In this article, we will look at Harvard University’s latest stock portfolio and list its 10 best biotech stock picks. If you want to explore more biotech stocks that make up the top holdings of Harvard Management, you can also take a look at Harvard University’s Latest Portfolio: 5 Best Biotech Stock Picks.
Harvard Management Company was founded in 1974 and has been a significant contributor to funding Harvard’s operations. Harvard Management Company manages Harvard University’s endowment which is among the largest academic endowments in the world, valued at $53.2 billion as of fiscal 2021.
Harvard Management Company seeks to generate risk-adjusted long-term returns on investment. The fund’s teams collaborate and determine the appropriate level of risk for its portfolio, which is in the best interests of Harvard. In fiscal 2021, Harvard Management Company delivered a return of 33.6%, and since 1974, Harvard Management Company has averaged a return of 11% on an annualized basis, up until 2021.
At the time of the 2008 mortgage crisis, Jane Mendillo was put in charge of managing Harvard Management Company’s endowment. Jane Mendillo joined Harvard Management Company as an equities analyst in 1987 and catered to various roles at the endowment including managing venture capital investments and managing the investment of charitable trusts up until 2001. In 2002, Jane Mendillo was recruited by Wellesley College as the chief investment officer of the university’s endowment. In 2008, Jane Mendillo returned to Harvard Management Company and was tasked with managing assets worth $36.9 billion. Jane Mendillo resigned from her role as CEO of Harvard Management Company in 2014, bringing its value to $36.4 billion.
In 2016, Narv Narvekar joined Harvard Management Company as the CEO. Mr. Narvekar has served as the CEO of Columbia University’s endowment and as the managing director for equity derivatives at JPMorgan Chase & Co. As of June 30, 2022, Mr. Narvekar manages $863.7 million in 13F securities.
In the second quarter of 2022, Harvard Management Company increased its stakes in 11 companies, reduced its stakes in one company, and initiated a position in one company. The fund has a top ten holdings concentration of 81.9% and has investments concentrated in the technology and healthcare segments. For the second quarter of 2022, Harvard Management Company returned 13.45% quarter-on-quarter. Some of the fund’s top technology holdings include Meta Platforms, Inc. (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOG), and NVIDIA Corporation (NASDAQ:NVDA).
Our Methodology
To determine the 10 best biotech stocks to buy according to Harvard Management Company, we reviewed the fund’s second-quarter 2022 investment portfolio and looked for companies operating in the biotech industry. We narrowed down our selection to biotech stocks that make up the top of Harvard Management Company’s 13F portfolio and ranked them in increasing order of the fund’s stake in them. Along with each stock, we have included the hedge fund sentiment and analyst ratings.
Harvard University’s Latest Portfolio: 10 Best Biotech Stock Picks
10. Tenaya Therapeutics, Inc. (NASDAQ:TNYA)
Harvard Management’s Stake Value: $3,791,000
Percentage of Harvard Management’s 13F Portfolio: 0.43%
Number of Hedge Fund Holders: 12
Tenaya Therapeutics, Inc. (NASDAQ:TNYA) is a San Francisco-based biotechnology company that develops therapies for heart disease. As of June 30, Harvard Management Company owns roughly 0.67 million shares of Tenaya Therapeutics, Inc. (NASDAQ:TNYA) which amounts to a stake of $3.7 million.
On July 6, Piper Sandler analyst Yasmeen Rahimi reiterated his $40 price target and a buy-side Overweight rating on Tenaya Therapeutics, Inc. (NASDAQ:TNYA).
On September 6, Tenaya Therapeutics, Inc. (NASDAQ:TNYA) announced that it has received FDA clearance to begin clinical trials of TN-301, the company’s small molecule inhibitor for the treatment of heart failure with preserved ejection fraction.
At the close of Q2 2022, 12 hedge funds were long Tenaya Therapeutics, Inc. (NASDAQ:TNYA) and held stakes worth $58.3 million in the company. This is compared to 10 positions in the preceding quarter with stakes worth $122 million in the company.
In addition to healthcare, Harvard Management Company has hefty investments in the technology sector. Some of the fund’s most notable tech holdings include Meta Platforms, Inc. (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOG), and NVIDIA Corporation (NASDAQ:NVDA).
9. Nurix Therapeutics, Inc. (NASDAQ:NRIX)
Harvard Management’s Stake Value: $3,988,000
Percentage of Harvard Management’s 13F Portfolio: 0.46%
Number of Hedge Fund Holders: 12
Nurix Therapeutics, Inc. (NASDAQ:NRIX) is a biopharmaceutical company focused on the development and distribution of small molecule therapies for cancer and immune disorders. At the end of Q2 2022, 12 hedge funds were bullish on Nurix Therapeutics, Inc. (NASDAQ:NRIX) and held stakes worth $163.25 million in the company. This is compared to 20 hedge funds in Q1 2022, with stakes worth $129.7 million.
On July 7, Nurix Therapeutics, Inc. (NASDAQ:NRIX) announced earnings for the second quarter of fiscal 2022. The company generated a revenue of $11.4 million, up 61.2% year over year, and outperformed Wall Street consensus by $0.93 million. As of September 14, Nurix Therapeutics, Inc. (NASDAQ:NRIX) has gained 20.6% over the past six months.
