Baron Financials ETF on AAON
Thesis
Baird purchased AAON to maintain exposure to industrial companies benefiting from AI infrastructure investment. The fund believes investors are underestimating both the duration and magnitude of demand for highly engineered cooling systems. Hyperscalers building AI data centers require increasingly sophisticated thermal management, creating a structural demand opportunity for the company.
“we believe the market is underestimating the duration and magnitude of demand for highly engineered cooling systems”