In this piece, we will take a look at the ten biotechnology stocks to buy today according to Kerr Neilson’s Platinum Asset Management. If you want to skip the details about Mr. Neilson and his hedge fund, then jump ahead to the top five stocks in this list by heading to 5 Biotech Stocks to Buy Today According to Kerr Neilson’s Platinum Asset Management.
Platinum Asset Management is an Australian hedge fund based out of Sydney, New South Wales. It was founded by Mr. Kerr Neilson in 1994, making it one of the younger hedge funds out there. The fund has made Mr. Neilson a billionaire after it sold its stock on the market.
Platinum Asset Management is one of the few hedge funds outside of the United States and the United Kingdom that has managed to make a name for itself in a relatively short time period. Its founder was born in South Africa in 1950 and he also completed his undergraduate education in the country. After graduation, he worked at different financial institutions in Australia and United Kingdom, before settling down to start his hedge fund in 1994.
Platinum Investment Management offers regional and industry specific funds alongside exposures to global stocks. While the fund is known for Mr. Neilson’s ‘contrarian’ approach, it does not exclusively limit itself to it. Its funds have the authority to engage in short selling for instance. Short selling refers to the practice of borrowing a company’s shares and selling them on the open market with the hopes of the share price dropping.
Some of the funds that the firm manages are the Platinum International Fund, the Platinum Unhedged Fund, the Platinum International Health Care Fund, the Platinum World Portfolio – International Fund, and the Platinum International Technology Fund. Additionally, it also has two funds and two investment companies, Platinum Capital Limited and Platinum Asia Investments Limited which have floated their shares on the Australian Securities Exchange (ASX).
Platinum Asset Management’s portfolio was worth $3.5 billion as of December 2021, and some of the renowned companies in it are Meta Platforms, Inc. (NASDAQ:FB), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG).
Kerr Neilson of Platinum Asset Management
Our Methodology
In order to pick Mr. Neilson’s favorite biotechnology companies, we took a look at his firm’s filings for the fourth quarter of last year. Once the companies were identified, we studied their quarterly earnings, analyst reports, investor letters, large shareholders, and hedge fund sentiment courtesy of Insider Monkey’s Q4 2021 survey of 924 hedge funds.
10. Albireo Pharma, Inc. (NASDAQ:ALBO)
Platinum Asset Management’s Stake Value: $7 million
Percentage of Platinum Asset Management’s 13F Portfolio: 0.2%
Number of Hedge Fund Holders: 15
Albireo Pharma, Inc. (NASDAQ:ALBO) is an American biotechnology company headquartered in Boston, Massachusetts. It is involved in producing bile for treating liver diseases. These diseases cover those affecting both children and adults.
Platinum Asset Management owned 315,662 Albireo Pharma, Inc. (NASDAQ:ALBO) shares during the fourth quarter of last year. These were worth $7 million and they represented 0.2% of its investment portfolio. Insider Monkey’s Q4 2021 survey of 924 hedge funds revealed that 15 had bought the company’s shares.
For its fiscal fourth quarter, Albireo Pharma, Inc. (NASDAQ:ALBO) reported $32 million in revenue and -$0.57 in GAAP EPS. This marked a significant revenue growth over the $2.72 million that it had posted for the year-ago quarter. Wedbush set a $75 price target for the company in March 2022 as it added the stock to its Best Ideas list.
Alongside Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and Alphabet Inc. (NASDAQ:GOOG), Albireo Pharma, Inc. (NASDAQ:ALBO) is one of Platinum Asset Management’s favorite stocks.
9. Coherus BioSciences, Inc. (NASDAQ:CHRS)
Platinum Asset Management’s Stake Value: $8.5 million
Percentage of Platinum Asset Management’s 13F Portfolio: 0.23%
Number of Hedge Fund Holders: 21
Coherus BioSciences, Inc. (NASDAQ:CHRS) is a biopharmaceutical company based out of Redwood City, California, United States. It is known for developing products involved in the treatment of several kinds of cancers. The firm has partnerships with several companies in the U.S. and China for licensing products.
Coherus BioSciences, Inc. (NASDAQ:CHRS) raked in $73 million in revenue and -$0.46 in non-GAAP EPS during its fiscal fourth quarter, in a mixed set of results that saw it beat analyst EPS estimates but miss them for revenue. The company’s treatment for small cell lung cancer was granted approval by the U.S. Food and Drug Administration (FDA) in April 2022.
Mr. Neilson’s hedge fund owned 535,108 Coherus BioSciences, Inc. (NASDAQ:CHRS) shares as Q4 2021 came to an end. These were worth $8.5 million and represented 0.23% of its investment portfolio. During the same time period, Insider Monkey’s 924 hedge fund survey revealed that 21 had owned the company’s shares.