Shortly after the company’s earnings release, Stifel analyst Stephen Willey adjusted his price target on Nurix Therapeutics, Inc. (NASDAQ:NRIX) to $37 from $44 and maintained a Buy rating on the shares. On July 11, H.C. Wainwright analyst Robert Burns revised his price target on Nurix Therapeutics, Inc. (NASDAQ:NRIX) to $54 from $60 and reiterated a Buy rating on the shares.
As of June 30, Harvard Management Company owns 0.31 million shares of Nurix Therapeutics, Inc. (NASDAQ:NRIX) which amounts to a stake of $3.9 million. The investment covers 0.46% of the fund’s 13F portfolio.
8. Pliant Therapeutics, Inc. (NASDAQ:PLRX)
Harvard Management’s Stake Value: $4,505,000
Percentage of Harvard Management’s 13F Portfolio: 0.52%
Number of Hedge Fund Holders: 17
Pliant Therapeutics, Inc. (NASDAQ:PLRX) is a clinical-stage biopharmaceutical company that develops therapies for the treatment of fibrosis and related diseases in the United States. The company’s main product is the PLN-74809, an oral therapy for the treatment of idiopathic pulmonary fibrosis.
As of September 14, Pliant Therapeutics, Inc. (NASDAQ:PLRX) has gained 28.7% over the past twelve months.
On August 8, Pliant Therapeutics, Inc. (NASDAQ:PLRX) announced earnings for the fiscal second quarter of 2022. The company generated a revenue of $4.9 million, up 178.8% year over year, and outperformed Wall Street consensus by $3.79 million.
Wall Street analysts are bullish on Pliant Therapeutics, Inc. (NASDAQ:PLRX). On August 9, H.C. Wainwright analyst Ed Arce raised his price target on Pliant Therapeutics, Inc. (NASDAQ:PLRX) to $53 from $45 and maintained a Buy rating on the shares. On September 1, Citi analyst David Lebowitz initiated coverage of Pliant Therapeutics, Inc. (NASDAQ:PLRX) with a Buy rating and a $36 price target.
At the close of Q2 2022, 17 hedge funds were bullish on Pliant Therapeutics, Inc. (NASDAQ:PLRX) and held stakes worth $63 million in the company. This is compared to 11 positions in the previous quarter with stakes worth $48.6 million. The hedge fund sentiment for the stock is positive.
As of June 30, Harvard Management Company’s stakes in Pliant Therapeutics, Inc. (NASDAQ:PLRX) are valued at $4.5 million. The investment covers 0.52% of Harvard Management Company’s 13F portfolio.
7. Kinnate Biopharma Inc. (NASDAQ:KNTE)
Harvard Management’s Stake Value: $6,280,000
Percentage of Harvard Management’s 13F Portfolio: 0.72%
Number of Hedge Fund Holders: 12
Kinnate Biopharma Inc. (NASDAQ:KNTE) is a biopharmaceutical company that engages in the discovery and development of small molecule kinase inhibitors for the treatment of genomically defined cancers in the United States. As of June 30, Harvard Management Company’s stakes in Kinnate Biopharma Inc. (NASDAQ:KNTE) are valued at $6.2 million, which covers 0.72% of the fund’s 13F portfolio.
On July 28, H.C. Wainwright analyst Robert Burns initiated coverage of Kinnate Biopharma Inc. (NASDAQ:KNTE) with a Buy rating and a $33 price target. The analyst noted that the company is “on the cutting edge of precision medicine in oncology.” As of September 14, Kinnate Biopharma Inc. (NASDAQ:KNTE) has surged 53.8% over the past six months.
At the end of the second quarter of 2022, 12 hedge funds held stakes in Kinnate Biopharma Inc. (NASDAQ:KNTE) and held stakes worth $169.84 million in the company. This is compared to 13 hedge funds in the preceding quarter with stakes worth $154.39 million.
Like Meta Platforms, Inc. (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOG), and NVIDIA Corporation (NASDAQ:NVDA), Kinnate Biopharma Inc. (NASDAQ:KNTE) is among Harvard Management Company’s top 13F holdings.
6. 10x Genomics, Inc. (NASDAQ:TXG)
Harvard Management’s Stake Value: $8,423,000
Percentage of Harvard Management’s 13F Portfolio: 0.97%
Number of Hedge Fund Holders: 17
10x Genomics, Inc. (NASDAQ:TXG) is a biotechnology company that is involved in the development and commercialization of gene sequencing technology that is used in scientific research. On August 8, 10x Genomics, Inc. (NASDAQ:TXG) announced earnings for the fiscal second quarter of 2022. The company reported a revenue of $114.6 million.
On July 25, Canaccord analyst Kyle Mikson initiated coverage of 10x Genomics, Inc. (NASDAQ:TXG) with a Buy rating and a $55 price target. Mikson likes the company’s long-term growth story and sees a 57% upside to his price target. On August 9, Cowen analyst Dan Brennan raised the firm’s price target on 10x Genomics, Inc. (NASDAQ:TXG) to $55 from $50 and reiterated an Outperform rating on the shares.
At the close of the second quarter of 2022, 17 hedge funds held stakes in 10x Genomics, Inc. (NASDAQ:TXG) worth $512.6 million. This is compared to 22 positions in the previous quarter with stakes worth $541.3 million.
As of June 30, Harvard Management Company’s stake in 10x Genomics, Inc. (NASDAQ:TXG) is valued at $8.4 million. The investment covers 0.97% of the fund’s 13F portfolio.
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Disclosure. None. Harvard University’s Latest Portfolio: 10 Best Biotech Stock Picks is originally published on Insider Monkey.
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