David Lamond’s Top Healthcare and Technology Stock Picks

The third spot is taken by Gilead Sciences, Inc. (NASDAQ:GILD) with Lamond owning 120,000 shares valued at $15.63 million. Lamond Capital decreased its stake in the $153.91 billion healthcare company, which focuses on the treatment of HIV and liver diseases including hepatitis B and C, by 11% during the first quarter. Gilead Sciences, Inc. (NASDAQ:GILD) has been in the fund’s portfolio since the second quarter of 2014. Its stake was reduced in the fourth quarter as well. Recently, it was reported that Sovaldi, the company’s renowned treatment for chronic hepatitis C infection has been launched in India by Mylan NV (NASDAQ:MYL). Aside from Lamond, other prominent investors of Gilead Sciences, Inc. (NASDAQ:GILD) include Samuel Isaly‘s healthcare focused fund, Orbimed Advisors and Cliff Asness‘ AQR Capital Management.

Finally, we move on to Lamond’s bet in the technology sector, Infoblox Inc (NYSE:BLOX). The fund held some 429,900 shares valued at $10.26 million of the $1.40 billion network controller company. Although Infoblox Inc (NYSE:BLOX) has delivered impressive returns to the tune of 21.33% this year, the fund slashed its stake in the company by 71% during the first quarter. The current holding represents about 11.21% of the fund’s portfolio value. Within our database, Eric Bannasch’s Cadian Capital is the largest stockholder of Infoblox Inc (NYSE:BLOX) with some 5.14 million shares according to its latest filing.

Insider Monkey tracks hedge funds’ moves in order to identify actionable patterns and profit from them. Our research has shown that hedge funds’ large-cap stock picks historically delivered a monthly alpha of six basis points, though these stocks underperformed the S&P 500 Total Return Index by an average of seven basis points per month between 1999 and 2012. These stocks were able to generate alpha because of their lower risk profile. On the other hand, the 15 most popular small-cap stocks among hedge funds outperformed the S&P 500 Index by an average of 95 basis points per month. These stocks were slightly riskier, so their monthly alpha was 80 basis points (read the details here). We believe investors will be better off by focusing on the best small-cap stocks rather than large-cap stocks.

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