In this article, we discuss the top 10 stock picks of Eli Casdin’s Casdin Capital.
Eli Casdin founded Casdin Capital in 2011 and currently he serves as the hedge fund’s chief investment officer and founder. He graduated from Columbia University and Columbia Business School with a B.S. and an MBA, respectively. Over the past 16 years, Casdin has researched innovative technologies and business models in the life sciences and healthcare sectors. He worked as the vice president at Alliance Bernstein’s “thematic” investment division before establishing Casdin Capital, where he conducted research and made investments related to the effects of emerging technologies on the life science and healthcare industries. In the past, Casdin worked for Bear Stearns and Cooper Hill Partners, an investment company with a concentration on the healthcare industry.
Casdin Capital is a New York-based hedge fund that concentrates on disruptive businesses. It is ideally positioned to profit from a disruptive, unappreciated technology transformation that is now taking place in the healthcare and life sciences sectors. There are investment opportunities across the board in healthcare and sectors like manufacturing, agriculture, and traditional IT. Casdin Capital invests in all facets of the current life sciences revolution and believes that excellent medications make great investments. To produce value and open up new prospects, Casdin Capital addresses the market by collaborating with businesses and building positions. Strong relationships, perseverance, and patience are all necessary for significant rewards. Casdin Capital is one of the few experienced investors in the industry due to years of involvement and practice.
According to Casdin, the hedge fund makes investments “across the entire life sciences continuum”, including businesses that “may not seem as sexy as a gene therapy or as impactful but actually are huge enablers of these fields”.
As of the end of Q1 2022, Casdin Capital held a 13F portfolio valued at over $2.23 billion, down from $3.55 billion in the previous quarter. The hedge fund invested mainly in finance and healthcare in the first quarter of 2022. Some of the fund’s prominent holdings include BeiGene, Ltd. (NASDAQ:BGNE), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), and Sarepta Therapeutics, Inc. (NASDAQ:SRPT).
Casdin Capital owns 150,000 shares of BeiGene, Ltd. (NASDAQ:BGNE) according to its 13F holdings for the first quarter of 2022. Jill Wu, an analyst with CMB International, initiated coverage of BeiGene, Ltd. (NASDAQ:BGNE) on June 16 and assigned the company a ‘Buy’ rating and a $248.52 price objective.
Photo by Adam Nowakowski on Unsplash
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), in which Eli Casdin has a $163.29 million stake, is gaining a lot of attention. On July 22, a European Medicines Agency (EMA) committee recommended that Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)’s RNAi medicine, Amvuttra (vutrisiran), be licensed to treat people with stage 1 or stage 2 polyneuropathy.
Casdin Capital also has a significant holding in Sarepta Therapeutics, Inc. (NASDAQ:SRPT). On July 5, Morgan Stanley analyst Matthew Harrison named Sarepta Therapeutics, Inc. (NASDAQ:SRPT) a “Catalyst Driven Idea”. He reiterated an ‘Equal Weight’ rating and $74 price objective on Sarepta stock.
Our Methodology
Based on the 13F holdings for the first quarter of 2022, we picked top 10 stock picks of Eli Casdin’s Casdin Capital for this analysis.
Top Stock Picks of Eli Casdin’s Casdin Capital
10. Exact Sciences Corporation (NASDAQ:EXAS)
Casdin Capital’s Stake Value: $92,994,000
Percentage of Casdin Capital’s Portfolio: 4.16%
Number of Hedge Fund Holders: 32
Exact Sciences Corporation (NASDAQ:EXAS) provides cancer diagnostics and screening test products both domestically and internationally. According to Insider Monkey’s Q1 data, 32 hedge funds were bullish on Exact Sciences Corporation (NASDAQ:EXAS), down from 34 funds in the earlier quarter. In addition, Catherine D. Wood’s ARK Investment Management is one of the leading shareholders of Exact Sciences Corporation (NASDAQ:EXAS), with 14.32 million shares worth about $1 billion.
On July 5, Evercore ISI analyst Vijay Kumar reiterated an ‘Outperform’ rating on Exact Sciences Corporation (NASDAQ:EXAS), while reducing his price objective from $100 to $60. Ahead of the Life Science Tools and MedTech groups’ earnings season, Kumar also put Exact Sciences Corporation (NASDAQ:EXAS) on the firm’s “Tactical Outperform” list.
During Q1 2022, Casdin Capital sold 710,000 Exact Sciences Corporation (NASDAQ:EXAS) shares, taking its total stake to nearly $92.99 million at the end of Q1. The company is the fund’s tenth-largest holding and accounted for 4.16% of Eli Casdin’s portfolio.
