According to a 13G form filed with the Securities and Exchange Commission, Hal Mintz’s Sabby Management has acquired a new passive stake in OncoSec Medical Incorporated (NASDAQ:ONCS). The newly initiated position consists of 1.09 million shares, which represent 7.36% of the company’s outstanding common stock, and represents the latest healthcare stock move by the respected investor.
Sabby Management is an activist investment firm based in New Jersey which was founded by reputable investor Hal Mintz. The hedge fund primarily invests in small-cap healthcare companies, with the healthcare sector constituting slightly more than 57% of the fund’s public equity portfolio as of March 31. According to its latest filing, Sabby Management manages a public equity portfolio worth $2.40 billion and also invests small amounts of capital in financial and technology stocks, among others. Mintz’s oversees the management of several funds under the Sabby Management umbrella including the Sabby Healthcare Volatility Master Fund and the Sabby Volatility Warrant Master Fund.
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OncoSec Medical Incorporated (NASDAQ:ONCS), a San Diego-based biotechnology company, develops technologies aimed at stimulating the body’s immune system to target and attack cancer cells. Just a few days ago, OncoSec Medical closed its registered direct offering of nearly 2.47 million shares of its common stock priced at $5.50. OncoSec intends to spend the net proceeds, amounting to approximately $12.6 million, on the company’s clinical trial expenses and R&D expenses. Despite the fact OncoSec’s shares have been trading on the NASDAQ Stock Market under the ticker “ONCS” only since May 29, 2015, the stock is up almost 18%. Moreover, the company has recently announced its financial results for the nine month period that ended on April 30, 2015. OncoSec delivered a net loss of $14.7 million, which represents a loss of $1.19 per share, compared to the $8.5 million loss reported for the same nine-month period a year ago. While OncoSec has not generated any revenue so far, the company continues to operate its business more aggressively, as the expenditures grow larger with time. It is not yet quite sure whether the company will be successful in producing worthy treatments and deliver strong revenue figures, however, the potential success of the company could save millions of lives by providing more effective cancer treatments. The market clearly believes that OncoSec has the capability to succeed in fulfilling its promise, which implies that the company might deliver strong financial performance in the upcoming years.
Let’s take a look at Mintz’s top picks now, including his favorite health stocks. Sabby Management added to its equity holding in Actavis plc (NYSE:ACT), ending the most recent quarter with 113,566 shares worth $33.80 million, an increase of 48,385 shares. The stock has increased nearly 16% year-to-date and might keep rising as the company has announced the approval of NATRELLE INSPIRA™ breast implants. The above-mentioned breast implants are specifically designed for women who intend to increase their breast fullness. Officials at Actavis claim that this new line of implants indicates their commitment to breast aesthetics and plastic surgery, which is undoubtedly a fast-growing market at the moment. Andreas Halvorsen’s Viking Global and John Paulson’s Paulson & Co own relatively sizable stakes in Actavis plc (NYSE:ACT), amounting to 6.11 million shares and 5.64 million shares respectively.
Meanwhile, Sabby Management reported the acquisition of an 8.42 million-share stake in Zogenix Inc. (NASDAQ:ZGNX), which is valued at $11.53 million as of March 31, and represents a 5.50% position in the company. Zogenix’s shares have increased almost 20% since the beginning of the year as the company has delivered better-than-expected financial results. Zogenix reported an adjusted-for-one-time-gains-and-costs loss of $0.08 per share, beating the analysts’ estimates of a $0.13 loss. Nevertheless, the company reported revenues of $4.6 million for the first quarter of the year, widely missing the Zacks Estimate of $7.7 million. Sabby Management is the second-largest shareholder in Zogenix Inc. (NASDAQ:ZGNX) of the hedge funds we track, behind Kevin Kotler’s Broadfin Capital, which owns 10.74 million shares worth $14.71 million.
The latest 13F filing also reveals that Sabby Management has opened a new long position in Mobileye N.V. (NYSE:MBLY). Mintz held a stake of 226,080 shares worth $9.50 million at the end of the most recent quarter. Despite the fact the stock has already gained slightly more than 18% year-to-date, the company’s shares have great growth potential in the coming years as just recently, the National Transportation Safety Board (NTSB) requested all car manufacturers to install collision avoidance systems in their new vehicles. Mobileye, which develops vision-based advanced driver assistance systems that provide warnings for collision prevention, might benefit substantially from the NTSB request. Therefore, it should be expected that the company will deliver strong financial performance in the upcoming months and years. James Dinan‘s York Capital Management is one of the largest shareholders of the company, with ownership of 1.63 million shares.
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