Edwards Lifesciences (EW) Has a Growth Runway Competitors May Struggle to Match

Edwards Lifesciences (EW) Has a Growth Runway Competitors May Struggle to Match

Tue, August 4, 2026 at 6:17 PM GMT+3 3 min read

• EW +0.26%

Baron Capital, an investment management company, released its Q2 2026 investor letter for the "Baron Health Care Fund". A copy of the letter is available to download here. The Fund gained 11.99% during the quarter, compared with the 10.48% gain for the Russell 3000 Health Care Index and the 15.44% gain for the Russell 3000 Index. Since inception, the Fund appreciated 10.61% on an annualized basis, compared with 10.02% for the Benchmark and 14.83% for the Index. Strong stock selection in pharmaceuticals, biotechnology, health care equipment, and life sciences tools and services supported the Fund's outperformance, although limited exposure to managed care stocks reduced relative returns. The Fund remains positive on health care due to improving biotechnology funding, strong acquisition activity, recovering managed care margins, and growth from an aging population, chronic disease, medical innovation, and higher health care spending. In addition, please check the Fund's top five holdings to know the best picks in 2026.

In its second-quarter 2026 investor letter, Baron Health Care Fund highlighted Edwards Lifesciences Corporation (NYSE:EW). Edwards Lifesciences Corporation (NYSE:EW) is a medical technology company that provides products and technologies to treat advanced cardiovascular diseases. On August 3, 2026, Edwards Lifesciences Corporation (NYSE:EW) closed at $88.82 per share. The one-month return of Edwards Lifesciences Corporation (NYSE:EW) was -6.33% and its shares gained 12.09% over the past 52 weeks. Edwards Lifesciences Corporation (NYSE:EW) has a market capitalization of $51.14 billion.

Baron Health Care Fund stated the following regarding Edwards Lifesciences Corporation (NYSE:EW) in its Q2 2026 investor letter:

"Edwards Lifesciences Corporation (NYSE:EW) was a material tailwind in the period. Shares of Edwards, a medical technology company specializing in structural heart disease therapies, rose due to solid first quarter results and an updated Medicare coverage decision for transcatheter aortic valve replacement (TAVR), which has the potential to increase procedure volumes. We retain conviction as Edwards' lead in replacement therapies for mitral and tricuspid valves, which combined with a total addressable market that could approach the scale of core TAVR provides a durable and differentiated growth runway that competitors are years away from replicating."

Edwards Lifesciences Corporation (NYSE:EW) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held Edwards Lifesciences Corporation (NYSE:EW) at the end of the first quarter which was 64 in the previous quarter. While we acknowledge the potential of Edwards Lifesciences Corporation (NYSE:EW) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Edwards Lifesciences Corporation (NYSE:EW) and shared Artisan Mid Cap Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2026 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.