- Amgen: MariTide's Progress, Reassessment Of The Horizon Acquisition
Sep 25, 2025 · seekingalpha.com
Amgen has not been a great performer in the last two years. Investors became and remain skeptical of MariTide's prospects in obesity, type 2 diabetes, and other related indications. I continue to see MariTide's monthly dosing as a strong selling point and expect that addition of dose escalation to phase 3 trial design will improve its tolerability.
- Deep Track Capital Nominates Four Highly Qualified Candidates for Election to Dynavax Technologies’ Board of Directors at 2025 Annual Meeting
Feb 19, 2025
Issues Letter to Fellow Shareholders Detailing Why Truly Independent Voices – Including a Shareholder Representative – Are Needed in the Dynavax Boardroom
Highlights Concerns that Company’s Misguided Acquisition Strategy Will Destroy Value and Prevent Dynavax from Maximizing the Benefit of Heplisav for Shareholders and Patients
In Deep Track’s View, Focusing on Heplisav Could Result in Nearly $2 Billion of Cash Being Returned to Shareholders by the End of 2030
Details Board’s Poor Governance, Reactive Entrenchment Maneuvers, and Unwillingness to Work Constructively
Believes Its Slate of Director Nominees Would Collectively Bring Valuable Shareholder Perspective and Independence as Well as Necessary Life Sciences Background, Capital Allocation Experience and Operational Expertise to the Dynavax Board
GREENWICH, Conn., February 19, 2025--(BUSINESS WIRE)--Deep Track Capital, LP, (together with its affiliates, "Deep Track" or "we"), one of the largest shareholders of Dynavax Technologies Corporation (NASDAQ: DVAX) ("Dynavax", "DVAX" or the "Company"), with ownership of approximately 13.53% of the Company’s outstanding shares, today announced that it has nominated four highly qualified candidates for election to the Company’s Board of Directors (the "Board") at the 2025 Annual Meeting of Stockholders (the "Annual Meeting"). Deep Track also issued a public letter to its fellow DVAX shareholders.
The full text of the letter follows:
February 19, 2025
Dear Dynavax Shareholders,
Deep Track Capital, LP (together with its affiliates, "Deep Track" or "we") is one of the largest shareholders of Dynavax Technologies Corporation ("Dynavax", "DVAX" or the "Company"), with ownership of approximately 13.53% of the Company’s outstanding shares.
Our firm manages over $4 billion on behalf of our investors, which include numerous healthcare organizations and non-profits, and we focus exclusively on investing in the life sciences space. Since the firm’s inception in 2021, we have directly invested billions of dollars into more than one hundred companies to advance the development of novel therapies. The senior members of Deep Track first purchased shares of Dynavax in a financing nearly 15 years ago1 to support the development of Heplisav, a best-in-class adult vaccine for hepatitis B. As a firm, we have continued to steadily build our position in the Company and, in fact, have purchased shares every quarter from Q4 2022 through Q4 2024 – demonstrating our conviction in Dynavax’s potential.
Story Continues
Heplisav is an extremely valuable asset positioned for many years of growth and continued cash generation that will only improve as it is further established in the marketplace. Unfortunately, the Company has not concentrated on leveraging Heplisav’s potential. Instead, it has pursued a misguided "empire-building" exercise led by the current chairman of the Board of Directors (the "Board"), Scott Myers. In fact, we believe the Board is more interested in making acquisitions that lack strategic rationale and simply burning the Company’s cash rather than investing resources into existing assets that present excellent opportunities for shareholders and patients alike.
Deep Track does not typically take active, public roles at companies. However, as a long-term and significant investor of Dynavax, we felt compelled to alert our fellow shareholders to what we perceive to be a troubling fact pattern at the Company:
Profits from nearly $1 billion of adjuvant sales during the pandemic have been idling on Dynavax’s balance sheet since 2022; the Company’s cash now totals $714 million2 and the Board has increasingly directed management to spend that on external assets3, with incentives to show opportunities to the Board and significant bonuses to be paid if a transaction is completed. The Board has provided no rational support for these forceful and distracting demands on management to identify strategic assets to acquire, leading us to suspect the underlying motivation is empire building rather than maximizing shareholder returns. We remain deeply concerned that Dynavax will not only squander its substantial and growing cash balance on an ill-advised acquisition but also jeopardize future profitability and rob shareholders of the immense opportunities to be realized by focusing on Heplisav.
Deep Track’s Attempts at Constructive Engagement and the Board’s Reactive Entrenchment Moves
To be clear, we attempted to engage with Company leadership privately for many months. When we initially filed a Form 13D with the Securities and Exchange Commission on September 16, 2024, we indicated our intent to have constructive discussions with the Dynavax management team and Board about the Company’s performance, business, operations, strategic opportunities, governance and optimal use of excess cash. In the context of this engagement, we urged the Board to take four straightforward steps to protect and maximize value for shareholders:
Abandon the search for external assets, which is now well into the fourth year; Significantly increase the size of the share repurchase program; Execute a tax-advantaged return of capital against the Company’s accumulated $910 million deficit; and Focus exclusively on growing Heplisav into a must-own asset for any large pharma company with a vaccine portfolio.
Unfortunately, after months of discussions, including numerous meetings that led nowhere, it has become clear that the Board at Dynavax is more interested in entrenchment and pursuing its misguided strategy than delivering for shareholders. In fact, the Board has taken steps to limit the rights of shareholders in response to our engagement and made only perfunctory moves to appear shareholder-friendly by "checking the box" with some governance reforms. Below are three recent notable examples:
Poison pill: Five days after we amended our 13D filing on October 24, 2024 to show an ownership position of 13.6%, the Board adopted a poison pill to effectively limit any shareholder to a stake no larger than 15%. This is a shareholder-unfriendly maneuver and prevents us – and any other potential investors – from expressing additional conviction about the Company’s potential.
