I recently published a report over at Chimera Research Group titled 13F Analysis of Best Performing Healthcare Hedge Funds (Q1 2015).
As free preview to the Chimera article, below is a list of the best performing healthcare specialists, judged by replicating the holdings disclosed in their 13F filings. For details on how these portfolios were constructed, see the geek notes below.
As implied by the article title, I identify the best performing healthcare focused hedge funds from the list of 35+ 13F filers I track. From this list I created a "best ideas" portfolio by looking for stocks that multiple managers own. The intuition is this: if two biotech specialists with great track records, who are presumably competitors, are both in the same stock, its worth a look. The entire article, including stock picks, is available over at Chimera Research Group.
To be perfectly clear: These are the not returns of the funds listed, rather they are the returns of buying the stocks listed on the fund's 13F filing.
Portfolio Construction Notes:
Today Broadfin Capital, a healthcare specialist investment firm, disclosed a 1,301,622 share position in Anthera Pharmaceuticals ($ANTH), this represents 5.7% stake in the company as of September 25, 2014.
This is an 70% increased from their June 30, 2014 disclosure of 766,329 shares.
The timing is interesting because of the near term of interim data from phase III CHABLIS-SC1 for Systemic lupus erythematosus in Q3'14 for and phase II/III BRIGHT-SC for rare disease IgA nephropathy in H2’14.
On the valuation side of things, the company has $20m in cash, and a $40m market cap (round figures), if one believes they will see positive read outs, this could prove to be an attractive valuation. The average analyst price target is $3.33, for which represents an 85% upside from current levels.
Anthera has an impressive institutional shareholder list which includes a 13D from Orbimed on August 1, 2014. Filing 13Fs as of June 30, 2014 from Great Point Partners, BVF, Perceptive, Sabby, and Abingworth.
I own no shares at this time.
This is the personal blog of Emory Redd.
This blog is not investment advice. This is not a solicitation to invest. Don't take candy from strangers.
BEST OF HEDGEROLL
ACHILLION AND RA CAPITAL: MY FAVORITE TRADE
SALIX INVESTORS LOOKING FOR A BUYOUT SHOULD BE CAUTIOUS; MORE ACCOUNTING PROBLEMS AHEAD
BIOTECH AS BUFFETT'S WONDERFUL BUSINESS