Why Intuitive Surgical (ISRG) Stock is a Compelling Investment Case

Polen Capital Management recently released its Q3 2020 Investor Letter, a copy of which you can download here. During the third quarter of 2020, the Polen Focus Growth Composite Portfolio returned 10.15% gross of fees, while the Russell 1000 Growth Index was up 13.22% and the S&P 500 Index was up 8.93%. You should check out Polen Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Polen Capital 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 26.3% and on November 10th it had a closing price of $749.50. Here is what Polen Capital said:

“Intuitive Surgical is the pioneer of robotic surgery and maker of da Vinci surgical systems and related instruments and accessories for minimally invasive surgery. Today, the da Vinci robot is used in more than one million surgical procedures per year. Since inception, greater than seven million procedures have been performed using the da Vinci, approximately 21,000 peerreviewed scientific and clinical articles have been published, and the installed base of da Vinci systems now stands at approximately 6,000.

In our view the company holds a monopoly position in robotic surgery and a 20+ year head start in the development and commercialization of robotic surgery. Surgeons like the da Vinci because it enables enhanced flexibility and dexterity in hand movement. Additionally, the patient experience and recovery improves because of reduced length of stay, fewer conversions to open surgery, and reduced complications. Switching costs are very high, driven by the capital cost of robotic systems and the time required to train surgeons on any robotic platform. We expect 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.”


Last month, we published an article revealing that Intuitive Surgical Inc (NASDAQ:ISRG) stock is one of the top 10 robotics and artificial intelligence stock to buy now.

In Q2 2020, the number of bullish hedge fund positions on Intuitive Surgical Inc (NASDAQ:ISRG) stock decreased by about 14% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Intuitive Surgical’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 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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.