Baron
Baron SMID Cap ETF
US Mid-cap
Mar 2026 → Sep 2026
Our archive holds 4 letters from this strategy, behind 12 investment theses and positions in 42 companies. Every quote below is copied verbatim from the letter it came from.
4 letters in a year · follow all of Baron for every strategy.
Performance
as of Sep 30, 2026 · net of fees · USD · ETF Market Price
- YTD+0.3%index +7.3%
- Inception · total−1.2%index +4.8%
Index: Russell 2500 Growth Index
| YTD | Since inceptiontotal | |
|---|---|---|
| Baron SMID Cap ETF | +0.3% | −1.2% |
| Russell 2500 Growth Index | +7.3% | +4.8% |
Since inception: Since Inception (12/12/2025)
Disclaimer
These figures are copied from the manager’s latest letter, as of Sep 30, 2026. They were extracted automatically, have not been verified by HF Best Ideas and may contain errors. They cover a single share class, in the currency and fee basis stated above; other share classes and your own returns will differ. This is not investment advice, nor an offer to buy or sell any fund. Past performance does not predict future returns.
Read full disclosures →What it bought and sold
We exited our position in Wynn Resorts, Limited, an operator of hotel and casino resorts, in order to initiate a new position in Texas Roadhouse, Inc., a casual dining restaurant operator.
We sold the investment as we viewed valuation to be extreme on even a long-term basis but would revisit it at more appropriate valuation levels.
During the quarter, we initiated a position in Spotify Technology S.A., the world’s leading audio streaming platform, with over 750 million monthly active users and nearly 300 million paying Premium subscribers.
- New positionMadison Air Solutions CorporationSep 2026
We initiated a position in Madison Air Solutions Corporation, a leading HVAC manufacturer that came public earlier this year.
- New positionJersey Mike's Subs Inc.Sep 2026
During the quarter, we initiated a position in Jersey Mike’s Subs Inc., a franchisor of fast casual, submarine-style sandwich restaurants.
Monolithic Power Systems, Inc. 2025 45.6 67.9 327.5
Top net sales for the quarter Net Amount Sold ($K) Booz Allen Hamilton Holding Corporation 652.6
During the quarter we purchased Shake Shack Inc. , a premium fast-casual burger chain.
Viking Holdings Ltd 2026 46.7 355.0
During the quarter, we initiated a position in Advanced Drainage Systems, Inc. (ADS), the leading U.S. manufacturer of stormwater and onsite wastewater management products.
We sold our position in the quarter to re-evaluate the accelerating competitive landscape and to assess a series of safety issues that have affected Insulet’s AID production.
We sold the position in the quarter as we grew incrementally more concerned about the presence of competitors on the market.
Rambus Inc. 2026 10.7 12.0 363.3
During the quarter, we purchased Shake Shack Inc., a premium fast-casual burger chain.
During the quarter, we purchased Shake Shack Inc., a premium fast-casual burger chain.
During the quarter, we purchased Shake Shack Inc., a premium fast-casual burger chain.
We sold the position in the quarter as we grew incrementally more concerned with the presence of competitors on the market.
We sold our position in the quarter to re-evaluate the accelerating competitive landscape and to assess a series of safety issues that have affected Insulet’s AID production.
Also held
- Netskope, Inc.
- Repligen Corporation
- Axon Enterprise, Inc.
- Tempus AI, Inc.
- Loar Holdings Inc.
- Dynatrace, Inc.
- Mercury Systems, Inc.
- CAVA Group, Inc.
- Illumina, Inc.
- Coherent Corp.
- Harrow, Inc.
- Rubrik, Inc.
- Forgent Power Solutions, Inc.
- Stevanato Group S.p.A.
- Guidewire Software, Inc.
- Samsara Inc.
- Datadog, Inc.
- Lattice Semiconductor Corporation
- Karman Holdings Inc.
Its investment theses
- Rubrik, Inc.Sep 2026Rubrik is a cybersecurity and data resilience platform benefiting from rising cyber resilience spending, with strong ARR growth and expanding margins supporting high long-term conviction.
- Netskope, Inc.Sep 2026Netskope is a cloud and AI application security provider with architectural differentiation and strong growth, well positioned for the AI security shift.
- Madison Air Solutions CorporationSep 2026Madison Air Solutions is a leading HVAC manufacturer with strong margins and growth, and its transformative ebm-papst acquisition creates a faster-growing HVAC compounder we believe the market undervalues.
- Spotify Technology S.A.Sep 2026Spotify is the leading audio streaming platform with unmatched scale and personalization, early in a durable monetization and margin expansion story with attractive long-term growth.
- Advanced Drainage Systems, Inc.Jun 2026Advanced Drainage Systems, Inc. has scale, cost advantages, and secular tailwinds that support multi-year growth, margin expansion, and an attractive valuation.
- Karman Holdings Inc.Jun 2026Karman Holdings Inc. has proprietary, mission-critical defense systems, high-margin economics, and strong organic growth supported by missile production tailwinds.
- Shake Shack Inc.Jun 2026Shake Shack Inc. has a differentiated brand, attractive unit economics, and a long runway for double-digit growth and margin expansion.
- Guidewire Software, Inc.Jun 2026Guidewire Software, Inc. is a critical insurance system of record with large recurring revenue potential and AI-driven upside to growth and profitability.
- Axon Enterprise, Inc.Jun 2026Axon Enterprise, Inc. is a market-leading public safety technology platform with strong moats and significant five-year upside.
- Coherent Corp.Jun 2026Coherent Corp. is a vertically integrated laser and photonics company whose optical transceivers are positioned to benefit from AI data center buildouts.