5 Best Healthcare Stocks to Buy According to Matthew Halbower’s Pentwater Capital Management

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In this article, we discuss the 5 best healthcare stocks to buy according to Matthew Halbower’s Pentwater Capital Management. If you want to see our detailed analysis of Halbower’s history, investment philosophy, and hedge fund performance, go directly to 10 Best Healthcare Stocks to Buy According to Matthew Halbower’s Pentwater Capital Management.

5. Karuna Therapeutics, Inc. (NASDAQ:KRTX)

Halbower’s Stake Value: $7.7 million
Percentage of Matthew Halbower’s 13F Portfolio: 0.06%

Karuna Therapeutics, Inc. (NASDAQ:KRTX) is a clinical-stage biopharmaceutical company that is focused on the development and marketing of transformative medicines for patients with psychiatric and neurological conditions. Ranked 5th on the list of the 10 best healthcare stocks to buy according to Matthew Halbower’s Pentwater Capital Management, Karuna Therapeutics, Inc. (NASDAQ:KRTX) has a market capitalization of $3.49 billion.

Matthew Halbower’s Pentwater Capital Management currently holds 68,200 shares in Karuna Therapeutics, Inc. (NASDAQ:KRTX), worth $7.77 million and accounting for 0.06% of the fund’s total portfolio value. On August 5, the company issued its quarterly earnings report for the second quarter of 2021, with reported earnings per share at -$1.17, surpassing forecast estimates of -$1.40 by $0.23.

Out of the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Viking Global is a leading shareholder in Karuna Therapeutics, Inc. (NASDAQ:KRTX) with over 822,465 shares worth more than $93.75 million.

In their Q1 2021 Investor Letter, Miller Value Partners highlighted a few stocks and Karuna Therapeutics Inc. (NASDAQ:KRTX) is one of them. Here is what the fund said:

“Karuna Therapeutics is a biotech company we got to know through our holding in PureTech Health, which founded Karuna. Karuna is unique in that the main asset it has developed is largely de-risked since it’s a reformulated drug where there’s ample historical data. The company has a Phase 3 trial in schizophrenia psychosis. This indication has a large unmet need, with about two-thirds of patients either inadequately treated. We think the company has the potential to be worth about double where the stock is trading ($117).”


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