Just like BeiGene, Ltd. (NASDAQ:BGNE), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), and Sarepta Therapeutics, Inc. (NASDAQ:SRPT), Exact Sciences Corporation (NASDAQ:EXAS) is one of the top stock picks of Eli Casdin’s Casdin Capital.
Here is what RiverPark Funds has to say about Exact Sciences Corporation (NASDAQ:EXAS) in its Q4 2021 investor letter:
“Exact Sciences: EXAS shares declined on a disappointing recovery in Cologuard screening due to COVID. Despite continued revenue growth from Precision Oncology and COVID testing and Cologuard screening revenue growth of 30%, COVID restrictions limited access to physicians’ offices for the company’s and its Pfizer Joint Venture sales force as well as causing a severe drop off of in-person wellness visits.
In the last year, Exact has also pivoted the company significantly from its single cancer screening tests (Cologuard for colon cancer and Oncotype for breast cancer) to multi-cancer screening through its Thrive acquisition, and to minimal residual disease and recurrence monitoring through its Ashion and Tardis acquisitions. Through this pivot, Exact has tripled its market opportunity from $20 billion to $60 billion.”
9. Invitae Corporation (NYSE:NVTA)
Casdin Capital’s Stake Value: $97,263,000
Percentage of Casdin Capital’s Portfolio: 4.36%
Number of Hedge Fund Holders: 29
A medical genetics firm, Invitae Corporation (NYSE:NVTA) combines genetic data with conventional medicine to enhance patient care in the United States, Canada, and other countries. Catherine D. Wood’s ARK Investment Management is the prominent shareholder of Invitae Corporation (NYSE:NVTA), with 27.68 million shares worth over $220.63 million.
Based on its 13F holdings for the first quarter of 2022, Casdin Capital owned 12.20 million shares of Invitae Corporation (NYSE:NVTA), a position valued at $97.26 million on March 31. The company made up 4.36% of Eli Casdin’s portfolio.
On July 19, Cowen analyst Dan Brennan reiterated an ‘Outperform’ rating on Invitae Corporation (NYSE:NVTA), while cutting his price objective from $10 to $8. The analyst observed that they disclosed a restructure and change in CEO to improve the cash burn and balance sheet significantly and positioned the business to produce long-term profitable growth.
Fund managers added to their Invitae Corporation (NYSE:NVTA) holdings in the first quarter. Among the hedge funds tracked by Insider Monkey, 29 funds were long Invitae Corporation (NYSE:NVTA) at the end of first quarter of 2022, compared to 24 funds in the prior quarter.
8. MaxCyte, Inc. (NASDAQ:MXCT)
Casdin Capital’s Stake Value: $97,660,000
Percentage of Casdin Capital’s Portfolio: 4.37%
Number of Hedge Fund Holders: 12
MaxCyte, Inc. (NASDAQ:MXCT) is an expert in cell modification technologies that facilitate the identification, creation, and production of several classes. A strategic platform license was signed by MaxCyte, Inc. (NASDAQ:MXCT) and LG Chem on July 12 to provide new value for its clients based on science. LG Chem is a global chemical firm with a wide range of products.
Casdin Capital first invested in MaxCyte, Inc. (NASDAQ:MXCT) during the third quarter of 2021, purchasing shares worth nearly $170.59 million. At the end of Q1 2022, the hedge fund owned 13.97 million shares of MaxCyte, Inc. (NASDAQ:MXCT), valued at $97.66 million. The company represented 4.37% of the fund’s portfolio.
Out of 912 hedge funds, 12 hedge funds were long MaxCyte, Inc. (NASDAQ:MXCT) in the first quarter of 2022, with a combined value of $184.12 million. In the previous quarter, 15 funds were bullish on the stock, with a total stake value of $271.44 million.
7. Blueprint Medicines Corporation (NASDAQ:BPMC)
Casdin Capital’s Stake Value: $99,014,000
Percentage of Casdin Capital’s Portfolio: 4.43%
Number of Hedge Fund Holders: 29
Blueprint Medicines Corporation (NASDAQ:BPMC) produces drugs for blood diseases and tumors using specific genetic markers both domestically and abroad. In the first quarter, hedge fund sentiment reduced for Blueprint Medicines Corporation (NASDAQ:BPMC). Among the hedge funds tracked by Insider Monkey, 29 funds were long Blueprint Medicines Corporation (NASDAQ:BPMC) at the end of the first quarter of 2022, down from 32 funds in the fourth quarter of 2021.
Eric Bannasch’s Cadian Capital, with approximately 1.92 million shares worth $122.74 million, is the largest shareholder of Blueprint Medicines Corporation (NASDAQ:BPMC). Matthew Biegler, an analyst with Oppenheimer, initiated coverage of Blueprint Medicines Corporation (NASDAQ:BPMC) on July 7 and assigned it an ‘Outperform’ rating and an $80 price target.
