Polen Capital Management LLC has expressed its commitment to future growth by investing in **Intuitive Surgical, Inc.** (NASDAQ:ISRG), a leader in robotic-assisted surgical technology. In its **Q4 2025 investor letter**, Polen reported a gross return of **-1.37%**, falling short of the **Russell 1000 Growth Index** (+1.12%) and the **S&P 500** (+2.66%). This underperformance is attributed to market volatility driven by concentrated mega-cap leadership and growing concerns over artificial intelligence valuations.
Despite facing challenges from market rotations and valuation pressures, Polen Capital remains focused on companies with strong competitive advantages. The firm made strategic adjustments to its portfolio aiming to enhance long-term growth potential. While short-term obstacles persist, Polen maintains a positive outlook for the medium to long term, anticipating broader market opportunities that could provide balanced returns for investors.
Investing in Robotic Surgery
In its recent communications, Polen Capital highlighted its new position in **Intuitive Surgical, Inc.**, which specializes in innovative surgical systems. The company has become synonymous with robotic-assisted surgery and is experiencing growth due to increasing procedure volumes and the long-term shift towards minimally invasive surgical practices. Intuitive Surgical’s stock performance, however, faced a one-month decline of **-7.30%**, with shares trading between **$425.00** and **$609.08** over the past year. As of **January 27, 2026**, the stock closed at approximately **$525.04** per share, with a market capitalization nearing **$186.12 billion**.
In its investor letter, Polen stated, “In Q4 2025, we initiated a new position in Intuitive Surgical, Inc. and sold our positions in Netflix and Workday.” The firm established a **2.25% position** in Intuitive Surgical, citing the company’s dominant hold on the global soft tissue robotic surgery market. The firm emphasized that Intuitive Surgical has set the standard of care in multiple surgical modalities and noted the significant barriers to entry for competitors, rooted in decades of demonstrated efficacy and safety.
Polen Capital also pointed to Intuitive Surgical’s latest advancements, including the launch of its next-generation platform, which is expected to accelerate procedure and revenue growth in the coming years. The firm recognizes the clear business momentum and reasonable valuation of Intuitive Surgical, considering its position as a leading monopoly in the industry.
Hedge Fund Perspectives
Despite its advantages, Intuitive Surgical is not among the **30 Most Popular Stocks Among Hedge Funds**, as indicated by Polen’s database. The number of hedge fund portfolios holding Intuitive Surgical decreased to **99** by the end of the third quarter from **107** in the previous quarter. While acknowledging the investment potential and associated risks of Intuitive Surgical, Polen Capital has expressed a stronger belief in the potential of certain AI stocks to deliver higher returns in a shorter timeframe.
Investors looking for promising AI stocks may be interested in alternatives that may provide significant upside potential compared to Intuitive Surgical. In addition, Polen Capital encourages readers to explore its insights on hedge fund investor letters for further analysis and recommendations.
In summary, Polen Capital’s strategic investment in Intuitive Surgical reflects a calculated approach to navigating current market volatility while positioning for future growth in the evolving landscape of robotic surgery.
