Baron Funds Comments on Edwards Lifesciences Corp.
Of the 101 positions in the Fund, 36 have been held for over five years, which represents 51% of the portfolio. An example of a company we have held for over five years is Edwards Lifesciences Corp. (NYSE:EW), which was only about 1% of the portfolio as of May 31, 2012, although it was higher previously. Ron has been selling the position since its market cap is now over $10 billion. When the Fund first purchased the stock, the company's market value was $1.5 billion. We think this is a great example of a long-term investment. Edwards Lifesciences is the global leader in the science of heart valves and in the growing market for surgical heart valves. The investment has returned over 230% in the past five years, 505% since our initial purchase in 2003, and 22% on an annualized basis, through May 31, 2012.