In this article, we examined Efrem Kamen’s portfolio management strategy and approach to investing in pharmaceutical stocks. We also reviewed the top 10 pharmaceutical stocks to buy according to Efrem Kamen’s Pura Vida Investments.
Efrem Kamen, founder and managing member of Pura Vida Investments, seeks to achieve market-beating returns using a biotech and healthcare-centric perspective. His healthcare-focused investment firm, which he established in 2012 with Dr. Frank Litvack, has seen tremendous success in the past few years, with 13F portfolio value surging from around $1 billion in 2020 to $3.2 billion as of September 2021. Efrem Kamen’s long-short equity investment firm capitalizes on both short and long-term market movements. He earned a B.A. in Economics and Linguistics from Columbia College, New York.
Efrem Kamen has decades of investing experience in the healthcare sector. His firm’s investments range from biotechnology to medical technology, genomics instruments, and bio-therapeutics. Prior to founding Pura Vida Investments, Efrem worked as a portfolio manager and analyst at numerous investment firms including Waterfront Capital Partners, Diamondback Capital Management, and Citadel Investment Group.
As of September, Pura Vida Investments had 274 long or short stock positions in its 13F portfolio, and we decided to concentrate on the top 10 pharmaceutical stocks it owns. These pharmaceutical stocks include Seer, Inc. (NASDAQ:SEER), Pulmonx Corporation (NASDAQ:LUNG), ICU Medical, Inc. (NASDAQ:ICUI), Cutera, Inc. (NASDAQ:CUTR), and OncoCyte Corporation (NASDAQ:OCX).
Unlike well-established large-cap stocks such as UnitedHealth Group Incorporated (NYSE:UNH) and Thermo Fisher Scientific Inc. (NYSE:TMO), Pura Vida Investments seeks to find opportunities in early-stage companies like ViewRay, Inc. (NASDAQ:VRAY) and Establishment Labs Holdings Inc. (NASDAQ:ESTA).
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Our Methodology
We used Pura Vida Investments’ 13F portfolio for the third quarter to identify the below-mentioned stocks.
10 Pharmaceutical Stocks to Buy According to Efrem Kamen’s Pura Vida Investments
10. Seer, Inc. (NASDAQ:SEER)
Number of Hedge Fund Holders: 11
Efrem Kamen’s healthcare-focused investment firm saw the dip in the share price of Seer, Inc. (NASDAQ:SEER) as a buying opportunity. During the third quarter, the firm boosted its existing position in the company by 239% to 0.91% of the entire portfolio. Shares of Seer, Inc. (NASDAQ:SEER) have fallen 53% year-to-date.
The market analysts are also seeing the drop in Seer, Inc. (NASDAQ:SEER) shares as an attractive entry point. Seer, Inc. (NASDAQ:SEER) recently received an Outperform rating from Cowen while Morgan Stanley set its price target at $55.
As of September, Seer, Inc. (NASDAQ:SEER) was in 11 hedge funds’ portfolios, according to data tracked by Insider Monkey. Lee Ainslie’s Maverick Capital and Efrem Kamen’s Pura Vida Investments were among the leading stakeholders in Seer, Inc. (NASDAQ:SEER).
9. Pulmonx Corporation (NASDAQ:LUNG)
Number of Hedge Fund Holders: 21
Efrem Kamen’s investment firm added significantly to its existing position in Pulmonx Corporation (NASDAQ:LUNG) during the September quarter. Shares of a minimally invasive medical devices provider lost almost half of their value so far this year.
Despite the selloff, the company looks financially sound. Pulmonx Corporation (NASDAQ:LUNG) topped revenue and earnings expectations for the third quarter by $0.08 million and $0.09 per share, respectively. Moreover, Pulmonx Corporation (NASDAQ:LUNG) expects full-year revenue in the range of $49 to $51 million, representing roughly 50% growth from the past year.
Of the 867 hedge funds tracked by Insider Monkey, 21 were bullish about the company. James E. Flynn’s Deerfield Management and Ken Griffin’s Citadel Investment Group were among the leading stakeholders in the company.
