Pfizer Inc. (PFE) Helped Kahn Brothers Beat the Market Despite BlackBerry Ltd (BBRY) Losses

Kahn Brothers’ larger position in Pfizer Inc. (NYSE:PFE) of 1.88 million shares valued at $58.66 million helped it offset a chunk of its losses in the aforementioned positions. Pfizer Inc. (NYSE:PFE) delivered returns of 12.66% during the quarter, and proved to be one of the best performing mega-cap stocks of the first quarter, delivering big returns to investors. Despite increased competition in the generic drug space, Pfizer continues to expand its drug portfolio with acquisitions, while vowing to reduce its massive R&D budget, which has pleased investors. Among those investors is billionaire Ken Fisher, and the quant fund D E Shaw.

Merck & Co., Inc. (NYSE:MRK), which also has large investments from Ken Fisher and D E Shaw, had more modest returns of 2.04% during the first quarter. Merck & Co., Inc. (NYSE:MRK) was Kahn Brothers’ second-largest position with 1.05 million shares valued at $59.79 million. Merck & Co., Inc. (NYSE:MRK) made big gains early in 2015 but gave much of them back later in the quarter following an earnings report which missed targets. Still, the pharmaceutical giant’s large pipeline of drugs, particularly those in late-stages of development, bodes well for the short-term prospects of the stock. Merck is up by just 1.48% over the past calendar year as it’s been somewhat lost in the shuffle in the red-hot biotech sector, but may be poised for a breakout move.

Lastly, BP plc (ADR) (NYSE:BP) was another large pick of Kahn Brothers’, its seventh-largest long position. Its position of 867,500 shares valued at $33.07 million accounted for 5.69% of its equity portfolio and was also the largest exposure to the stock of any fund in our database, though Richard Pzena’s Pzena Investment Management had the largest position in BP plc (ADR) (NYSE:BP), at 12.17 million shares. BP plc (ADR) (NYSE:BP) returned 4.10% during the quarter, and rumors are still swirling that the large oil & gas company could be acquired by the even larger Exxon Mobil Corporation (NYSE:XOM).

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