Coherus BioSciences, Inc. (NASDAQ:CHRS)’s largest investor is Joseph Edelman’s Perceptive Advisors which owns 5.4 million shares worth $86 million.
8. Zai Lab Limited (NASDAQ:ZLAB)
Platinum Asset Management’s Stake Value: $8.8 million
Percentage of Platinum Asset Management’s 13F Portfolio: 0.24%
Number of Hedge Fund Holders: 32
Zai Lab Limited (NASDAQ:ZLAB) is a Chinese biotechnology company that develops treatments for a wide variety of diseases. These include cancers, immune system diseases, infectious diseases, and neurological disorders. Its commercialized products are involved in the treatment of skin diseases, kidney diseases, and several kinds of tumors.
For the fourth quarter of last year, Platinum Asset Management’s stake in Zai Lab Limited (NASDAQ:ZLAB) was worth $8.8 million. It came via the firm owning 140,591 shares and constituted 0.24% of its investment portfolio. Insider Monkey analyzed 924 hedge fund holdings for the same time period and discovered that 32 contained the company’s stock.
By the end of its latest fiscal year, Zai Lab Limited (NASDAQ:ZLAB) reported $144 million in revenue and $0.73 in GAAP EPS, missing analyst estimates for both metrics. This was despite the fact that the revenue marked 194% annual growth. Citi set a $198 price target for the company in March 2022, stating that a schizophrenia treatment was unaccounted for in Wall Street estimates.
Andreas Halvorsen’s Viking Global is Zai Lab Limited (NASDAQ:ZLAB)’s largest investor. It owns three million shares worth $189 million.
ClearBridge Investments mentioned the company in its fourth quarter 2021 investor letter. Here is what the fund said:
“Economies in Asia, meanwhile, are taking the opposite approach on stimulus, with China lowering its reserve requirement ratio for banks to support flagging growth in the world’s second-largest economy. Japan’s new government passed a large stimulus bill after its economy contracted in the third quarter. Despite these actions, sentiment remains decidedly negative in these regions. Our underweight to Japan proved beneficial during the quarter while our single holding in China – biotechnology company Zai Lab – sold off sharply mostly due to generally weak sentiment around Chinese health care stocks.”
7. Cogent Biosciences, Inc. (NASDAQ:COGT)
Platinum Asset Management’s Stake Value: $9 million
Percentage of Platinum Asset Management’s 13F Portfolio: 0.25%
Number of Hedge Fund Holders: 18
Cogent Biosciences, Inc. (NASDAQ:COGT) is a biotechnology company headquartered in Cambridge, Massachusetts, United States. The company develops treatments for genetic diseases such as mastocytosis and other stomach tumors.
Cogent Biosciences, Inc. (NASDAQ:COGT) posted a net loss of $24.9 million by the end of its fiscal fourth quarter. For the same time period, the company revealed that it had cash and cash equivalents of $219 million. Piper Sandler set a $22 price target for the company in March 2022, as it stated that a treatment program was on track and the data was positive.
Mr. Neilson’s hedge fund owned one million Cogent Biosciences, Inc. (NASDAQ:COGT) shares as part of its fourth quarter 2021 investment portfolio. These were worth $9 million and represented 0.25% of the portfolio. An Insider Monkey survey of 924 hedge funds for the same time period revealed that 18 funds had also invested in the firm.
6. Pardes Biosciences, Inc. (NASDAQ:PRDS)
Platinum Asset Management’s Stake Value: $17 million
Percentage of Platinum Asset Management’s 13F Portfolio: 0.49%
Number of Hedge Fund Holders: 18
Pardes Biosciences, Inc. (NASDAQ:PRDS) is another American biopharmaceutical firm. It exclusively focuses on developing treatments for life threatening diseases. These include severe respiratory diseases such as the coronavirus 2.
Platinum Asset Management’s stake in Pardes Biosciences, Inc. (NASDAQ:PRDS) for Q4 2021 was worth $17 million, and it came through the firm owning one million shares. The investment accounted for 0.49% of Platinum Asset Management’s portfolio. Insider Monkey took a look at the holdings of 924 hedge funds for the same time period and found out that 18 had also bought the company’s shares.
Pardes Biosciences, Inc. (NASDAQ:PRDS) revealed in March 2022 that by the end of its latest fiscal year, it had a GAAP EPS of -$10.13 and cash and cash equivalents worth $268 million. SVB Leerink set an $18 price target for the company in March 2022, outlining that the company has several crucial treatments in development, including those for the COVID-19 coronavirus.
Pardes Biosciences, Inc. (NASDAQ:PRDS) joins Meta Platforms, Inc. (NASDAQ:FB), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG) as a top Kerr Neilson stock pick.
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Disclosure: None. 10 Biotech Stocks to Buy Today According to Kerr Neilson’s Platinum Asset Management is originally published on Insider Monkey.
