ACADIA Pharmaceuticals Inc. (ACAD), Pfizer Inc. (PFE): Sabby Management Rewarded for Its Healthcare Picks

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The second noteworthy mention among Sabby Capital’s new  holdings is Pfizer Inc. (NYSE:PFE). Hal Mintz added some 1.25 million shares valued at $39.09 million of the global pharmaceutical company to his fund’s equity portfolio during the fourth quarter. Pfizer is up by 8.02% year to date as FDA accepted the company’s New Drug Application (NDA) for ALO-02 (oxycodone hydrochloride and naltrexone hydrochloride) in mid February; the drug  helps patients cope up with severe pain and is abuse deterrent. Among over 700 hedge funds that we track, Ken Fisher’s Fisher Asset management had the highest stake in the company at the end of last year that amounted to 31.20 million shares valued at $971.77 million.

Sabby Capital also initiated a new position in the health sector, represented by Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC), according to a new 13G filing. Mintz  purchased some 3.2 million shares or 9.3% of the company’s outstanding common stock. Alex Denner of Sarissa Capital Management also initiated a stake in Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC) by adding 376,000 shares valued at $263,000 to his portfolio during the fourth quarter. The $33.36 million company is down nearly 87% during the last 52 weeks.

Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC) is a small cap company, and our research has shown that small cap picks of hedge funds overwhelmingly outperform the market, as opposed to most popular picks of these investment firms, which mostly tend to be the large cap companies. We looked at the period between 1999 and 2012, and an equally weighted portfolio of 50 most popular hedge fund picks underperformed the market by 7 basis points per month. Using our analysis, the small-cap hedge fund strategy that we have formulated has outperformed the market by 76.7 percentage points over the 2.5 year period since August 2012.

Disclosure: none

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