Biogen (BIIB) Helped Healthcare Funds Like This One Dominate The Third Quarter

Sarissa Capital hiked its stake in Pacira Pharmaceuticals Inc (NASDAQ:PCRX) by 23% during the second quarter, ending the period with 653,000 shares of the stock worth $22.03 million. It was one of several hedge funds bullish on the stock, as ownership of it among the funds that we track rose by 18% during the quarter to 26 funds with long positions. Mariko Gordon’s Daruma Asset Management ($36.3 million position) and Israel Englander of Millennium Management ($26.4 million position) held the two most valuable positions in Pacira Pharmaceuticals Inc (NASDAQ:PCRX).

Pacira Pharmaceuticals Inc (NASDAQ:PCRX) reported its third-quarter results earlier this week, which came in at revenue of $68.4 million and adjusted EPS of $0.20, both of which topped estimates.

Lastly is Quest Diagnostics Inc (NYSE:DGX), which Sarissa Capital held 159,000 shares of on June 30, valued at $12.94 million. That was down from 575,000 shares owned on March 31 as the fund cashed in a large chunk of its position to capitalize on the stock’s run-up. Shares are flat since then, after slight gains in the third quarter and a slight decline in the fourth quarter. Quest Diagnostics Inc (NYSE:DGX)’s own third-quarter results were largely in-line with estimates, coming in at $1.37 in EPS and $1.89 billion in revenue.

Heading into the third quarter of 2016, a total of 25 of the hedge funds tracked by Insider Monkey held long positions in the stock, down by 14% from one quarter earlier. AQR Capital Management, managed by Cliff Asness, had a $126.3 million position in the stock on June 30, while Arthur B Cohen and Joseph Healey of Healthcor Management LP, held a $93.6 million position; the fund had 5.1% of its 13F portfolio invested in the stock.

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