Alex Denner’s Sarissa Capital
disclosed its holdings in its latest and first 13F filings. The hedge fund has invested $267.02 million in equity portfolio and is focusing mainly on the Healthcare sector.
The hedge fund holds more than 30% of its portfolio value in Ariad Pharmaceuticals Inc (NASDAQ:ARIA)
. The fund has 12 million shares, worth $81.84 million. Ariad is facing difficulties since the FDA asked it to withdraw its only drug Iclusig from the market in October, 2013. It was allowed to continue the sales but to a very small group of patients. Sarissa holds a 6.2 % stake in the company and has asked to nominate several directors to the company’s board.
The second largest holding is in Quest Diagnostics Inc (NYSE:DGX)
. The hedge fund holds 14% of its equity portfolio in the company, owning 700,000 shares worth $37.48 million. Quest is expected to be hit by the provisions of the Affordable Care Act. It has already lost 3% of revenues in 2013 from reimbursement changes.
The third largest holding is in Idenix Pharmaceuticals Inc (NASDAQ:IDIX)
. The fund has invested $30.20 million in 5.05 million shares of the company. Baupost
Group, managed by Seth Klarman
, also holds a substantial holding in Idenix. The fund owns 53.33 million shares equaling 35.38% of the common stock
has been granted observer rights with respect to meetings of the board of directors of the company and the committees of the company’s board of directors.
With a $23.37 million stake, which amasses 2.54 million shares, Vivus Inc (NASDAQ:VVUS)
is the fourth largest holding of Sarissa. Sarissa partnered with First Manhattan to wage a proxy battle at Vivus and succeeded in replacing the company’s Chief Executive besides placing six nominees on the company’s board.
The fund has also invested $20.02 million in 400,000 shares of Merck & Co Inc (NYSE:MRK)
. Merck is planning to sell its portfolio of consumer brands. It has already screened the preliminary offers and is waiting for the final bids. The sale is expected to yield $10 billion to the company.
Renaissance Technologies Loves These Stocks: McDonald’s Corporation (MCD), Novo Nordisk A/S (ADR) (NVO) & Others
Kyle Bass and Hayman Capital’s Top Stock Picks: General Motors Company (GM), Vodafone Group Plc (ADR) (VOD) & Others
Valiant Capital’s Top Picks From The Latest 13: Apple Inc. (AAPL), Liberty Global plc (LBTYA) & More