NZS Capital, LLC, an investment management company, released its “NZS Growth Equity Strategy” second-quarter 2026 investor letter. A copy of the letter can be downloaded here. Equity markets delivered a strong performance in the second quarter of 2026, driven by demand for AI infrastructure, geopolitical stabilization, and positive earnings reports. The portfolio achieved a gross return of +24.96% and a net return of +24.76%, significantly outperforming the +14.79% return for the Morningstar Global Target Market Exposure Index. Overweight in Semiconductors, stock selection in areas like Software and Industrials, and zero exposure to Energy contributed to the Strategy’s outperformance in the quarter. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, NZS Growth Equity Strategy 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 July 20, 2026, Intuitive Surgical, Inc. (NASDAQ:ISRG) closed at $353.17 per share. One-month return of Intuitive Surgical, Inc. (NASDAQ:ISRG) was -10.55%, and its shares lost 29.42% over the past 52 weeks. Intuitive Surgical, Inc. (NASDAQ:ISRG) has a market capitalization of $125.08 billion.
NZS Growth Equity Strategy stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q2 2026 investor update:
“Only Real Estate and Healthcare contributed negatively to absolute returns, but Materials and Financials lagged. Intuitive Surgical, Inc. (NASDAQ:ISRG) was the top individual detractor to absolute returns in the quarter. While fundamentals remain solid for Intuitive Surgical, the stock’s multiple has not been immune from the broad de-rating in “quality growth” stocks we’ve seen outside of the AI ecosystem.”
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, 103 hedge fund portfolios held Intuitive Surgical, Inc. (NASDAQ:ISRG) at the end of the first quarter, compared to 109 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 the list of worst blue chip stocks to buy. In addition, please check out our hedge fund investor letters Q2 2026 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.
