing success in attracting experienced advisors who appreciate Baird’s 

entrepreneurial approach, distinctive culture and financial stability. During 2010 – our 

second-best recruiting year ever – we hired 62 Financial Advisors and Branch Managers. 

Almost all are industry veterans overseeing substantial client assets. We are selectively 

growing our national presence as well. Private Wealth Management opened six new offices 

in 2010 in the Mid-Atlantic and Midwest regions and Texas. 

Designing and implementing a complex wealth management strategy requires ready access 

to useful information. Baird Financial Advisors and their clients are supported by a wide 

array of world-class account management tools. Baird HouseholdView, for example, 

provides clients a comprehensive look at their investment assets across multiple generations, 

up to the previous business day. This information positions clients to work with their 

Financial Advisors to make timely, informed investment decisions. Baird client statements 

also achieved a ranking of “excellent” in the 2010 review by DALBAR, a leading firm 

analyzing the financial services industry. 


17

In Equity Capital Markets, great outcomes are 

founded on best-in-class research and deep expertise 

in trading, capital markets and advisory services. 

Great relationships are built by a strong, stable team 

and an unrelenting focus on our clients’ interests. 

18 



Bob Graham Bill Walker Dan Steffes Erika Maschmeyer 

Institutional Investment Officer Managing Director, Mason Street Advisors Institutional Trader Senior Research Analyst 

Co-Portfolio Manager, Small Cap Portfolios

Equity 


Committed to being the best for clients 

Baird has made substantial investments in recent years to deepen the expertise and broaden 

the skills we provide our Equity Capital Markets clients. We dramatically expanded our 

research coverage while many firms were decreasing theirs. We added to the strength of our 

trading desks, the breadth of our market making and the scope of our electronic execution 

capabilities. Throughout a challenging business downturn, we kept our global Investment 

Banking team intact and active to ensure that clients received the advice and continuity 

that are essential for strong partnerships and great outcomes. 

Our commitment to providing trusted, objective advice and best execution again earned 

important third-party recognition for our Equity Capital Markets teams in 2010. Research 

and Institutional Equity Services once again achieved No. 1 rankings for “most trusted” 

and “most important” research firm in Greenwich Associates’ 2010 survey of small-cap and 

mid-cap fund managers.* Prominent industry publications also recognized our Investment 

Banking team with numerous major awards for innovative advisory transactions on behalf 

of middle-market clients. We were recognized for the sixth year in a row by The M&A 

Advisor, earning four awards. In Europe, Acquisitions Monthly called out our bankers’ 

expertise for the fourth consecutive year with its “Support Services Adviser Award.” 

* Greenwich Associates U.S. Equity Investors – Small/Mid-Cap Funds, April 2010. Surveys conducted with 

93 U.S. small-cap and mid-cap fund managers. Rankings based on top 10 research firms in survey. 

Patricia Miller Chris Sciortino Michael Ray Barbara Bradley Baekgaard 

Vera Bradley Co-founder Investment Banker Vera Bradley CEO Vera Bradley Co-founder 

Equity Capital Markets 

In October 2010, Baird 

served as lead book runner 

for the $202 million initial 

public offering of Vera Bradley, 

Inc., a leading designer and 

retailer of accessories for 

women. The transaction was 

one of the top-performing 

IPOs of a U.S.-based company 

during 2010. 


19

Peter Lisnic Tristan Gerra 

Senior Research Analyst Senior Research Analyst 

Three Baird analysts received 

“Best on the Street” awards 

in The Wall Street Journal’s 

2010 survey. Our analysts also 

garnered 13 awards for 

earnings accuracy and stock 

picking in the StarMine 

awards published by the 

Financial Times. 

20 


Equity 


Research 

For the seventh consecutive year, 

Baird ranked No. 1 for “most 

trusted” research in the 2010 

Greenwich Associates’ survey of 

small-cap and mid-cap fund managers – 

a testament to our commitment 

to provide expert, objective advice. 

During the past five years, Baird has expanded its research coverage by 40%. Our 112 

analysts followed 633 companies at the end of 2010 – representing 37% of the total U.S. 

market capitalization – and published more than 12,000 reports during the year. We 

continue to deepen our expertise to serve clients better. In late 2010, we added three senior 

research analysts and a senior associate to broaden our Energy sector coverage to master 

limited partnerships and Exploration and Production companies. This new group also 

adds depth to our Clean Technology and Energy and Environmental Policy research and 

banking teams. 

The durability of our partnership with clients can be seen in third-party rankings. In the 

2010 Greenwich Associates’ survey of small-cap and mid-cap fund managers, our Research 

and Institutional Equity Sales team ranked No. 1 for the seventh consecutive year for 

“greatest knowledge of companies and industries.” We also extended our record of 

providing “best direct access” to company management. In 2010, we held five major investor 

conferences – including our largest-ever, hallmark Industrial Conference and an inaugural 

Clean Technology Conference – at which more than 490 companies presented. Baird also 

hosted more than 475 corporate management trips, including 100 to Europe.

Research: 

Companies Covered 

506 497 535 

616 633 

06 

07 

08 

09 

10 

16 Great ideas, 

continuous coverage 

and quality execution 

are driving strong market 

share gains in the domestic 

and international markets 

that Baird serves. Institutional 

Equity Services posted its 

16 th consecutive year of 

record revenues in 2010. 

Institutional Equity Services 


• Our institutional sales team 

based in London has continued 

to expand coverage to 

institutional investors in 

Europe, Australia and Asia, 

increasing revenues by 22% 

in 2010. 

Steve Holt Greg Gaynor Gregory Greenhouse 

Institutional Investment Officer Institutional Trader Institutional Trader 

• In early 2010, Baird was named 

the No. 1 firm in the United 

States – and had the No. 1 

salesperson worldwide – in 

First Coverage’s “2009 Top 

Performer Rankings.” The 

survey recognizes the best 

institutional equity salespeople 

and sell-side firms worldwide. 