Reactive share buyback: Two weeks after our amended 13D filing, the Board announced a $200 million share repurchase – something we (and we believe many others) had long implored the Company to do, but that only occurred after we publicly surfaced.
Reactive changes to Board composition: Last month, Dynavax announced two director replacements in an obvious entrenchment attempt following our engagement. Dynavax touted that these moves would "enhance [their] governance profile." While these appointments may check certain boxes, it is hardly obvious to us just how they will improve the governance deficiencies at the Company. These appointments appear to be intended to "not rock the boat" with independent voices, given that Mr. Myers is simply swapping out one of his former fellow directors at Harpoon Therapeutics (Julie Eastland, who was also CEO of that Company) for another former Harpoon director (Lauren Silvernail)4.
Nevertheless, Deep Track has continually attempted to negotiate in good faith to bring real change. We proposed three director candidates to the Board; we then exhibited flexibility and proposed a single nominee combined with three shareholder-friendly changes: removal of the poison pill, doubling the share repurchase to $400 million, and fully declassifying the Board after the 2025 Annual Meeting of Stockholders (the "Annual Meeting"). This proposal was also rejected. The disappointing engagement with the Board has led us to conclude that the only way to effect meaningful change is to bring our case to all shareholders.
The Board’s Misguided Strategy Has Failed to Deliver for Shareholders
Shares of DVAX have not performed under this regime. Over any relevant period of time, returns have been disappointing:
Event Date DVAX Then DVAX Since* IPO 2/18/2004 $75.00 -82.7% Heplisav approval 11/9/2017 $20.05 -35.5% Board chair appointed 10/21/2021 $18.85 -31.4%
*As of market close on February 18, 2025
Total shareholder returns ("TSR") have also been poor, both on a standalone basis and as measured against the Nasdaq Biotechnology Index.
DVAX Total Shareholder Return 1-Year Through
Unaffected Date** Chairman Tenure*
Through Unaffected
Date** Chairman Tenure
Through Present DVAX -24.6% -42.9% -31.4% Nasdaq Biotechnology Index 24.6% -2.9% -5.9% Relative TSR: DVAX vs. Nasdaq Biotechnology Index -49.3% -40.0% -25.5% Source: Bloomberg * Scott Myers was elected Chairman on Oct. 21, 2021 **Deep Track filed its amended Schedule 13D on Oct. 24, 2024
This performance is extremely disappointing for a company that is growing sales at 26% annually and, we believe, reflects deep investor concern about future value creation and poor capital allocation decisions. In defense of its acquisition strategy, the Board and management team contend that buying external assets is critical because they believe Heplisav revenue will flatten after 2030. We see three problems with this argument:
First, it is a cop out and underestimates the potential of Heplisav. Instead of fully committing to Heplisav – a best-in-class vaccine unlikely to ever face generic competition – they are hedging their bets. Shareholders need this management team and Board to be fully behind their most valuable asset. Even when sales do eventually flatten (and we can hardly predict when; the "2030" estimate provided by the Company could easily be many years later), margins will continue to improve as Heplisav becomes firmly established as the standard of care. Second, Dynavax has nothing to show for its strategy despite spending years looking for external programs. The Board first put goals into place for management to acquire assets5 in 2021; the following year, management was tasked6 with completing a "comprehensive assessment and defined strategy for inorganic growth by the third quarter of 2022," and in 2023, the Board directed management to "present comprehensive evaluation of at least three late-stage/commercial opportunities to the Strategic Advisory Committee7." To date, these efforts have yielded nothing, and we believe continuing this effort will only further distract management from growing Heplisav. Third, the key focus of the Company’s commercial efforts is in the retail pharmacy channel. There are only a finite number of complementary vaccines that would make any financial or strategic sense to promote next to Heplisav, and Dynavax does not have the financial wherewithal to acquire any of them. Management has indicated they are not willing to take on clinical risk when purchasing external assets, leaving a very small pool of vaccines – none of which will come close to matching the rate of return offered by Heplisav and DVAX shares at these levels.
Should the current Board and their diversification strategy be allowed to continue, the downside risk to DVAX shares is significant. We are highly concerned the Board will act out of desperation, spending the Company’s cash and increasing future operating expenses to satisfy a corporate goal that is completely unnecessary.
Heplisav Represents Significant Value for Dynavax
Dynavax developed the best-in-class adult vaccine for hepatitis B, a disease with no cure and potential serious consequences including liver cancer. We expect sales of Heplisav to grow steadily as the Company increases market share and more adults are vaccinated as part of the universal recommendation instituted by the Centers for Disease Control and Prevention in 2022. This makes Heplisav an incredibly valuable asset, particularly as there is no patent "cliff" to worry about. This is very likely to be a multi-decade annuity with significant profitability.
Based on the Company’s own long-term sales guidance and consensus numbers, we estimate Heplisav will generate well over $1 billion of cash through 2030. Combined with $714 million of cash at the end of 2024, we believe this translates into $2 billion of cash that can be returned to shareholders by the end of 2030 – greater than the fully diluted market capitalization today, including the convertible note due May 2026 – while still retaining full ownership of Heplisav economics in the post-2030 period. With renewed focus on Heplisav, we are confident additional value could be unlocked. The Company could also consider exploring potential opportunities such as monetizing royalties, borrowing at a favorable cost of capital to return even more money to shareholders, or, at the appropriate time, an outright sale to tuck Heplisav into a larger vaccine portfolio. Of course, any such path would have to be carefully evaluated to ensure it would provide shareholders with the ability to capture optimal value as opposed to a standalone strategy. Regardless of how it occurs, we believe that putting capital back into the hands of shareholders so that it may be redeployed into other innovative projects will do far more to advance drug development than keeping cash parked indefinitely on the Dynavax balance sheet.
