Chicago Capital Trims $12.5M Stake in Surgically Focused Robotic Firm PROCEPT BioRobotics

In a move highlighting shifting risk appetites within growth portfolios, Chicago Capital disclosed a substantial reduction in its stake in surgical robotics company PROCEPT BioRobotics (NASDAQ: PRCT). A recent SEC filing shows the fund sold 377,850 shares in the fourth quarter, a transaction valued at approximately $12.53 million based on the period's average price.

The sale reduces Chicago Capital's exposure to the healthcare technology name, with the remaining position valued at $37.47 million at quarter-end. PROCEPT now represents 0.93% of the fund's 13F-reported assets, down from 1.38% in the prior quarter. This adjustment comes against a challenging backdrop for the stock, which has plummeted over 60% in the past year, starkly underperforming the broader S&P 500's gains.

PROCEPT BioRobotics specializes in minimally invasive robotic surgical systems for urology, with its flagship Aquablation therapy targeting the treatment of benign prostatic hyperplasia (BPH). The company has demonstrated robust commercial growth, reporting a 43% year-over-year revenue increase to $83.3 million in its latest quarter and expanding its U.S. installed base to 653 systems. Management has provided ambitious long-term revenue guidance, projecting up to $430 million by 2026.

However, the stock's dramatic slide reflects persistent investor concerns. Despite top-line momentum, PROCEPT remains in a heavy investment phase, posting an adjusted EBITDA loss of $7.4 million last quarter. The divergence between operational growth and share price performance underscores market anxiety over the path to sustainable profitability and the capital required to get there.

Analysts suggest Chicago Capital's decision may reflect disciplined portfolio management rather than a wholesale abandonment of the investment thesis. The fund's largest holdings are concentrated in large-cap, cash-generative technology leaders. Trimming a more volatile, single-product medtech stock like PROCEPT aligns with a strategy to manage overall portfolio risk and rebalance towards assets perceived to have lower execution uncertainty.

Market Voices: A Split Reaction

David Chen, Portfolio Manager at Horizon Growth Advisors: "This is classic risk management. When a position experiences a severe drawdown, even with a solid growth narrative, it's prudent to reassess sizing. Chicago Capital isn't necessarily saying PROCEPT is a bad company; they're likely saying its risk profile no longer justifies its previous weight in a portfolio anchored by mega-caps."

Dr. Anya Sharma, Healthcare Technology Analyst: "The fundamentals—procedure growth, system placements, surgeon adoption—remain strong. The sell-off feels overdone. This is a high-growth, innovative company addressing a massive urological market. Short-term profitability concerns are overshadowing a very compelling long-term market penetration story."

Marcus Reed, Editor at 'The Volatility Report' (Sharper Tone): "It's a brutal but necessary reality check. A 60% crash isn't a 'dip'; it's a catastrophe that questions the underlying valuation model. Funds are finally waking up to the burn-rate danger in medtech. Fantastic revenue guidance means little if you're hemorrhaging cash and the market has lost faith. This trim is the first step toward a full exit."

Linda Gibson, Retired Surgical Nurse: "Having seen the Aquablation procedure, the technology is revolutionary for patient recovery. It's disappointing that financial markets can't see past the next quarter. For actual patients and hospitals, this company is providing immense value, which should count for something in the long run."

Disclosure: This is an independent financial news analysis. The author and this publication hold no positions in the securities mentioned.