Our consistency of focus on the needs of clients and the continuity of experienced 

personnel on our desks – even when market volumes are down – have made Baird a trusted 

partner for domestic and international institutional investors around the world. For eight 

consecutive years, U.S. small-cap and mid-cap fund managers surveyed by Greenwich 

Associates have ranked Baird’s Institutional Equity Services team as No. 1 for “overall 

sales quality” and “provides best insights that generate alpha” – a strong endorsement of 

our belief that great outcomes begin with solid investment ideas geared to clients’ portfolios 

and backed by quality trade execution. 

During 2010, we experienced strong client adoption of our expanded execution capabilities 

available on the Baird trading platform. Our strategic partnership with Fox River 

Execution provides institutional clients with a top-performing – and conflict-free – suite 

of customizable execution products for algorithmic and electronic trading solutions. Our 

desks offer program trading that combines buy-side and sell-side perspectives and an agency 

model to fulfill clients’ orders. In addition, we offer CSA/soft dollar execution services. 

Our desks traded 3.3 billion shares for institutional clients in 2010, a 75% increase in volume 

during the past five years. Baird currently makes a market in more than 2,000 stocks. 


21

Chris McMahon 

Head of Global M&A 

Baird ranked among 

the top 10 most-active 

underwriters of initial 

public offerings for 

U.S.-based companies, 

according to Dealogic, 

based on priced or 

pending transactions 

for 2010. We managed 

three of our largest 

book-run IPOs ever in 2010. 

22 


Equity 


Investment Banking 

During 2010, we completed a 

record 76 financing transactions, 

raising $14.2 billion. We advised 

on a record 51 M&A transactions 

with a total value of $12.2 billion. 

Baird’s Investment Banking group brings an intense rigor and discipline to the needs 

of middle-market clients. We provide a full range of advisory, equity financing and 

restructuring services through an integrated, cross-border team based in the United States, 

Europe and Asia. We have deep expertise in nearly a dozen major industry verticals, with 

dedicated industry bankers supported by top-rated equity research. 

Baird made a substantial investment in keeping its Investment Banking team together, 

which allowed us to serve clients well during the business downturn of 2008 and 2009. 

In fact, since the beginning of 2008, we have added 15 managing directors and directors 

and expanded our global footprint to 13 offices. We continued to expand our team during 

2010, adding 30 banking professionals, including a well-respected Energy team focused 

on Oil and Gas Exploration and Production companies and master limited partnerships. 

Throughout the recent downturn, our Investment Banking professionals maintained close 

contact with clients to provide advice on their strategic options. The group’s increased 

interaction with U.S. and European middle-market financial sponsor firms led to a 

substantial increase in transaction volume. As markets improved in 2010, our long-term 

corporate and financial sponsor relationships helped drive strong gains in market share. 

That led to a record year for the number of financing transactions and initial public 

offerings we managed or co-managed and M&A transactions on which we advised.

Maria Watts Chris Coetzee 

Investment Banker Investment Banker 

245 More robust 

markets and strong client 

relationships helped drive 

a dramatic increase in the 

value of M&A advisory 

assignments during 2010. 

Baird’s average transaction 

size was $245 million, a 

three-fold increase over 

the prior year. 


• In late 2010, Baird served as 

co-manager for the $147 million 

initial public offering of 

American Depositary Shares 

for Xueda Education Group, 

which came to Baird for the 

quality of our research 

coverage of the sector. It was 

our first underwriting for a 

China-based company. 

Trisha Hansen 

Investment Banker 

• Nearly a third of all Baird 

M&A transactions involved 

an international component 

over the past five years. We 

have completed transactions 

with companies based in 21 

countries during that period. 

The global capabilities of Baird’s Investment Banking teams – and our commitment to 

provide expert, objective advice – represent a strong value proposition for middle-market 

banking clients. So does our experience. 

We have advised on 365 M&A transactions over the past 10 years, with a total value of 

more than $50 billion. That experience has enabled us to forge strong relationships with 

major financial and strategic buyers around the world and accrue a deep understanding of 

the specific requirements of a mid-market transaction. Over the past five years, 60% of our 

advisory transactions have involved a financial sponsor, while half have involved a public 

company. For equity financing clients, we provide effective syndication and excellent 

distribution backed by Baird’s commitment to quality equity research. As a result, we have 

lead-managed or co-managed more than 370 financing transactions over the past decade, 

raising $86 billion for clients. 

Investment Banking has approximately 175 professionals operating through dedicated sector 

teams in the United States, London, Frankfurt and Shanghai. More importantly, as a fully 

integrated team, we are able to leverage deep, sector-specific strengths and the ongoing 

involvement of senior bankers to provide seamless execution for middle-market clients. 


23

Baird Private Equity uses deep sector knowledge, an 

experienced investment team and extensive global 

resources to drive growth in smaller, high-potential 

companies in the United States, Europe and Asia. 

That’s the basis of our consistent performance. 

24 



Dennis Hall David Fraser James Benfield 

Portfolio Director Operating Partner Director 

Baird Capital Partners Europe Baird Capital Partners Europe Baird Capital Partners Europe

Private 

Equity 

Capturing the potential of the lower middle market 

New economic realities demand a focused, proactive strategy for success. For Baird Private 

Equity, that means a focus on lower middle-market companies aligned with a deep 

understanding of the Healthcare, Manufactured Products and Business Services sectors 

across the United States, Europe and Asia. It involves an extensive global platform that 

enables us to accelerate revenue growth and drive operating efficiencies. And it means 

proven discipline, not only in how we invest, but in how we structure transactions, align 

interests and manage for the long term. 

