Intuitive Surgical (ISRG) Fell Due to Investor Concerns

Core Insights - Baron Health Care Fund reported a 5.39% increase in the third quarter of 2025, slightly outperforming the Russell 3000 Health Care Index which gained 5.05% and underperforming the broader Russell 3000 Index which rose by 8.18% [1] Fund Performance - The fund's performance was primarily impacted by solid stock selection, which was offset by negative effects from active sub-industry allocations and cash holdings during a rising market [1] Key Holdings - Intuitive Surgical, Inc. (NASDAQ:ISRG) was highlighted as a significant stock in the fund's portfolio, with a one-month return of 23.42% and a 52-week gain of 5.64% [2] - As of November 3, 2025, Intuitive Surgical's stock closed at $544.21 per share, with a market capitalization of $192.92 billion [2] Company Analysis - Intuitive Surgical manufactures the da Vinci Surgical System, which is used for minimally invasive surgical procedures. However, the stock faced performance challenges due to investor concerns about financial pressures on hospital customers following Medicaid cuts and potential issues with third-party reprocessed instruments [3] - Despite these concerns, there is a belief in a long runway for growth as the adoption of Intuitive's robotic systems is expected to expand across a wider range of surgical procedures [3] Revenue Growth - In the third quarter of 2025, Intuitive Surgical's revenue grew by 23% to $2.5 billion, indicating strong financial performance [4] - The company is not among the top 30 most popular stocks among hedge funds, with 107 hedge fund portfolios holding its shares at the end of the second quarter, a slight increase from 106 in the previous quarter [4]