5 Best Psychedelic Stocks to Buy According to Hedge Funds

2. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 77

Merck & Co., Inc. (NYSE:MRK) is an American multinational pharmaceutical company that offers human health pharmaceutical products in the areas of oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, and diabetes, as well as animal health products. In March 2021, Novamind, a company that specializes in psychedelic life sciences, partnered with Merck & Co., Inc. (NYSE:MRK). The partnership involves Cedar Clinical Research (CCR), a subsidiary of Novamind, acting as a research division for a new drug developed by Merck that is aimed at treating depression that is resistant to treatment. It is one of the best psychedelic stocks to invest in. 

On January 24, Merck & Co., Inc. (NYSE:MRK) declared a quarterly dividend of $0.73 per share, in line with previous. The dividend is distributable on April 10, to shareholders of record on March 15. 

According to Insider Monkey’s fourth quarter database, 77 hedge funds were bullish on Merck & Co., Inc. (NYSE:MRK), compared to 82 funds in the prior quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is a prominent stakeholder of the company, with 2.7 million shares worth $301.70 million. 

Artisan Value Fund made the following comment about Merck & Co., Inc. (NYSE:MRK) in its Q4 2022 investor letter:

“Merck & Co., Inc. (NYSE:MRK) is a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. Shares have benefited from investors seeking safety in areas with less economic and interest rate sensitivity. With about one third of its sales generated by blockbuster oncology drug Keytruda, the key issue for investors is the success of its large R&D pipeline to replace those sales when Keytruda comes off patent in 2028. However, Merck seems to be getting little credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions, besides return of capital to shareholders via dividends and share repurchases.”