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Why Wedgewood Partners is Betting on Edwards Lifesciences (EW) Stock

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·3 min read
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Wedgewood Partners recently released its Q3 2020 Investor Letter, a copy of which you can download here. The Fund returned 10.77% for the third quarter of 2020. Meanwhile, the benchmark S&P 500 Index and the Russell 1000 Value Index gained 8.93% and 5.59%, respectively. You should check out Wedgewood Partners' top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Wedgewood Partners highlighted a few stocks and Edwards Lifesciences Corp (NYSE:EW) is one of them. Edwards Lifesciences Corp (NYSE:EW) is a medical technology company. Year-to-date, Edwards Lifesciences Corp (NYSE:EW) stock gained 8% and on October 19th it had a closing price of $84.00. Here is what Wedgewood Partners said:

"Edwards Lifesciences reported a difficult quarter due to an unprecedented shutdown of nonemergency hospital units and surgery centers across the globe. Edwards’ revenues declined -15%, though we expect 2020 revenues will still finish the year ahead of 2019 because hospitals and surgery centers have learned to cope with COVID-19 and will not repeat the shutdowns seen during March and April 2020."

Africa Studio/Shutterstock.com

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 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. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world 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. 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.