Shareholder-Driven Change is Urgently Needed
Dynavax shareholders deserve a Board and a management team that is all-in on Heplisav and fully aligned with investors. Our numerous interactions with the Board over the last several months have made it clear that neither is the case. During our attempt to engage with Dynavax, we have grown significantly more troubled with this team and have several objective reasons for concern:
Not one of the Board members up for election this year, including the chairman, has purchased a single share of DVAX stock on the open market.
Besides serving as the chairman of DVAX, Mr. Myers also serves as the chairman of three other companies (Zentalis (NASDAQ: ZNTL), Umoja and Convergent Therapeutics). We are deeply concerned that four simultaneous chairmanships have left Mr. Myers stretched too thin. Even with a partial year in 2021, Mr. Myers has earned an average of $440,226 annually over the last three years as the chairman of Dynavax. We have no issue paying for performance, but this level of compensation does not square with a -31% decline in DVAX shares since he joined the Company. Further, Mr. Myers’ transactional experience in negotiating sales of distressed assets is of limited relevance to Dynavax’s acquisition strategy.
Instead of allowing shareholders to vote for the entire Board at every annual meeting, Dynavax uses a "staggered" or "classified" Board structure. In response to our criticism of this poor governance practice, the Company announced last month that they would seek approval to declassify the Board at the upcoming Annual Meeting – but only over the course of years, with the full effect not taking place until 2028.
Our Solution – A Truly Refreshed Board
To help catalyze critical improvements at Dynavax, we are seeking to elect four highly qualified director candidates at the Annual Meeting. Our nominees will bring the expertise, owner’s mindset, and skillsets required to protect the interests of all shareholders, maximize the long-term value of Dynavax’s assets, and help eliminate hepatitis B. Given the Board’s classified structure and the unevenness of the classes – with only two directors (including the Company’s CEO) up for election in 2026 – we believe it is critical that shareholders have a real choice of candidates for all four seats in this year’s class. In our view, the Board’s unwillingness to compromise, coupled with the urgency of addressing the risk that the Company squanders its cash, warrants this level of change.
Deep Track’s director candidates include:
Brett Erkman: a Managing Director at Deep Track Capital. Mr. Erkman has spent the last twenty years investing in biotechnology companies and will bring a much needed (and the only) perspective of a large shareholder to the Board – something that is sorely lacking and would be highly valuable in the boardroom. Mr. Erkman’s first investment in Dynavax dates back to April 2010, giving him an extraordinary long-term perspective on the value of Heplisav. Jeffrey Farrow: the Chief Financial Officer at Tarsus Pharmaceuticals (NASDAQ: TARS). Mr. Farrow was also the CFO at Global Blood Therapeutics, Inc. (formerly NASDAQ: GBT; sold to Pfizer for $5.4 billion), ZS Pharma, Inc. (formerly NASDAQ: ZSPH; sold to AstraZeneca for $2.7 billion), and Hyperion Therapeutics (formerly NASDAQ: HPTX; sold to Horizon Pharma plc for $1.1 billion). Michael Mullette: the interim Chief Executive Officer at Lykos Therapeutics. Mr. Mullette was previously the Vice President of North American Commercial Operations at Moderna, Inc. (NASDAQ: MRNA) and spent nearly twenty years at Sanofi (NASDAQ: SNY) in a variety of positions including senior roles in global commercial operations. Donald Santel: the former President and Chief Executive Officer of Hyperion Therapeutics (formerly NASDAQ: HPTX), which developed and brought Ravicti to market for urea cycle disorders and was ultimately acquired by Horizon Pharma in 2015. Prior to Hyperion, Mr. Santel was the Chief Executive Officer of CoTherix (formerly NASDAQ: CTRX), which developed Ventavis for pulmonary arterial hypertension and was acquired by Actelion in 2006.
Fortunately, shareholders can make their voices heard at the upcoming Annual Meeting. Dynavax deserves better than the status quo, and shareholders can be assured that our nominees will put shareholder interests first. Our interests have always been – and continue to be – directly aligned with those of all shareholders. We look forward to communicating further in the weeks to come.
Regards,
David Kroin
Founder and Chief Investment Officer, Deep Track Capital LP
APPENDIX: NOMINEE BIOGRAPHIES
Brett Erkman
Since October 2022, Brett Erkman has served as a Managing Director of Deep Track Capital, an investment firm focused on the life sciences.
Prior to Deep Track, he was a biotechnology investor at Great Point Partners from October 2006 through April 2022.
Previously, Mr. Erkman was a sell side associate at ThinkEquity Partners and a financial analyst at Abbott Laboratories. Mr. Erkman holds a B.S. in Finance from DePaul University.
Jeffrey Farrow
Jeffrey Farrow has served as Chief Financial Officer and Chief Strategy Officer of Tarsus Pharmaceuticals, Inc. since April 2023. Mr. Farrow also serves as a board member of Clover Biotherapeutics, a position he has held since September 2021.
Mr. Farrow previously served as Chief Financial Officer of Global Blood Therapeutics, Inc., a biopharmaceutical company, from April 2016 until December 2022 when it was acquired by Pfizer. At Global Blood Therapeutics, he was part of the team responsible for the successful regulatory approval and commercial launch of Oxbryta for the treatment of sickle cell disease.
Prior to that, Mr. Farrow served as chief financial officer of ZS Pharma, Inc., a biopharmaceutical company, which was acquired by AstraZeneca in December 2015. Prior to ZS Pharma, he served as the chief financial officer at Hyperion Therapeutics, Inc., a commercial pharmaceutical company, from July 2010 until May 2015 which was acquired by Horizon Therapeutics in May 2015. He previously served as vice president of finance at Evotec AG, a drug discovery and development company.
