James E. Flynn’s Deerfield Management entered a new position in Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP) this week. According to the 13G Form filed with the U.S. Securities and Exchange Commission, the investment firm now owns 1.36 million shares, representing around 8.7% of the company’s outstanding common shares. In addition, John W. Rogers’ Ariel Investments revealed it had acquired a new stake in Manning and Napier Inc (NYSE:MN). The hedge fund initially acquired a holding of 1.1 million shares, before bringing its stake in the company to 1.3 million common shares. Although both 13G Forms were filed on the same date, the first transaction took place a month before the latter.
Deerfield Management is a New York City-based hedge fund that was founded in 1994 and has been under James E. Flynn’s management since 2000. The fund’s main focus lies in equities from the healthcare sector and it has displayed extensive knowledge and a comprehensive understanding of the factors at play in that sector. Furthermore, the investment firm has specialized in corporate transitions, managing hostile takeovers, funding research and development, and providing financial advisory services to invested companies. Deerfield Management’s equity portfolio had a market value of $2.7 billion on September 30, with its position in Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) accounting for 6.8% of that value. In addition, the hedge fund recently increased its stake in Auspex Pharmaceuticals Inc (NASDAQ:ASPX). Deerfield Management entered a new position in the company at the beginning of last year and has been augmenting its exposure to the stock gradually.
Following the recent acquisition of a new holding in Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP), the New York-based hedge fund has become the company’s largest shareholder among institutional investors we track, though other investment firms have been betting on the stock for some time now. Mark Kingdon’s Kingdon Capital for example increased its position in Tonix Pharmaceuticals by 91% during the third quarter of 2014 and currently owns 525,000 shares of common stock. Kevin Kotler’s Broadfin Capital has been involved with the company for even longer, acquiring an initial stake in 2013. Although Mr. Kotler’s firm recently decreased its exposure to the pharmaceutical company, it continues to own approximately 276,400 shares.
Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP)’s $28.7 million public offering of common stock, which closed this Monday, allowed Deerfield Management to acquire its newest position at $5.85 per share. This presented a great opportunity for the hedge fund to invest in the company, since the stock lost around 61% relative to its February, 2014 value. Hence, it seems Mr. Flynn’s firm has taken a bullish stance towards Tonix Pharmaceuticals considering it as a good time to enter a position in the undervalued company.
Ariel Investments was founded by John W. Rogers in 1983 and is currently headquartered in Chicago. The investment firm prioritizes small and mid-market cap stocks of U.S.-based companies, although it is also active in public equity markets around the globe. Furthermore, Ariel Investments employs a bottom-up approach, along with fundamental analysis, in order to pick its investments and currently boasts an equity portfolio valued at around $7.7 billion. In addition, the firm’s holdings are very balanced, with no single position accounting for even 4% of its equity portfolio.
Ariel Investments also disclosed a new addition to its equity portfolio, as well as revealing it had already increased its stake in Manning and Napier Inc (NYSE:MN) even further. The investment firm now ranks as the company’s largest shareholder among funds we track, leaving Chuck Royce’s Royce & Associates as runner-up in terms of shares. Mr. Royce’s firm actually reduced its exposure to Manning and Napier last month, yet continues to be one of its largest institutional investors, with a stake of 693,100 shares. Another fund betting on this stock is Jim Simons’ Renaissance Technologies, which holds a position of 452,200 shares, after increasing its stake in the company by 9% during the third quarter.
Despite this backing from major institutional investors, Manning and Napier Inc (NYSE:MN)’s share price has been losing ground over the past year, dropping by around 26% since last February. Furthermore, the most recent quarterly financial results announced by the U.S.-based provider of investment management products and services, also failed to impress. In fact, the company’s revenue has decreased by 6% from the previous quarter, while its assets under management also declined.
Disclosure: None
