Mairs & Power, an investment advisor, released the fourth-quarter 2025 investor letter for the “Mairs & Power Growth Fund.” A copy of the letter is available for download here. In 2025, artificial intelligence (AI) and market concentration dominated the market. Increased investment in technology and AI infrastructure drove rising valuations and corporate spending, leading to bubble-like tendencies. However, easing inflation, a Federal Reserve rate cut in Q4, and resilient corporate earnings provided some optimism. In this environment, the fund underperformed both the S&P 500 Total Return (TR) and its peer group, the Morningstar Large Blend index, with a 10.54% gain compared to 17.88% and 15.55%, respectively, for the indexes. In 2025, stock selection proved challenging, though it has traditionally yielded favorable long-term results for shareholders. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Mairs & Power Growth Fund highlighted Intuitive Surgical, Inc. (NASDAQ:ISRG). Intuitive Surgical, Inc. (NASDAQ:ISRG) is a leader in robotic-assisted surgery that develops, manufactures, and markets products for improving the quality of and access to minimally invasive care. On April 2, 2026, Intuitive Surgical, Inc. (NASDAQ:ISRG) stock closed at $452.07 per share. One-month return of Intuitive Surgical, Inc. (NASDAQ:ISRG) was -7.77%, and its shares gained 0.11% over the past 52 weeks. Intuitive Surgical, Inc. (NASDAQ:ISRG) has a market capitalization of $160.54 billion.
Mairs & Power Growth Fund stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its fourth quarter 2025 investor letter:
“Still, we believe the investments being made in AI today are laying a foundation that could drive outsized economic returns for companies able to harness the technology to accelerate innovation, increase sales, and improve profitability. During the fourth quarter, we added two such companies to the portfolio: Zoetis and Intuitive Surgical, Inc. (NASDAQ:ISRG).
Intuitive Surgical (ISRG) revolutionized minimally invasive surgery with its da Vinci family of robotic surgical systems, enabling surgeons to perform complex procedures with greater precision, visualization, and control. The company has an installed base of more than 10,000 systems worldwide, which are used to perform over three million procedures annually. Each system relies on a broad suite of specialized instruments and accessories that must be replaced regularly, creating an attractive, recurring revenue stream. Intuitive Surgical is increasingly leveraging AI to enhance the system’s navigation, decision making, and procedures that allow surgeons to operate more efficiently while simultaneously improving patient outcomes.”
Intuitive Surgical, Inc. (NASDAQ:ISRG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 109 hedge fund portfolios held Intuitive Surgical, Inc. (NASDAQ:ISRG) at the end of the fourth quarter, up from 99 in the previous quarter. While we acknowledge the risk and potential of Intuitive Surgical, Inc. (NASDAQ:ISRG) 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 Intuitive Surgical, Inc. (NASDAQ:ISRG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Intuitive Surgical, Inc. (NASDAQ:ISRG) and shared Motley Fool’s high-growth stock picks. In Q4 2025, Intuitive Surgical, Inc. (NASDAQ:ISRG) contributed to RiverPark Large Growth Fund’s performance. In addition, please check out our hedge fund investor letters Q4 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.
