Competition Concerns Impacted Inspire Medical Systems (INSP)

Baron Funds, an investment management company, released its “Baron Health Care Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The first quarter was difficult for the fund, as it failed to participate in the broader market rally and declined 3.69% compared to the 3.27% decline for the benchmark Russell 3000 Health Care Index and a 7.50% increase for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Health Care Fund highlighted stocks like Inspire Medical Systems, Inc. (NYSE:INSP) in the first quarter 2023 investor letter. Headquartered in Golden Valley, Minnesota, Inspire Medical Systems, Inc. (NYSE:INSP) is a medical technology company. On May 17, 2023, Inspire Medical Systems, Inc. (NYSE:INSP) stock closed at $298.01 per share. One-month return of Inspire Medical Systems, Inc. (NYSE:INSP) was 12.52%, and its shares gained 73.54% of their value over the last 52 weeks. Inspire Medical Systems, Inc. (NYSE:INSP) has a market capitalization of $8.694 billion.

Baron Health Care Fund made the following comment about Inspire Medical Systems, Inc. (NYSE:INSP) in its Q1 2023 investor letter:

“Within health care equipment, lower exposure to this better performing sub-industry coupled with share price weakness from fiber optic sensors manufacturer Opsens Inc. and sleep apnea treatment leader Inspire Medical Systems, Inc. (NYSE:INSP) hampered performance. Regarding Inspire Medical, we believe the stock was down due to concerns about emerging competition. We think these concerns are unfounded and we used recent weakness to add to our position given our conviction that the company has a long runway for growth with its treatment for people with moderate to severe sleep apnea.”

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Inspire Medical Systems, Inc. (NYSE:INSP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Inspire Medical Systems, Inc. (NYSE:INSP) at the end of the fourth quarter which was 37 in the previous quarter.

We discussed Inspire Medical Systems, Inc. (NYSE:INSP) in another article and shared the list of best mid-cap healthcare stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 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.