Ariad Pharmaceuticals, Inc. (ARIA), Amgen, Inc. (AMGN): How Sarissa Capital’s Top Picks Beat the Market

Amgen, Inc. (NASDAQ:AMGN)’s stock edged up by 0.88% during the first quarter, after jumping by some 38% during the last year. The company represents the fund’s third largest position, accounting for 17.92% of its portfolio. Sarissa Capital increased its exposure to the company by 165% during the fourth quarter to 318,000 shares valued at $50.7 million. Dan Loeb’s Third Point is also bullish on Amgen, Inc. (NASDAQ:AMGN), as it increased its position by 700% during the fourth quarter 2014 to 10.68 million shares valued at $1.70 billion, according to its latest 13F filing. Moreover, Samuel Isaly’s Orbimed Advisors, Orbis Investment Management and Legg Mason Capital Management also reported large stakes in Amgen, Inc. (NASDAQ:AMGN) in the previous round of 13F filings.

Merck & Co., Inc. (NYSE:MRK) represents the fund’s fourth largest position, comprising 8.04% of its portfolio with 400,000 shares valued at $22.7 million as of the end of 2014. The stock of the pharmaceutical company appreciated by 2.04% during the first quarter of 2015. Analysts expect positive short term prospects for Merck & Co., Inc. (NYSE:MRK) ‘s stock, driven by a large pipeline of drugs, particularly those in the late-stage development. Cliff Asness’s Aqr Capital Management increased its position in the firm by 70% during fourth quarter 2014, constituting 7.5 million shares valued at $425.1 million. Other major investors in Merck & Co., Inc. (NYSE:MRK) are Ken Fisher’s Fisher Asset Management and Adage Capital Management.

The last but not least is Agilent Technologies Inc. (NYSE:A), another pick of Sarissa Capital Management. The fund’s position of 460,000 shares valued at $18.8 million accounted for 6.7% of its equity portfolio. During the January-March period, the stock of Agilent Technologies Inc. (NYSE:A) gained 1.99%. Daniel S. Och’s OZ Management increased its position in the firm by 481% during the fourth quarter 2014, holding over 6.1 million shares valued at $249.4 million. In addition, Orbimed Advisors and Senator Investment Group also reported large stakes in Agilent Technologies Inc. (NYSE:A) in their latest 13F filings.

Disclosure: none