Baron SMID Cap ETF Q2 2026 Letter

Baron Capital released its second-quarter 2026 investor letter for the Baron SMID Cap ETF, which gained 15.62% NAV but underperformed the Russell 2500 Growth Index's 24.02% return.

Heartflow Stock Details

Heartflow, Inc. (NASDAQ:HTFL) closed at $48.30 per share on September 16, 2026, with a market cap of $4.2 billion and a 52-week range of $20.13 to $51.78.

Baron SMID Cap ETF's Reason for Exit

Baron SMID Cap ETF sold Heartflow stock as it grew incrementally more concerned with the presence of competitors in AI-driven medical diagnostics.

“Heartflow, Inc. (NASDAQ:HTFL) is a provider of software that analyzes CT scans (with contrast) of a patient's coronary arteries, and shows calcification, plaque buildup, and blood flow quality in a three dimensional model. We sold the position in the quarter as we grew incrementally more concerned with the presence of competitors on the market.”

Heartflow's Market Position

Heartflow, Inc. (NASDAQ:HTFL) is not on the 40 Most Popular Stocks Among Hedge Funds list, with 30 hedge fund portfolios holding it at the end of Q2 2026.

Baron's Investment Strategy

Baron SMID Cap ETF believes AI stocks offer greater upside potential and less downside risk compared to Heartflow, Inc. (NASDAQ:HTFL).