Portfolio Cuts Couldn’t Stop HealthInvest From Buying Up These Stocks

AmerisourceBergen Corp. (NYSE:ABC)

– Shares Owned by HealthInvest Partners AB (as of September 30): 212,000

– Value of HealthInvest Partners AB’s Holding (as of September 30): $17.13 Million

The Swedish investment firm also upped its stake in AmerisourceBergen Corp. (NYSE:ABC) during the June-to-September quarter, by 52,000 shares to 212,000. The position was valued at $17.13 million on September 30, and accounted for 12.7% of the value of its public equity portfolio. The shares of AmerisourceBergen, one of the largest global pharmaceutical sourcing and distribution services companies, took a serious hit yesterday amid signs that a price war had broken out in the sector. The signs were reflected in the grim earnings report from McKesson Corporation (NYSE:MCK), one of the largest pharmaceutical distributors in the United States. AmerisourceBergen has seen its market value drop by a disturbing 33% since the start of the year. Earlier this month, analysts at Argus reaffirmed their ‘Buy’ rating and price target of $135 on AmerisourceBergen, arguing that the extension of contracts with two of its largest customers should boost revenue. Fisher Asset Management owns 84,606 shares of AmerisourceBergen Corp. (NYSE:ABC) as of September 30.

Cardinal Health Inc. (NYSE:CAH)

– Shares Owned by HealthInvest Partners AB (as of September 30): 230,800

– Value of HealthInvest Partners AB’s Holding (as of September 30): $17.93 Million

The Stockholm-based asset manager owned 230,800 shares of Cardinal Health Inc. (NYSE:CAH) at the end of September, 70,800 shares more than it did at the end of June. The reshuffled position was worth $17.93 million on September 30 and represented 13.3% of the value of firm’s public equity portfolio. As in the case of AmerisourceBergen, the shares of Cardinal Health also took a serious hit this Friday, as investors feared the emergence of a pricing war in the industry. The global integrated healthcare services and products company has seen the value of its shares plunge by 24% this year. The CEO of McKesson Corporation (NYSE:MCK), whose aforementioned earnings report impacted the share prices of the other two U.S. prescription drug wholesalers, said on a conference call with analysts that his company has seen “competitive activity that is broader than our original expectations, more aggressive,” as well as added that “when a competitor significantly undercuts our existing pricing, we are compelled to respond.” Ray Carroll’s Breton Hill Capital was the owner of 8,992 shares of Cardinal Health Inc. (NYSE:CAH) at the end of September.

Disclosure: None