Edwards Lifesciences Corporation (EW) Declined Despite Double-Digit Revenue Growth
Wedgewood Partners, an investment management company, released its “Wedgewood Partners Large Cap Focused Growth Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, Wedgewood Composite’s net return was -2.4% compared to the Standard & Poor’s -3.3%, Russell 1000 Growth Index’s -3.1%, and Russell 1000 Value Index’s -3.2% return for the same period. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Wedgewood Partners highlighted stocks like Edwards Lifesciences Corporation (NYSE:EW) in the third quarter 2023 investor letter. Headquartered in Irvine, California, Edwards Lifesciences Corporation (NYSE:EW) is a medical technology company. On October 20, 2023, Edwards Lifesciences Corporation (NYSE:EW) stock closed at $69.48 per share. One-month return of Edwards Lifesciences Corporation (NYSE:EW) was -0.26%, and its shares lost 18.08% of their value over the last 52 weeks. Edwards Lifesciences Corporation (NYSE:EW) has a market capitalization of $42.238 billion.
Wedgewood Partners made the following comment about Edwards Lifesciences Corporation (NYSE:EW) in its Q3 2023 investor letter:
"Edwards Lifesciences Corporation (NYSE:EW) was a leading detractor from performance, despite reporting double digit revenue growth (foreign exchange adjusted) compared to a year ago. This was driven by growth in the Company's flagship transcatheter aortic valve replacement (TAVR) franchise, which grew +10% (constant currency). This double-digit growth should continue for the foreseeable future as there is a very large, untreated population which suffers from severe aortic stenosis. Completely unrelated to Edwards, many healthcare investors are fixating on the ballooning demand for weight-loss drugs. As a result, investors are assigning lower multiples to most everything in medical technology, and they view weight loss as a "silver bullet" to many healthcare ailments. However, the risks of weight loss drugs are not yet well understood by investors (or patients), and it is too soon to conclude that this class of drugs will have a negative effect on Edwards' long-term structural heart care franchise."
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Edwards Lifesciences Corporation (NYSE:EW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Edwards Lifesciences Corporation (NYSE:EW) at the end of second quarter which was 47 in the previous quarter.
We discussed Edwards Lifesciences Corporation (NYSE:EW) in another article and shared healthcare stock picks of Ken Fisher. In addition, please check out our hedge fund investor letters Q3 2023 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.