Prior to Evotec, Mr. Farrow served as vice president of finance and chief accounting officer at Renovis, Inc., a drug discovery and development company, which was acquired by Evotec AG. Earlier in his career, Mr. Farrow spent seven years working in the audit practice of KPMG LLP. Mr. Farrow holds a B.A. in business administration with a concentration in corporate finance from California State University at Fullerton and is a certified public accountant (inactive).
Michael Mullette
Michael Mullette is an experienced drug development and commercialization professional with decades of experience growing businesses.
Mr. Mullette has most recently been serving as interim CEO of Lykos Therapeutics since September 2024 and Chief Operating Officer since March of 2022. Before that, Mr. Mullette served as vice president of North America commercial operations for Moderna from July 2020 to March 2022, where he oversaw commercialization of the company’s COVID-19 vaccine during the height of the COVID-19 pandemic.
Before Moderna he spent almost 20 years with Sanofi working in commercial, business development, operations, strategy, planning, marketing and sales in roles of increasing levels of responsibility in the U.S., France, Australia, Japan, and Canada. Mike earned his Bachelor of Business Administration from Villanova University and an M.B.A. from Lehigh University.
Donald Santel
Donald Santel currently serves as chairman of the board of a private biotechnology company, Tentarix Biotherapeutics, since March 2022, as an independent director of private biotechnology company, Inograft Biotherapeutics, since December 2023 and independent director of private biotechnology company March Therapeutics since August 2024. Since January 2023, he has served on the board of Aerovate Therapeutics, a public biotechnology company (NASDAQ: AVTE).
He previously served as Chief Executive Officer of Hyperion Therapeutics (Nasdaq GM: HPTX) from June 2008 until the sale of the company to Horizon Pharma (Nasdaq: HZNP) for $1.1B in May 2015.
Previously, Mr. Santel was the Chief Executive Officer of CoTherix, Inc., (Nasdaq: CTRX) from January 2000 through its sale to Actelion for $419M in January 2007. Prior to joining CoTherix, Mr. Santel was employed by several medical device companies, including Cardiac Pathways Corporation (acquired by Boston Scientific) and Medtronic, Inc.
Mr. Santel holds an M.S. in electrical engineering from the University of Minnesota and a B.S.E. in biomedical engineering from Purdue University.
About Deep Track Capital
Deep Track Capital is a Greenwich, Connecticut-based investment firm focused exclusively on the life sciences industry. We develop long term partnerships with management teams of leading innovative public and pre-IPO biotechnology companies. In addition to capital, we seek to invest our time and expertise, while leveraging our network for the benefit of our partners. We aim to lead transactions while building large syndicates, and also to invest in rounds led by other qualified investors.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
The information herein contains "forward-looking statements." Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "potential," "targets," "forecasts," "seeks," "could," "should" or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe our objectives, plans or goals are forward-looking. Forward-looking statements are subject to various risks and uncertainties and assumptions. There can be no assurance that any idea or assumption herein is, or will be proven, correct. If one or more of the risks or uncertainties materialize, or if any of the underlying assumptions of Deep Track Capital, LP ("Deep Track") or any of the other participants in the proxy solicitation described herein prove to be incorrect, the actual results may vary materially from outcomes indicated by these statements. Accordingly, forward looking statements should not be regarded as a representation by Deep Track that the future plans, estimates or expectations contemplated will ever be achieved.
Certain statements and information included herein may have been sourced from third parties. Deep Track does not make any representations regarding the accuracy, completeness or timeliness of such third party statements or information. Except as may be expressly set forth herein, permission to cite such statements or information has neither been sought nor obtained from such third parties. Any such statements or information should not be viewed as an indication of support from such third parties for the views expressed herein.
Deep Track disclaims any obligation to update the information herein or to disclose the results of any revisions that may be made to any projected results or forward-looking statements herein to reflect events or circumstances after the date of such information, projected results or statements or to reflect the occurrence of anticipated or unanticipated events
CERTAIN INFORMATION CONCERNING THE PARTICIPANTS
Deep Track and the other Participants (as defined below) intend to file a preliminary proxy statement and accompanying WHITE universal proxy card with the Securities and Exchange Commission (the "SEC") to be used to solicit proxies for, among other matters, the election of its slate of director nominees at the 2025 annual stockholders meeting (the "2025 Annual Meeting") of Dynavax Technologies Corporation, a Delaware corporation ("DVAX"). Promptly after filing its definitive proxy statement with the SEC, Deep Track will furnish the definitive proxy statement and accompanying WHITE universal proxy card to some or all of the stockholders entitled to vote at the 2025 Annual Meeting.
The participants in the proxy solicitation are Deep Track, Deep Track Biotechnology Master Fund, Ltd. (the "Record Stockholder"), David Kroin (all of the foregoing persons, collectively, the "Deep Track Parties"), Brett A. Erkman, Jeffrey S. Farrow, Michael Mullette and Donald J. Santel (such individuals, collectively with the Deep Track Parties, the "Participants").
As of the date hereof, the Deep Track Parties beneficially own an aggregate of 17,791,486 shares (the "Deep Track Shares") of the common stock, par value $0.001 per share, of DVAX (the "Common Stock"). The Deep Track Shares collectively represent approximately 13.53% of the outstanding shares of Common Stock based on 131,454,561 shares of Common Stock outstanding as of November 5, 2024 as reported in DVAX’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. Each of the Deep Track Parties may be deemed to have the shared power to vote or direct the vote of (and the shared power to dispose or direct the disposition of) all of the Deep Track Shares. As of the date hereof, none of the other Participants beneficially own any shares of Common Stock.