For the third consecutive year, Baird Capital Partners – one of four fund families run 

by Baird Private Equity – was named one of the top “Consistent Performers” by Private 

Equity Intelligence Ltd. In its 2010 survey, Baird Capital Partners ranked No. 7 of the 

more than 570 international funds analyzed, making it the U.S. leader among all lower 

middle-market funds. 

The resumption of global economic growth in 2010 led to significant improvements in 

performance across our business. Revenues for Baird Private Equity nearly doubled to 

$29.6 million. It was also a much more active year for both new investments and exits. 

Across all funds, we invested a total of $82.0 million in six new investments and in add-on 

acquisitions, and we realized total proceeds of $44.6 million on the exit of six investments. 

Martyn Ngo Derek Ooi Janet Ni 

General Manager Deputy General Manager Deputy General Manager 

Baird Asia Baird Asia Baird Asia 


Paddock Holdings, a 

portfolio company of 

Baird Capital Partners 

Europe, employed Baird 

Asia resources extensively 

to reduce manufacturing 

costs and develop its first 

sales into Asia. Initiatives 

like these drove a 2.7× 

gross return on investment. 


25

26 


Private 

Equity 

Tom Costello Gordon Liao Aaron Lillybridge 

Vice President Vice President Principal 

Baird Capital Partners Baird Capital Partners Baird Capital Partners 

The Baird Asia team has a 

rich mix of industry expertise, 

technical knowledge and 

project management 

experience. It has a proven 

track record of delivering 

value for Baird Private Equity 

portfolio companies. 

A global platform for growth 

Baird Private Equity’s global team 

includes 29 investment and 32 

operating professionals, all of 

whom share a deep commitment 

to superior execution. The average 

tenure of our investment 

professionals is nearly 10 years. 

Baird Private Equity has developed a global investment platform that is among the most 

extensive in the lower middle market. Our experienced investment professionals operate 

in four discrete teams from offices in Chicago, London and Shanghai. We complement 

the skill set of our portfolio companies’ entrepreneurial management teams with talented 

senior executives who have extensive industry experience and operating expertise. Our 

Portfolio Management Program supports our investment teams and operating companies 

by implementing portfolio-wide programs such as global sourcing, supplier/vendor 

management, working capital reduction and acquisition integration. We also leverage 

Baird’s broad network of global contacts to provide our management teams access to 

industry relationships, management talent and strategic buyers and sellers in the United 

States, Europe and Asia. 

Our private equity platform is ideally positioned to take advantage of the increasing 

role of emerging markets in the global economy. With 15 professionals in Beijing, 

Hong Kong, Shanghai and Bangalore, India, we have one of the largest operating teams 

in Asia supporting a lower middle-market investment group. Baird Asia works extensively 

with our portfolio companies, leveraging its on-the-ground presence to develop and 

implement strategies such as creating sourcing relationships, building supply chains, 

establishing Asian operations and selling in Asia.

Jim Pavlik Benedict Rocchio 

Partner Partner 

Baird Venture Partners Baird Venture Partners 

244 Since Baird 

Private Equity’s founding in 

the 1980s, our partnerships 

have invested in 244 portfolio 

companies. At the end of 

2010, the Funds held 

investments in 47 companies. 


• Private Equity’s sector- 

focused advisory boards, 

which provide strategic and 

operating advice to our 

portfolio companies in the 

United States, United Kingdom 

and Asia, include approximately 

40 current and former senior 

executives of leading 

manufacturing, healthcare and 

business services companies. 

Building value for companies and investors 

• Cumulative capital raised 

and managed by Baird Private 

Equity totaled $2.7 billion at 

the end of 2010. During the 

year, Baird Capital Partners 

Asia closed fundraising on its 

first fund. 

Hock Goh Brett Tucker Huaming Gu 

Operating Partner Partner Partner 

Baird Capital Partners Asia Baird Capital Partners Asia Baird Capital Partners Asia 

Baird Private Equity makes venture capital, growth equity and buyout investments 

through a series of limited partnerships. Each of our partnerships is supported by a 

strong investment team with complementary experience and skill sets and a powerful 

platform of resources to help execute our investment strategies. During 2010, we examined 

approximately 1,700 potential acquisitions for new or add-on investment in our funds. 

United States. baird capital partners makes buyout investments in lower middlemarket 

companies in the Business Services, Healthcare and Manufactured Products sectors. 

baird venture partners invests in early-stage and expansion-stage U.S. companies in 

the Business Services and Life Sciences sectors. 

Europe. baird capital partners europe makes buyout investments in lower middlemarket 

companies in the Business Services, Healthcare and Manufactured Products sectors 

in the United Kingdom. 

Asia. baird capital partners asia provides growth equity capital to smaller, highpotential 

companies in China or to those with substantial operations and growth 

opportunities in China. 


27

Our Fixed Income Capital Markets teams deliver 

investment expertise, financing solutions and 

quality execution, year after year. It’s a partnership 

that our clients have come to value in all types 

of markets. 

28 



Jordan Chirico Ariel Dorfman Alex Ketner 

Asset-Backed Securities Trader Mortgage Trader Fixed Income Institutional Sales

Fixed Income 


Committed to growing relationships 

Over the past five years, Baird’s Fixed Income Capital Markets group has emerged as a 

national powerhouse, while many competitors were contracting. As we expanded account 

coverage, analytical skills and product offerings, Fixed Income Sales and Trading has 

grown to 25 offices and 127 professionals. This growth has been augmented by additional 

capital in the business to ensure a consistent source of liquidity to meet clients’ needs. 

Over the same period, Public Finance expanded beyond its Midwestern base to 11 offices 

nationally and a team of 61 professionals. Baird’s 30 bankers have deepened their skills 

in advising on larger, more complex issues facing their clients and embraced new types of 

financings. Our commitment to long-term relationships and quality execution has enabled 

Public Finance to move steadily up the national ranks of municipal underwriters, ranking 

as the No. 1 lead manager of issues of $50 million or less in 2010, based on both number 

and par value of the issues, according to Thomson Reuters. 

