Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Adage Capital Management’s Latest Portfolio Moves

Adage Capital Management is a Boston-based hedge fund, launched by Phil Gross and Robert Atchinson back in 2001. Both Phil Gross and  Robert Atchinson previously worked at Harvard University’s endowment, and their team managed to beat the S&P 500 Index by an average of 4.5 percentage points annually. Considering this success, it comes as no surprise that Harvard Management Company hired Adage Capital Management to manage $1.8 billion and that it also holds a minority interest in the fund. At the end of 2016, Adage Capital Management held $27.71 billion in assets under management. What differentiates Adage Capital Management from other hedge fund is its radical idea to provide a guarantee for its performance in a way that it returns money back if it fails to perform well. At least, this is what it has been doing four years ago, and we weren’t able to attain information if they have continued with this trend to date. In this article we are going to take a look at the fund’s most interesting and latest investment moves.

Phill Gross, Adage Capital Management

Insider Monkey’s flagship strategy identifies the best performing 100 hedge funds at the end of each quarter and invests in their consensus stock picks. This way it is always invested in the best ideas of the best performing hedge funds and is able to generate much higher returns than the market. Since its inception in May 2014, our flagship strategy generated a cumulative return of 89%, beating the S&P 500 ETF (SPY) by 29 percentage points (see the details here). We take a closer look at hedge funds like Adage Capital Management in order to identify their best and worst ideas.

During the first quarter of 2019, the fund initiated more than 60 new positions, among which the biggest  ones were in Spark Therapeutics, Inc. (NASDAQ:ONCE), SunTrust Banks, Inc. (NYSE:STI), and CBS Corporation (NYSE:CBS). It also showed enthusiasm some of its existing holdings, boosting its stakes in Apple Inc. (NASDAQ:AAPL), Celgene Corporation (NASDAQ:CELG), and Facebook, Inc. (NASDAQ:FB).

On the other side of the enthusiasm spectrum were Microsoft Corporation (NASDAQ:MSFT),, Inc. (NASDAQ:AMZN), and Johnson & Johnson (NYSE:JNJ), in which the fund trimmed its stakes. As for the top exits in the quarter we have General Electric Company (NYSE:GE), Berry Global Group, Inc. (NYSE:BERY), and 3M Company (NYSE:MMM).

Disclosure: None.

This article is originally published at Insider Monkey.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.