Baron Capital ETF Sells Wynn Resorts Shares, Buys Texas Roadhouse in Q3 Shift

Baron Capital's Baron SMID Cap ETF (NYSE: BSCM) unloaded its entire stake in Wynn Resorts (NASDAQ: WYNN) during the third quarter, replacing the casino operator with shares of Texas Roadhouse (NASDAQ: TXRH). The move was detailed in a shareholder letter from portfolio managers Laird Bieger and Randy Gwirtzman.

The exchange-traded fund, which focuses on small- and mid-cap companies, sold its Wynn position as part of a broader portfolio rebalancing. The decision to exit the gaming stock came as the fund shifted assets toward the casual dining chain, known for its hand-cut steaks and lively atmosphere.

Wynn Resorts operates luxury hotels and casinos in Las Vegas, Macau, and Boston. The company's stock has faced volatility amid regulatory changes in Macau and shifting travel patterns. Texas Roadhouse, by contrast, has shown steady growth in the restaurant sector, benefiting from strong consumer demand and expansion plans.

The letter did not specify the exact number of shares sold or purchased, nor did it detail the financial impact of the trade. Baron Capital did not provide additional commentary beyond the investor update.

The ETF's move reflects a broader trend of reallocating capital within the mid-cap space, as fund managers weigh sector-specific risks and opportunities. Wynn Resorts remains a widely held stock among other institutional investors, while Texas Roadhouse continues to attract attention for its operational performance.