This combination of knowledgeable professionals and continuous commitment to fixed 

income markets has enhanced our national presence and ability to provide innovative 

solutions to clients. As trading and credit markets normalized in 2010, Sales and Trading 

posted its second-best year of results, while Public Finance set a new high-water mark for 

both revenues and number of transactions. 

Fixed Income Capital Markets 

Our Institutional Sales and 

Trading team has grown 56% 

in the past five years. It is 

supported by our Portfolio 

Strategies and Analytics 

group, which provides 

comprehensive portfolio 

analysis and risk profiles for 

institutional clients. 

Tommy Wammack Sang Woo Park Kirill Krylov 

Portfolio Strategy & Analytics Manager Fixed Income Portfolio Analyst Portfolio Products & Integration Group Manager 


29

30 


Fixed Income 


Brian Kelso Yoon-Sook Moon Brian Colon 

Public Finance Banker Financial Analyst Public Finance Banker 

233 Baird fixed 

income desks traded 

$233 billion in face value 

of taxable and tax-exempt 

bonds for institutional and 

individual clients in 2010. 

Fixed Income Sales and Trading 

Baird ranked as the No. 1 

municipal bond underwriter in 

the nation in 2010, based on the 

number of competitive and 

negotiated issues, according to 

Thomson Reuters. We also ranked 

among the top 10 underwriters of 

issues of $100 million or less, based 

on the par value of these issues. 

The substantial investment we have made in recent years to build our trading desks, 

analytics group, institutional sales team and national network of offices continues to drive 

impressive results in Fixed Income Sales and Trading. While many competitors downsized 

in 2008 and 2009, we increased our commitment to fixed income markets. More than 

simply providing liquidity for transactions, however, we used our expanded expertise to 

deepen our coverage of accounts. Our professionals stayed focused on growing relationships 

through quality ideas and took a long-term approach to understanding and meeting clients’ 

objectives. This commitment to the fixed income markets has built a strong bond of trust 

among Baird and our clients and syndicate partners – a trust we work hard every day to earn. 

Today, Baird has 77 institutional sales professionals serving clients across the country and 

26 traders on our institutional trading desks. These sales and trading professionals have an 

average of 15 years of experience. This includes a senior team of traders and underwriters 

who have built Baird into a strong national presence in negotiated and competitively bid 

syndicates for municipal underwritings.

Holly Powell Brian Lefler Michael DiPerna 

Administrative Lead Public Finance Banker Public Finance Banker 

In 2010, Baird served as 

the advisor, underwriter 

or placement agent on 

municipal bond transactions 

valued at more than 

$36 billion, 40% higher than 

our previous firm record. 

The cumulative value of 

these transactions over 

the past five years exceeds 

$110 billion. 

Public Finance 

Fixed Income Capital Markets 

• Fixed Income Sales and 

Trading has added 11 locations 

across the United States since 

2006, bringing the total to 

25 offices and 127 highly 

skilled sales, trading and 

analytics professionals. 

• Baird has an experienced 

team of 11 dedicated traders 

who work closely with 


Financial Advisors to provide 

analysis and execution on 

fixed income securities for 

individual investors. 

In the past five years, Baird has dramatically enhanced its Public Finance capabilities. 

We doubled our banking team to more than 60 bankers and analysts, adding experienced 

professionals in new areas of financing and new markets. During 2010, we focused on 

collaborating across offices to advise on complex financing challenges facing our clients, 

which include public, private and non-profit entities. With new types of financings that 

can be structured with taxable, tax-exempt and tax-credit components, clients look to Baird 

for expert advice on how to structure offerings to best meet their individual funding needs. 

In both 2009 and 2010, for example, Baird was the No. 1 underwriter nationwide of 

stimulus bonds authorized by the American Recovery and Reinvestment Act, based on 

the number of transactions, according to Thomson Reuters. This included an $80 million 

underwriting for the Michigan Strategic Fund, which used Recovery Zone Facility Bonds 

that enabled The Kroger Co., the nation’s largest traditional grocery retailer, to build and 

rehabilitate stores in Detroit’s tri-county metropolitan area. The project will create more 

than 250 jobs. 

Providing value-added advice remains the core of our Public Finance business. Our clients 

look to Baird not only for financing new projects but also for creative solutions to deal 

proactively with new fiscal realities. 


31

The Baird difference in Asset Management rests 

on a proven combination – deep experience, 

disciplined strategy and consistent performance 

against benchmarks, backed by unparalleled service 

and direct access to senior portfolio managers. 

32 



Meg Dean Charlie Groeschell 

Portfolio Manager Senior Portfolio Manager 

Baird Advisors Baird Advisors

Baird Advisors 

Warren Pierson Sharon deGuzman 

Senior Portfolio Manager Portfolio Manager 

Baird Advisors Baird Advisors 

Asset 

Management 

Baird Advisors has built a very consistent and successful approach to fixed income portfolio 

management. The team augments its investment approach with direct access to senior 

portfolio managers and quality service that is among the most respected in the industry. 

This compelling combination of performance and service has resulted not only in a steady 

increase in new clients but also client relationships that span more than 14 years on average. 

Assets under management totaled $15.2 billion at the end of 2010. 

Baird Advisors has a proven investment approach. Beginning with a duration-neutral 

strategy, we focus on adding value over benchmark returns through yield-curve positioning, 

sector allocation, security selection and competitive execution. This disciplined – and 

risk-controlled – approach has generated consistent, competitive performance over complete 

market cycles. 

The five Baird Bond Funds are managed with the same discipline, strategy and service 

commitment that institutional clients’ portfolios receive, and at very competitive costs. The 

funds’ strong value proposition and solid performance continued to attract robust inflows 

of assets from both individual and institutional investors. Assets under management in the 

bond funds grew 32% in 2010, contributing to a 142% increase over the past two years. 

