What Provides InsuletCorp. (PODD) With a Durable Competitive Advantage?

Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Following a robust second quarter in which markets rebounded from the sell-off, the Russell Mid Cap Index continued to rise, delivering impressive returns for the quarter. The Fund (Investor Shares) returned 5.49% (net of fees) in the quarter, compared to a 5.33% return for the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Parnassus Core Equity Fund highlighted stocks such as Insulet Corporation (NASDAQ:PODD). Insulet Corporation (NASDAQ:PODD) develops and manufactures insulin delivery systems. On January 7, 2026, Insulet Corporation (NASDAQ:PODD) stock closed at $299.17 per share. One-month return of Insulet Corporation (NASDAQ:PODD) was 1.70%, and its shares gained 10.66% of their value over the last 52 weeks. Insulet Corporation (NASDAQ:PODD) has a market capitalization of $21.059 billion.

Parnassus Core Equity Fund stated the following regarding Insulet Corporation (NASDAQ:PODD) in its third quarter 2025 investor letter:

"Insulet Corporation (NASDAQ:PODD) is the sole manufacturer of a tubeless insulin pump to treat diabetes. The company has durable competitive advantages from its intellectual property and proprietary production processes. Insulet's addressable market has the potential to significantly increase if it expands from Type 1 diabetics to the larger population of Type 2 diabetics."

Insulet Corporation (NASDAQ:PODD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 56 hedge fund portfolios held Insulet Corporation (NASDAQ:PODD) at the end of the third quarter, up from 53 in the previous quarter. While we acknowledge the potential of Insulet Corporation (NASDAQ:PODD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Insulet Corporation (NASDAQ:PODD) and shared the list of best growth stocks to buy in 2026. In addition, please check out our hedge fund investor letters Q3 2025 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.