United Therapeutics Corporation (UTHR), Amgen, Inc. (AMGN): Neil Shah’s Top Healthcare Picks Dominated S&P 500 Index in January-March

The stock of Mallinckrodt PLC (NYSE:MNK) also enjoyed a strong first quarter, advancing by 27.89%. In Neil Shah’s equity portfolio the stake in Mallinckrodt constituted 6.56% and contained 145,071 shares worth $14.4 million. The company’s first quarter fiscal 2015 revenue amounted to $866.3 million, as compared to $540.2 million in the first quarter of fiscal 2014. Mallinckrodt reported EPS of $1.84 for the first quarter of fiscal 2015, which was above the analysts expectations of $1.55. John Paulson’s Paulson & Co owned over 9.0 million shares of the company with a value of $892.5 million. Adage Capital Management and Broadwood Capital also reported large stakes in the company in their latest 13F filings.

Universal Health Services, Inc. (NYSE:UHS) represents the fund’s fourth largest position, the stake amassing 122,900 shares, valued at $13.7 million as of the end of 2014. Neil Shah increased the fund’s stake in the company by 33% during the fourth quarter of 2014. The stock of Universal Health Services, Inc. (NYSE:UHS) appreciated by 5.9% in the first quarter of 2015, as the company reported better than expected results for the fourth quarter, with revenues of $2.10 billion, beating the consensus estimate of $2.04 billion. Universal Health Services’ management expects 6% to 13% increase in the adjusted net income for the current year, as compared to the adjusted net income  of $5.78 per diluted share in 2014. Jacob Doft’s Highline Capital Management is the largest shareholder of the company among the funds that we track, holding 909,700 shares, valued at $101.2 million. Other major investors in Universal Health Services, Inc. (NYSE:UHS)  are Lee Ainslie’s Maverick Capital and Israel Englander’s Millennium Management, holding 834,800 shares and 735,200 shares respectively.

Lastly, the position in Amgen, Inc. (NASDAQ:AMGN) accounted for 5.86% of the fund’s portfolio, containing 80,600 shares worth $12.8 million. The company recently got an FDA approval to a heart disease drug – Corlanor to be marketed in the US. However, analysts are skeptical of the prospects of the drug, due to a more competing heart disease drug – LCZ696 from Novartis. On the other hand, Dan Loeb’s Third Point made an aggressive investment in Amgen, Inc. (NASDAQ:AMGN) during the fourth quarter of 2014, increasing its exposure by 700% to 10.6 million shares, valued at $1.7 billion. Orbimed Advisors, Orbis Investment Management and Legg Mason Capital Management are other major shareholders of Amgen, Inc. (NASDAQ:AMGN).

Disclosure: None