The Baird Advisors team and three of the funds celebrated their 10 th anniversaries in 2010. 


Baird Advisors’ senior 

portfolio managers have 

more than 28 years of 

experience working together. 

Across the entire team, our 

portfolio managers average 


industry experience that 

includes numerous fullmarket 

cycles. 


33

34 

Asset 

Management 

Heidi Schneider Jennifer Trowbridge Ryan Nelson 

Controller & Operations Officer Portfolio Manager Portfolio Manager 

Asset Management Baird Public Investment Advisors Baird Public Investment Advisors 

The BPIA team has extensive 

experience in managing 

investment portfolios for 

public entities. Our portfolio 

managers work directly 

with client administrative 

teams to develop a portfolio 

of investments that seeks 

to maximize interest earnings 

while maintaining safety 

and liquidity. 


Asset Management initiatives 

As public officials are asked to 

do more with less, demand for 

Baird Public Investment Advisors’ 

services has grown rapidly. Assets 

under management have grown 

to more than $1 billion since the 

group was formed three years ago. 

Baird Public Investment Advisors is an innovative and highly successful joint venture 

launched in 2007 by Baird Advisors and Baird’s Public Finance banking team. With 

municipalities and school districts experiencing ongoing revenue challenges, prudent 

investment of public funds is essential for their operations. Baird Public Investment 

Advisors provides rigorous analysis of investment policy, risk tolerance, and historical 

and expected cash flows. We also conduct investment reviews and provide comprehensive 

investment reporting and analysis. Since our sole focus is managing funds for public 

entities, we have a thorough knowledge of state investment statutes and client-specific 

investment parameters. That enables us to customize investment and fund allocation 

strategies for individual circumstances. 

RiverFront Investment Group, an employee-owned, independent investment advisor, 

was formed in 2008 with Baird as a minority investor. RiverFront offers numerous asset 

allocation and exchange-traded fund portfolios designed to address an array of needs for 

investment type and risk tolerance. These portfolios are available in a combination of mutual 

funds and separately managed accounts. RiverFront also provides indexes for two exchangetraded 

funds. The performance and flexibility of the RiverFront family of funds have proven 

to be very attractive to investors and their advisors. The group has experienced substantial 

growth in assets since inception, ending 2010 with $2.5 billion in assets under management.

Chuck Severson Randy McLaughlin 

Senior Portfolio Manager Portfolio Manager 

Baird Investment Management Baird Investment Management 

19 Our seven portfolio 

managers and research 

analysts have on average 


industry experience. 

Baird Investment Management 


• Assets under management by 

Baird Asset Management – 

Baird Advisors, Baird 

Investment Management and 

Baird Public Investment 

Advisors – totaled $16.9 billion 

at the end of 2010. 

• Baird Investment Management’s 

MidCap Fund marked its 10 th 

anniversary in 2010. The fund’s 

experienced management team 

continues to build on its track 

record, seeking high-quality 

companies with above-marketaverage 

growth and profitability. 

Baird Investment Management is an experienced manager focusing on quality mid-cap 

and large-cap growth equities for mutual funds and separately managed accounts, as 

well as specialized portfolios for high-net-worth individuals. We pursue investment in 

the highest-quality businesses that can increase in strength and value. Our analysts and 

portfolio managers conduct detailed, bottom-up research to find companies with positive 

fundamentals, relevant industry trends and management quality. 

Risk management is also a key component of our process. Our proprietary Tier Board 

combines core fundamental and quantitative factors to assess portfolio allocations. This 

tool supports team dialogue to better position our portfolios to capture success, while 

mitigating potential downside. Our approach has created a long-term record of delivering 

consistent, competitive, risk-adjusted returns for clients. 

In addition to investment performance, we create value for our clients by providing 

access to our senior portfolio managers – a practice that has enabled us to build long-term 

partnerships with institutions, corporations and high-net-worth individuals who entrust 

their assets to us. Continuing strength in equity markets and growth with core clients 

increased Baird Investment Management’s assets under management to $552 million at 

the end of 2010. 


35

Communities are 

important 

beneficiaries of 

Baird expertise. 

Many of our associates 

have leadership 

roles in civic and 

charitable causes, 

bringing considerable 

experience and 

energy to helping 

these organizations 

achieve their goals. 

36 


Our 

Community 

Helping our 

hometowns 

We encourage Baird offices 

to support their 

communities by forming 

relationships that help 

advance the objectives of 

local charities and not-forprofit 

organizations. Last 

year, Bill Sewell, our 

Raleigh Branch Office 

Manager, rappelled from an 

office tower to raise money 

for Special Olympics – a 

novel example of support for 

a worthy cause. 

United for 

United Way 

In the Milwaukee area, 

associate participation in the 

2010 United Way campaign 

topped 95% for the eighth 

consecutive year, and we 

raised more than $1 million 

for the first time. Chicago 

donations grew over 20% 

and Cincinnati achieved 

100% participation for the 

third straight year. Baird 

managers in Milwaukee 

served lunch to fellow 

associates, as thanks for 

their generous contributions. 

Organizing to 

lend a hand 

Each month, members of 

our African American 

Associate Resource Group 

help out at area charities, 

including Hope House 

of Milwaukee. Our 

Community Involvement 

Associate Resource Group 

inaugurated Baird Gives 

Back in 2009 to encourage 

collaborative volunteering. 

We expanded the initiative 

to nine cities in 2010 and are 

planning a week of events 

across the country in 2011.

The caring, service and teamwork that Baird associates share at 

work also define our commitment to the communities where we 

live and work. That’s a commitment we encourage through our 

Baird Cares program, which provides paid time off for volunteer 

activities. Through the Baird Foundation, we support associates’ 

charitable efforts with gifts in the areas of health, education, the 

arts and other quality-of-life causes such as diversity. 

