Were Hedge Funds Right Betting On These Stocks in Q4?

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#1 Allergan plc Ordinary Shares (NYSE:AGN)

-Hedge Funds with Long Positions (as of September 30): 151

-Aggregate Value of Hedge Funds’ Holdings (as of September 30): $20.47 billion

The popularity of Allergan among the investors we track remained unchanged during the third quarter, when its stock fell by over 10%. All 151 funds were handsomely rewarded in the fourth quarter with shares of the company appreciating by almost 15%.

Most of the gains of Allergan plc Ordinary Shares (NYSE:AGN)’s stock came in October, when rumors started flowing that drug giant Pfizer Inc. (NYSE:PFE) was interested in acquiring the company. On November 24, Pfizer Inc. (NYSE:PFE) announced that it would acquire Allergan for $160 billion and shift its headquarters to Ireland. Ever since the announcement was made, several regulators and lawmakers have been opposing this merger arguing that such ‘inversion deals’ that help US-based corporations save taxes are ‘unpatriotic’.

Most analysts who cover Allergan are bullish, having set an average price target of $366.40. For the fourth quarter of 2015 analysts expect the company to report EPS of $3.36 on revenue of $4.20 billion.

Follow Allergan Plc (NYSE:AGN)

Disclosure: None

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