4D Advisors Offloads $7.6 Million in Masimo (MASI) Stock, Selling 45,000 Shares

4D Advisors, LLC fully divested its entire $7.57 million stake in Masimo (MASI), selling 45,000 shares, as disclosed in a November 14, 2025 regulatory filing. This complete exit, which made Masimo 0% of the fund's AUM, follows the stock's significant underperformance, falling 12.3% in Q3 2025 and trailing the S&P 500 by over 19 percentage points annually. Despite Masimo's core healthcare segment reporting 8% year-over-year sales growth in Q3 and an expanded partnership with Royal Philips after selling its Sound United business, the institutional investor opted to liquidate its position, suggesting a strategic shift away from the medical device manufacturer.

Analysis

4D Advisors, LLC fully divested its entire $7.57 million stake in Masimo (MASI) on November 14, 2025, selling 45,000 shares. This complete exit, reducing Masimo to 0% of the fund's AUM, signals a significant shift in institutional investor sentiment, particularly given the transaction value of approximately $7,569,900. The fund's decision follows Masimo's substantial underperformance, with the stock falling 12.3% in Q3 2025 and trailing the S&P 500 by 19.04 percentage points over the past 12 months. Shares were priced at $151.12, down 5.64% over the past year, indicating sustained negative market perception.

Despite the divestment, Masimo's core healthcare segment reported 8% year-over-year sales growth in Q3, with management projecting 8.5% to 10% sales growth for the full year, excluding currency effects. The company also strategically sold its Sound United smartwatch business to Harman, using proceeds for stock repurchases, and expanded its partnership with Royal Philips (PHG). This indicates a strategic refocus on its profitable medical device core, moving away from less successful consumer electronics ventures.

The fund's exit, coupled with the absence of medical device manufacturers in its top 10 holdings, suggests a broader re-evaluation of the sector or specific company prospects by 4D Advisors. While Masimo's fundamentals show resilience in its core, the institutional divestment highlights concerns about its overall market performance and strategic execution, particularly regarding its past consumer electronics ventures. The company's TTM net income of ($569.40 million) also presents a challenge despite its $1.72 billion TTM revenue and $8.16 billion market capitalization.

Key Decisions for Investors

• Investors should assess if 4D Advisors' full divestment reflects broader institutional concerns about Masimo's long-term growth trajectory or merely a portfolio rebalancing given its underperformance.
• Monitor Masimo's execution on its strategic shift, particularly the impact of the Royal Philips partnership and the sustained performance of its core healthcare segment, against its full-year sales guidance.
• Evaluate Masimo's valuation metrics, including its $8.16 billion market cap and ($569.40 million) TTM net income, in light of the negative sentiment and recent strategic changes.