Casdin Capital started investing in Blueprint Medicines Corporation (NASDAQ:BPMC) during the fourth quarter of 2015, purchasing shares worth $10.87 million. The hedge fund held 1.55 million shares of Blueprint Medicines Corporation (NASDAQ:BPMC), worth $99.01 million, at the end of the first quarter of 2022. The company represented 4.43% of Eli Casdin’s portfolio.
6. SomaLogic, Inc. (NASDAQ:SLGC)
Casdin Capital’s Stake Value: $99,360,000
Percentage of Casdin Capital’s Portfolio: 4.45%
Number of Hedge Fund Holders: 37
SomaLogic, Inc. (NASDAQ:SLGC) specializes in clinical diagnostics and protein biomarker identification. At the end of Q1 2022, Casdin Capital owned 12.39 million shares in SomaLogic, Inc. (NASDAQ:SLGC), with a total value of over $99.36 million. The stake in SomaLogic, Inc. (NASDAQ:SLGC) accounted for 4.45% of the hedge fund’s portfolio. Eli Casdin’s Casdin Capital is the biggest shareholder of SomaLogic, Inc. (NASDAQ:SLGC).
On June 23, Cowen analyst Dan Brennan maintained an ‘Outperform’ rating while trimming his price objective for SomaLogic, Inc. (NASDAQ:SLGC) from $14 to $11. The analyst claimed that the company is well-positioned to overcome limitations imposed by existing proteome analysis techniques.
37 out of the 912 hedge funds held stakes in SomaLogic, Inc. (NASDAQ:SLGC) in the first quarter of 2021, worth $434.57 million, compared to the same number of funds in the preceding quarter holding stakes in SomaLogic, Inc. (NASDAQ:SLGC) totaling $630.27 million.
In addition to BeiGene, Ltd. (NASDAQ:BGNE), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), and Sarepta Therapeutics, Inc. (NASDAQ:SRPT), SomaLogic, Inc. (NASDAQ:SLGC) is one of the stocks gaining the attention of Eli Casdin’s Casdin Capital.
5. Relay Therapeutics, Inc. (NASDAQ:RLAY)
Casdin Capital’s Stake Value: $115,448,000
Percentage of Casdin Capital’s Portfolio: 5.17%
Number of Hedge Fund Holders: 18
Relay Therapeutics, Inc. (NASDAQ:RLAY) is a clinical-stage, precision medicine firm that is revolutionizing the process of discovering new drugs with a primary emphasis on accelerating the development of small molecule therapies for cancer. Akash Tewari, a Jefferies analyst, initiated coverage of Relay Therapeutics, Inc. (NASDAQ:RLAY) on June 6 and assigned it an ‘Underperform’ rating and a $13 price objective.
The hedge fund managed by Eli Casdin owned more than 3.86 million shares in Relay Therapeutics, Inc. (NASDAQ:RLAY), worth over $115.45 million, representing close to 5.17% of their portfolio. According to Insider Monkey’s Q1 data, 18 hedge funds were bullish on Relay Therapeutics, Inc. (NASDAQ:RLAY), compared to 19 funds in the earlier quarter.
Out of the hedge funds being tracked by Insider Monkey, San Francisco-based investment firm Biotechnology Value Fund / BVF Inc is the leading shareholder of Relay Therapeutics, Inc. (NASDAQ:RLAY), with 4.53 million shares worth more than $135.60 million.
4. Fate Therapeutics, Inc. (NASDAQ:FATE)
Casdin Capital’s Stake Value: $131,818,000
Percentage of Casdin Capital’s Portfolio: 5.91%
Number of Hedge Fund Holders: 31
Fate Therapeutics, Inc. (NASDAQ:FATE) is a bio-pharmaceutical start-up working on cutting-edge cellular immunotherapies for cancer patients. By the end of the first quarter of 2022, Insider Monkey identified 31 hedge funds long Fate Therapeutics, Inc. (NASDAQ:FATE). The total value of these funds was over $1.26 billion.
Jeremy Green of Redmile Group is the lead stakeholder of Fate Therapeutics, Inc. (NASDAQ:FATE). The fund owns more than 12.96 million shares of the company, worth $502.35 million. Next on the list is Catherine D. Wood’s ARK Investment Management, which owns 10.99 million company shares worth over $426.01 million.
On July 11, Etzer Darout of BMO Capital raised Fate Therapeutics, Inc. (NASDAQ:FATE) from ‘Market Perform’ to ‘Outperform’ with a $47 price objective, down from $50. Given its universal, off-the-shelf products, the company’s iPSC platform is ideally positioned in the cell therapy market, the analyst informed investors in a research note.
