Key Takeaways
- Chautauqua Capital Management, a division of Baird Asset Management, released its third-quarter 2025 investor letter for the Baird Chautauqua International and Global Growth Fund.
- The fund underperformed its benchmark in the quarter due to stock selection in the information technology, financials, and industrials sectors.
- Micron Technology, Inc. (NASDAQ:MU) was highlighted as a stock pick in the investor letter, with a one-month return of 25.93% and a 52-week return of 226.82%.
- The company raised its 4Q guidance for revenues, earnings, and margins, reflecting improved pricing and strong AI data center demand.
- The fund’s top holdings and investment strategy are available for review, with a focus on global equity markets and growth opportunities.
Introduction to Chautauqua Capital Management
Chautauqua Capital Management, a division of Baird Asset Management, is a boutique investment firm that specializes in global equity markets and growth opportunities. The firm recently released its third-quarter 2025 investor letter for the Baird Chautauqua International and Global Growth Fund, providing insights into the fund’s performance and investment strategy. According to the letter, global equity markets delivered solid results in the third quarter, driven by the resolution of significant trade conflicts and a shift in U.S. monetary policy toward a more dovish stance.
Fund Performance and Investment Strategy
The Baird Chautauqua International Growth Fund underperformed the benchmark, MSCI ACWI ex-U.S. Index – ND, in the quarter, driven by stock selection in the information technology, financials, and industrials sectors. Similarly, the Baird Chautauqua Global Growth Fund trailed the benchmark, MSCI ACWI Index – ND, in the quarter as stock selection in the information technology, financials, and industrials sectors detracted the most from returns. The fund’s investment strategy focuses on identifying growth opportunities in global equity markets, with a emphasis on stock selection and portfolio management.
Micron Technology, Inc. (NASDAQ:MU)
In its third-quarter 2025 investor letter, the Baird Chautauqua International and Global Growth Fund highlighted Micron Technology, Inc. (NASDAQ:MU) as a stock pick. Micron Technology, Inc. (NASDAQ:MU) is a technology company that designs, develops, manufactures, and distributes memory and storage products. The company’s one-month return was 25.93%, and its shares gained 226.82% of their value over the last 52 weeks. On December 31, 2025, Micron Technology, Inc. (NASDAQ:MU) stock closed at $285.41 per share with a market capitalization of $321.23 billion.
Investment Analysis and Guidance
The fund stated that Micron Technology, Inc. (NASDAQ:MU) raised its 4Q guidance for revenues, earnings, and margins, reflecting improved pricing, particularly in DRAM. There is strong AI data center demand for high-bandwidth memory, with CY26 capacity already fully sold out. Guidance for the next quarter is above consensus. The company’s revenue in the first quarter of fiscal 2026 was $13.6 billion, up 21% sequentially and up 57% year over year. While the fund acknowledges the potential of Micron Technology, Inc. (NASDAQ:MU) as an investment, it believes that certain AI stocks offer greater upside potential and carry less downside risk.
Conclusion and Recommendations
In conclusion, the Baird Chautauqua International and Global Growth Fund’s third-quarter 2025 investor letter provides valuable insights into the fund’s performance and investment strategy. The fund’s focus on global equity markets and growth opportunities has led to the identification of promising stocks such as Micron Technology, Inc. (NASDAQ:MU). However, the fund also notes that other AI stocks may offer greater upside potential and less downside risk. As such, investors may want to consider reviewing the fund’s top holdings and investment strategy to determine the best course of action for their individual investment needs. Additionally, investors may want to explore other investment opportunities in the AI sector, such as the fund’s recommended extremely undervalued AI stock that stands to benefit from Trump-era tariffs and the onshoring trend.