Judy Villegas Regina Thompson Patrice Malone 

Operations Department Operations Department Investment Banking 


37


Financial 

Information 

Baird Holding Company: Financial Highlights 

Baird Holding Company is the ultimate parent company of U.S.-based Robert W. Baird & 

Co. and London-based Robert W. Baird Group Ltd. Our primary businesses are wealth 

management, capital markets, asset management and private equity. Baird is fully independent 

and employee-owned. 

Operating 

Results 

Net Revenues 

(in millions) 

2010 $ 847 

NET REVENUES 

(millions) 

10 

09 

08 

07 

06 

Per Share 

Data 

Book Value 

(fully diluted) 

Financial results do not reflect the consolidation of 

certain private equity partnerships. Revenues have 

been restated for comparability as the result of three 

transactions: the 2002 transfer of the Northwestern 

Mutual Investment Program to Northwestern Mutual, 

affecting revenues for 2001; the 2005 sale of our 

UK equity capital markets business that focused on 

small-cap companies, affecting 2001-2005 revenues; 

and the completion of a correspondent clearing 

services contract with Northwestern Mutual Investment 

Services in 2006, affecting 2002-2006 revenues. Per 

share amounts have been restated to give effect for the 

$847 

$718 

$680 

$729 

$624 

Financial 

Position 

Total Assets 

(in thousands) 

OPERATING INCOME 

(millions) 

10 

$84 

09 

$62 

08 

$71 

07 

$105 

06 

$94 

Capital Other Data 

Total Capital 

(in thousands) Associates 

two-for-one stock split, effective February 19, 2008. 

Total Capital includes stockholders’ equity, consolidated 

noncontrolling interest in Baird Financial Corporation 

and Robert W. Baird & Co. (RWB) from associate 

ownership, consolidated subordinated debt and other 

consolidated debt having a maturity of at least one 

year. The regulatory net capital of RWB, the principal 

operating subsidiary of Baird Holding Company, was 

$279 million at the end of 2010, and RWB’s regulatory 

excess net capital was $274 million at the end of 2010, 

which is more than 50 times the requirement. 

TOTAL CAPITAL 

(millions) 

10 

09 

08 

07 

06 

Financial 

Advisors 

$741 

$703 

$699 

$614 

$556 


Offices 

$ 31.51 $ 2,414,331 $ 741,175 2,629 680 66 

2009 $ 718 $ 28.60 $ 2,158,512 $ 702,713 2,458 660 62 

2008 $ 680 $ 26.89 $ 1,140,003 $ 699,444 2,407 600 58 

2007 $ 729 $ 24.84 $ 1,752,307 $ 613,806 2,282 592 58 

2006 $ 624 $ 21.17 $ 1,681,385 $ 556,335 2,191 591 60 

2005 $ 588 $ 18.44 $ 1,311,486 $ 554,047 2,234 600 61 

2004 $ 566 $ 16.10 $ 1,331,613 $ 475,106 2,309 632 64 

2003 $ 502 $ 14.09 $ 1,129,875 $ 482,594 2,324 664 68 

2002 $ 484 $ 12.65 $ 857,602 $ 446,707 2,402 713 69 

2001 $ 494 $ 11.94 $ 1,204,285 $ 418,588 2,574 824 79

$80,000 

$70,000 

$60,000 

$50,000 

$40,000 

$30,000 

$20,000 

$10,000 

Baird Recommended Portfolio – Growth of $1,000 Invested 

An investment of $1,000 in the Baird Recommended Portfolio at inception on December 31, 

1974, would have grown to $74,033 at the end of 2010, compared with $44,333 for the 

NASDAQ Composite Index, $18,788 for the Dow Jones Industrial Average and $18,345 

for the Standard & Poor’s 500 Stock Index (S&P 500). In the 36 years since inception, the 

Baird Recommended Portfolio has achieved a 12.7% annualized return vs. 11.1% for 

NASDAQ, 8.5% for the Dow Jones index and 8.4% for the S&P 500. 

$1,000 

74 80 84 88 92 96 00 04 10 

Baird Recommended Portfolio NASDAQ Dow Jones S&P 500 

All performance data for research recommendations 

have been calculated without commissions or 

dividends. Details will be provided upon request. 

There is no guarantee that future performance of 

Baird Research recommendations will meet or 

exceed past performance. Returns to clients will vary, 

depending on securities purchased or sold. Equity 

securities carry risks that should be considered prior 

to investing. 

Baird Recommended Portfolio: Since inception on 

December 31, 1974, to December 31, 2010, 1,300 

issues were recommended in the Recommended 

Portfolio; 760 issues increased in value, while 531 

declined and nine were unchanged. Performance 

BOOK VALUE 

(per share) 

10 

09 

08 

07 

06 

$31.51 

$28.60 

$26.89 

$24.84 

$21.17 

ASSOCIATES 

10 

09 

08 

07 

06 

results assume each security was purchased when 

recommended and sold when removed from the list. 

The Standard & Poor’s 500 Stock Index, Dow Jones 

Industrial Average and NASDAQ Composite Index are 

unmanaged common stock indices used to measure 

and report value changes in the various stocks that 

comprise those indices. The companies included in 

the Baird Recommended Portfolio do not necessarily 

correlate to the companies comprising the various 

indices described above, either by industry sector, 

capitalization or other weightings. 

2,629 

2,458 

2,407 

2,282 

2,191 

Baird 2010 Annual Report 39

Leadership 


Managing 

Directors 

With an average of more than 18 years each at Baird, the 14 members 

of our Executive Committee represent an extraordinary continuity of 

leadership. Together, they have helped guide Baird through numerous 

business cycles as well as its transformation into an independent, associateowned 

firm. Each is a passionate advocate for the core values on which 

Baird has built its reputation. 