8. ICU Medical, Inc. (NASDAQ:ICUI)
Number of Hedge Fund Holders: 31
ICU Medical, Inc. (NASDAQ:ICUI) is one of the long-running pharmaceutical stock holdings of Efrem Kamen’s Pura Vida Investments. As of the end of the third quarter, the hedge fund held 134,724 shares of ICU Medical, Inc. (NASDAQ:ICUI).
ICU Medical, Inc. (NASDAQ:ICUI) is engaged in offering innovative medical products used in infusion therapy and critical care applications.
In the third quarter, ICU Medical, Inc. (NASDAQ:ICUI) posted $331 million in revenue, up 5% from the past year period. The third-quarter adjusted EBITDA of ICU Medical, Inc. (NASDAQ:ICUI) came in at $71.9 million compared to $62.2 million in the past year quarter.
Like UnitedHealth Group Incorporated (NYSE:UNH) and Thermo Fisher Scientific Inc. (NYSE:TMO), ICU Medical, Inc. (NASDAQ:ICUI) is gaining the attention of hedge funds. As of the end of September, 31 hedge funds were bullish on the company, up from 27 in the second quarter. Seth Rosen’s Nitorum Capital is the leading stakeholder in the company with a stake worth $58 million. Jeremy Green’s Redmile Group also held a $52 million position in ICU Medical, Inc. (NASDAQ:ICUI) at the end of the third quarter.
7. Cutera, Inc. (NASDAQ:CUTR)
Number of Hedge Fund Holders: 24
Cutera, Inc. (NASDAQ:CUTR) is one of the top pharmaceutical stocks to buy according to Efrem Kamen’s Pura Vida Investments. The health-care-focused hedge fund has been adding significantly to its existing position in Cutera, Inc. (NASDAQ:CUTR) over the past three quarters. The firm’s strategy appears to be working because shares of the company are up 72% in the last twelve months.
Cantor Fitzgerald set Cutera, Inc. (NASDAQ:CUTR) stock price target at $55.00 as the firm believes its comprehensive portfolio of innovative aesthetics solutions for the global market is underappreciated.
Cutera, Inc. (NASDAQ:CUTR), a provider of laser and other energy-based aesthetic systems, posted third-quarter revenue of $57.4 million, up 47% from the prior-year period. Moreover, its adjusted EBITDA for the third quarter doubled to $5.1 million compared to $2.4 million in the past-year period. On the back of increasing demand, Cutera, Inc. (NASDAQ:CUTR) lifted its full-year 2021 revenue outlook to $228 million from the prior expectations of $221 million.
6. OncoCyte Corporation (NASDAQ:OCX)
Number of Hedge Fund Holders: 14
Small-cap company OncoCyte Corporation (NASDAQ:OCX) is gaining traction amid the clinical launch of its DetermaIO test, which will strengthen its position in the total available market of $5 billion in precision diagnostics solutions. OncoCyte Corporation (NASDAQ:OCX) generated 65% year-over-year growth in test volume during the third quarter despite the COVID-19 related disruptions.
Two more metrics used for measuring test adoption also reflect more volume growth in the quarters ahead. These two metrics include a 42% growth in new hospital onboards and a 22% increase in ordering physicians.
Pura Vida Investments left its position unchanged in OncoCyte Corporation (NASDAQ:OCX) during the third quarter. The firm has been holding a position in the company since the end of 2019, according to Insider Monkey data.
As of the end of the September quarter, the number of long hedge funds’ positions was at 14. Leading stakeholders such as John Overdeck and David Siegel’s Two Sigma Advisors and Samuel Isaly’s OrbiMed Advisors increased their existing stakes in the company during the September quarter.
Like UnitedHealth Group Incorporated (NYSE:UNH) and Thermo Fisher Scientific Inc. (NYSE:TMO), OncoCyte Corporation (NASDAQ:OCX) is one of the top pharmaceutical stocks to buy according to Efrem Kamen’s Pura Vida Investments.
