Krishen Sud’s Sivik Global Healthcare has filed its latest 13F with the SEC, disclosing the holdings in its equity portfolio as of March 31. Formerly known as Argus Management, Sivik was one of the top performing funds in our database during the third quarter of 2014, not entirely surprising given its focus on healthcare and the recent strength of that sector. The fund’s equity portfolio has experienced a good deal of turnover at the top since its previous filing, with only one of its previous top five holdings remaining in the top five, providing us with some fresh insight into the stocks the fund is bullish on during this quarter.
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Sivik’s top pick is now Humana Inc (NYSE:HUM), which we ranked as the number one potential takeover target in 2015. While it has yet to be taken over, Humana Inc (NYSE:HUM) has offered investors big returns regardless, up by 27% year-to-date. Sivik added 20,300 shares to its holding of Humana, lifting it to an even 55,000 shares total, valued at $9.79 million. Humana Inc (NYSE:HUM) recently acquired Your Home Advantage, a Florida-based provider of home nursing, which Humana said in a press release will allow it to strengthen its own capabilities in this area. In late March Humana sold its wholly owned subsidiary Concentra for $1.06 billion. Among other things, Humana said the capital raised from that deal would be used to fund share repurchases. Billionaires Larry Robbins and Stephen Mandel held two of the largest positions in Humana at the end of 2014.
Sivik was just one of many funds with a position in Gilead Sciences, Inc. (NASDAQ:GILD) heading into 2015, as it was the most popular biotech stock among the funds in our database. Investing legend Julian Robertson was among them, with Gilead Sciences, Inc. (NASDAQ:GILD) occupying the second-largest position in his portfolio. Gilead is also Sivik’s second-largest position now after the fund increased its holding by 126% to 90,000 shares during the first quarter, the position now being valued at $8.83 million. Gilead Sciences, Inc. (NASDAQ:GILD) is often mentioned as a prime takeover target itself, for a bigger pharmaceutical company, though that becomes less and less likely as it continues to rapidly appreciate in value. Gilead has ballooned by more than 250% over the past 28 months, and is up another 10% year-to-date.
McKesson Corporation (NYSE:MCK) was Sivik’s only holding that remained in its top five from the end of 2014, getting a slight bump to fourth from fifth, with the holding being marginally increased by 300 shares during the quarter to an even 35,000 (Sivik likes round numbers). Shares of McKesson Corporation (NYSE:MCK) were up by just over 9% during the first quarter, which contributed to the rise in value of Sivik’s position, to $7.92 million. McKesson Corporation (NYSE:MCK) announces its fiscal fourth quarter results on May 12. The supplier of pharmaceutical products raised its FY 2015 guidance in early February causing shares to spike over the next two days, which was good news for prominent investors Daniel Och, Robbins, and Leon Copperman.
Along with Gilead, Biogen Inc (NASDAQ:BIIB) was one of the hottest biotech stocks among billionaires heading into 2015, with Stanley Druckenmiller at the head of that billionaires pack, which included six other billionaire investors. Sivik was also bullish on Biogen Inc (NASDAQ:BIIB) heading into 2015, though he lowered his exposure to the stock during the first quarter, slashing his position by 22% to 17,500 shares valued at $7.39 million. Biogen Inc (NASDAQ:BIIB) missed earnings estimates today which has sent shares tumbling, though it remains up by more than 18% for the year. While Piper Jaffray has cut its price target on Biogen to $485 from $500 following the earnings report, that still leaves a better than 20% upside on the stock, which is trading at just over $400.
Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) was a little further down the list for Sivik, with the fund holding a position of 80,000 shares valued at $4.98 million, the position increased by 34% during the first quarter. Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) is another stock that billionaires, including George Soros, are crazy about, and with good reason; shares have gained 12% this year and more than 50% since the beginning of 2014. Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) announces its own quarterly earnings next Thursday, with Wall Street expecting earnings per share of $1.25, a 3% rise over the first quarter of 2014. Teva had beaten estimates for five straight quarters before narrowly missing the mark with its most recent earnings report for the fourth quarter of 2014, by just 0.04%.
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