Casdin Capital started building its position in Fate Therapeutics, Inc. (NASDAQ:FATE) during the second quarter of 2017, purchasing shares worth over $1.78 million. At the end of Q1 2022, the hedge fund owned 3.40 million Fate Therapeutics, Inc. (NASDAQ:FATE) shares, valued at over $131.82 million. The company represented 5.91% of the hedge fund’s portfolio.
3. EQRx, Inc. (NASDAQ:EQRX)
Casdin Capital’s Stake Value: $163,249,000
Percentage of Casdin Capital’s Portfolio: 7.31%
Number of Hedge Fund Holders: 38
Pharmaceutical business EQRx, Inc. (NASDAQ:EQRX) focuses mainly on developing drugs for treating immune-inflammatory illnesses and cancer in the United States. Goldman Sachs analyst Chris Shibutani initiated coverage of EQRx, Inc. (NASDAQ:EQRX) on June 13, assigning the company a ‘Buy’ rating and a price objective of $8.
At the end of Q1 2022, EQRx, Inc. (NASDAQ:EQRX) represented 7.31% of Casdin Capital’s portfolio. The hedge fund owned 39.53 million shares in EQRx, Inc. (NASDAQ:EQRX), valued at over $163.25 million.
EQRx, Inc. (NASDAQ:EQRX) has recently experienced an increase in hedge fund interest. According to Insider Monkey’s database, 38 hedge funds were bullish on EQRx, Inc. (NASDAQ:EQRX) at the end of March 2022, compared to 31 funds in the prior quarter.
2. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Casdin Capital’s Stake Value: $163,290,000
Percentage of Casdin Capital’s Portfolio: 7.32%
Number of Hedge Fund Holders: 38
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is a biopharmaceutical company that aims to discover, develop, and commercialize novel medicines consisting of ribonucleic acids. Cantor Fitzgerald analyst Olivia Brayer initiated coverage of Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) on July 12, assigning the company a ‘Neutral’ rating and a $175 price target.
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) saw a decrease in hedge fund sentiment recently. In Q1 2022, 38 hedge funds reported bullish positions in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), compared to 39 funds in the prior quarter. Kurt Von Emster’s VenBio Select Advisor is one of the leading shareholders of Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), with 1.30 million shares worth $212.28 million.
Casdin Capital initiated its position in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) during the fourth quarter of 2015, purchasing 60,000 shares. During Q1 2022, the hedge fund held 1 million shares in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), worth over $163.29 million, representing 7.32% of its investment portfolio.
1. BioLife Solutions, Inc. (NASDAQ:BLFS)
Casdin Capital’s Stake Value: $171,982,000
Percentage of Casdin Capital’s Portfolio: 7.71%
Number of Hedge Fund Holders: 12
BioLife Solutions, Inc. (NASDAQ:BLFS), which develops, produces, and provides bio-production technology and services in the United States, Africa, Canada, Europe, the Middle East, and internationally, serves the cell and gene therapy industry. Eli Casdin’s Casdin Capital is one of the leading shareholders of BioLife Solutions, Inc. (NASDAQ:BLFS), with 7.57 million shares worth about $171.98 million. BioLife Solutions, Inc. (NASDAQ:BLFS) accounted for 7.71% of the hedge fund’s portfolio.BioLife Solutions, Inc. (NASDAQ:BLFS) is the most significant investment in Casdin Capital’s portfolio.
Maxim analyst Jason McCarthy maintained a ‘Buy’ rating on BioLife Solutions, Inc. (NASDAQ:BLFS) on May 12 while reducing his price target to $30 from $60. Though the company reported another solid quarter, the analyst cautioned investors in a research note that market challenges brought on by rising interest rates and inflation reduced the stock’s multiple.
Overall, hedge funds are loading up on BioLife Solutions, Inc. (NASDAQ:BLFS). Among the hedge funds tracked by Insider Monkey, 12 funds were long BioLife Solutions, Inc. (NASDAQ:BLFS) in the March quarter, down from 15 funds in the preceding quarter.
In its Q3 2020 Investor Letter, Wasatch Advisors mentioned BioLife Solutions, Inc. (NASDAQ: BLFS) and discussed its stance on the firm. Here is what the fund said:
“A significant purchase during the quarter was BioLife Solutions, Inc. (BLFS). BioLife Solutions was not only one of our newer holdings, it was also a strong performer for the quarter. The company provides proprietary biopreservation products used in cell therapy, gene therapy and regenerative medicine. BioLife’s flagship product, CryoStor,® has garnered increased attention from investors because of its potential use in coronavirus vaccines requiring storage at very cold temperatures. In addition, the company offers thawing products, a cold-chain transport system and high-capacity freezers—all of which also have applications to the prospective distribution programs of certain vaccine candidates for Covid-19.”
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Disclosure: None. Top 10 Stock Picks of Eli Casdin’s Casdin Capital is originally published on Insider Monkey.
