Polen Capital Management has taken a significant step in its investment strategy by initiating a new position in Intuitive Surgical, Inc. (NASDAQ: ISRG). This move comes as part of its “Polen Focus Growth Strategy” for the fourth quarter of 2025, which also included the sale of positions in Netflix and Workday. The firm’s decision reflects its confidence in Intuitive Surgical’s dominant market position in robotic-assisted surgery.
In the fourth quarter of 2025, the Polen Focus Growth strategy reported a -1.37% gross return, underperforming both the Russell 1000 Growth Index, which gained 1.12%, and the S&P 500, which rose 2.66%. Market volatility, driven by concentrated mega-cap leadership and concerns about AI valuations, presented challenges for the fund. Despite these hurdles, Polen Capital has remained disciplined in its investment approach, focusing on companies with sustainable competitive advantages.
Polen Capital’s letter to investors highlighted its rationale for investing in Intuitive Surgical, stating, “In Q4 2025, we initiated a new position in Intuitive Surgical, Inc. (NASDAQ: ISRG) and sold our positions in Netflix and Workday. We initiated a 2.25% position in Intuitive Surgical, which maintains a de facto monopoly in soft tissue robotic surgery globally.” This strategic investment is supported by the increasing adoption of minimally invasive surgical procedures, which have driven growth for the company.
Over the past month, Intuitive Surgical’s stock has experienced a -7.30% decline, with shares trading between $425.00 and $609.08 over the last year. On January 27, 2026, the stock closed at approximately $525.04, giving the company a market capitalization of about $186.12 billion. Despite the recent downturn, Polen Capital expressed optimism about the company’s trajectory, noting that Intuitive Surgical’s innovations continue to set it apart from potential competitors.
The firm emphasized the significance of Intuitive Surgical’s advancements, particularly with the launch of its next-generation platform, which is expected to accelerate procedure volumes and revenue growth in the coming years. The investor letter underscores the firm’s belief in the company’s enduring value, stating, “The barriers to entering their market are large based on decades of proven efficacy and safety, as well as the fact most surgeons are trained on the company’s Da Vinci robots either in medical school or on the job.”
While Intuitive Surgical remains a significant part of Polen Capital’s strategy, the firm also acknowledged that it is not among the 30 Most Popular Stocks Among Hedge Funds. According to their database, 99 hedge fund portfolios held shares of Intuitive Surgical at the end of the third quarter of 2025, a slight decrease from 107 in the previous quarter. Polen Capital indicated that while they see potential in Intuitive Surgical, their focus is also on emerging AI stocks that may offer higher returns in a shorter timeframe.
In summary, Polen Capital’s decision to invest in Intuitive Surgical highlights its commitment to identifying companies with strong market positions and growth potential. As the firm navigates a shifting investment landscape, it remains focused on long-term opportunities that can provide balanced returns for its investors. The confidence in Intuitive Surgical’s future growth, supported by its innovative technologies and market leadership, illustrates the strategic direction of Polen Capital Management as it seeks to optimize its portfolio amid ongoing market challenges.
