Robert W. Baird & Co. Inc. saw record results in some areas of its business last year, including equity capital markets, asset management and private wealth management.
Fixed income capital markets, on the other hand, did not fare so well in the low interest rate environment of 2011, according to the company’s annual report.
Baird managed $87.3 billion in assets last year. Net revenues rose 9 percent from 2010, to $925 million. Earnings before taxes were up 6 percent, which the company attributes to lowering long-term financing costs.
Throughout the recession, Baird remained profitable. As a result, it was able to prematurely eliminate debt from a recent buyback and pay a large dividend in 2011.
Baird has experienced significant growth in the last five years, expanding research coverage by 33 percent, raising $1 billion in capital for its global private equity funds, hiring hundreds of new employees and growing its assets under management by 25 percent.
The Baird stock price grew 191 percent from 2002 to 2010, even through difficult market conditions, which is attributed to conservative long-term management.
Fully diluted book value is at $27.19. Baird paid a $7.50 cash dividend last year.
The company has also invested in its workforce and worked to create a strong team culture, resulting in a lower voluntary turnover rate than most of the U.S. securities industry and a number of accolades.
Baird now has 2,752 employees, up 25.6 percent from 2007. The overall U.S. securities industry saw a -3.6 percent change in employment during that time.
“I can say without reservation that Baird’s great advantage is the self-determination that comes from our ownership of the firm,” said Paul Purcell, chairman, president and CEO. “It drives a passion among associates for doing the right thing, day after day, for clients and for each other. And that responsibility drives an understanding that the right thing will always be the advice and execution that protect the best interests of our clients.”
