Does Inspire Medical Systems (INSP) have Long Runway for Growth?

Baron Funds, an investment management company, released its “Baron Health Care Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. The fund advanced 9.22% (Institutional Shares) in the quarter compared to a 3.44% gain for the Russell 3000 Health Care Index (benchmark) and an 8.74% gain for the S&P 500 Index. Since its inception, on April 30, 2018, the fund gained 13.58% on an annualized basis, compared to the benchmark’s 10.85% gain and the S&P 500 Index’s 12.54% return. Favorable stock selection led the fund to outperform in the quarter. Investments in biotechnology, pharmaceuticals, and healthcare equipment accounted for most of the relative gains of the fund in the quarter. 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 second quarter 2023 investor letter. Headquartered in Golden Valley, Minnesota, Inspire Medical Systems, Inc. (NYSE:INSP) is a medical technology company. On July 24, 2023, Inspire Medical Systems, Inc. (NYSE:INSP) stock closed at $289.05 per share. One-month return of Inspire Medical Systems, Inc. (NYSE:INSP) was -6.52%, and its shares gained 41.74% of their value over the last 52 weeks. Inspire Medical Systems, Inc. (NYSE:INSP) has a market capitalization of $8.432 billion.

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

“Strength in health care equipment was largely due to the outperformance of sleep apnea device company Inspire Medical Systems, Inc. (NYSE:INSP) and robotic surgery system pioneer Intuitive Surgical, Inc. Inspire Medical’s shares appreciated on strong first quarter financial results and raised full-year guidance. Revenue growth exceeded 80%, driven by higher utilization at new and existing centers as well as sales force additions. We continue to believe Inspire Medical is only scratching the surface of its market opportunity and has a long runway for growth.”

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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, 40 hedge fund portfolios held Inspire Medical Systems, Inc. (NYSE:INSP) at the end of first quarter which was 35 in the previous quarter.

We discussed Inspire Medical Systems, Inc. (NYSE:INSP) in another article and shared Mairs & Power Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.