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Grow Funds, an investment Advisor, released its Q1 2026 investor letter for “GROW Small Cap Equity Long/Short Fund”. A copy of the letter can be downloaded here. In Q1 2026, GROW Small Cap Equity Long/Short L.P (Fund) returned 4.18%, outperforming the Russell 2000 Growth Index’s –2.80%, HFRI Equity Hedge Index’s -0.24%, and the HFRI Fundamental Growth Index’s 0.47% returns. Long positions and hedges, and short positions, safeguarded the portfolio amid the volatility driven by the Iran War. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Grow Funds highlighted stocks like Intuitive Surgical, Inc. (NASDAQ:ISRG). Intuitive Surgical, Inc. (NASDAQ:ISRG) is a leader in robotic-assisted surgery that develops, manufactures, and markets products for improving the quality of and access to minimally invasive care. On June 22, 2026, Intuitive Surgical, Inc. (NASDAQ:ISRG) closed at $402.95 per share. One-month return of Intuitive Surgical, Inc. (NASDAQ:ISRG) was -7.72%, and its shares lost 22.97% over the past 52 weeks. Intuitive Surgical, Inc. (NASDAQ:ISRG) has a market capitalization of $142.71 billion.

Grow Funds stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its Q1 2026 investor letter:

"Intuitive Surgical, Inc. (NASDAQ:ISRG) medical technology company that develops, manufactures, and markets robotic systems for minimally invasive surgery, most notably the da Vinci Surgical System. The company is a global leader in robotic-assisted surgery, providing advanced platforms, instruments, and digital tools that help physicians perform precise, minimally invasive procedures. ISRG was trading at or near the highest multiple of revenues and earnings ever. We felt that these multiples were unsustainable given the increased competitive landscape."

Intuitive Surgical, Inc. (NASDAQ:ISRG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 103 hedge fund portfolios held Intuitive Surgical, Inc. (NASDAQ:ISRG) at the end of the first quarter, compared to 109 in the previous quarter. While we acknowledge the potential of Intuitive Surgical, Inc. (NASDAQ:ISRG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Intuitive Surgical, Inc. (NASDAQ:ISRG) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.