Baron Capital highlights Intuitive Surgical as a top pick, citing sustained demand for minimally invasive care and innovation.
Intuitive Surgical (NASDAQ:ISRG) closed at $375.41 on August 3, 2026, as Baron Capital forecast years of mid-teens growth for the company. The firm’s Q2 2026 investor letter emphasized ISRG’s leadership in minimally invasive care and expanding market opportunities driven by aging populations and chronic disease trends.
Baron’s Baron Health Care Fund outperformed the Russell 3000 Health Care Index in Q2, gaining 11.99% versus the benchmark’s 10.48%. Strong stock selection in pharmaceuticals and biotechnology offset underweight exposure to managed care stocks. The fund’s annualized return since inception stands at 10.61%, slightly ahead of its benchmark.
The firm remains bullish on health care, citing improving biotechnology funding, robust M&A activity, and rising health care spending as key tailwinds for the sector.