Legendary Value Investor Seth Klarman is Selling These 5 Stocks in 2023

4. Nuvation Bio Inc. (NYSE:NUVB)

Percentage of Stake Sold: 100%

Number of Hedge Fund Holders: 33

Nuvation Bio Inc. (NYSE:NUVB) is a clinical-stage biopharmaceutical company that focuses on the development of therapeutic candidates for oncology. In Q4 2022, Seth Klarman’s Baupost Group owned 4.80 million shares of the company worth $9.2 million. In the first quarter of 2023, the value investor dumped his stake in Nuvation Bio Inc. (NYSE:NUVB) completely. 

On January 6, Jefferies analyst Michael Yee downgraded Nuvation Bio Inc. (NYSE:NUVB) from  Buy to Hold, while also reducing the price target from $5 to $2. Yee considers Nuvation Bio Inc. (NYSE:NUVB) to be a “show-me” story in 2023, as the company focuses on its novel BET program and advances in its DDC platform. Despite the stock trading at a negative enterprise value, the analyst’s downgrade is based on the fact that both programs are still in their early stages and lack validated clinical data. He believes that it may take time for Nuvation Bio Inc. (NYSE:NUVB) to generate significant clinical data catalysts that add value in 2023.

According to Insider Monkey’s fourth quarter database, 33 hedge funds were bullish on Nuvation Bio Inc. (NYSE:NUVB), compared to 28 funds in the earlier quarter. 

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