Here’s Why Summers Value Partners Sold Inspire Medical Systems (INSP)

Summers Value Partners, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Summers Value Fund LP returned a net return of 20.4% net in Q3 2025, surpassing the 12.4% return of the Russell 2000 Index ETF (IWM) and the 12.5% return for the Russell 2000 Value Index ETF (IWN). Year-to-date, the fund is up 4.9% net compared to 10.3% and 8.9% returns for the indexes, respectively. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its third-quarter 2025 investor letter, Summers Value Partners highlighted stocks such as Inspire Medical Systems, Inc. (NYSE:INSP). Inspire Medical Systems, Inc. (NYSE:INSP) is a medical technology company that focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea. The one-month return of Inspire Medical Systems, Inc. (NYSE:INSP) was 2.472%, and its shares lost 54.77% of their value over the last 52 weeks. On November 18, 2025, Inspire Medical Systems, Inc. (NYSE:INSP) stock closed at $83.57 per share, with a market capitalization of $2.472 billion.

Summers Value Partners stated the following regarding Inspire Medical Systems, Inc. (NYSE:INSP) in its third quarter 2025 investor letter:

“Key detractors included ADMA Biologics (ADMA), Inspire Medical Systems, Inc. (NYSE:INSP), and UFP Technologies (UFPT). Inspire Medical underperformed due to a slower-than-expected transition to its Inspire V device. We reduced the position ahead of the second quarter report based on feedback from the field and have since exited fully.”

Inspire Medical Systems, Inc. (NYSE:INSP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Inspire Medical Systems, Inc. (NYSE:INSP) at the end of the second quarter, which was 37 in the previous quarter. In Q3 2025, Inspire Medical Systems, Inc. (NYSE:INSP) reported revenue of $224.5 million, an 10% increase from Q3 2024. While we acknowledge the risk and potential of Inspire Medical Systems, Inc. (NYSE:INSP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Inspire Medical Systems, Inc. (NYSE:INSP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Inspire Medical Systems, Inc. (NYSE:INSP) and shared Artisan Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.