Intuitive Surgical (ISRG) Fell Due to Investor Rotation

Yahoo

09-05-2025

Baron Funds, an investment management company, released its 'Baron Health Care Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 2.54% (Institutional Shares) in the quarter compared to a 3.87% gain for the Russell 3000 Health Care Index (benchmark) and a 4.72% decline for the Russell 3000 Index (the Index). The fund trailed the benchmark due to stock selection and, to a lesser extent, active sub-industry weights. In addition, please check the fund's top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Baron Health Care Fund highlighted stocks such as Intuitive Surgical, Inc. (NASDAQ:ISRG). Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures and markets products that help physicians and healthcare providers improve the quality of and access to minimally invasive care. The one-month return of Intuitive Surgical, Inc. (NASDAQ:ISRG) was 9.03%, and its shares gained 39.17% of their value over the last 52 weeks. On May 8, 2025, Intuitive Surgical, Inc. (NASDAQ:ISRG) stock closed at $538.16 per share with a market capitalization of $192.886 billion.
Baron Health Care Fund stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q1 2025 investor letter:
"Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures the da Vinci Surgical System, a robotic surgical system used for minimally invasive surgical procedures. The stock fell due to investor rotation out of high growth companies. In addition, concerns emerged about the potential impact of tariffs on Intuitive's earnings because Intuitive manufactures instruments in Mexico. If the company can get a health care exception to exempt it from tariffs, we think there are steps it could take to minimize the impact. In any event, we do not think tariffs alter the long-term investment thesis and continue to have a positive long-term view of Intuitive's opportunity to expand adoption of its robotic systems."
A medical team performing minimally invasive surgery with a da Vinci Surgical System.
Intuitive Surgical, Inc. (NASDAQ:ISRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 95 hedge fund portfolios held Intuitive Surgical, Inc. (NASDAQ:ISRG) at the end of the fourth quarter which was 82 in the previous quarter. In the first quarter of 2025, Intuitive Surgical, Inc. (NASDAQ:ISRG) reported revenue of $2.25 billion, a 19% increase over last year. While we acknowledge the potential of Intuitive Surgical, Inc. (NASDAQ:ISRG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we covered Intuitive Surgical, Inc. (NASDAQ:ISRG) and shared the list of best medical device stocks to buys. In Q4 2024 investor letter, Baron Health Care Fund expressed its positive outlook on Intuitive Surgical, Inc.'s (NASDAQ:ISRG) long-term potential for growth. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.