BCSM Exits Insulet Corporation (PODD), Maintains Watchlist Status

Baron Capital's Q2 2026 investor letter discusses the fund's performance and its decision to divest from Insulet Corporation (NASDAQ:PODD). The fund gained 15.62% in the quarter, but underperformed the Russell 2500 Growth Index's 24.02% return. The investment trend favored AI companies, particularly those related to chips, power equipment, and AI data center financing.

Baron SMID Cap ETF's top 10 holdings comprised 29.3% of its assets. The fund sold its position in Insulet Corporation on September 16, 2026, attributing the decision to reevaluate the competitive landscape and safety concerns affecting the company's insulin delivery devices. Insulet Corporation has a market capitalization of $9.75 billion, with a 52-week trading range of $126.40 to $354.88.

Despite the company's potential, Baron Capital believes other AI stocks offer greater upside potential with lower risk.