RiverPark Advisors, LLC recently published its Q3 2020 RiverPark Large Growth Fund commentary – a copy of which can be downloaded here. During the third quarter of 2020, the RiverPark Large Growth Fund returned 10.84% (institutional shares), compared to the total return of 8.93% by the S&P 500 Index. You should check out RiverPark’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, RiverPark highlighted a few stocks and Intuitive Surgical Inc (NASDAQ:ISRG) is one of them. Intuitive Surgical Inc (NASDAQ:ISRG) is the industry leader in robotic assisted surgery. Year-to-date, Intuitive Surgical Inc (NASDAQ:ISRG) stock gained 29.5% and on December 8th it had a closing price of $765.35. Here is what RiverPark said:
“Intuitive Surgical: ISRG shares were also a top contributor for the quarter. Its strong share price performance was driven by several positive factors—better-than-expected second quarter results, a new program to extend the life of its instruments (lowering hospital costs which should drive procedure growth and systems sales), and, perhaps most importantly, significant delays to competitor robotic platforms.
Although COVID has had a negative impact on hospital procedures and equipment sales, which has hurt the company’s current results, Intuitive, the pioneer and clear leader in robotic surgery, remains one of our most compelling long-term growth opportunities, as the company’s products address a massive market with low current penetration. The company has a strong moat, which has just gotten larger. Its major competitors J&J and Medtronic are facing large delays (to at least 2024) in introducing their platforms as the FDA approval process just became more difficult. These delays give Intuitive more time to place systems, train surgeons and launch new products, extending its competitive advantage. The company also announced a new “Extended Use Program” that aims to make its tools price-competitive with simpler, lower-acuity nonrobotic procedures. While this will lower ISRG’s per procedure revenue, it should drive procedure growth, system sales and extend its competitive footprint.”
Last month, we published an article revealing that Polen Capital Management is bullish on Intuitive Surgical Inc (NASDAQ:ISRG) stock. The investment firm expects Intuitive to grow nicely within existing and new procedures as it continues to innovate, demonstrate strong outcomes relative to alternatives, and lowers per-procedure costs.
In Q3 2020, the number of bullish hedge fund positions on Intuitive Surgical Inc (NASDAQ:ISRG) stock increased by about 16% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in ISRG’s growth potential. Our calculations showed that Intuitive Surgical Inc (NASDAQ:ISRG) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.