5 Biotech Stocks in Billionaire Ray Dalio’s Portfolio

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

Bridgewater Associates’ Stake Value: $10.4 million

Percentage of Bridgewater Associates’ 13F Portfolio: 0.05%

Number of Hedge Fund Holders: 77

Closing price on December 10, 2021: $72.62

Merck & Co., Inc. (NYSE:MRK) is a healthcare company whose products cover several human diseases and target areas such as cancer, heart, neurophysiology, and viruses. It is also developing a pill for the ongoing coronavirus pandemic.

Bridgewater Associates owned 139,003 Merck & Co., Inc. (NYSE:MRK) shares worth $10.4 million and 0.05% of its portfolio during Q3 2021. An Insider Monkey survey of 867 hedge funds for the same time period showed that 77 owned the company’s shares.

In its Q3, Merck & Co., Inc. (NYSE:MRK) earned $13 billion in revenue and $1.75 in non-GAAP EPS, beating analyst estimates for both. Guggenheim removed its $98 price target for the company in December 2021, citing skepticism for its HIV vaccine and high estimates for the COVID-19 cure.

Merck & Co., Inc. (NYSE:MRK)’s largest investor is Ken Fisher’s Fisher Asset Management who owns 10 million shares worth $798 million.

Artisan Partners mentioned Merck & Co., Inc. (NYSE:MRK) in its Q1 2021 investor letter, outlining that:

“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much 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. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”