IMPORTANT INFORMATION AND WHERE TO FIND IT
DEEP TRACK STRONGLY ADVISES ALL STOCKHOLDERS OF DVAX TO READ THE PRELIMINARY PROXY STATEMENT, ANY AMENDMENTS OR SUPPLEMENTS TO SUCH PROXY STATEMENT, AND OTHER PROXY MATERIALS WHEN FILED BY DEEP TRACK WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC’S WEBSITE AT WWW.SEC.GOV. THE DEFINITIVE PROXY STATEMENT, WHEN FILED, AND OTHER RELEVANT DOCUMENTS, WILL ALSO BE AVAILABLE BY DIRECTING A REQUEST TO THE PARTICIPANTS’ PROXY SOLICITOR, INNISFREE M&A INCORPORATED, 501 MADISON AVENUE, 20th FLOOR, NEW YORK, NY 10022 (STOCKHOLDERS CAN CALL TOLL-FREE: (877)-687-1865)
1 Press Release, Dynavax Raises $44 Million Through Public Offering of Common Stock and Warrants
2 Press Release, Dynavax Announces Preliminary Unaudited Fourth Quarter and Full Year 2024 Financial Highlights
3 Page 42, DVAX 2024 Proxy Statement
4 Press Release, Harpoon Therapeutics Appoints Lauren Silvernail to Board of Directors
5 Page 40, DVAX 2022 Proxy Statement
6 Page 26, DVAX 2023 Proxy Statement
7 Page 42, DVAX 2024 Proxy Statement
View source version on businesswire.com: https://www.businesswire.com/news/home/20250219366152/en/
Contacts
Investor Contact
Innisfree M&A Incorporated
Scott Winter / Gabrielle Wolf
+1 212-750-5833
Media Contact
Longacre Square Partners
deeptrack@longacresquare.com
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- Amgen stock falls as profit outlook disappoints investors
Feb 4, 2025
Amgen Inc (NASDAQ:AMGN) reported better-than-expected fourth-quarter results on Tuesday, but its shares fell 2.5% in after-hours trading as the company's profit outlook for 2025 fell short of analyst expectations.
The biotechnology giant posted adjusted earnings per share of $5.31, surpassing the analyst estimate of $5.04. Revenue for the quarter came in at $9.1 billion, exceeding the consensus estimate of $8.85 billion and representing an 11% increase YoY.
Despite the strong quarterly performance, investors appeared to focus on Amgen's guidance for fiscal year 2025. The company projects earnings per share between $20.00 and $21.20, with the midpoint of $20.60 falling below the analyst consensus of $20.82.
Robert A. Bradway, chairman and CEO of Amgen, commented on the results: "Robust growth in sales and earnings throughout 2024 reflects the momentum of our business. With strong performance globally, we are investing heavily in our rapidly advancing pipeline to deliver innovative therapies across our four therapeutic areas."
The company's fourth-quarter product sales grew 11%, primarily driven by 14% volume growth. Excluding sales from the recently acquired Horizon Therapeutics (NASDAQ:HZNP), product sales increased 10%, fueled by 15% volume growth. Ten products, including Repatha, BLINCYTO, and TEZSPIRE, delivered at least double-digit sales growth in the quarter.
For the full year 2024, Amgen's total revenues increased 19% to $33.4 billion compared to 2023. Product sales grew 19%, driven by 23% volume growth, partially offset by 2% lower net selling price.
The company generated $10.4 billion of free cash flow for the full year, up from $7.4 billion in 2023, driven by business performance and timing of working capital items.
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- Amgen quarterly profit rises 15% as Horizon deal boosts results
Feb 6, 2024 · reuters.com
Amgen on Tuesday said its adjusted fourth-quarter profit rose 15%, driven by a 20% increase in revenue following the biotechnology company's October acquisition of rare disease drugmaker Horizon Therapeutics.
- 22 Most Famous Hedge Fund Managers and Their Top Stock Picks
Jan 20, 2024
In this article, we will take a detailed look at the22 Most Famous Hedge Fund Managers and Their Top Stock Picks. For a quick overview of such stocks, read our article 5Most Famous Hedge Fund Managers and Their Top Stock Picks.
Hedge funds on average underperformed the market in 2023 as investors continued to pull out money amid rise in bond yields, overall volatility and a changing financial landscape. But the $3.4 trillion hedge fund industry saw many blockbuster returns from select hedge funds. For example, SoMa Equity Partners posted a massive 62% gain in 2023, according to a Reuters report. Many notable hedge funds like Coatue Management of Philippe Laffont, Millennium Management of billionaire Israel Englander, Anson Funds' Investments Master fund posted double-digit returns. Chase Coleman's Tiger Global, which was devastated in 2022 due to its tech investments, rebounded strongly in 2023 and posted a 28.5% gain in the period, with most of the gains coming in the last quarter of the year, helped largely by tech stocks. While there's no shortage of hedge funds that performed extremely poorly during the year, you have funds like Mulvaney Capital Management which reportedly posted a 51.22% return, according to Reuters.
This mixed bag of results and the average underperformance of the hedge fund industry when compared to the S&P 500's strong returns in 2023 only prove Insider Monkey's long-held thesis about the hedge fund industry, recently summarized by its founder and research director Dr. Inan Dogan:
"Hedge funds, usually, underperform the market during bull markets and outperform during bear markets. Most investors don’t understand that hedge funds are “hedged”. When the S&P 500 Index returns 20+% like it did in 2021, it is a certainty that hedge funds will underperform. It is also a certainty that hedge funds will significantly outperform the market when the market declines 18.2% like it did in 2022. Hedge funds lost 4.25% in 2022 according to HFR. That’s an outperformance of 14 percentage points. "
Story continues
Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator Most Famous Hedge Fund Managers and Their Top Stock Picks
22. Israel Englander
Top Stock Pick: Microsoft Corp (NASDAQ:MSFT)
Israel "Izzy" Englander founded Millennium Management in 1989 with Ronald Shear. As of 2023 the fund has a whopping $61 billion worth of assets under management. The hedge fund operates relative value, equity arbitrage, fixed income and quantitative strategies.
