Baron SMID Cap ETF

Mercury Systems, Inc. (MRCY) designs, manufactures, and markets high-performance, embedded, real-time digital signal and image processing systems, mission systems, and software. The company's customers are Tier-1 defense contractors worldwide.
We believe Mercury is uniquely positioned to sell high-speed computing and storage subsystems to nearly all large U.S. defense contractors. Its products, which let customers more rapidly and cheaply develop their own solutions, are used for mission management, communications, sensors, electronic warfare, and other systems. Mercury serves an available market of over $40 billion, including $24 billion for C4I (command, control, communications, computers, and intelligence) systems and $18 billion for sensor and mission systems (electronic warfare, radar, and weapons).

Coherent Corp. (COHR) develops, manufactures, and markets advanced materials, lasers, and optical systems designed to generate, modulate, amplify, direct, and detect photons, the fundamental particles of light.
Coherent is positioned to benefit from secular communications tailwinds driven by AI data center buildouts, growing data center interconnect demand, increasing optical penetration within server racks, advances in optical switching, and the migration of traditional telecom networks to pluggable transceivers. In addition to these structural drivers, the company’s operational initiatives, including margin expansion, debt reduction, and diversification of its global supply chain, continue to support its improving financial profile.

Loar Holdings Inc. (LOAR) is a niche aerospace components manufacturer. Founded in 2012, the company has an 85% proprietary product portfolio, with more than half of its revenue coming from the high-margin aftermarket channel.
Loar’s proprietary, aftermarket-focused products represent one of the strongest business models in the aerospace and defense industry, exemplified by the success of peers such as TransDigm. Loar benefits from favorable industry growth trends and strong pricing power given the critical nature of its components. The company has executed a disciplined acquisition strategy, successfully integrating more than 17 acquisitions over the past 13 years. We believe Loar is well positioned to deliver strong double-digit growth for the foreseeable future.

Booz Allen Hamilton Holding Corporation (BAH) provides information technology consulting services to the federal government and to commercial and foreign customers.
We consider Booz Allen’s consultants to be best in class at addressing sensitive and high-priority projects across cybersecurity, intelligence, defense, and government spending efficiency. Given the company's unique expertise, we believe Booz Allen will continue to benefit from growing demand for its services.

SiteOne Landscape Supply, Inc. (SITE) is the largest wholesale distributor of landscape supplies in North America. Through its large branch network, the company offers a broad selection of products across irrigation, agronomics, hardscapes, and nursery to landscaping professionals.
While SiteOne is over three times the size of its closest competitor, it has only high-teens share of a highly fragmented market. It has significant opportunity to further consolidate the industry through accretive acquisitions, driven by an experienced management team with a strong M&A track record. With the company’s renewed focus on execution and improving underperforming branches, we expect margin expansion to accelerate in the coming years. It is also investing in technology and productivity initiatives to enhance the customer experience and improve sales efficiency.

Liberty Media Corporation - Liberty Live (LLYVK) consists of Liberty Media Corporation's 30% interest in Live Nation Entertainment, Inc., the world's largest live entertainment company, producing, selling, and promoting concerts, and connecting brands to music.
Live Nation is the dominant player in an industry with solid long-term demand trends. The company has significant opportunities for capital reinvestment. Its investment in new owned and operated venues drives higher concert segment margins relative to shows held at third-party venues, largely due to Live Nation's control of the profitable food and beverage business. As Live Nation's mix shift to owned venues increases, we believe the resulting margin improvement will produce low double-digit growth in adjusted operating income over the long term.

Natera, Inc. (NTRA) offers testing solutions in women’s health, cancer recurrence monitoring, and transplant rejection diagnostics.
Natera is a leader in non-invasive prenatal testing and has also been instrumental in developing the liquid biopsy market for cancer recurrence monitoring, supported by robust clinical data and favorable reimbursement coverage. We estimate the recurrence monitoring total addressable market at $15 to $20 billion and believe Natera has a long runway for growth in this market.

Through its subsidiaries, TransDigm Group Incorporated (TDG) designs, produces, and supplies engineered aerospace components for commercial and military aircraft customers across the world.
TransDigm's parts are custom designed at the pre-production stage and approved by the Federal Aviation Administration and aircraft manufacturers. TransDigm is typically the sole supplier of 90% of the parts that it manufactures. While the company earns a modest return on original equipment parts, it earns large margins on after-market replacement parts for airframes that stay in service for decades, generating a substantial stream of recurring cash flow that is used for acquisitions and shareholder dividends.

Liberty Media Corporation - Liberty Formula One (FWONK) is a tracking stock that consists primarily of Liberty Media Corporation's interest in Formula One Group.
Formula One is a unique sports property that benefits from the rising value of broadcasting rights, new sponsorship deals, and strong third-party interest to host races. The sport continues to gain popularity globally and has seen impressive growth in the U.S. The growth in fan interest has translated into attractive contract extensions with race promoters and a number of new relationships with global brands. Additionally, Liberty Media recently announced its acquisition of Dorna Sports, the organization behind MotoGP, a fast-growing and emerging motorsport.

Samsara Inc. (IOT) provides a cloud-based software platform for vehicle telematics, video-based driver safety, workflow automation, equipment monitoring, and manufacturing site visibility. The platform analyzes data from millions of sensors and cameras to help companies reduce costs and improve safety.
Samsara has been rapidly gaining market share in the $51 billion connected fleet software market, driven by its superior cloud-native architecture, ability to address both safety and telematics use cases, and its proprietary data moat (14 trillion data points collected annually across more than a million assets). The company has leveraged its strong position in commercial fleets to expand into adjacent areas such as construction equipment monitoring and driver workflow automation, increasing its value to customers.

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