Baron Funds, an investment management company, released its “Baron Health Care Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund declined 5.06% (Institutional Shares) in the quarter, against a challenging backdrop for the broader Health Care sector, compared to a 6.19% decline for the Russell 3000 Health Care Index (benchmark) and a 10.99% gain for the Russell 3000 Index (the Index). In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Baron Health Care Fund highlighted stocks such as Edwards Lifesciences Corporation (NYSE:EW). 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 5.69%, and its shares gained 31.20% of their value over the last 52 weeks. On July 30, 2025, Edwards Lifesciences Corporation (NYSE:EW) stock closed at $81.16 per share, with a market capitalization of $47.608 billion.
Baron Health Care Fund stated the following regarding Edwards Lifesciences Corporation (NYSE:EW) in its second quarter 2025 investor letter:
“We reacquired shares of Edwards Lifesciences Corporation (NYSE:EW), a leading manufacturer of heart valve replacement and repair products. Transcatheter aortic valve replacement (TAVR) is a minimally invasive procedure to treat aortic stenosis, a disease that obstructs the flow of blood out of the aortic valve, which strains the heart. Edwards Lifesciences has a leading position in the TAVR market backed by a robust body of clinical evidence and physician familiarity with the product and workflow. TAVR is a $5 billion market that still continues to grow many years after Edwards Lifesciences first entered the market. We expect this growth to continue at a moderate pace as indications expand to cover a broader patient population. In addition, competitor Boston Scientific Corporation recently exited the TAVR market, which provides incremental market share opportunity for Edwards Lifesciences.