MANAGING DIRECTORS 

BAIRD ADvISORS 

Mary Ellen Stanek 

Director 

Gary A. Elfe 

Charles B. Groeschell 

Warren D. Pierson 

Jay E. Schwister 

Daniel A. Tranchita 

BAIRD INvESTMENT 

MANAGEMENT 

Reik W. Read 

EQUITy RESEARCH 

Robert J. venable 

Director 

David L. AuBuchon 

Peter S. Benedict 

Bruce A. Bittles 

Eric W. Coldwell 

Richard C. Eastman 

David A. George 

Tristan Gerra 

J. Michael Horwitz, Jr. 

Craig R. Kennison 

Quintin J. Lai 

Jon A. Langenfeld 

David Loeb 

Christopher R. Lucas 

Mark S. Marcon 

Lawrence H. Neibor 

Ghansham Panjabi 

Christopher Raymond 

David E. Tarantino 

FIxED INCOME CAPITAL 

MARKETS 

Patrick S. Lawton 

Director 

FIxED INCOME SALES & 

TRADING 

William S. Andersen 

Alexander B. Buchler 

Robert P. DeBastiani 

James P. Healy 

Drew A. Kanyer 

Kirill A. Krylov 

Charles D. Massaro 

Michael J. Redmond 

John J. Sangervasi 

Thomas E. Swift 

Tommy T. Wammack 

Glenn P. Willett 

INSTITUTIONAL EQUITy 

SERvICES 

William W. Mahler 

Director 

James H. Herrick 

Director, Equity Trading 

Anthony Bond 

John F. Byrne 

Steven M. Dadmun 

Richard W. Dunn 

Joseph C. Gerlach 

Clare Hasler 

Steve Holt 

Terence P. Hoy 

John T. Kennedy III 

Barry L. Kneisel 

Ross J. Kopfer 

Todd C. Lombra 

Gregory J. Lutz 

John S. McGregor 

John S. McLandsborough 

Thomas S. O’Connor 

Daniel J. Renouard 

John R. Roesner, Jr. 

Brian C. Scheller 

Todd A. Simons 

Patrick H. Spencer 

Daniel J. Steffes 

Brian C. Timmis 

INvESTMENT BANKING 

Steven G. Booth 

Director 

Joachim Beickler 

Leslie Cheek IV 

C. Christopher Coetzee 

Joel A. Cohen 

Richard P. Conklin 

Brian S. Doyal 

John A. Fordham 

Curtis H. Goot 

Stephen B. Guy 

Jonathan J. Harrison 

Gregory J. Ingram 

Peter S. Kies 

Thomas W. Lacy

ExECUTIvE MANAGEMENT 


Chairman, President & Chief 

Executive Officer 

C.H. Randolph Lyon 

Richard F. Waid 

Vice Chairmen 

Thomas E. Lange 

John R. Lanza 

W. Andrew Martin 

Brian P. McDonagh 

Christopher C. McMahon 

Mark C. Micklem 

John M. Moriarty 

T. Frank Murphy 

Nicholas Pavlidis 

Joseph A. Pellegrini 

Gary R. Placek 

Paul T. Rogalski 

Renee C. Ryan 

Breton A. Schoch 

Christopher J. Sciortino 

Nicholas R. Sealy 

Jeffrey M. Seaman 

David M. Silver 

Anthony Siu 

Andrew K. Snow 

Franklin M. Stokes 

William O. Suddath, Jr. 

Rodney L. Tyson 

Gary D. Vollen 

Peter G. Watson 

William G. Welnhofer 

David M. Wierman 

Michael Wolff 

PRIvATE EQUITy 

Paul J. Carbone 

Director 

ExECUTIvE COMMITTEE 

Steven G. Booth 

Director, Investment Banking 

Paul J. Carbone 

Director, Baird Private Equity 

Leslie H. Dixon 

Chief Human Capital Officer 

Glen F. Hackmann 

General Counsel 

Patrick S. Lawton 

Director, Fixed Income 


C. Andrew Brickman 

Andrew Ferguson 

Huaming Gu 

Simon W. Havers 

Randall A. Mehl 

Robert D. Ospalik 

Gordon Pan 

David P. Pelisek 

Michael J. O. Proudlock 

Peter K. Shagory 

Scott G. Skie 

Brett H. Tucker 

PRIvATE WEALTH 

MANAGEMENT 

Michael J. Schroeder 

President, PWM 

Randy R. Beeman 

Susan C. Bellehumeur 

Timothy P. Byrne 

Allen J. Campbell 

Larry J. Carter 

Gregory S. Collins 

Douglas P. Condon 

Anthony E. Consiglio 

Matthew S. Curley 

Erik C. Dahlberg 

Philip C. Dallman 

Christopher G. Didier 

David S. Epstein 

Gerald M. Falci 

Scott T. Falk 

Ronald E. Farley 

Lawrence A. Gellman 

Gerald L. Gerndt 

Matthew A. Glatz 

C.H. Randolph Lyon 

Vice Chairman 

William W. Mahler 

Co-Head, Global Equities 


Chairman, President & Chief 

Executive Officer 

Mark A. Roble 

Director, Risk Management 

Michael J. Schroeder 

President, Private Wealth 

Management 

Laura H. Gough 

David A. Hackworthy 

Mark L. Hawthorne 

Stephen D. Hoch 

Leah H. Hoffman 

A. Hale Hooper III 

Lisa A. Keverian-Press 

Michael G. Klein 

Peter Klode 

Mark D. Laufman 

John B. Lewenauer 

Marcus C. Low, Jr. 

