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Bell Global Equities Fund, managed by Bell Asset Management, released its May investor update. A copy of the letter can be downloaded here. The global equity market continued its rally in May, driven by accelerating AI infrastructure spending and a stronger-than-expected earnings season. The Fund (Platform Class) returned 2.1%, underperforming the MSCI World ex-Australia Index's 4.5% return in May 2026. Information Technology holdings drove the positive return in the month, along with modest contributions from Health Care and Consumer Discretionary exposures. However, the portfolio underperformed compared to the benchmark, primarily due to the high returns from the benchmark's mega-cap technology and semiconductor stocks. In addition, please check the Strategy's top five holdings to know its best picks in 2026.

In its May 2026 investor letter, Bell Global Equities Fund highlighted DexCom, Inc. (NASDAQ:DXCM). DexCom, Inc. (NASDAQ:DXCM) is a medical device company that focuses on developing continuous glucose monitoring (CGM) systems for diabetes and metabolic health management. On July 8, 2026, DexCom, Inc. (NASDAQ:DXCM) closed at $74.06 per share. One-month return of DexCom, Inc. (NASDAQ:DXCM) was 16.78%, and its shares lost 15.62% over the past 52 weeks. DexCom, Inc. (NASDAQ:DXCM) has a market capitalization of $28.58 billion.

Bell Global Equities Fund stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its May 2026 investor update:

"DexCom, Inc. (NASDAQ:DXCM), a leading medical technology company specialising in continuous glucose monitoring CM technology, was another notable outperformer during the month. Despite consistently delivering financial results ahead of consensus expectations, the company's valuation had remained subdued amid broader market skepticism regarding the durability of its long-term growth runway. This dynamic shifted in May following the company's Investor Day, at which management presented robust yet highly achievable growth targets through to 2030. The presentation successfully reassured investors of the sustainability of the company's growth profile, providing a degree of validation to our positive investment thesis. This helped drive a positive shift in sentiment, with the shares re-rating more than 25% between the Investor ay and month-end to rank among the portfolio's top monthly contributors. We retain our position, with the valuation in our view continuing to under-appreciate the penetration technology."

DexCom, Inc. (NASDAQ:DXCM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 70 hedge fund portfolios held DexCom, Inc. (NASDAQ:DXCM) at the end of the first quarter, compared to 71 in the previous quarter. In Q1 2026, DexCom, Inc. (NASDAQ:DXCM) reported worldwide revenue of $1.19 billion compared to $1.04 billion for Q1 2025. While we acknowledge the potential of DexCom, Inc. (NASDAQ:DXCM) 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 DexCom, Inc. (NASDAQ:DXCM) and shared the list of best AI-powered healthcare stocks to buy according to hedge funds. 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.