In this piece, we will take a look at the nine healthcare stocks to invest in today according to Stanley Druckenmiller.
Stanley Druckenmiller is a former American hedge fund manager who has become a billionaire due to his career in the financial world. Mr. Druckenmiller was born in America’s steel city, Pittsburg, Pennsylvania, in 1953. As opposed to some of his other peers in the industry, the executive graduated with an undergraduate degree in English in 1975. Mr. Druckenmiller then proceeded to enroll himself into a Ph.D. program but left after spending three years in it in order to enter the finance world. His first stint in the industry saw him work as an analyst at a bank.
Four years after he would start working as an analyst, the investor left this role to set up Duquesne Capital Management. While working at his own fund, Mr. Druckenmiller would go ahead and first take a role at the Dreyfus fund. This would place him in the unique position of working in two funds at the same time. In 1988, he would start working with the legendary George Soros of the Soros Fund Management, and the pair would become notorious for short selling the British pound in 1992 due to their belief that the Bank of England did not have sufficient foreign exchange reserves to keep its currency stable.
The former Duquesne head would shut his fund down after thirty years, describing a variety of reasons influencing his decision. Most of these reflect the seriousness with which he managed the fund, with Mr. Druckenmiller stating that he was finding it hard to maintain the fund’s winning streak of massive returns. During the three decades that it spent in the market, Duquesne Capital Management did not post a single year of losses, and its average annual return over this time period would stand at 30%.
His investment philosophy mirrors that of some of his other hedge fund peers. Mr. Druckenmiller is a believer in building a portfolio that consists of both long and short positions.
Despite not having an active role at a hedge fund, Mr. Druckenmiller is one of the richest people in the world. The executive was worth $6.8 billion as of April 2022. His massive wealth has also seen the investor indulge in remarkable philanthropy. He has donated close to $1 billion to a variety of causes that involve medical research poverty reduction initiatives, and children’s projects.
As of the fourth quarter of last year, the Duquesne Family Office had a portfolio worth $2.7 billion. Some of the renowned companies part of this portfolio are Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and Microsoft Corporation (NASDAQ:MSFT).
Our Methodology
In order to sift out Mr. Druckenmiller’s favorite stocks in the healthcare sector, we scanned his Q4 2021 filings.
9 Healthcare Stocks to Invest In Today According to Stanley Druckenmiller
9. Sensei Biotherapeutics, Inc. (NASDAQ:SNSE)
Duquesne Family Office’s Stake Value: $580,000
Percentage of Duquesne Family Office’s 13F Portfolio: 0.02%
Number of Hedge Fund Holders: 3
Sensei Biotherapeutics, Inc. (NASDAQ:SNSE) is an American biopharmaceutical company that is headquartered in Rockville, Maryland. It focuses its efforts on developing cancer treatments. These include using bacteriophage and T-cells to target, attack, and destroy the cancer cells in a patient’s body. Additionally, it also develops a treatment that uses antigens to target cancer cells.
Mr. Druckenmiller owned 100,000 Sensei Biotherapeutics, Inc. shares during the fourth quarter of last year. These were worth $580,000 and they represented 0.02% of his investment portfolio. During the same time period, 3 of the 924 hedge funds polled by Insider Monkey had also invested in the firm.
Sensei Biotherapeutics, Inc. reported -$1.33 in GAAP EPS for its latest fiscal year which ended in December 2021. During this period, the company’s cash and marketable securities stood at $147.6 million, a large increase over the previous year’s figure. Piper Sandler reduced the company’s share price target to $10 from $12 in March 2022, outlining that the company has fiscal room to develop a treatment.
Sensei Biotherapeutics, Inc.’s largest investor after Duquesne is Israel Englander’s Millennium Management. It owns 87,290 shares that are worth $506,000.
Sensei Biotherapeutics, Inc. joins Amazon.com, Inc., Alphabet Inc., and Microsoft Corporation in the list of Duquesne Family Office’s top stock picks.
8. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)
Duquesne Family Office’s Stake Value: $1.7 million
Percentage of Duquesne Family Office’s 13F Portfolio: 0.06%
Number of Hedge Fund Holders: 30
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is a biopharmaceutical firm focusing its efforts on developing treatments for nervous system disorders. These treatments cover diseases such as Parkinson’s disease psychosis, schizophrenia, Rett syndrome, chronic pain, and Alzheimer’s disease.
ACADIA Pharmaceuticals Inc. reported $130 million in revenue and -$0.27 in GAAP EPS for its fourth fiscal quarter, missing Wall Street analyst estimates. Mizuho reduced its price target for the stock to $27 from $28 in April 2022, sharing a mixed opinion about a pain drug trial.
