This Biotech Hedge Fund’s Stock Picks Killed It in Q3

Another large non-microcap position in Great Point Partners 13F portfolio was  bluebird bio Inc (NASDAQ:BLUE). This stock returned 57% during the quarter and significantly outperformed the market. It was also very popular among biotech hedge funds such as Deerfield Management, Orbimed Advisors, and Baker Brothers. Samuel Isaly’s hedge fund had more than $50 million invested in the stock at the end of June.

The last stock that we are going to talk about from Great Point Partners’ portfolio is  Neurocrine Biosciences, Inc. (NASDAQ:NBIX).  Neurocrine Biosciences had a $4 billion market cap at the end of June and Great Point’s $21 million position accounted for 0.5% of NBIX’s outstanding shares. The stock was actually one of the most popular stocks among all hedge funds heading into Q3. A whopping 39 hedge funds tracked by Insider Monkey were bullish on this stock, a change of 18% from the previous quarter.

Joseph Edelman’s Perceptive Advisors has the most valuable position in Neurocrine Biosciences, Inc. (NASDAQ:NBIX), worth close to $127.2 million, comprising 8.8% of its total 13F portfolio. On Perceptive Advisors’s heels is OrbiMed Advisors, led by Samuel Isaly, holding a $82.5 million position; 0.9% of its 13F portfolio is allocated to the company. Remaining professional money managers with similar optimism consist of Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management, Ken Griffin’s Citadel Investment Group and Julian Baker and Felix Baker’s Baker Bros. Advisors. Neurocrine Biosciences returned 11.4% during Q3 and outperformed the market.

Great Point Partners had 39 positions -several of which are microcap picks- in its portfolio at the end of Q2.