5. Inspire Medical Systems, Inc. (NYSE:INSP)
Number of Hedge Fund Holders: 29
Efrem Kamen’s Pura Vida Investments has been holding a position in Inspire Medical Systems, Inc. (NYSE:INSP) since the second quarter of 2018. The firm benefited from its long-running position in a medical technology company. The share price of Inspire Medical Systems has soared from its IPO price of $24 in early 2018 to around $220 at present. The share price performance is backed by robust financial growth. The company’s third-quarter revenue of $61.69 million grew 72% year over year and topped the consensus estimate by $6.24 million.
Of the 867 elite funds tracked by Insider Monkey, 29 were bullish about the company. Like Efrem Kamen’s Pura Vida Investments, D E Shaw and Marshall Wace LLP are among the leading stakeholder in the company.
4. LivaNova PLC (NASDAQ:LIVN)
Number of Hedge Fund Holders: 32
Shares of LivaNova PLC (NASDAQ:LIVN) surged more than 40% in the last twelve months, thanks to strong financial growth. The company’s third-quarter revenue and earnings exceeded forecasts while updated earnings guidance beat the consensus. The company expects earnings per share in the range of $2.00 – $2.10.
In the third quarter investor letter, Diamond Hill Capital, an investment management firm, mentioned LivaNova. Here is what Diamond Hill Capital stated:
“Our health care holdings were negative in aggregate, but outpaced index peers, which boosted relative performance along with our below-benchmark positioning On an individual holdings’ basis, we exited global medical technology company LivaNova as shares approached our estimate of intrinsic value.”
3. NanoString Technologies, Inc. (NASDAQ:NSTG)
Number of Hedge Fund Holders: 26
NanoString Technologies, Inc. (NASDAQ:NSTG) is among the long-running stock holdings of Pura Vida Investments. The firm lifted its position in the company by 26% during the September quarter to capitalize on the share price selloff. NanoString shares are down 28% in the last six months. The company generated revenue of $37.15 million in the third quarter, up 16.66% year over year.
NanoString Technologies was in 26 hedge funds’ portfolios as of September. Marshall Wace LLP and ARK Investment Management were among the leading stakeholders in the company.
2. Establishment Labs Holdings Inc. (NASDAQ:ESTA)
Number of Hedge Fund Holders: 18
Efrem Kamen’s Pura Vida Investments has been holding a position in Establishment Labs Holdings Inc. (NASDAQ:ESTA) since the third quarter of 2018. The firm benefitted from its position as shares rallied sharply in the past two years. The global medical technology company posted sales of $29.0 million in the third quarter, an increase of 27.6% year-over-year. It expects full-year sales in the range of $124 million to $128 million, reflecting a 46% to 51% increase from the past year.
Hedge funds sentiment increased in Establishment Labs Holdings Inc. (NASDAQ:ESTA) during the third quarter. The number of long hedge funds’ positions jumped to 18 as of September. Joseph Edelman’s Perceptive Advisors and Efrem Kamen’s Pura Vida Investments were the leading stakeholders in the company.
1. ViewRay, Inc. (NASDAQ:VRAY)
Number of Hedge Fund Holders: 17
ViewRay, Inc. (NASDAQ:VRAY) is the largest pharmaceutical stock holding of Efrem Kamen’s Pura Vida Investments, according to 13F filings tracked by Insider Monkey. The demand for its products continues to grow at a hefty pace. The company received seven new orders totaling $39.4 million for its MRIdian systems, bringing the total backlog to $295.1 million as of September from $238.9 million in the previous year period.
ViewRay, Inc. (NASDAQ:VRAY) was in 17 hedge funds’ portfolios as of September. Hudson Executive Capital and Millennium Management were among the leading stakeholders in the company.
You can also take a look at 10 Pharmaceutical Stocks to Buy Under $20 According to Jeremy Green’s Redmile Group and 10 Dividend Stocks to Buy According to Hoon Kim’s Quantinno Capital.
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Disclosure: None. 10 Pharmaceutical Stocks to Buy According to Efrem Kamen’s Pura Vida Investments is originally published on Insider Monkey.
