Baron Financials ETF on Generac
Thesis
Baird purchased Generac as part of its effort to retain exposure to AI-related industrial growth. The fund expects a long-term increase in demand for resilient power infrastructure. AI data centers and chip fabs are important drivers, while a constrained electric grid and broader electrification trends provide additional sources of demand.
“Generac should also benefit from the long-term increase in demand for resilient power infrastructure”