HealthInvest Partners AB is the investment management company of HealthInvest Small & MicroCap Fund. HealthInvest Partners recently released its April month Investor Letter, a copy of which you can download here. HealthInvest Small & MicroCap Fund rose 9.1% in April, which was broadly in line with its benchmark index. You should check out HealthInvest Partners top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.
In the said letter, HealthInvest Partners highlighted a few stocks and Gilead Sciences Inc (NASDAQ:GILD) is one of them. Gilead Sciences is a biotechnology company. Year-to-date, Gilead Sciences Inc (NASDAQ:GILD) stock gained 16.1% and on June 19th it had a closing price of $77.47. Here is what HealthInvest Partners said:
“The Fund significantly increased its position in US pharmaceutical company Gilead Sciences. Gilead is primarily developing and marketing anti-infective drugs, with leadership positions in the treatment of HIV/AIDS and hepatitis C (HCV). The stock has suffered greatly since 2015 (down around 50%) as Gilead has reported declining sales the last three years. This lackluster development can mainly be explained by a shrinking pool of HCV patients and price pressure. However, the company may now turn the tide as:
1) Gilead has launched two fast growing new generation HIV drugs which are getting substantial traction. This is important as Gilead’s HIV business accounts for around 75% of total sales. In 2020, these two new generation HIV drugs Bictarvy and Descovy will probably add another USD2.6 bn to sales (Gileads total revenue was around USD22.3bn in 2019).
2) On 19 December 2019, Gilead submitted the drug Filgotinib to FDA for the treatment of rheumatoid arthritis (RA). In addition to RA, the drug is also in clinical trials for the treatment of ulcerative colitis, Crohn’s disease and psoriatic arthritis. We believe Filgotinib to have block buster potential and may add over USD2bn in sales to Gilead the next couple of years.
3) On 2 May 2020, US regulators allowed the emergency use of Gilead’s experimental drug remdesivir, which appears to help coronavirus patients recover faster. The FDA acted after preliminary results from a government-sponsored study showed that remdesivir shortened the time to recovery by 31%, or about four days on average, for hospitalized Covid-19 patients. The drug also might be reducing deaths, although that’s not certain from the partial results revealed so far.
Gilead shares are a bargain in our view, trading at 12x free cash flow.”
In Q1 2020, the number of bullish hedge fund positions on Gilead Sciences Inc (NASDAQ:GILD) stock increased by about 13% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Gilead Sciences’s upside potential. Our calculations showed that Gilead Sciences Inc (NASDAQ:GILD) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:
Disclosure: None. This article is originally published at Insider Monkey.
