Granite Point Capital’s Returns, AUM, and Holdings

The largest position in Granite Point Capital’s equity portfolio on September 30 was a stake in Marinus Pharmaceuticals Inc (NASDAQ:MRNS), despite the fund slashing that position by 60% to 1.06 million shares. The second-biggest position was in another pharmaceutical company, Xenon Pharmaceuticals Inc (NASDAQ:XENE), in which the fund reported holding 464,300 shares valued at $6.13 million. Xenon Pharmaceuticals is a clinical-stage biopharmaceutical company dedicated to discovering treatments for neurological diseases. In its third-quarter financial report the company disclosed cash and cash equivalents and marketable securities of $127.1 million, compared to $43.8 million on December 31, 2017.  Year-to-date, the company’s stock is up by 173%.

Among the 37 new additions to its portfolio, the fund’s most valuable new holding was in International Money Express Inc (NASDAQ:IMXI), acquiring 400,000 shares valued at $4.81 million. The Miami-based company offers a variety of money transfer services, such as wire transfer, cash checking services, and money orders, to name a few. Its technology enables clients to send money from the U.S to 17 countries in Latin America and the Caribbean, counting Guatemala and Mexico. It recently published its third-quarter financial report, in which it announced that its revenue grew by 28.6% when compared to the same period in 2017, mostly thanks to its outstanding performance in Guatemala and Mexico. Adjusted EBITDA increased by 50.7% to $13.4 million. Granite Point’s second-largest new stake was in Opiant Pharmaceuticals Inc (NASDAQ:OPNT), with the fund obtaining 75,000 shares that were valued at $1.34 million at the end of September.

Granite Point Capital appears to have lost some conviction in some of the companies in its portfolio, significantly lowering its stakes in them. Two of those stocks are Ovid Therapeutics Inc (NASDAQ:OVID) and Marinus Pharmaceuticals Inc (NASDAQ:MRNS), with the fund reducing its stakes in both by 60%. That left it with 111,826 Ovid shares and 1.06 million Marinus shares. As for the biggest position sold out of, that was Vericel Corp (NASDAQ:VCEL), in which the fund previously held 243,700 shares worth around $2.36 million.

Disclosure: None