In this article, we will take a look at the 5 healthcare stocks to buy according to billionaire Noam Gottesman’s GLG Partners. If you want greater depth about him and his investment firm, then head over to 10 Healthcare Stocks to Buy According to Billionaire Noam Gottesman’s GLG Partners.
5. Edwards Lifesciences Corporation (NYSE:EW)
Noam Gottesman’s Stake Value: $130.8 million
Percentage of Noam Gottesman’s 13F Portfolio: 0.46%
Number of Hedge Fund Holders: 47
Edwards Lifesciences Corporation (NYSE:EW) is an American company that is primarily focused on manufacturing devices for cardiovascular problems.
By the end of the second quarter, Noam Gottesman’s GLG Partners held 1.2 million shares of Edwards Lifesciences Corporation (NYSE:EW) in a stake that is worth $130.8 million and represents 0.46% of its portfolio.
In its first quarter letter, Baron Funds, an asset management firm mentioned the company and stated:
“Edwards Lifesciences Corp. is a leading manufacturer of heart valves used in replacement surgery. The company contributed on strong first quarter financial results driven by robust sales of its transcatheter aortic valve replacement (“TAVR”). We believe Edwards can continue to generate attractive growth in its TAVR business driven by expanding indications, greater disease awareness, and new technologies, and we think the emerging transcatheter mitral valve and tricuspid therapies business will add to growth in the coming years.”
4. Zoetis Inc. (NYSE:ZTS)
Noam Gottesman’s Stake Value: $164 million
Percentage of Noam Gottesman’s 13F Portfolio: 0.57%
Number of Hedge Fund Holders: 58
Zoetis Inc. (NYSE:ZTS) is a healthcare provider not for humans but for animals, making it a unique entry on our list. The company is based in the United States and it offers healthcare solutions for dogs, cats, horses, cattle, swine, poultry and sheep. Its products for our furry and non-furry friends include vaccines, feed additives and others.
By the end of the second quarter of this year, Noam Gottesman’s investment firm held 880,360 shares of Zoetis Inc. (NYSE:ZTS) that were worth $164 million which represented 0.57% of the fund’s portfolio. At the same time,53 of the 873 hedge funds polled by Insider Monkey held a stake in the company.
Zoetis Inc. (NYSE:ZTS)’s largest investor is Nicolai Tangen’s Ako Capital who holds 2.4 million shares worth $453 million.
In a second quarter 2021 investor letter, Polen Capital mentioned the company and stated that:
“As is usually the case, Portfolio turnover was modest during the quarter. We trimmed Zoetis. The Zoetis trim is simply an acknowledgement of the company’s current valuation, which we assess is elevated.”
3. Merck & Co. Inc. (NYSE:MRK)
Noam Gottesman’s Stake Value: $169 million
Percentage of Noam Gottesman’s 13F Portfolio: 0.59%
Number of Hedge Fund Holders: 79
By the end of the second quarter of this year, Noam Gottesman’s GLG Partners held 2.1 million shares of Merck & Co. Inc. (NYSE:MRK) with the stake equaling $169 million and representing 0.59% of the investment firm’s portfolio.
The company’s biggest hedge fund holder is Irving Kahn’s Kahn Brothers, which holds 716,329 shares that are roughly worth $55 billion.
Artisan Partners in its first quarter investor letter highlighted 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.”
2. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Noam Gottesman’s Stake Value: $169 million
Percentage of Noam Gottesman’s 13F Portfolio: 0.59%
Number of Hedge Fund Holders: 60
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is an American biotechnology company that focuses on a narrow segment. It offers products for Cystic Fibrosis which is a genetic disease that affects several organs such as the lungs and the stomach. The company is involved in researching treatments and it also sells medicines and cell correctors.
As the second quarter came to an end, GLG Partners held 840,124 Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) shares that were worth $169 million and represented 0.59% of the company’s stock.
In a second quarter 2021 letter, Harding Loevner had the following to say:
“Among the largest detractors from relative performance (includes) Vertex Pharmaceuticals. Vertex fell after the company halted development of one of its drug candidates undergoing Phase 2 trials. The failure leaving some investors wondering if Vertex’s much-heralded research capabilities might not extend beyond its core franchise in cystic fibrosis, a view we respectfully reject.”
1. Johnson & Johnson (NYSE:JNJ)
Noam Gottesman’s Stake Value: $293 million
Percentage of Noam Gottesman’s 13F Portfolio: 1.03%
Number of Hedge Fund Holders: 56
Johnson & Johnson (NYSE:JNJ) is one of the oldest companies in the United States since it was founded in 1886, roughly two decades after the civil war ended. It is also one of the most well-known companies in the world and sells its products in several sectors such as baby care, consumer health, medical devices, and pharmaceuticals.
Johnson & Johnson (NYSE:JNJ)’s biggest stakeholder is Terry Smith’s Fundsmith LLP, who owns 7.1 million shares of the company equaling $1.1 billion.
In its second quarter investor letter, Distillate Capital said the following about the company:
“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”
Disclosure: None. You can also take a peek at the 15 Best Blue Chip Stocks to Buy Now and 10 Best Growth Stocks To Buy According to Ray Dalio.
