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Wedgewood Partners: “Edwards Lifesciences (EW) Continues to Generate High Returns”

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Wedgewood Partners, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of +4.8% was reported by the fund for the Q1 of 2021, outperforming its Russell 1000 Growth benchmark that delivered a 1% return, but below both the S&P 500 and Russell 1000 Value Index that had a 6.2% and 11.3% gains in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Wedgewood Partners, in their Q1 2021 investor letter, mentioned Edwards Lifesciences Corporation (NYSE: EW) and shared their insights on the company. Edwards Lifesciences Corporation is an Irvine, California-based medical technology company that currently has a $53.7 billion market capitalization. Since the beginning of the year, EW delivered a -5.25% return, while its 12-month gains are up by 20.81%. As of April 13, 2021, the stock closed at $86.44 per share.

Here is what Wedgewood Partners has to say about Edwards Lifesciences Corporation in their Q1 2021 investor letter:

"Edwards Lifesciences business continues to generate high returns while taking market share, even as it recovers from a COVID-19-induced slowdown in medical procedures. The Company’s flagship transcatheter aortic replacement valve (TAVR) franchise reported flat growth; however, this was on very difficult year ago comparisons, which saw over 40% growth in the U.S. The Company should be able to post mid-to-high teen TAVR growth this year as clinics work through a backlog of patients, and in addition, one of Edwards’ competitors recently exited the market. While we reduced our weightings to fund incremental buys elsewhere in the portfolio, we continue to own Edwards as a top holding."

Medical Schools with Highest Acceptance Rates in America
Medical Schools with Highest Acceptance Rates in America

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Our calculations show that Edwards Lifesciences Corporation (NYSE: EW) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Edwards Lifesciences Corporation was in 38 hedge fund portfolios, compared to 46 funds in the third quarter. EW delivered a -3.53% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 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. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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