1. Viatris Inc. (NASDAQ:VTRS)
Camber Capital Management’s Stake Value: $250,240,000
Percentage of Camber Capital Management’s Portfolio: 9.05%
Number of Hedge Fund Holders: 55
Viatris Inc. (NASDAQ:VTRS) is a healthcare firm that operates globally. Viatris Inc. (NASDAQ:VTRS) was losing popularity with the smart money in Q1, as the number of long hedge fund positions fell by 3. Viatris Inc. (NASDAQ:VTRS) was in 55 hedge funds’ portfolios at the end of March.
UBS analyst Ashwani Verma initiated coverage of Viatris Inc. (NASDAQ:VTRS) on June 13, assigning a ‘Sell’ rating and $9 price target. The analyst said that given the company’s valuation, it faced significant downside risk since consensus predictions did not consider declining sales and EBITDA, sluggish spin-offs, and weaker dividend growth.
According to hedge fund data compiled by Insider Monkey, Laurion Capital Management had the most valuable position in Viatris Inc. (NASDAQ:VTRS), worth close to $319.79 million, comprising 3.91% of its total 13F portfolio. Second on the list is Camber Capital Management, led by Dubois. The hedge fund upped its stake in Viatris Inc. (NASDAQ:VTRS) by 44% in Q1. Camber Capital Management held 23 million shares worth $250.24 million as of March 31. At 9.05% of the portfolio – up from 7.43% in Q4 – Viatris Inc. (NASDAQ:VTRS) is the largest holding of DuBois’ Camber Capital Management.
Davis Funds, an investment management firm, mentioned Viatris Inc. (NASDAQ:VTRS) and discussed its stance on the firm in its Q4 2021 investor letter. Here is what the fund said:
“Davis Global Fund added several new positions over the past year, including the pharmaceutical Viatris. Viatris is an unloved global pharmaceutical manufacturer created through the merger of Mylan and Upjohn (Pfizer’s off-patent drugs business). The company is highly diversified, with leading positions across a wide span of generic and specialty/partnered drugs in many countries around the world. While growth for the portfolio overall is moderated by pricing pressures in traditional generics, Viatris has an attractive pipeline of complex drugs (e.g., inhaled drugs, injectables, etc.) and biosimilars, the latter of which are poised to see growth in the years ahead after a long period of regulatory and legal deadlock in the U.S.
Near-term, Viatris is committed to using free cash flow to pay down debt, but we believe its extremely cheap valuation (4–5x owner earnings) and growing cash generation offers a compelling risk/reward proposition that should eventually be recognized by the market.”
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