Ariad Pharmaceuticals, Inc., Quest Diagnostics Inc, Amgen, Inc.: Sarissa Capital’s Top Stock Picks and New Moves

With a stake of 775,000 shares, Quest Diagnostics Inc (NYSE:DGX) was the second-largest equity in Sarissa Capital’s portfolio, accounting for 18.4% of all holdings. The hedge fund acquired a new position in the company in the fourth quarter of 2013, and only altered the position once, by increasing it by 75,000 shares the following quarter. Last year, the stock gained almost 24%, while share prices have grown by approximately 6% year-to-date. Furthermore, Quest Diagnostics Inc (NYSE:DGX) has numerous institutional investors among its shareholders, such as Ken Griffin’s Citadel Investment Group. Last quarter, the hedge fund increased its stake in the company to 2.46 million shares, representing a huge increase in its exposure to the stock.

Sarissa Capital was also bullish on Amgen, Inc. (NASDAQ:AMGN) last quarter, increasing its holding by 165% last quarter, and disclosing a position of 318,000 shares. The investment firm acquired an initial stake of 45,000 shares in the company in last year’s Q2, consistently increasing its exposure over the past months.

The stock performed very well last year, gaining around 38% after reaching a 10-year high of $173.14 per share in December. Hence, it comes as no surprise that several hedge funds have their eyes set on Amgen, Inc. (NASDAQ:AMGN). Dan Loeb’s Third Point is certainly bullish regarding the company, as it holds a stake of 10.67 million shares as of last quarter. This position accounts for 15.33% of the firm’s equity portfolio, following the 700% increase in the holding last quarter. Finally, Sarissa Capital’s top 3 pick last quarter is set to continue growing, thanks to the success of its products and a pipeline full of promising projects.

Disclosure: none.