Duquesne Family Office owned 74,400 ACADIA Pharmaceuticals Inc. for its Q4 2021 holdings. These were worth $1.7 million and they represented 0.06% of its investment portfolio. Insider Monkey studied the hedge fund holdings of 924 hedge funds for the same time period and discovered that 30 had owned the company’s shares.
Julian Baker and Felix Baker’s Baker Bros. Advisors is ACADIA Pharmaceuticals Inc.’s largest investor. It has a $978 million stake that comes via 41 million shares.
7. Caribou Biosciences, Inc. (NASDAQ:CRBU)
Duquesne Family Office’s Stake Value: $4 million
Percentage of Duquesne Family Office’s 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 24
Caribou Biosciences, Inc. (NASDAQ:CRBU) is an American biopharmaceutical firm that is headquartered in Berkeley, California. Its products are designed to target diseases covering liver abnormalities and cancers. These include treatments for non-Hodgkin lymphoma, multiple myeloma, acute myeloid leukemia, and solid tumors.
Mr. Druckenmiller held a $4 million stake in Caribou Biosciences, Inc. by end of the three months ending in December 2021. This came in the form of 271,430 shares and it represented 0.14% of his investment portfolio. Insider Monkey analyzed the portfolios of 924 hedge funds for Q4 2021 and discovered that 24 had owned a stake in the company.
For its fiscal Q4, Caribou Biosciences, Inc. reported $2.56 million in revenue and -$0.31 in GAAP EPS, in a mixed bag of results that saw it miss analyst revenue estimates but beat them for the EPS. Brookline set a $19 price target for the company in February 2022, stating that the company can rake in as much as $14.6 billion in revenue in 2030 and that its first product might hit the market as early as 2028.
Caribou Biosciences, Inc.’s largest investor is Christopher Medlock James’s Partner Fund Management. It owns 4 million shares that are worth $59 million.
6. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
Duquesne Family Office’s Stake Value: $4.4 million
Percentage of Duquesne Family Office’s 13F Portfolio: 0.16%
Number of Hedge Fund Holders: 14
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a clinical stage biotechnology company that combines the disciplines of biology, chemistry, data analytics, and engineering to develop drugs. Its treatments focus on diseases such as difficile colitis, liver cancers, gangliosidosis, and small cell lung cancer among others.
Duquesne Family Office had a $4.4 million stake in Recursion Pharmaceuticals, Inc. during the fourth quarter of last year. This came in the form of 259,941 shares and it constituted 0.16% of its investment portfolio. Insider Monkey’s research covering 924 hedge funds for the same time period outlined that 14 had invested in the firm.
By the end of its fourth fiscal quarter, Recursion Pharmaceuticals, Inc. reported -$0.38 in GAAP EPS and $2.55 million in revenue. BofA kept the company’s price target to $10 and cut down the stock’s rating to Neutral from Buy in response to the earnings results.
Benjamin A. Smith’s Laurion Capital Management is Recursion Pharmaceuticals, Inc.’s largest investor via owning 3.9 million shares that translate into a $67 million stake.
Along with renowned technology companies, the likes of Alphabet Inc., Amazon.com, Inc., and Microsoft Corporation, Recursion Pharmaceuticals, Inc. is one of Mr. Druckenmiller’s favorite stocks.
5. Oscar Health, Inc. (NYSE:OSCR)
Duquesne Family Office’s Stake Value: $7.8 million
Percentage of Duquesne Family Office’s 13F Portfolio: 0.28%
Number of Hedge Fund Holders: 19
Oscar Health, Inc. (NYSE:OSCR) is a health insurance provider based out of New York, New York, United States. Its insurance products cover individuals, small families, and Medicare. Additionally, it also has a platform that allows providers and clients to interact with each other.
Mr. Druckenmiller’s Q4 2021 stake in Oscar Health, Inc. was worth $7.8 million and it came in the form of 994,289 shares. During the same time period, 19 of the 924 hedge funds polled by Insider Monkey had invested in the firm.
For its fiscal fourth quarter, Oscar Health, Inc. reported $496 million in revenue and -$0.95 in GAAP EPS, for a weak set of results that missed analyst estimates for both metrics. Goldman Sachs increased its price target to $9 from $6.5 in February 2022, outlining that a capital raise improves the company’s prospects.
Oscar Health, Inc.’s largest investor is Joshua Kushner’s Thrive Capital which owns 37 million shares worth $295 million.
