Finally, Gabelli Funds’ biggest closed positions included Cooper Industries plc (NYSE:CBE) (which is being bought by Eaton) and Kenexa Corporation (NYSE:KNXA) (bought by IBM). Other closed positions of interest include Intuitive Surgical, Inc. (NASDAQ:ISRG). Intuitive is the leader in robotic surgical equipment, and has been growing rapidly in recent years. There’s much to like about it, such as its repeating revenue from service contracts and supplies. A red flag, though, is that some studies are suggesting that robot-assisted surgeries may not be much more effective than traditional ones. (Some of these studies ignore the faster recovery times for less-invasive procedures.) The company has been trying to appeal more directly to doctors and hospitals lately. The new tax on medical devices may sting Intuitive a bit, but it has the earnings to handle it — the tax is likely to hurt its less profitable or unprofitable peers more.
We should never blindly copy any investor’s moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. 13-F forms can be great places to find intriguing candidates for our portfolios.
The article Here’s What Gabelli Funds Has Been Buying originally appeared on Fool.com and is written by Selena Maranjian.
Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Apple, Corning, and Intuitive Surgical. The Motley Fool recommends Apple, Corning, and Intuitive Surgical. It owns shares of Apple, Corning, Freeport-McMoRan Copper & Gold, IBM, Intuitive Surgical, and SUPERVALU.
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