Peter Kolchinsky’s RA Capital Management picked $BEAT

Peter Kolchinsky’s RA Capital Management, LLC initiated a brand new position in CardioNet, Inc. (BEAT). By now RA Capital has taken control of 1.33 million shares, which accounts for 5.47% of BEAT’s outstanding shares. The stock suffered from a crash in early August. Starting on August 3rd, the stock plunged from $5 to $3 in just 4 days, which was more than a 35% decline. Peter Kolchinsky probably regarded this as an opportunity to entry. In the first quarter, RA Capital had no holdings in BEAT. The firm  probably started buying BEAT around August 8th and continued buying the shares until the end of the month. Based on the volume by price of the stock, RA Capital’s average entry price should be around $3.6 per share. BEAT is currently trading around $3.04, so investor can imitate Kolchinsky’s trade at a 16% discount.

In the second quarter, there are nine hedge funds that had BEAT in their portfolios. Israel Englander’s Millennium Management owned about 930 thousand shares at the end of June. Jim Simons’ Renaissance Technologies took the second place, increasing its position by 4% to 245 thousand shares. Richard Schimel’s Diamondback Capital increased the position by 55%, resulting in 169 thousand shares. These three hedge funds each took 3.8%, 1.0%, and 0.7%, of BEAT’s outstanding shares respectively.  If no large adjustment made by BEA’s hedge fund shareholders after June, now RA Capital Management has become BETA ‘s biggest owner in hedge funds.

Dr. Peter Kolchinsky is the co-founder and general partner of RA Capital Management, LLC. He graduated from Harvard with a Ph.D. in virology and has been investing in healthcare sector since 2002. He successfully turned his initial $4 million investment into $13 million by 2003.

Incorporated in 1994, CardioNet, Inc. is a healthcare company focusing on monitoring cardiac arrhythmias and heart rhythm disorders. Attaching a special remote device on a patient, the company transfers and records electrocardiogram data. This technology was mainly marketed to cardiologists and electrophysiologists.