Daniel Gold’s QVT Financial discloses that it now has 5.29 million shares in Orexigen Therapeutics, Inc. (OREX), corresponding to a 9.82% passive stake. According to the firm’s filing today, QVT Financial probably paid more than OREX’s current price to obtain the shares. The firm initiated its OREX position in the third quarter and reported 1.76 million shares at the end of September, so now its position is tripled. OREX currently trades at $1.63, losing 80% so far in 2011.
There are other hedge funds that also invested in the stock. Jim Simons’ Renaissance Technologies remained 787 thousand shares in its position at the end of September, after a 36% decrease. David E. Shaw’s D. E. Shaw boosted its position by 32% and reported 191 thousand shares in the third quarter.
According to Bloomberg Businessweek, QVT Financial is a privately owned hedge fund sponsor, providing its services to pooled investment vehicles. The firm mainly invests in the public equity and debt markets worldwide. It also invests in alternative investment markets. It uses structured finance, private placements, high yield and distressed debt to create its portfolios. The firm had a portfolio value of more than $1.5 billion as of June 2011.
According to Google Finance, Orexigen Therapeutics, Inc. “is a biopharmaceutical company focused on the development of pharmaceutical product candidates for the treatment of obesity. The company is developing its product candidates for markets served by primary care physicians. In September 2010, it entered into a collaboration agreement with Takeda to develop and commercialize Contrave in the United States, Canada and Mexico.”