This $7 Million Masimo Exit Came Before a 34% Surge on $9.9 Billion Acquisition
Key Points
Bridger Management sold 47,841 shares of Masimo in the fourth quarter.
The move resulted in the quarter-end position value decreasing by $7.06 million.
The position was previously 3.8% of fund AUM as of the prior quarter.
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On February 17, 2026, Bridger Management disclosed in a Securities and Exchange Commission (SEC) filing that it sold out its entire position in Masimo (NASDAQ:MASI).
What happened
According to a Securities and Exchange Commission (SEC) filing dated February 17, 2026, Bridger Management eliminated its entire stake in Masimo, reducing its holdings by 47,841 shares. The fund’s quarter-end position in Masimo decreased by $7.06 million due to the full liquidation of the position.
What else to know
- Top holdings after the filing:
- NYSE:MS: $24.27 million (15.6% of AUM)
- NASDAQ:AMZN: $15.30 million (9.8% of AUM)
- NYSE:TEVA: $11.47 million (7.4% of AUM)
- NYSE:NKE: $11.45 million (7.4% of AUM)
- NYSE:ALC: $8.53 million (5.5% of AUM)
- As of Friday, Masimo shares were priced at $178.24, up about 5% over the past year, compared to a 15% gain for the S&P 500.
Company overview
| Metric | Value |
|---|---|
| Price (as of Friday) | $178.24 |
| Market capitalization | $9.6 billion |
| Revenue (TTM) | $1.5 billion |
| Net income (TTM) | ($207.7 million) |
Company snapshot
- Masimo develops and markets noninvasive patient monitoring technologies, including pulse oximetry, brain function monitoring, capnography, regional oximetry, and hospital automation platforms.
- The firm generates revenue primarily through direct sales, distributors, and OEM partnerships, offering both medical and consumer health solutions.
- It serves hospitals, emergency medical services, home care providers, long-term care facilities, physician offices, veterinarians, and consumers globally.
Masimo is a leading provider of advanced noninvasive monitoring technologies and hospital automation solutions, with a global presence and a focus on innovation in patient care. The company leverages proprietary signal extraction technologies to address critical needs in healthcare monitoring, supporting clinical decision-making and patient safety. Its diversified product portfolio and robust distribution channels position it as a key player in the medical instruments and supplies industry.
What this transaction means for investors
This situation serves as a reminder of how critical timing can be in the stock market. The exit followed a lackluster quarter, with shares dipping around 12%. While this drop isn’t uncommon for a mid-cap medtech company grappling with shifting product cycles and variable hospital spending, what transpired next is what really stands out. Just weeks later, Masimo announced an acquisition deal at $180 per share, totaling roughly $9.9 billion, which propelled the stock upward by about 34% in one fell swoop.
It's in that stretch between decision and outcome where long-term investors need to keep their focus. The portfolio remains heavily weighted toward large-cap, cash-generating giants like Morgan Stanley and Amazon, alongside some turnaround plays and healthcare stocks. This blend signals a preference for stability with a sprinkle of potential upside, but it also leaves less room for those unique catalysts, such as mergers and acquisitions.
Masimo occupies a curious space in this mix. It’s not your typical speculative biotech, yet it still holds event-driven potential tied to strategic interest and innovation trends. Selling into weakness may seem logical when confidence wanes, but it also risks cutting off access to precisely those asymmetrical opportunities that can yield significant returns.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Masimo, and Nike. The Motley Fool has a disclosure policy.
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