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Edwards Lifesciences Has Risen 14% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Wedgewood Partners top stock picks. Wedgewood Partners, an investment management firm, is bullish on Edwards Lifesciences Corp (NYSE:EW) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Edwards Lifesciences Corp (NYSE:EW) stock. Edwards Lifesciences Corp (NYSE:EW) is a medical technology company.

On July 16, 2019, Wedgewood Partners had released its Q2 2019 investor letter. The investment firm said that Edwards Lifesciences Corp (NYSE:EW) was one of the biggest detractors to its performance in Q2 2019. The stock has posted a return of 13.8% in the trailing one year period, underperforming the S&P 500 Index which returned 20.5% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Edwards Lifesciences Corp (NYSE:EW) stock has risen by 7.4%.

Wedgewood Partners fund posted a return of 4.3% in the second quarter of 2019, in-line with the S&P 500 Index which also returned 4.3% in the same quarter. Let’s take a look at comments made by Wedgewood Partners about Edwards Lifesciences Corp (NYSE:EW) in the Q2 2019 investor letter.

“Edwards was also an underperformer in the quarter as TAVR (Transcatheter Aortic Valve Replacement) numbers came up slightly short in the quarter (please note, against a standout performance since late 2016). During the earnings call, management reiterated its expectation that growth will accelerate in the second half of the year, as well as reaffirmed its 2019 guidance. Despite the slight miss to first quarter estimates, we still expect strong growth for Edwards, mainly through the adoption of low-risk procedures which we believe the size of the overall addressable market continues to underestimate. In addition, during the quarter the Centers for Medicare & Medicaid Services (CMS) updated its national coverage determination pertaining to TAVR that offers greater flexibility for hospitals and providers. This update should result in the expansion of U.S. centers, further assisting in the growth potential for Edwards.”

Top General Surgery Residency Programs in US

Pixabay/Public Domain

In April 2020, we published an article revealing Wedgewood Partners bullish investment thesis on Edwards Lifesciences Corp (NYSE:EW) stock in its Q1 2020 investor letter. This suggests that the investment firm has been bullish for a long time on Edwards Lifesciences Corp (NYSE:EW).

In Q1 2020, the number of bullish hedge fund positions on Edwards Lifesciences Corp (NYSE:EW) stock increased by about 9% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Edwards Lifesciences’ growth potential. Our calculations showed that Edwards Lifesciences Corp (NYSE:EW) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. Currently, investors are pessimistic about commercial real estate investments. So, we are checking out this contrarian play to diversify our market exposure. We go through lists like the 10 most profitable companies in America to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.