Baron Funds, an investment management company, released its “Baron Health Care Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund appreciated 5.81%% (Institutional Shares) in the quarter compared to a 6.74% gain for the Russell 3000 Health Care Index (benchmark) and a 6.23% gain for the Russell 3000 Index (the Index). Since inception, the fund appreciated 13.02% on an annualized basis compared to an 11.47% gain for the benchmark and a 14.03% gain for the index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Baron Health Care Fund highlighted stocks like Edwards Lifesciences Corporation (NYSE:EW), in the third quarter 2024 investor letter. Edwards Lifesciences Corporation (NYSE:EW) offers products and technologies for structural heart disease and critical care monitoring. The one-month return of Edwards Lifesciences Corporation (NYSE:EW) was 2.51%, and its shares lost 0.13% of their value over the last 52 weeks. On October 31, 2024, Edwards Lifesciences Corporation (NYSE:EW) stock closed at $67.01 per share with a market capitalization of $40.367 billion.
Baron Health Care Fund stated the following regarding Edwards Lifesciences Corporation (NYSE:EW) in its Q3 2024 investor letter:
“Edwards Lifesciences Corporation (NYSE:EW) is a medical device company that sells surgical and transcatheter heart valves. The company reported lower-than-expected Q2 financial results and reduced guidance. Management cited workflow backlogs in hospital catheter labs for the shortfall in the company’s transcatheter aortic valve replacement business. Competitive pressure is an alternative explanation. We also anticipate lower-than-expected earnings in 2025 as a result of dilution from a couple of acquisitions and the sale of its critical care business. We took a tax loss while we reconsider the investment thesis.”
A skilled surgeon surrounded by a team of medical professionals performing a Transcatheter Heart Valve Replacement.
Edwards Lifesciences Corporation (NYSE:EW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Edwards Lifesciences Corporation (NYSE:EW) at the end of the second quarter which was 47 in the previous quarter. While we acknowledge the potential of Edwards Lifesciences Corporation (NYSE:EW) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Edwards Lifesciences Corporation (NYSE:EW) and shared Wedgewood Partners’ views on the company. In addition, please check out our hedge fund investor letters Q3 2024 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.