Top Picks of Healthcare-focused Asset Manager Run by Former SAC Capital Traders

#3. DexCom Inc. (NASDAQ:DXCM)

– Shares owned by HealthCor Management as of March 31: 1.78 Million

– Value of HealthCor Management’s holding as of March 31: $120.54 Million

HealthCor Management L.P. added 1.03 million DexCom Inc. (NASDAQ:DXCM) shares to its existing position in the company, which comprised 1.78 million shares on March 31. The increased position was worth $120.54 million shares at the end of March, constituting 6.8% of the firm’s portfolio. The maker of continuous monitoring systems for people suffering with diabetes has seen its market value decline by 6% since the start of 2016. Earlier this week, DexCom announced plans to build a new manufacturing facility in Arizona in an attempt to grow its continuous glucose monitoring business. The facility’s initial manufacturing operations are anticipated to start in the second quarter of 2017. The company’s revenues for the first three months of 2016 increased to $116.2 million from $72.8 million, mainly due to higher sales of its disposable sensors that communicate with various devices such as the iPhone. Roberto Mignone’s Bridger Management had 834,203 shares of DexCom Inc. (NASDAQ:DXCM) among its holdings on March 31.

#2. Quest Diagnostics Inc. (NYSE:DGX)

– Shares owned by HealthCor Management as of March 31: 1.85 Million

– Value of HealthCor Management’s holding as of March 31: $132.18 Million

The healthcare-focused asset manager, run by two former SAC Capital traders, owned 1.85 million shares of Quest Diagnostics Inc. (NYSE:DGX) at the end of the January-to-March period, 1.33 million shares more than at the end of the December quarter. The 1.85 million-share stake was worth $132.18 million and made up 7.5% of the hedge fund’s entire portfolio. As venture capital-based firm Theranos, which sought to revolutionize the blood testing industry by bringing to the market low-cost tests, has been drowning in criminal and civil investigations over serious issues with the accuracy of the company’s blood tests, laboratory-testing company Quest Diagnostics may enjoy strong performance in the foreseeable future. The company has seen its market capitalization gain 9% since the beginning of the year. In late February, Quest completed the acquisition of the outreach laboratory service business of Clinical Laboratory Partners LLC for $135 million. Dmitry Balyasny’s Balyasny Asset Management added a 920,241-share position in Quest Diagnostics Inc. (NYSE:DGX) to its portfolio during the March quarter.

#1. Zimmer Biomet Holdings Inc. (NYSE:ZBH)

– Shares owned by HealthCor Management as of March 31: 1.50 Million

– Value of HealthCor Management’s holding as of March 31: $159.95 Million

Zimmer Biomet Holdings Inc. (NYSE:ZBH) also received some love from HealthCor Management during the January-to-March period, as the New York-based asset manager increased its stake in the company by 600,000 shares to 1.50 million shares. HealthCor’s largest equity holding was worth $159.95 million on March 31 and represented 9.1% of the firm’s portfolio. Earlier this month, the medical device market announced the pricing of a previously-announced secondary offering of 11.12 million shares owned by certain shareholders. The shares were sold to the public at an initial price of $115.85 per share, which put some weight on the stock’s performance (the stock had been trading above the aforementioned price before the announcement). Just recently, Zimmer Biomet also announced an agreement to acquire medical device maker LDR Holding Corp (NASDAQ:LDRH) for $1 billion. Zimmer Biomet shares have gained 15% so far in 2016. Daniel S. Och’s OZ Management acquired a new stake of 947,187 shares of Zimmer Biomet Holdings Inc. (NYSE:ZBH) during the first quarter of 2016.

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