Horizon Pharma Inc (HZNP)’s $3 Billion Hostile Takeover Bid For Depomed Inc (DEPO) Has Investors Cautious: Good Chance To Buy Horizon?

What have hedge funds been doing with Horizon Pharma Inc (NASDAQ:HZNP)?

Of the funds tracked by Insider Monkey, Deerfield Management, led by James E. Flynn, holds the biggest position in Horizon Pharma Inc (NASDAQ:HZNP). Deerfield Management holds around 12.8 million shares valued at $332.2 million as of the end of March, comprising 10.8% of its 13F portfolio. Coming in second is Kevin Kotler of Broadfin Capital, with around 7.0 million shares; 14.3% of his 13F portfolio is allocated to the stock. Remaining hedgies with similar optimism consist of Arthur B Cohen and Joseph Healey’s Healthcor Management LP, Mark Kingdon’s Kingdon Capital, and Jacob Gottlieb’s Visium Asset Management.

As one would reasonably expect, key smart money managers were opening new positions in Horizon Pharma Inc (NASDAQ:HZNP). LionEye Capital Management, led by Stephen V. Raneri, opened up the most valuable position in Horizon Pharma Inc (NASDAQ:HZNP), purchasing 1.9 million shares during the first three months of the year. Carl Goldsmith and Scott Klein’s Beach Point Capital Management also opened a new position in the stock during that time, buying around 1.2 million shares. The other funds with brand new Horizon positions included Scott McLellan‘s Marble Arch Investments, Jason Karp’s Tourbillon Capital Partners, and Joe DiMenna‘s Zweig Dimenna Partners.

Many hedge funds managers were rightly bullish on Horizon Pharma Inc (NASDAQ:HZNP) by the end of the first quarter. The hostile bid for Depomed from Horizon also works in favor of the stock. The bio-pharmaceutical company has shown tremendous growth so far this year, and is aggressively seeking more. Considering the growth potential of this company and bullish hedge fund behavior we recommend buying this stock, especially on its slight dip this morning.

Disclosure: None