Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

These Two Healthcare Stocks Receive A Vote Of Confidence From Elite Hedge Fund Managers

Page 1 of 2

As U.S equities have plummeted on global-growth worries, confident hedge funds and other investors have started piling up more shares of companies that are trading on the cheap. The following article will cover the moves made in a pair of healthcare stocks by two such reputable hedge funds. A recent 13D filing with the SEC disclosed that Samuel Isaly’s OrbiMed Advisors acquired a new stake of 307,179 shares (each common share represents 10 American Depository Shares) in Nabriva Therapeutics AG – ADR (NASDAQ:NBRV), accounting for 14.52% of its outstanding common stock. At the same time, Larry RobbinsGlenview Capital Management reported buying 500,000 shares of Tenet Healthcare Corp. (NYSE:THC) at a weighted average price of $36.30. After the recent transaction, the investment firm owns 16.49 million shares or 16.56% of the company’s outstanding shares.

Samuel Isaly Orbimed Advisors

Let’s first take a step back and analyze how tracking hedge funds can help an everyday investor. Through our research we discovered that a portfolio of the 15 most popular small-cap picks of hedge funds beat the S&P 500 Total Return Index by nearly a percentage point per month on average between 1999 and 2012. On the other hand the most popular large-cap picks of hedge funds underperformed the same index by seven basis points per month during the same period. This is likely a surprise to many investors, who think of small-caps as risky, unpredictable stocks and put more faith (and money) in large-cap stocks. In forward tests since August 2012 these top small-cap stocks beat the market by an impressive 60 percentage points, returning 118% (read the details here). Follow the smart money into only their best investment ideas all while avoiding their high fees.

Let’s provide a brief introduction to one of the investment firms mentioned above. OrbiMed’s investment business was launched in 1989 with its first public equity fund, and later expanded to include long/short equity and private equity investments in 1993. The firm’s flagship public equity strategy is a long/short hedge fund firm that focuses on the global healthcare sector. The hedge fund takes on a global event-driven approach to investing and aims to identify mispriced securities. As stated by the latest round of 13F filings with the SEC, OrbiMed Advisors manages a public equity portfolio with a market value of $11.96 billion as of June 30.

Samuel Isaly
Samuel Isaly
OrbiMed Advisors

We can now switch our focus to Nabriva Therapeutics AG – ADR (NASDAQ:NBRV), a clinical stage biopharmaceutical company that engages in the research and development of novel anti-infective agents for the treatment of serious infections by focusing on the pleuromutilin class of antibiotics. The company recently concluded its initial public offering of 9 million ADSs (i.e. 900,000 common shares) at an IPO price of $10.25 per ADS. Nabriva Therapeutics is currently working on the development of its lead product candidate, lefamulin, which may become the first pleuromutilin antibiotic available for systematic administration in humans. Thus, the company believes that pleuromutilin antibiotics can tackle one of the greatest threats to human health caused by bacterial resistance. However, the success of Nabriva primarily depends on its lead product candidate, while its ability to deliver revenues strictly depends on the marketing approval for lefamulin. At the same time, the biopharmaceutical company is set to experience great expenses in relation to the initiating and completion of its clinical trials. All-in-all, the risks associated with a potential investment in Nabriva Therapeutics are high, but the risk/reward potential might turn out to be quite generous for current and potential investors.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!