Baron SMID Cap ETF Exits Insulet Corporation Amid Competitive Pressures
In its second-quarter 2026 investor letter, Baron Capital's Baron SMID Cap ETF (BCSM) reported a 15.62% net asset value gain but underperformed the Russell 2500 Growth Index by nearly nine percentage points. The fund attributed this to being underweight in Momentum and Beta factors as it focused on AI-related sectors such as chips, power equipment, and data center financing. The ETF sold its position in Insulet Corporation (NASDAQ:PODD), a leader in tubeless automated insulin delivery systems with $2.7 billion in 2025 revenue. The decision came amid safety concerns affecting production and an increasingly competitive market for diabetes devices. Despite exiting the stock, BCSM acknowledged Insulet's strong fundamentals and kept it on its watchlist. Insulet’s shares closed at $140.60 per share as of September 16, 2026, with a year-to-date decline of over 57%. The company has a market cap of nearly $9.8 billion but faces challenges in maintaining growth amid rising competition and production issues.
Tickers: $PODD
Topics: ETF medical_devices stock_exit