Miller Value Partners, an investment management firm, published its “Miller Opportunity Trust Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. During the second quarter of 2022, the Miller Opportunity Trust – Class I shares generated a total return of -29.45% excluding sales charges. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Miller Value Partners Opportunity Trust Fund mentioned Karuna Therapeutics, Inc. (NASDAQ:KRTX) and explained its insights for the company. Founded in 2009, Karuna Therapeutics, Inc. (NASDAQ:KRTX) is a Boston, Massachusetts-based biotechnology company with an $8.3 billion market capitalization. Karuna Therapeutics, Inc. (NASDAQ:KRTX) delivered a 91.53% return since the beginning of the year, while its 12-month returns are up by 111.03%. The stock closed at $250.91 per share on August 30, 2022.
Here is what Miller Value Partners Opportunity Trust Fund has to say about Karuna Therapeutics, Inc. (NASDAQ:KRTX) in its Q2 2022 investor letter:
“Karuna Therapeutics Inc. (NASDAQ:KRTX) had a lot of volatility over the quarter but ended up largely flat. We’ve done well with the position since initiation. The company is still clinical stage but has a largely de-risked asset, KarXT, focused on schizophrenia, a treatment area that has not had a new innovative treatment in decades. The company has shown strong Phase II data with Phase III results expected within weeks and an NDA (new drug application) submission expected in 2023. Furthermore, the company is developing KarXT in Alzheimer’s disease psychosis, providing the potential for further upside, a patient population where the mechanism of action has historically demonstrated both cognitive and behavioral improvements. We think the large opportunity in the schizophrenia space alone justifies a price more than double where it is currently trading.”
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Our calculations show that Karuna Therapeutics, Inc. (NASDAQ:KRTX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Karuna Therapeutics, Inc. (NASDAQ:KRTX) was in 37 hedge fund portfolios at the end of the second quarter of 2022, compared to 28 funds in the previous quarter. Karuna Therapeutics, Inc. (NASDAQ:KRTX) delivered a 140.52% return in the past 3 months.
In May 2021, we also shared another hedge fund’s views on Karuna Therapeutics, Inc. (NASDAQ:KRTX) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