As of the end of the third quarter of 2023, Microsoft Corp (NASDAQ:MSFT) was the biggest position of Millennium Management as the fund had a $1.6 billion stake in Microsoft Corp (NASDAQ:MSFT).
In its fourth quarter 2023 investor letter, ClearBridge Dividend Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT):
“Microsoft Corporation (NASDAQ:MSFT) is the largest holding in our portfolio. Given its partnership with OpenAI and leading position in the cloud, Microsoft is well-positioned to profit from the boom in AI. However, due to Microsoft’s tremendous scale and diversification, the company is not dependent upon AI for its success. Microsoft’s diverse portfolio of software and cloud offerings ensures the company will thrive even if the next hot thing, like AI, fizzles out. In this way, Microsoft is emblematic of our broader investing approach. We seek to benefit from powerful trends, but we do so with an eye toward managing risk and limiting downside in case the future turns out to be less rosy than hoped for.”
21. Ken Griffin
Top Stock Pick: Boston Scientific Corp (NYSE:BSX)
Worth about $35 billion today, Ken Griffin started Citadel LLC back in 1990. As of December 2022, the fund had assets under management worth over $62 billion.
As of the end of the third quarter of 2023, Microsoft was the biggest position of the fund but since it would be a repetition, we focus on the fund's second-biggest holding, Boston Scientific Corp (NYSE:BSX). Citadel had a $1.1 billion stake in Boston Scientific Corp (NYSE:BSX).
Baron Health Care Fund made the following comment about Boston Scientific Corporation (NYSE:BSX) in its Q3 2023 investor letter:
“We added to our position in Boston Scientific Corporation (NYSE:BSX), a global developer, manufacturer, and marketer of medical devices that are used in a broad range of interventional medical specialties. We wrote about Boston Scientific last quarter. We believe Boston Scientific can grow revenue in the high single digits, driven by differentiated products used to treat atrial fibrillation, among others. The company held an Investor Day during the quarter at which management established financial targets for the 2024– 2026 period calling for an organic sales CAGR of 8% to 10%, 150 basis points of margin expansion and strong double-digit adjusted EPS growth and improved free-cash-flow conversion. We think this growth profile makes Boston Scientific a compelling name within the large medical device universe.”
20. John Paulson
Top Stock Pick: Horizon Therapeutics Public Ltd Co. (NASDAQ:HZNP)
John Paulson, who has a net worth of about $3.5 billion as of January 11, rose to fame in 2007 when he earned a whopping $4 billion, thanks to his bets against the U.S. subprime mortgage lending market via credit default swaps.
Paulson founded Paulson & Co. in 1994. The hedge fund's biggest position as of the end of September was Horizon Therapeutics Public Ltd Co. (NASDAQ:HZNP) in which the fund had a $243 million stake.
19. David Einhorn
Top Stock Pick: Green Brick Partners Inc (NYSE:GRBK)
David Einhorn founded Greenlight Capital in 1996. The fund returned 36.6% in 2022, easily outperforming the S&P 500’s fall of 18.1%. Since its launch in 1996, Greenlight Capital has returned 2,358.3% for an annualized return of 12.8% net. Over the same timeframe, the S&P 500 gained 864% for an annualized return of 8.9%.
The fund's biggest stock holding is Green Brick Partners Inc (NYSE:GRBK).
Here is what Greenlight Capital has to say about Green Brick Partners, Inc. (NYSE:GRBK) in its Q3 2023 investor letter:
“Green Brick Partners, Inc. (NYSE:GRBK) fell from $56.80 to $41.51 during the quarter. The company announced second quarter earnings of $1.63 per share, which far exceeded consensus estimates of $1.18 per share. Full-year estimates for 2023 and 2024 rose from $5.16 and $5.54 to $6.13 and $6.49, respectively. However, the market has become concerned about the impact of higher mortgage rates, and most homebuilding stocks reversed a portion of the gains achieved earlier this year.”
18. Jim Simons
Top Stock Pick: Novo Nordisk A/S (NYSE:NVO)
James Harris Simons is an American billionaire, award-winning mathematician and hedge fund manager who founded Renaissance Technologies in 1982. According to data compiled by Bloomberg, Jim Simons’ secretive Medallion Fund — closed for outsiders — posted a whopping $55 billion in profit over the last 28 years, about $10 billion more profitable than hedge funds of giants like Ray Dalio and George Soros.
Renaissance Technologies' biggest stock holding as of the end of September 2023 was Novo Nordisk A/S (NYSE:NVO)in which the fund had a $1.5 million stake.
ClearBridge Sustainability Leaders Strategy made the following comment about Novo Nordisk A/S (NYSE:NVO) in its Q3 2023 investor letter:
“Our health care holdings also fared well. The sector has been largely overlooked in 2023 amid AI exuberance, but its defensiveness is looking more salutary as tighter monetary policy begins to sap market sentiment. Novo Nordisk A/S (NYSE:NVO) shares rose on continued unprecedented demand for GLP-1s, which treat diabetes and obesity, and of which Novo Nordisk is one of two major providers. GLP-1s represent the largest commercial opportunity and investable theme in health care.”
