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More Than 60% Returns For These Two Hedgies’ Favorite Health Care Picks

Perceptive’s stake in Retrophin Inc (NASDAQ:RTRX) received a 43% boost in the first quarter to 2.78 million shares valued at $66.73 million. The holding represents nearly 8% of the company’s outstanding stock. On the other hand, Opaleye decreased its stake in the company by 45% to 500,000 shares valued at $11.98 million. It still represents a significant 5.56% of the fund’s portfolio. The move was likely a part of Opaleye’s profit taking strategy, as Retrophin Inc (NASDAQ:RTRX)’s stock had appreciated by about 180% in the first three months of the year. However, it has further accelerated by another 40% since the end of March. Consequently the stock has become increasingly popular among the hedge funds that we track, since 20 firms had a stake in Retrophin Inc (NASDAQ:RTRX) at the end of the first quarter compared to 13 at the end of the previous quarter. Michael Blutt’s Consonance Capital Management is the largest investor among these, owning 3.11 million shares valued at $74.46 million.

Joseph Edelman
Joseph Edelman
Perceptive Advisors

Although a much smaller holding than in the other two, Prospective’s stake in Cempra Inc (NASDAQ:CEMP) was also hiked by 131% during the first quarter to 572,500 shares valued at $19.64 million. Opaleye puts a much larger weight on the company as it is the fund’s second-largest equity holding, consisting of 500,000 shares valued at $17.16 million. So far this year, Cempra Inc (NASDAQ:CEMP)’s stock has appreciated by nearly 64%. Among the funds that we track Dennis Purcell’s Aisling Capital heads the list of Cempra Inc (NASDAQ:CEMP)’s investors, holding some 3.29 million shares valued at $112.99 million.

Disclosure: None

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