Baron Financials ETF on Modine
Thesis
Baird purchased Modine as an industrial company positioned to benefit from continued AI infrastructure spending. The fund believes the market is underestimating the persistence and scale of demand for engineered cooling systems. Increasingly sophisticated thermal-management requirements for hyperscale AI data centers provide the core structural growth driver.
“we believe the market is underestimating the duration and magnitude of demand for highly engineered cooling systems”