17. Cathie Wood
Top Stock Pick: Tesla Inc (NASDAQ:TSLA)
Cathie Wood is one of the most followed hedge fund managers in the Wall Street and is known for her bets on innovative, high-growth companies. In 2014, Wood founded ARK Invest. Cathie Wood's ARK Innovation exchange-traded fund ($ARKK) rallied about 70% in 2023. This was the fund's third best performance in a year since its inception.
The biggest position of ARK Invest as of the end of September 2023 was Tesla Inc (NASDAQ:TSLA) in which the fund had a $1 billion stake.
Here is what White Brook Capital has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Tesla, Inc. (NASDAQ:TSLA), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”
16. Guy Spier
Top Stock Pick: Berkshire Hathaway Inc Class A (NYSE:BRK.A)
Guy Spier has risen to fame over the past few years, thanks to his obsession with Warren Buffett and his value principles. The author of the famous value investing book The Education of a Value Investor famously paid $650,100 along with Mohnish Pabrai to have lunch with Warren Buffett.
Spier founded the Aquamarine Fund after leaving investment banking career. The fund's biggest position as of the end of the third quarter was, you guessed it, Warren Buffett's Berkshire Hathaway Inc Class A (NYSE:BRK.A) as the fund owned 140,600 shares of the conglomerate.
15. Michael Burry
Top Stock Pick: Stellantis NV (NYSE:STLA)
Michael Burry is almost always in the news thanks to his blunt predictions which often warn about recessions and market crashes. The Big Short investor rose to fame after he correctly bet against the housing bubble in 2007.
In 2000, Michael Burry founded Scion Capital. The fund's biggest stock holding as of the end of September was Stellantis NV (NYSE:STLA) in which the fund had a $7.6 million stake.
14. Leon Cooperman
Top Stock Pick: Energy Transfer LP Unit (NYSE:ET)
Billionaire Leon Cooperman is the chariman and CEO of Omega Advisors, which had about $1.9 billion under managed securities as of the end of the third quarter.
The biggest stock holding of the fund was Energy Transfer LP Unit (NYSE:ET), in which the fund had a $167 million.
13. Mario Gabelli
Top Stock Pick: Herc Holdings Inc (NYSE:HRI)
Billionaire Mario Gabelli is the man behind GAMCO Investors, Inc., formerly known as Gabelli Asset Management Company. Gabelli is a value investor and has impressed the market with high returns over the past several years. Talking to Columbia Business School, the 81-year-old investor talked about the essence of value investing:
"Value investing isn’t focused on short-term market movements. It’s about finding the ignored and unloved companies that nobody covers for whatever reason, with a good business, solid management, and a good price. But you do need to evaluate new trends as they come up. AI, for example, might accelerate the problem of income inequality. Also, there are food, water, and energy shortages. There’s the way capital is allowed to be allocated on a global basis — the regulatory hurdles and the challenges to the free market’s system of allocation. So you have to figure out how to bridge all that."
The biggest stock holding of GAMCO as of the end of the third quarter of 2023 was Herc Holdings Inc (NYSE:HRI).
12. David Tepper
Top Stock Pick: Amazon.com Inc (NASDAQ:AMZN)
Billionaire David Tepper is the man behind Appaloosa Management, a Florida-based hedge fund. Tepper, who also owns Carolina Panthers, managed to post about 18% to 19% gains in 2023, according to a report by Institutional Investor.
Tepper's top two holdings as of the end of September were Meta Platforms Inc (NASDAQ:META) and Microsoft Corp (NASDAQ:MSFT). But since these two stocks are already mentioned in our article as the top picks of other hedge funds, let's look at the third biggest position of the billionaire. Tepper's fund had a $477 million stake in the ecommerce giant Amazon.com Inc (NASDAQ:AMZN).
In its fourth quarter 2023 investor letter, ClearBridge Large Cap Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN):
“Much of that differential can be attributed to the performance of the Magnificent Seven (Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia and Tesla), a basket of mega cap growth stocks that accounted for 47.8% of the benchmark return for the quarter and 65.4% for 2023.
The ClearBridge Large Cap Growth Strategy maintains exposure to six of the seven stocks, with overweights in Amazon.com, Inc. (NASDAQ:AMZN), Meta and Nvidia. Amazon benefited from strong margin expansion across segments, most notably its core e-commerce business, while Meta saw accelerated revenue growth and share gains in online advertising.
Active management of our mega cap exposure contributed to the Strategy outperforming the benchmark both in the fourth quarter and through the narrow leadership market of 2023. We also attribute these improved results to solid stock picking, being opportunistic in adding to or initiating new positions in growth companies at or near the bottom of their earnings cycle, and maintaining a commitment to diversification across our three buckets of growth: select, stable and cyclical.”
11. Paul Tudor Jones
Top Stock Pick: Activision Blizzard Inc (ATVI)
Billionaire Paul Tudor Jones founded Tudor Investment Corporation in 1980. As of the end of the September quarter the hedge fund had a portfolio worth about over $9 billion.
The biggest stake of the company was in Activision Blizzard which is now going under the ownership of Microsoft. Jones' fund had a $284 million stake in the company as of the end of the September quarter.
10. Dan Loeb
Top Stock Pick: PG&E Corporation (NYSE:PCG)
Daniel Seth Loeb started Third Point in 1995. The fund today has $10.8 billion in assets for sovereign wealth funds, endowments, foundations, corporate & public pensions, high-net-worth individuals, and employees. The fund returned -2.2% on a NAV basis in September 2023, compared with a -4.3% return for the MSCI World Index and a -4.8% return for the S&P 500 Index.
As of the end of the September 2023 quarter, PG&E Corporation (NYSE:PCG) was the biggest position of the hedge fund. Third Point reported owning 57 million shares of the company.
