One Of Mark Lampert’s Small-Cap Biotech Picks Has Returned 84% This Year And It’s Not Done Yet

The 13F filing showed that Biotechnology Value Fund held a total of 2.17 million shares of Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) with a market value of $34.74 million, having heavily reduced its stake from 5.09 million shares held three months prior. The company on Monday announced its intention to offer $300 million of convertible notes, which are to mature on June 15, 2022, targeting mainly institutional buyers. The notes will only be availed subject to market and other relevant conditions. The fundamental intention of releasing the notes is to solidify its balance sheet, better its capital structure, and fund some of its corporate activities, which may include investing in other businesses or assets. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) fell short of earnings estimates for the first quarter, having posted a loss of $0.24, $0.02 worse than expected. The stock currently has a one-year price target of $15.19, nearly 25% upside. At the end of the first quarter of 2015, 19 hedge funds we track had stakes in Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD), with the funds holding a total of $342.57 million in the company’s stock. They included Samuel Isaly‘s Orbimed Advisors, which emerged as the biggest shareholder among those we track, owning 12.01 million shares worth $192.19 million.

Lastly, Lampert’s fund held a total of 1.05 million shares of Forward Pharma A/S (NASDAQ:FWP) with a market value of $21.92 million. The stock has been overlooked by many investors, although analysts have been narrowing its projected losses for several months now, suggesting strengthening of the firm’s operations. Zacks analysts have given the stock a “Buy” rating, while RBC Capital Markets have given it an “Outperform.” Analysts from both firms see potential upside on the stock, which had already gained 84% year-to-date. Forward Pharma A/S (NASDAQ:FWP) posted a loss of $0.18 in earnings per share for the quarter, falling short of analysts’ consensus estimate by $0.01. At the end of the quarter, the company was sitting pretty with $206.4 million in cash, marketable securities, and cash equivalents, and with no outstanding debts. A total of 16 hedge funds in our database had stakes in Forward Pharma A/S (NASDAQ:FWP), with an aggregate investment of $255.23 million, among them Seth Klarman‘s Baupost Group.

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