One Fund is Buying This Biotech Stock Although It’s Losing Smart Money’s Support

Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) is among the top 10 holdings of Kevin Kotler, another bio-tech enthusiast. During the second quarter, Kotler increased his fund’s stake in the company by 14% to amass 2.85 million shares, according to Kotler’s Broadfin Capital’s latest 13F filing. The biggest stake in Aegerion among the hedge funds we track is held by Scopia Capital, run by Matt Sirovich and Jeremy Mindich, who have boosted their investment to more than 5.42 million shares during the second quarter. Israel Englander of Millennium Management is also a fan of this stock and has stepped up his interest during the quarter, taking his investment to a little over 1.50 million shares. During the second quarter, the popularity of Aegerion among the hedge funds we follow has slightly weakened, with the number of funds invested in the stock dropping to 16, from 18, and, although, the total value of their holdings has decreased by approximately 22% to $266 million, funds still control 49.2% of the company’s common stock.

So far this year, Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) has lost roughly a third of its value and is currently trading at $13.78, which implies a market cap of $394 million. 2015 second quarter revenues came in at $64.2 million, up by a whooping 78% year-over-year, although the loss per share has widened to $0.39 from $0.33 per share reported a year ago. Wall Street is not very optimistic about the current quarter, expecting revenues of $59.7 million and a loss of $0.42 per share. At the end of July, Jeffries has upgraded Aegerion stock to ‘Buy’ from Hold and has assigned a price target of $26 per share.

Disclosure: none.