Baron Funds, an investment management company, released its “Baron Health Care Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund declined 5.06% (Institutional Shares) in the quarter, against a challenging backdrop for the broader Health Care sector, compared to a 6.19% decline for the Russell 3000 Health Care Index (benchmark) and a 10.99% gain for the Russell 3000 Index (the Index). In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Baron Health Care Fund highlighted stocks such as Edwards Lifesciences Corporation (NYSE:EW). Edwards Lifesciences Corporation (NYSE:EW) offers products and technologies for structural heart disease and critical care monitoring. The one-month return of Edwards Lifesciences Corporation (NYSE:EW) was 5.69%, and its shares gained 31.20% of their value over the last 52 weeks. On July 30, 2025, Edwards Lifesciences Corporation (NYSE:EW) stock closed at $81.16 per share, with a market capitalization of $47.608 billion.
Baron Health Care Fund stated the following regarding Edwards Lifesciences Corporation (NYSE:EW) in its second quarter 2025 investor letter:
“We reacquired shares of Edwards Lifesciences Corporation (NYSE:EW), a leading manufacturer of heart valve replacement and repair products. Transcatheter aortic valve replacement (TAVR) is a minimally invasive procedure to treat aortic stenosis, a disease that obstructs the flow of blood out of the aortic valve, which strains the heart. Edwards Lifesciences has a leading position in the TAVR market backed by a robust body of clinical evidence and physician familiarity with the product and workflow. TAVR is a $5 billion market that still continues to grow many years after Edwards Lifesciences first entered the market. We expect this growth to continue at a moderate pace as indications expand to cover a broader patient population. In addition, competitor Boston Scientific Corporation recently exited the TAVR market, which provides incremental market share opportunity for Edwards Lifesciences.
Besides Edwards Lifesciences’ leading position in TAVR, the company also offers products for the mitral and tricuspid valves. These are other valves in the heart that, if dysfunctional, can also cause the heart to work harder and become strained. We believe that transcatheter tricuspid valve replacement represents the most exciting growth driver for Edwards Lifesciences because tricuspid regurgitation is an area with high unmet need and has the potential to be just as large as the TAVR TAM, if not larger. We believe Edwards Lifesciences is uniquely positioned here with their tricuspid valve replacement product Evoque, which is in the early stages of the commercial launch. We believe over the long term, Edwards Lifesciences can grow revenue in the high single digits to low double digits and EPS mid-teens.”
A skilled surgeon surrounded by a team of medical professionals performing a Transcatheter Heart Valve Replacement.
Edwards Lifesciences Corporation (NYSE:EW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held Edwards Lifesciences Corporation (NYSE:EW) at the end of the first quarter, which was 67 in the previous quarter. Edwards Lifesciences Corporation (NYSE: EW) reported total sales of $1.53 billion in Q2 2025, reflecting a growth of 10.6%, which exceeded expectations. While we acknowledge the risk and potential of Edwards Lifesciences Corporation (NYSE:EW) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Edwards Lifesciences Corporation (NYSE:EW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we discussed Edwards Lifesciences Corporation (NYSE:EW) and shared Jim Cramer’s latest thoughts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
