Daniel Gold’s QVT Financial has disclosed a new stake in Tekmira Pharmaceuticals Corp (NASDAQ:TKMR). According to the 13D Form filed with the U.S. Securities and Exchange Commission, the investment firm now owns 16.01 million common shares, representing 34.4% of the company’s outstanding stock. Mr. Gold actually had around 40% of his equity portfolio invested in healthcare stocks at the end of 2014 and his other healthcare bets include Tenet Healthcare Corp (NYSE:THC) and Acceleron Pharma Inc (NASDAQ:XLRN). 
QVT Financial is a New York-based hedge fund that was founded and is currently managed by Daniel A. Gold. The firm invests in debt markets and alternative investment markets, employing convertible arbitrage, investment grade, and closed-fund arbitrage strategies. Furthermore, the fund favors fundamental and quantitatively-oriented trading strategies and boasts an equity portfolio valued at around $2 billion as of last quarter. With a strong focus on healthcare sector, Mr. Gold was also betting on the consolidation of the sector and two of his largest long positions were in Covidien plc (NYSE:COV) and Cubist Pharmaceuticals Inc (NASDAQ:CBST), both of which have been acquired earlier this year.
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According to the latest filing, QVT may be deemed to beneficially own shares of Tekmira Pharmaceuticals Corp (NASDAQ:TKMR) after an affiliate of the fund got the right to appoint a director of Roivant Sciences, which is the direct holder of these shares. QVT has appointed Dr. Keith Manchester, the Head of Life Sciences and Portfolio manager at QVT, as a director of Roivant, the filing added. Roivant owns 16.01 million shares of Tekmira Pharmaceuticals. Another shareholder of the company is Julian Baker and Felix Baker’s Baker Bros. Advisors, which holds a stake of 484,100 shares, which was valued at $7.34 million at the end of the fourth quarter. Furthermore, Richard Gerson and Navroz D. Udwadia’s Falcon Edge recently disclosed a 10% passive stake in Tekmira Pharmaceuticals Corp (NASDAQ:TKMR). The company reported a net loss of $1.80 per share for 2014, while analysts expected a loss of $1.61 per share. According to CEO Mark J. Murray, the wider loss was due to a $17.2 million increase in R&D. Furthermore, the president recently commented that 2014 was a transformational year for the company, indicating that 2015 could be a year of significant progress.
Last quarter, Covidien plc (NYSE:COV) was QVT Financial’s top pick, with a stake of 1.2 million shares, valued at $122.74 million. This investment proved to be quite profitable as the company was purchased by Medtronic Inc in a $42.9 billion takeover, which was completed in February. QVT Financial also initiated a stake in Cubist Pharmaceuticals Inc (NASDAQ:CBST) last quarter, disclosing a $120.78 million stake with 1.2 million shares. In December of 2014, Merck & Co., Inc. (NYSE:MRK) announced a $9.5 billion takeover of Cubist Pharmaceuticals Inc (NASDAQ:CBST), which was completed a month and a half later and included $1.1 billion in net debt. The acquisition saw Merck & Co pay $102 per share, representing a 35% premium over the Cubist’s stock price.
In its last 13F filing, QVT Financial also disclosed ownership of 1.15 million shares of Tenet Healthcare Corp (NYSE:THC), a position valued at $58.54 million. Although the stock gained 23.92% throughout 2014, the fund trimmed its stake in the company by 22% during the fourth quarter. Tenet Healthcare Corp (NYSE:THC) was also one of billionaire Larry Robbins’ top picks last quarter. Mr. Robbins’ Glenview Capital still ranks as the company’s largest shareholder among institutional investors, with a stake of 13.81 million shares. Although Tenet Healthcare Corp (NYSE:THC) missed analysts’ consensus earnings estimate of $1.18 per share last quarter, reporting EPS of $1.03, the management has put forward several strategies in order to expand its market share and its health coverage. In addition to boosting its top line by growing its outpatient business, Tenet Healthcare Corp (NYSE:THC) recently expanded its Board of Directors from nine to ten members, electing Tammy Remo to fill the newly created position.
QVT Financial was also bullish on Acceleron Pharma Inc (NASDAQ:XLRN), revealing a position of 962,200 shares as of the end of 2014, which was valued at $37.49 million. The fund initiated a position with 556,600 of the company at the end of 2013. Although the fund reduced its exposure to Acceleron Pharma Inc (NASDAQ:XLRN) by 19% last quarter, it remains one of the company’s largest shareholders among institutional investors. Another fund betting on the stock is Phillip Gross and Robert Atchinson’s Adage Capital Management, which owns 1.77 million shares. Billionaire Ken Griffin’s Citadel Investment Group also holds a considerable stake in the company, which amounts to 392,600 shares. Acceleron Pharma Inc (NASDAQ:XLRN) failed to meet Wall Street expectations, reporting a fourth quarter loss of $0.55 per share, compared to the expected loss of $0.23 per share. Nevertheless, analysts are optimistic about the prospects of the biotech company. Earlier this month, Citigroup raised its price target on the stock to $52.00 from $50.00 with a ‘Buy’ rating.
Correction: This article previously stated that QVT Financial has purchased the shares, which was misleading. We appologize for the mistake.
Disclosure: none
