These Five Biotech Stocks Ranked Among This UK-based Fund’s Favorites

Infinity Pharmaceuticals Inc. (NASDAQ:INFI) is the next biotech pick of Cheyne Capital, in which the fund owns 220,618 shares worth $1.86 million. The third quarter sell-off in the biotech industry did not pass unnoticed for Infinity Pharmaceuticals Inc. (NASDAQ:INFI), whose stock slid by over 22% between July and September. Even though at the end of June only 21 funds from our database held shares of the company, they amassed almost 22% of its outstanding stock, in aggregate. Moreover, among Infinity Pharmaceuticals Inc. (NASDAQ:INFI)’s top shareholders in the previous round of 13F filings were Samuel Isaly’s Orbimed Advisors and James Flynn‘s Deerfield Management, with the healthcare-focused funds reporting positions of 4.42 million shares and 2.47 million shares, respectively. They were followed by Jim Simons’ Renaissance Technologies, which owned 1.20 million shares after having increased its stake by 80%.

Intercept Pharmaceuticals Inc (NASDAQ:ICPT) is next in line, although the fund held only 10,150 shares worth $1.68 million, down by 58% on the quarter. The stock slid by over 31% during the third quarter, but due to the small position, it did not affect Cheyne’s returns significantly (the holding was equal to 0.79% of its 13F portfolio at the end of September). Despite the weak performance in the last several months, Intercept Pharmaceuticals Inc (NASDAQ:ICPT)’s shares are still 13% in the green year-to-date. Analysts suggest an even higher growth is possible, having set a consensus price target of over $370 on the stock, which represents a whopping upside potential of 110%. Orbimed Advisors was the top shareholder of Intercept Pharmaceuticals Inc (NASDAQ:ICPT) in our database, holding 1.12 million shares as of the end of June.

Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) represents the only biotech company in which Cheyne increased its stake among the lot we are covering in this article. The investor added 70,000 shares to its position, taking it to 109,000 shares valued at $1.23 million. Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) was also one of the stocks from the list in which investors were the most bullish heading into the third quarter, as 25 of them amassed over 53% of its outstanding stock. Deerfield Management held 4.78 million shares of Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) at the end of June, followed by John Paulson‘s Paulson & Co. with ownership of 3.95 million shares.

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