Chautauqua Capital Management, a division of Baird Asset Management, is a boutique investment firm that released its third-quarter 2026 investor letter for the “Baird Chautauqua International and Global Growth Fund”. The letter can be downloaded here. The broad equity markets posted modest gains in the third quarter, despite significant volatility and rotation beneath the surface. Market leadership shifted throughout the quarter, ultimately favoring U.S. technology. Key macro events included rising oil prices due to Middle East conflict and persistent inflation, prompting interest rate hikes from the Fed, ECB, and BOJ. The firm adjusted portfolios by reducing exposure to AI infrastructure and reallocating to businesses with strong fundamentals. The third quarter returns were +3.74% (vs. +0.48% MSCI ACWI ex-U.S.) for the Baird Chautauqua International Growth Fund and 3.67% (vs. +1.60% MSCI ACWI) for the Global Growth Fund, both beating the benchmarks. Stock selection in health care, IT, real estate, and industrials generated the quarter’s strongest relative gains. These contributions were partially offset by stock selection in utilities and a lack of energy exposure. Also, check the strategy’s top five holdings to see its best picks in 2026.
In its Q3 2026 investor letter, Baird Chautauqua International and Global Growth Fund noted that The TJX Companies, Inc. (NYSE:TJX) detracted from performance this quarter. The TJX Companies, Inc. (NYSE:TJX) is a leading global off-price apparel and home fashions retailer. On October 12, 2026, The TJX Companies, Inc. (NYSE:TJX) closed at $141.92, with a $156.11 billion market capitalization. The TJX Companies, Inc. (NYSE:TJX) posted a ~7.61% YTD pullback, trading within a 52-week range of $122.78 to $170.00.
Baird Chautauqua International and Global Growth Fund stated the following regarding The TJX Companies, Inc. (NYSE:TJX) in its Q3 2026 investor letter:
“While The TJX Companies, Inc. (NYSE:TJX) posted an in-line July fiscal quarter, same store sales comparisons at its core Marmaxx division were below company and consensus expectations. TJX management attributed weak Marmaxx comps to execution issues around product and category mix at stores rather than due to heightened competition or the start of a structural slowdown after several years of above-trend comps and share gains. While TJX has a strong record of quickly reversing Marmaxx-specific missteps, the market is likely to adopt a wait-and-see attitude as Marmaxx faces tougher same store sales comparables in upcoming quarters.”
