You Should Follow Hedge Funds Into One Semiconductor and One Healthcare Stock

Let’s move on to one of the healthcare stocks that gained ground today, Orexigen Therapeutics, Inc. (NASDAQ:OREX), a $330 million biopharmaceutical company that focuses on the treatment of obesity. The stock has surged by 8% so far today on a volume of 3.80 million shares, versus average volume of 2.65 million. Earlier today, Orexigen Therapeutics, Inc. (NASDAQ:OREX) said that it has sold 20 million shares and warrants to purchase 5 million shares to Seth Klarman’s Baupost Group at a price of $3.00 per share and 0.25 of a warrant. The value of the private placement deal amounts to $60 million and the warrants can be exercised for five years at $6.00 per share. Baupost has not disclosed holding shares of Orexigen in its latest 13F filing, but the company is rather popular among other investors that we track. During the second quarter, the number of investors holding shares of the company went up to 28 from 24, while the total value of their positions declined to $145.85 million from $184.87 million, but still amassed over 23% of the company at the end of June. The largest shareholder of Orexigen Therapeutics, Inc. (NASDAQ:OREX) is Robert Pohly’s Samlyn Capital, which owns 6.05 million shares, double of the quarter. Billionaire Israel Englander’s Millennium Management also boosted its stake by over 100% to 4.65 million shares.

To conclude, it looks like Sigma Designs’ drop presents a good entry point for investors as hedge funds have been betting on the long-term prospects of the company. On the other hand, Orexigen Therapeutics is also worth adding to the watchlist, as the smart money sentiment suggests potential for a stock that lost over 56% year-to-date.

Disclosure: none