Alphyn Capital Management, an investment management firm, released its fourth-quarter 2022 investor letter. The same can be downloaded here. The fund returned 20.4% in the fourth quarter compared to a 7.6% return for the S&P500 Index. For 2022, the fund returned -20.8% compared to the -18.1% return for the S&P 500 Index. The top 10 positions comprised 78% of the portfolio as of 31 December 2022, and the portfolio held 1% in cash. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Alphyn Capital highlighted stocks like Alvotech (NASDAQ:ALVO) in the Q4 2022 investor letter. Headquartered in Reykjavik, Iceland, Alvotech (NASDAQ:ALVO) is a biosimilar medicines manufacturer. On January 30, 2023, Alvotech (NASDAQ:ALVO) stock closed at $11.98 per share. One-month return of Alvotech (NASDAQ:ALVO) was 19.80%, and its shares gained 21.50% of their value over the last 52 weeks. Alvotech (NASDAQ:ALVO) has a market capitalization of $2.979 billion.
Alphyn Capital made the following comment about Alvotech (NASDAQ:ALVO) in its Q4 2022 investor letter:
“Alvotech (NASDAQ:ALVO) is one of our “high-skew” names, accounting for a smaller allocation to a slightly more “speculative” name, but one I still believe has significant potential. The company had developed a lower cost biosimilar drug to Humira, the world’s best-selling pharmaceutical product with $20bn in annual sales. Revenues and profits from this one biosimilar could be very significant for Alvotech, even if they only capture a single-digit percentage of the $20bn market.
Unfortunately, the company suffered what I consider an “own goal” when it failed to pass a routine site inspection by the US Food and Drug Administration. Unsurprisingly this harmed the share price, so on December 1st, founder Robert Wessman took over the CEO role. I would expect a successful 3-time founder such as Mr. Wessman will ensure the facilities are up to scratch for the re-inspection.
However, there was some good news on December 22nd, when the FDA confirmed it would reinspect the facilities Q1 2023, following which full approval is expected, with a commercial launch in the US on July 1st, 2033. The stock price has since rallied.”
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Alvotech (NASDAQ:ALVO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Alvotech (NASDAQ:ALVO) at the end of the third quarter, which was 14 in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
