Lookback: Wedgewood Partners 2019 Edwards Lifesciences Corp (EW) Thesis

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 Q3 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.

In October 2019, Wedgewood Partners had released its Q3 2019 investor letter. The investment firm said that Edwards Lifesciences Corp (NYSE:EW) was one of the biggest contributors to its performance in Q3 2019. The stock has posted a return of 5.3% in the trailing one year period, underperforming the S&P 500 Index which returned 14.4% in the same period. This suggests that the investment firm was wrong in its decision.

Last month, we published an article revealing Wedgewood Partners bullish investment thesis on Edwards Lifesciences Corp (NYSE:EW) stock in its Q3 2020 investor letter. This suggests that the investment firm has been bullish for a long time on Edwards Lifesciences Corp (NYSE:EW).

Wedgewood Partners fund posted a return of 0.39% in the third quarter of 2019, underperforming the S&P 500 Index which returned 1.87% in the same quarter. Let’s take a look at comments made by Wedgewood Partners about Edwards Lifesciences Corp (NYSE:EW) in the Q3 2019 investor letter.

“Edwards Lifesciences reported a strong acceleration in transcatheter aortic valve replacement (TAVR) sales, up 18% over last year, and helped drive the stock’s performance during the quarter. As we mentioned last quarter, Edwards reported positive clinical results for the “low-risk” population of TAVR patients, which we expect to generate more awareness about minimally invasive procedures, now indicated for nearly all populations that suffer from severe aortic stenosis. We believe Edwards’ addressable market has expanded significantly by about 50% due to this new data and augurs well for the next several quarters.”

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In Q2 2020, the number of bullish hedge fund positions on Edwards Lifesciences Corp (NYSE:EW) stock decreased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in 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 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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

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