Sabby Management is a New Jersey-based activist hedge fund launched by Hal Mintz in June 2011. The investment firm primarily employs an opportunistic and event-driven strategy by focusing on fundamental and quantitative analysis. Sabby Management mainly invests in the healthcare sector, including the biotechnology and pharmaceutical segments, which altogether represent roughly 73% of the fund’s entire public equity portfolio. Hal Mintz’s Sabby Management manages a few funds, including the Sabby Healthcare Volatility Master Fund and the Sabby Volatility Warrant Master Fund. The firm’s 32 long positions on March 31 in stocks with a $1 billion market capitalization returned 8.7% in the second quarter of this year, pushing its year-to-date returns to 56.5% thanks to its exceptional returns in the first quarter. These calculated stock pick returns are only estimates of the fund’s actual performance, and do not include options, bonds, or short positions, so they could differ greatly from a fund’s actual returns. As stated by its most recent 13F filing, Sabby Management oversees a public equity portfolio worth $2.40 billion. In this article we will be discussing some of the fund’s most notable holdings, which include the following companies: Zogenix Inc. (NASDAQ:ZGNX), Mobileye N.V. (NYSE:MBLY), and InterOil Corporation (NYSE:IOC).
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Sabby Management’s most recent 13F filing reveals that the fund took a long position in Zogenix Inc. (NASDAQ:ZGNX), acquiring a stake of 8.42 million shares, which were worth $11.53 million on March 31. The shares of Zogenix have grown nearly 85% since the beginning of the current year, and over 22% in the second quarter, owing to the company’s impending Phase III clinical study of fenfluramine, which is set to start later this year in Dravet syndrome patients. Following its meeting with Food and Drug Administration regulators, Zogenix intends to file an Investigational New Drug (IND) Process for two Phase III studies of low-dose fenfluramine to assess its ability to limit seizures in Dravet syndrome patients. The enthusiasm of investors around the company’s recent success has sent the stock to new highs this year, but some analysts believe that Zogenix’s stock has even more upside potential (see more details). Within our database, Kevin Kotler’s Broadfin Capital, which is another healthcare-focused hedge fund, represents the largest investor in Zogenix Inc. (NASDAQ:ZGNX), holding 10.74 million shares.