Baron Capital adds Advanced Drainage Systems, sells HeartFlow amid competition concerns in Q2 2026

In Q2 2026, Baron Capital initiated a position in Advanced Drainage Systems, a leading U.S. manufacturer of stormwater and wastewater products, and views Axon Enterprise as a strong software provider with competitive advantages. They sold their HeartFlow shares due to rising concerns over market competition. Despite these moves, the Baron SMID Cap ETF gained 15.62% but underperformed the Russell 2500 Growth Index, which rose 24.02%. This reflects Baron's active management approach amid market shifts.