BCSM Exits Insulet Corporation (PODD), Maintains Watchlist Status

BCSM Exits Insulet Corporation (PODD), Maintains Watchlist Status

Thu, September 17, 2026 at 3:48 PM GMT+3 3 min read

• PODD -1.04%

Baron Capital, an investment management company, released its second-quarter 2026 investor letter for its "Baron SMID Cap ETF". You can download the letter here. Baron SMID Cap ETF® (BCSM) gained 15.62% (NAV) in the second quarter, underperforming the Russell 2500 Growth Index's 24.02% return. The trend towards "AI winners" continued, focusing on companies related to chips, power equipment, and AI data center financing. MSCI's Barra factor attribution indicates the fund's underperformance was due to being underweight in Momentum and Beta factors. The top 10 holdings of the fund accounted for 29.3% of assets. The firm believes the portfolio companies are performing well fundamentally and are viewed as long-term cash flow compounders poised for significant returns. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.

In its second-quarter 2026 investor letter, Baron SMID Cap ETF highlighted Insulet Corporation (NASDAQ:PODD). During the quarter, the fund sold its holdings in Insulet Corporation (NASDAQ:PODD), an American medical device company known for its Omnipod platform, an insulin delivery system for people with insulin-dependent diabetes. On September 16, 2026, Insulet Corporation (NASDAQ:PODD) closed at $140.60 per share. Over the past month, Insulet Corporation (NASDAQ:PODD) declined 4.27% while its shares lost 57.84% over the past 52 weeks. Insulet Corporation (NASDAQ:PODD) has a market capitalization of $9.75billion and its stock has traded within a 52-week range of $126.40 to $354.88.

Baron SMID Cap ETF stated the following regarding Insulet Corporation (NASDAQ:PODD) in its Q2 2026 investor letter:

"Insulet Corporation (NASDAQ:PODD) is the global leader in tubeless automated insulin delivery (AID) devices. It has over 600,000 active global customers using its AID devices and had $2.7 billion in revenues in 2025 which is a fraction of the $19 billion worldwide type 1 diabetes market it predicts in 2028, and the additional $12 billion type 2 market in 2028. 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 admire the company and its products and are keeping Insulet on our radar."

Insulet Corporation (NASDAQ:PODD) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Insulet Corporation (NASDAQ:PODD) at the end of the second quarter which was 55 in the previous quarter. While we acknowledge the potential of Insulet Corporation (NASDAQ:PODD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we noted that Artisan Mid Cap Fund sold its stake in Insulet Corporation (NASDAQ:PODD) amid increasing rising insulin pump competition and weaker visibility into future growth. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.