Hedge Funds Regret Selling These Soaring Stocks, Part 2

#1 Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA)

Investors with Long Positions (as of September 30): 70

Aggregate Value of Investors’ Holdings (as of September 30): $6.80 Billion

While the number of money managers holding Teva in their portfolios dropped by seven during the third quarter, the aggregate value of their holdings increased by $2.5 billion even though the stock price depreciated by more than 15% during the same period. During the fourth quarter, Teva’s stock gained around 19% and ended the year 15% in the green. Among the funds disposing of their positions during the third quarter are Hal Mintz’s Sabby Capital and Paul Sinclair’s Blue Jay Capital Management, while Jeremy Green‘s Redmile Group hiked its stake by 18% to 1.14 million shares.

Last year was huge in terms of M&A deals in the healthcare sector. In July, Teva acquired Allergan’s generic business for a total of $40.5 billion in stock and cash. The transaction is expected to be completed by the end of March and it will strengthen Teva’s position as the leading generic drug manufacturer in the world. In addition, Teva sports strong fundamentals, and trading at 11 times forward earnings and a 2.2% dividend yield, the stock might represent a compelling investment opportunity.

Disclosure: None