Here’s Why Baron Funds Remains Optimistic in Intuitive Surgical (ISRG)

Baron Funds, an asset management firm, published its “Baron Health Care Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. In the quarter ended June 30, 2022, Baron Health Care Fund (the “Fund”) declined 10.00% (Institutional Shares), compared with the 7.43% decline for the Russell 3000 Health Care Index (the “Benchmark”) and the 16.10% decline for the S&P 500 Index. Since its inception (April 30, 2018), the Fund increased 15.00% on an annualized basis compared with the 11.96% gain for the Benchmark and the 10.91% gain for the S&P 500 Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Health Care Fund mentioned Intuitive Surgical, Inc. (NASDAQ:ISRG) and explained its insights for the company. Founded in 1995, Intuitive Surgical, Inc. (NASDAQ:ISRG) is a Sunnyvale, California-based global technology company with an $83.4 billion market capitalization. Intuitive Surgical, Inc. (NASDAQ:ISRG) delivered a -34.95% return since the beginning of the year, while its 12-month returns are down by -32.26%. The stock closed at $233.71 per share on August 16, 2022.

Here is what Baron Health Care Fund has to say about Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q2 2022 investor letter:

Intuitive Surgical, Inc. markets the da Vinci Surgical System, a robotic system used for minimally invasive surgical procedures. The stock declined along with other premium valuation, high-growth names due to investor concerns around inflation and rising interest rates. The potential for a more challenging sales environment for Intuitive’s hospital customer base also played a role. We continue to believe Intuitive has a long runway to expand the number of procedures performed using its robotic system.”

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Our calculations show that Intuitive Surgical, Inc. (NASDAQ:ISRG) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Intuitive Surgical, Inc. (NASDAQ:ISRG) was in 65 hedge fund portfolios at the end of the second quarter of 2022, compared to 63 funds in the previous quarter. Intuitive Surgical, Inc. (NASDAQ:ISRG) delivered a 3.79% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Intuitive Surgical, Inc. (NASDAQ:ISRG) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.

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