Hedge Funds Are Buying Shares of These Two Bio-tech Stocks; Should You?

A graduate of Harvard Business School, Roberto Mignone founded Bridger Management in 2000, following a successful stint at Blue Ridge Capital. He currently manages an equity portfolio with a value of approximately $3.16 billion at the end of the second quarter. He is a big fan of financial and healthcare stocks, having invested 84% of his funds in these two sectors. Mignone’s top bet is Post Holdings Inc (NYSE:POST), in which he increased his stake by 45% during the second quarter, amassing 1.66 million shares. He has also doubled his stake in Marathon Petroleum Corp (NYSE:MPC) to 1.14 million shares and initiated a stake in Boise Cascade Co (NYSE:BCC), accumulating 1.68 million shares by the end of June.

A developer of treatments for b-cell malignancies and autoimmune diseases, TG Therapeutics Inc (NASDAQ:TGTX) has seen its stock tumble by 25% so far this year, currently trading around the $12 level. Its second quarter revenue stayed flat at $40,000, while the loss per share widened to $0.38 from the $0.36 reported a year ago. For the current quarter, analysts expect the loss to narrow to $0.34 per share, while revenues are expected to stay the same.

Among the hedge funds that we track, 13 have reported holding long positions in TG Therapeutics Inc (NASDAQ:TGTX) at the end of the second quarter, sharing between them 17.6% of the company’s common stock. The total value of their investment fell by 2.62% to $148 million from April till June. Peter Kolchinsky is optimistic about the prospects of TG Therapeutics, having boosted his stake by 6% during the second quarter. His fund, RA Capital Management has reported ownership of 3.3 million shares in its latest 13F filing. Jacob Gottlieb, on the other hand, chose to distance himself from this stock, dumping 60% of his holding and leaving his fund, Visium Asset Management, with just 530,000 shares.

Disclosure: none.