Q2 2022 Biotech Hedge Fund Analysis (Free Version)
SUMMARY
Biotech Hedge Funds Data Provides Investment Ideas for Retail Investors
We analyzed the Q2 2022 holdings of top biotech hedge funds
SGEN is found in the top 20 of 5 of the 11 funds we analyzed
SGEN, HLVX, BMRN, HZNP, XBI, ACLX were newly acquired by 2 funds
Detailed data from 11 funds is provided below, and can be found in our Q2 2022 Biotech Hedge Fund Google Sheet.
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We dug deeper into this data to help you find more investment ideas in our BPIQ Pro Q2 22 hedge fund forum posts and Sheets. Which company was held in the most of these funds (7 of 11)? Learn this and more. Become a BPIQ Pro subscriber or an Amp Pro subscriber today and get instant access to our pro version of this article and all the great features of these subscriptions before our special ends at the end of the month. Learn more here.
Intro
At BPIQ we track quarterly 13F filings for some of the largest biotech hedge funds. These filings provide valuable information, for example regarding the positions of each stock in the portfolio and the percent change from the prior quarter. Q2 2022 13F filings by the hedge funds with the Securities And Exchange Commission (SEC) must be made on or before August 15, 2022. They typically are made on or a few days before the deadline.
We focus on EcoR1, RA Capitol, Baker Brothers, Perceptive Advisors, Orbimed Partners, some of the largest and best known biotech hedge funds, and this quarter analyzed Opaleye, NEA Management, Cormorant, Logos, Casdin and Redmile Group too. Although like most biotech investors these funds had a tough year in 2021 (See "Hedge Funds Suffer Big Losses in Biotech Rout" (The Wall Street Journal 12/6/21)), these hedge fund portfolios provide investment ideas and can be used to confirm your favorite picks.
Results of Analysis
We posted detailed info for the Q2 holdings of these funds in our Q2 2022 Biotech Hedge Fund Google Sheet. The sheet includes detailed info regarding all the holdings for all these funds, and changes from Q1 2022. Furthermore, we include details below, regarding the top holdings and more, for these top biotech hedge funds.
Performance And Cross-fund Holdings
The companies held by the most funds as of the end of Q2, holdings that were held by 3 or more funds, beat XBI by over 100% from the end of Q2 until 9/19/22! Thus, although a number of top picks of these funds did not do well, overall the 98 tickers that were in 3 or more funds, the most common picks across funds, beat XBI by over 100%. Some of the companies that were held by 3 or more funds included ABCL, ABSI, ACAD, ALGS, ALLK, APLS, ARQT, ASND, AVTE, BCEL, BMRN and many more. The companies held in 5 or more funds were CRNX, DSGN, EWTX, MRTX, TVTX, and VRNA.
Which 2 companies were held in the most funds (6 & 7 of 11 funds)? Learn this and more. Become a BPIQ Pro subscriber or an Amp Pro subscriber today and get instant access to our pro version of this article and all the great features of these subscriptions before our special ends at the end of the month. Learn more here.
Top 20 Holdings
SGEN is found in 5 of the 11 funds top 20 holdings, while HZNP is found in 4 of the 11 funds top 20 holdings that we analyzed. These were the only companies in the top 20 holdings of at least 4 of the funds. It is interesting that SGEN shows up on this top holding list since there has been much attention to the rumored possible acquisition of SGEN by MRK. Which company was held in 7 of these 11 funds (the most of any company)? Find out the answer and more in our deeper analysis of these hedge fund holdings in our BPIQ Pro Q2 22 hedge fund forum post for BPIQ subscribers (Learn more here).
Closed Positions
ZNTL, RCUS, HLTH, GRPH, BCYC, PTGX, RPTX, NVAX, VERV, CGEM, HLXA, IGMS were the stocks whose positions were closed out by 2 of the hedge funds. The position of MRTX was closed out by 3 funds last quarter. The only company to be closed out by more than 2 funds). However, MRTX is still held by 5 of these 11 funds. This is interesting as MRTX's lead compound is the lead competitor for AMGN's KRAS inhibitor, LUMAKRAS. Recent data for LUMAKRAS was generally seen as disappointing and likely applicable to MRTX's compound as well. In Q2 MRTX stock dropped more than 20% during the quarter. The date that the position was closed is not included in the 13F filing. So it is not possible from the 13F filing to know whether a fund sold its MRTX position early in the quarter when MRTX was still above $85 per share, or in early June when it was below $50 per share, or at a date in between. Since the end of Q2 MRTX is currently up about 15%.
New Positions
Next, we analyzed the positions that were newly acquired by these biotech hedge funds in Q2 2022. SGEN, HLVX, BMRN, HZNP, XBI, ACLX were acquired by 2 funds. It is noteworthy that has word of a possible acquisition of SGEN by MRK surfaced last quarter, at least 2 of the biotech hedge funds added SGEN to their holdings. We don't know the exact timing from the 13F filing so we don't know if that was before or after the news broke. One company was the only newly acquired stock in 3 funds. Which company was that? Find out the answer and more in our deeper analysis of these hedge fund holdings in our BPIQ Pro Q2 22 hedge fund forum post for BPIQ subscribers (Learn more here).
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Which company is held in the most funds (7 of 11)? The position of which company was closed out by 3 funds last quarter (the only company to be closed out by more than 2 funds)? Find out these answers and more in our deeper analysis of these hedge fund holdings in our BPIQ Pro Q2 22 hedge fund forum post. With an Amp Pro subscription, you will get access to all our BPIQ Pro content and up to date info on the holdings of our 4 private, real money biotech investment accounts, run by long-time biotech investor and patent attorney Manny Vacchiano, JD, PhD, and more. Hurry to get in on our current special running until the end of the month: Learn more here.
This article is NOT legal, investment or tax advice. Please do your own diligence before making any investments.
History:
Posted first in our free blog 8/19/22 by JM and updated 8/14/22 (EJV); wk of 8/21/22 JM; 8/29/22 (EJV); 9/6/22, 9/10/22, & 9/22/22 by EJV
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