4. AbCellera Biologics Inc. (NASDAQ:ABCL)
Duquesne Family Office’s Stake Value: $9.4 million
Percentage of Duquesne Family Office’s 13F Portfolio: 0.34%
Number of Hedge Fund Holders: 18
AbCellera Biologics Inc. (NASDAQ:ABCL) is a Canadian biotechnology firm headquartered in Canada. It takes a unique approach to drug development, via searching a database of natural immune systems for finding new antibodies which can be developed into drugs.
For its fiscal Q4, AbCellera Biologics Inc. raked in $139 million in revenue and $0.19 in GAAP EPS, beating analyst estimates for both metrics. Piper Sandler lowered its price target to $28 from $33 in February 2022, outlining that the company has reduced the pace of its program selectivity.
Duquesne Family Office held 659,750 AbCellera Biologics Inc. shares as the fourth quarter of last year came to an end. These were worth $9.4 million and they represented 0.34% of its investment portfolio. Insider Monkey took a look at 924 hedge funds holdings for Q4 2021 and discovered that 18 had bought the company’s shares.
Julian Baker and Felix Baker’s Baker Bros. Advisors is AbCellera Biologics Inc. ‘s largest investor. It has a $149 million stake that comes via 10 million shares.
3. Reata Pharmaceuticals, Inc. (NASDAQ:RETA)
Duquesne Family Office’s Stake Value: $10.7 million
Percentage of Duquesne Family Office’s 13F Portfolio: 0.38%
Number of Hedge Fund Holders: 13
Reata Pharmaceuticals, Inc. (NASDAQ:RETA) is a biopharmaceutical firm that develops treatments for patients with life threatening diseases. These include neurological, kidney, and other diseases.
As the fourth quarter of last year came to an end, Duquesne Family Office had owned 406,264 Reata Pharmaceuticals, Inc. shares which were worth $10.7 million and represented 0.38% of its investment portfolio. Insider Monkey’s 924 hedge fund survey during the same time period revealed that 13 had also owned the company’s shares.
Reata Pharmaceuticals, Inc. reported $0.93 million in revenue and -$1.59 in non-GAAP EPS, in a huge miss that saw the company fall short of Wall Street revenue estimates by $830,000. Goldman Sachs set a $91 price target for the company in March 2022, stating that it has confidence in a drug following positive data.
Reata Pharmaceuticals, Inc.’s largest shareholder is Israel Englander’s Millennium Management which owns 608,951 shares that are worth $16 million.
2. Option Care Health, Inc. (NASDAQ:OPCH)
Duquesne Family Office’s Stake Value: $33.8 million
Percentage of Duquesne Family Office’s 13F Portfolio: 1.22%
Number of Hedge Fund Holders: 26
Option Care Health, Inc. (NASDAQ:OPCH) is an infusion services provider. Its products cover heart diseases, Crohn’s disease, arthritis, sclerosis, and other inflammatory diseases.
For its fiscal fourth quarter, Option Care Health, Inc. reported $927 million in revenue and $0.41 in GAAP EPS, for a strong set of results that beat analyst estimates for both. Deutsche Bank raised the company’s price target to $32 from $23.50 in November 2021, stating that the company has strong fundamentals.
Mr. Druckenmiller held a $33.8 million stake in Option Care Health, Inc. during Q4 2021, which came in the form of 1.1 million shares. Insider Monkey scanned 924 hedge fund holdings for the same time period and discovered that 26 had also held a stake in the company.
Option Care Health, Inc.’s largest investor is Peter S. Park’s Park West Asset Management which owns $5.7 million shares worth $164 million.
1. PROCEPT BioRobotics Corporation (NASDAQ:PRCT)
Duquesne Family Office’s Stake Value: $41 million
Percentage of Duquesne Family Office’s 13F Portfolio: 1.5%
Number of Hedge Fund Holders: 17
PROCEPT BioRobotics Corporation (NASDAQ:PRCT) is an American surgical robotics company headquartered in Redwood City, California. It develops and sells an image guided surgical robotic system that aids surgeons during urethra surgery.
Duquesne Capital owned 1.6 million PROCEPT BioRobotics Corporation shares as the fourth quarter of 2021 came to an end. These were worth $41 million and represented its largest healthcare holding. A Q4 2021 924 hedge fund survey conducted by Insider Monkey revealed that 17 had bought the company’s shares.
By the end of its fiscal fourth quarter, PROCEPT BioRobotics Corporation reported $10 million in revenue and -$0.42 in GAAP EPS, beating analyst revenue estimates but missing them for EPS. Guggenheim lowered its price target to $40 from $55 in March 2022, stating that the reduction is due to multiple compression.
PROCEPT BioRobotics Corporation’s largest shareholder is Andreas Halvorsen’s Viking Global which owns 4.9 million shares worth $122 million.
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This article is originally published at Insider Monkey.