John J. Luy 

John M. Mabee 

Kenneth J. Meyers 

John Mockovciak III 

Timothy M. Moore 

J. Bary Morgan 

William B. Nicholson 

Michael H. Perrini 

Neil J. Pinsky 

Gary S. Pinsly 

Patrick W. Powell 

Robert C. Ramsey 

Kurt A. Rivard 

Sheldon L. Rosenberg 

Thomas F. Schmid 

James Schultz 

Paul G. Sittenfeld 

Gregory S. Smith 

Steven W. Stahlberg 

Paul Stscherban 

Steven C. Tews 

Donald D. Wallace 

Russell P. Schwei 

Chief Operations Officer 

Mary Ellen Stanek 

Director, Asset Management 

Robert J. Venable 

Co-Head, Global Equities 

Dominick P. Zarcone 

Chief Financial Officer 

Michael J. Welch 

J. Eric Wightman 

PUBLIC FINANCE 

Keith A. Kolb 

Director 

Todd L. Barnes 

Leslie L. Bear 

James R. Blandford 

Brian H. Colon 

David J. Conley 

Michael R. DiPerna 

Thomas J. Gavin 

Ann E. Gifford 

William M. Hepworth 

Richard D. Layton 

Timothy P. Long 

John A. Mehan 

David W. Noack 

Wayne L. Workman 

ADMINISTRATION & 

CORPORATE RESOURCES 

James D. Bell 

Leslie H. Dixon 

Jeffry F. Freiburger 

Timothy J. Fuhr 

Glen F. Hackmann 

Lori A. Lorenz 

Craig D. Peotter 

Mark A. Roble 

John D. Rumpf 

Paul L. Schultz 

Russell P. Schwei 

Charles M. Weber 

Dominick P. Zarcone 

Baird 2010 Annual Report 41

Corporate 

Offices 

UNITED STATES 

Robert W. Baird & Co. 

777 East Wisconsin Avenue 

Milwaukee, Wisconsin 53202 

414-765-3500 

800-79-BAIRD 

rwbaird.com 

EUROPE 

Robert W. Baird Limited 

Mint House 

77 Mansell Street 

London E1 8AF 

+44-207-488-1212 

ASIA 

Baird Investment Advisor Co., Ltd. 

Rm 42-022, 42/F 

Hang Seng Tower 

No. 1000 Lujiazui Ring Road 

Pudong Shanghai 200120, China 

+86-21-6182-0980 

Select locations of our business 

groups and affiliates: 

ASSET MANAGEMENT 

Cincinnati 

Milwaukee 

EQUITy CAPITAL MARKETS 

Atlanta 

Boston 

Charlotte 

Chicago 

Frankfurt 

London 

Milwaukee 

Nashville 

Palo Alto 

San Francisco 

Shanghai 

St. Louis 

Stamford 

Tampa 

Washington, D.C. 

FIxED INCOME CAPITAL 

MARKETS 

Albany 

Atlanta 

Charlotte 

Chicago 

Columbus 

Dallas 

Denver 

Edina 

Houston 

Indianapolis 

Lansing 

Milwaukee 

Nashville 

New york 

Philadelphia 

Red Bank 

Reston 

San Francisco 

St. Louis 

Winston-Salem 

PRIvATE EQUITy 

Chicago 

Hong Kong 

London 

Milwaukee 

Shanghai 

PRIvATE WEALTH 

MANAGEMENT 

ARIZONA 

Phoenix 

Scottsdale 

CALIFORNIA 

Grass Valley 

Roseville 

Sacramento 

San Francisco 

COLORADO 

Boulder 

Denver 

FLORIDA 

Naples 

Orlando 

Palm Harbor 

Sarasota 

Tampa 

Winter Park 

GEORGIA 

Atlanta North Point 

ILLINOIS 

Chicago 

Peoria 

Rockford 

Winnetka 

INDIANA 

Indianapolis 

Mishawaka 

IOWA 

Cedar Rapids 

Quad Cities 

Sioux City 

West Des Moines 

MARyLAND 

Baltimore 

Easton 

MICHIGAN 

Birmingham 

Grand Rapids 

Holland 

Kalamazoo 

Traverse City 

West Bloomfield 

MINNESOTA 

Edina 

Minnetonka 

MISSOURI 

Kansas City 

NEBRASKA 

Omaha 

NORTH CAROLINA 

Charlotte 

Raleigh 

Winston-Salem 

OHIO 

Akron 

Cincinnati 

Cleveland 

Columbus 

Dayton 

OREGON 

Portland 

PENNSyLvANIA 

Philadelphia 

SOUTH CAROLINA 

Charleston 

TENNESSEE 

Nashville 

TEXAS 

Dallas 

Fort Worth 

Houston 

UTAH 

Salt Lake City 

vIRGINIA 

Lynchburg 

Reston 

WISCONSIN 

Eau Claire 

Fox Valley 

Green Bay 

Janesville 

La Crosse 

Madison – Downtown 

Madison – West 

Milwaukee – Downtown 

Milwaukee – North Shore 

Oconomowoc 

Racine 

Sheboygan 

Sturgeon Bay 

Waukesha 

Wausau 

West Bend

Interbrand 

©2011 Robert W. Baird & Co. Incorporated 

Member SIPC. 

“Baird” is the marketing name for Robert W. Baird & Co. 

Incorporated and its subsidiaries and affiliates worldwide. 

Robert W. Baird Limited and Baird Capital Partners Europe 

Limited are authorized and regulated in the United Kingdom 

by the Financial Services Authority (registered numbers 

are 124308 and 150154 respectively) and they have approved 

this information for distribution in the UK and Europe. 

Services or products may not be available in all jurisdictions 

or to all persons/entities. 

For additional information please visit 

Important Disclosures at rwbaird.com. 

#7033.10 

This report is printed on FSC certified 

paper. The fiber used in the manufacture 

of the stock comes from well-managed 

forests, controlled sources and recycled 

wood or fiber.

Great outcomes. 

Done well. 

CHICAGO | FRANKFURT | LONDON | MILWAUKEE | SHANGHAI

2010 Annual Report - Robert W. Baird

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