In this article, we discuss 5 stocks to sell according to Jinghua Yan’s TwinBeech Capital. If you want to read our detailed analysis of Yan’s history, investment philosophy, and hedge fund performance, go directly to 10 Stocks to Sell According to Jinghua Yan’s TwinBeech Capital.
5. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 76
Percentage Decrease in Stake in Q1: 100%
TwinBeech Capital sold its entire stake in pharmaceutical company AbbVie Inc. (NYSE:ABBV) in the first quarter of 2022. On May 16, AbbVie Inc. (NYSE:ABBV) and Cugene, a clinical-stage biotechnology company, established a partnership to explore next-generation precision immunology and oncology medicines to treat autoimmune disease and cancer. Under the agreement terms, Cugene will get a $48.5 million early payment.
On May 23, SVB Leerink analyst David Risinger maintained an Underperform rating on AbbVie Inc. (NYSE:ABBV) with a price objective of $140. AbbVie Inc. (NYSE:ABBV), on April 29, posted earnings for the first quarter of 2022. The reported earnings per share came in at $3.16, beating estimates by $0.02.
According to Insider Monkey’s database, 76 hedge funds had a stake in AbbVie Inc. (NYSE:ABBV) as of Q1 2022. The total value of their holdings was $3.67 billion. Arrowstreet Capital is one of the leading shareholders of AbbVie Inc. (NYSE:ABBV), with a position worth over $754.16 million.
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) AbbVie (ABBV). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”