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).”
4. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Halbower’s Stake Value: $9.2 million
Percentage of Matthew Halbower’s 13F Portfolio: 0.07%
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a clinical-stage biotechnology company that industrializes drug discoveries by integrating technological innovations across biology and chemistry. Ranked 4th on the list of the 10 best healthcare stocks to buy according to Matthew Halbower’s Pentwater Capital Management, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) has a market capitalization of $4.52 billion.
Matthew Halbower’s Pentwater Capital Management currently holds 252,500 shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX), amounting to $9.21 million in worth and accounting for 0.07% of the fund’s portfolio. On August 13, the company released its quarterly earnings report, with reported earnings per share at -$0.31, missing estimates by -$0.07.
Out of the hedge funds being tracked by Insider Monkey, the investment firm MIC Capital Partners is a leading shareholder in Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX), with over 1.38 million shares worth more than $50.69 billion.
In the Q2 2021 Investor Letter, Baron Discovery Fund highlighted a few stocks and Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is one of them. Here is what the fund had to say:
“Recursion Pharmaceuticals, Inc. is a biotechnology company engaged in technology-enabled drug discovery. The company uses automated wet-lab infrastructure (actual biologic experimentation) with cell perturbations (multiple experiments done on the duplicate cells), and image capture to generate data at large scale. It also operates its own supercomputer (the “BioHive”) to drive “in-silico” (virtual, software-enabled) inferences based on its data and wet-lab experiments. This combined approach has generated a strong pipeline of programs spanning early discovery to clinical trials, including a collaboration deal with Bayer. The company’s use of artificial intelligence and machine learning lowers the cost of drug discovery and speeds up time to market, and we believe this paradigm is in the early innings of disrupting the entire biopharmaceutical industry. Since Recursion’s program pipeline is still relatively early stage, we have started with a small investment.”
3. Poseida Therapeutics, Inc. (NASDAQ:PSTX)
Halbower’s Stake Value: $49.7 million
Percentage of Matthew Halbower’s 13F Portfolio: 0.41%
Poseida Therapeutics, Inc. (NASDAQ:PSTX) is a clinical-stage biopharmaceutical company that focuses on the development of therapeutics for patients with high unmet medical needs. Ranked 3rd on the list of the 10 best healthcare stocks to buy according to Matthew Halbower’s Pentwater Capital Management, Poseida Therapeutics, Inc. (NASDAQ:PSTX) has a market capitalization of $498.71 million.
Matthew Halobwer’s Pentwater Capital Management currently owns more than 4.96 million shares of Poseida Therapeutics, Inc. (NASDAQ:PSTX) amounting to $49.77 million in worth and representing 0.41% of the fund’s total portfolio. Poseida Therapeutics, Inc. (NASDAQ:PSTX) last released their quarterly earnings for the second quarter of 2021 on August 12, with reported earnings per share at -$0.74, missing the estimated earnings per share of -$0.64 by $0.10.
Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Adage Capital Management is a leading shareholder in Poseida Therapeutics, Inc. (NASDAQ:PSTX) with over 1.27 million shares worth more than $12.77 million.
2. Change Healthcare Inc. (NASDAQ:CHNG)
Halbower’s Stake Value: $207,487,000
Percentage of Matthew Halbower’s 13F Portfolio: 1.71%
Change Healthcare Inc. (NASDAQ:CHNG) is an independent healthcare technology company that provides data and analytics-driven solutions to enhance clinical, financial and administrative outcomes in the United States healthcare system. Ranked 2nd on the list of the 10 best healthcare stocks to buy according to Matthew Halbower’s Pentwater Capital Management, Change Healthcare Inc. (NASDAQ:CHNG) has a market capitalization of $6.79 billion.
Matthew Halbower’s Pentwater Capital Management currently owns 9 million shares of Change Healthcare Inc. (NASDAQ:CHNG), worth more than $207.48 million and representing 1.71% of the fund’s portfolio. Change Healthcare Inc. (NASDAQ:CHNG) issued their quarterly earnings report for the second quarter of 2021 on August 4, with reported earnings per share at $0.41, falling short of estimates by $0.03. The company also reported quarterly revenues of $867.86 million, beating consensus estimated revenues by $10.28 million.
Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Abrams Capital Management is a leading shareholder in Change Healthcare Inc. (NASDAQ:CHNG) with over 13.9 million shares worth more than $321 million.
1. Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)
Halbower’s Stake Value: $906.27 million
Percentage of Matthew Halbower’s 13F Portfolio: 7.47%
Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) is an American pharmaceutical company that focuses on patients affected by rare diseases. The Boston-based company is ranked 1st on the list of the 10 best healthcare stocks to buy according to Matthew Halbower’s Pentwater Capital Management.
Matthew Halbower’s Pentwater Capital Management currently owns 4.9 million shares of Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), amounting to $906.27 million in worth and accounting for 7.47% of the fund’s portfolio. In the second quarter of 2021, Pentwater Capital Management increased its activity in Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) by 16%.
Due to its acquisition by AstraZeneca PLC (NASDAQ:AZN) on June 6, Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) began working on immunoregulatory compounds for rare diseases, especially conditions involving immune systems.
As of Q2 2021, 69 hedge funds have positions in Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), worth over $10 billion. Out of the hedge funds being tracked by Insider Monkey, California-based investment firm Farallon Capital is a leading shareholder in Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) with over 7.7 million shares worth more than $1.4 billion.
ClearBridge Investments, an investment management firm, in its Q1 2021 investor letter, mentioned Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN). Here is what the fund said:
“We also sold biotechnology holding Alexion Pharmaceuticals ahead of its acquisition by AstraZeneca but expect to redouble our efforts in health care through the rest of the year. We see good growth potential in the sector and after full due diligence, have been busy populating our wish list with new names we would like to own.”
You can also take a look at 10 Best Dividend Aristocrats to Buy According to Hedge Funds and 10 Best Dividend Stocks to Buy According to John Khoury’s Long Pond Capital.