9. Bill Ackman
Top Stock Pick: Chipotle Mexican Grill Inc. (NYSE:CMG)
Bill Ackman is currently in the news for his relentless outburst against Harvard University and reports alleging his wife was involved in academic plagiarism. Regardless of this hullaballoo, Ackman is among the top money managers in the world, having started Pershing Square Capital in 2004. In 2023, Pershing returned 26.7%.
As of the end of the September quarter, the hedge fund's biggest position was Chipotle Mexican Grill Inc. (NYSE:CMG), in which the fund had a $1.7 billion stake. Over the past one year the stock has gained about 51%.
ClearBridge Mid Cap Growth Strategy made the following comment about Chipotle Mexican Grill, Inc. (NYSE:CMG) in its Q3 2023 investor letter:
“In the consumer discretionary sector, Chipotle Mexican Grill, Inc. (NYSE:CMG) proved a detractor as investors were disappointed in management’s decision not to push additional menu pricing, which resulted in full year guidance falling short of expectations. However, we believe this is just a timing mismatch as their value proposition relative to peers leaves room for continued strong pricing power.”
8. Ken Fisher
Top Stock Pick:Apple Inc (NASDAQ:AAPL)
Worth $7.9 billion today, Ken Fisher is one of the most renowned hedge fund managers in the world. Ken Fisher founded Fisher Investments back in 1979. Fisher Investments today manages over $236 billion in assets. Ken Fisher is bullish on the market. He recently wrote in an article for that The Globe and Mail that he sees "double-digit gains for both S&P 500 and the MSCI World Index, with tech and big growth stocks leading early on."
Apple Inc (NASDAQ:AAPL) is the biggest holding of Fisher Investments as of the end of the third quarter of 2023. The fund owned a whopping $9.2 billion stake in Apple Inc (NASDAQ:AAPL).
In its fourth quarter 2023 investor letter, ClearBridge Dividend Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL):
“We meaningfully reduced our exposure to Apple Inc. (NASDAQ:AAPL) in 2023. Apple is the largest company in the world and produces terrific products that engage users for hours each day. Despite the company’s size, ubiquity and relevance, however, Apple’s growth has slowed dramatically. Its fiscal 2023 earnings were flat with those of 2022. Apple trades at 30x earnings; sustaining that multiple will require a meaningful acceleration in revenues. While such an improvement is possible, we do not see any obvious catalysts for adding tens of billions of dollars to Apple’s topline. Consequently, the risk-reward skews negatively.”
7. Ray Dalio
Top Stock Pick: Procter & Gamble Co (NYSE:PG)
Ray Dalio in 1975 founded Bridgewater Associates which went on to become the largest hedge fund in the world. According to Forbes, the hedge fund has over $124 billion in assets under management. According to Bloomberg, Bridgewater's flagship hedge fund lost about 7.6% in 2023, while its long-only All Weather fund climbed 10.6% in the period.
As of the end of the third quarter of 2023, Procter & Gamble Co (NYSE:PG) was the biggest holding of Ray Dalio's Bridgewater as the fund reported owning a $700 million stake in Procter & Gamble Co (NYSE:PG).
Hayden Capital made the following comment about The Procter & Gamble Company (NYSE:PG) in its third 2023 investor letter:
“It’s not just emerging markets either, where one could argue a “scarcity premium” given fewer quality public companies. Even in the US, Coca-Cola trades at ~30x P/E despite having the same earnings as 10 years ago. The Procter & Gamble Company (NYSE:PG) is likewise at ~27x P/E, with earnings only ~12% higher than a decade ago (or a ~1% annual growth rate). This equates to a mere 3.3% – 3.7% earnings yield.
Both of these companies actually have lower revenues than 10 – 15 years ago too, indicating that their profit growth is mostly from margin expansion. This can only last for so long before there’s no more excess expenses left to cut.
I find it ironic that all these companies trade as “bond-equivalents” in the minds of investors – even commanding lower yields than US treasuries, the safest security in the world. But it’s clear that their businesses are not nearly as safe. Proctor & Gamble is facing disruption from direct-to-consumer brands that offer their products for a fraction of the price.
But these companies are ~35% more expensive than US Treasuries, despite the heightened risk. On a risk-adjusted basis, one could argue the implied premium is even higher.
Perhaps the explanation is simply the price volatility difference between these stocks and treasuries over the last two years. For example, 10-year Treasury bonds are down ~-20% since the beginning of 2022. By comparison, KO and PG are remarkably down only -4 – 6% over that time frame.”
6. Chase Coleman
Top Stock Pick: Meta Platforms Inc (NASDAQ:META)
Having worked under legendary investor Julian Robertson, Chase Coleman rose to higher ranks in the money management industry with speed thanks to Robertson giving Coleman about $25 million after he shuttered his own fund Tiger Management. The famous tiger cub founded Tiger Global in 2001. According to Forbes, Coleman's worth today is about $5.7 billion.
Tiger Global's biggest stock position as of the end of September 2023 was Meta Platforms Inc (NASDAQ:META), in which the fund had a $2.7 billion stake.
In its fourth quarter 2023 investor letter, ClearBridge Large Cap Growth Strategy stated the following regarding Meta Platforms, Inc. (NASDAQ:META):
“Much of that differential can be attributed to the performance of the Magnificent Seven (Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia and Tesla), a basket of mega cap growth stocks that accounted for 47.8% of the benchmark return for the quarter and 65.4% for 2023.
The ClearBridge Large Cap Growth Strategy maintains exposure to six of the seven stocks, with overweights in Amazon.com, Meta and Nvidia. Amazon benefited from strong margin expansion across segments, most notably its core e-commerce business, while Meta Platforms, Inc. (NASDAQ:META) saw accelerated revenue growth and share gains in online advertising.
Active management of our mega cap exposure contributed to the Strategy outperforming the benchmark both in the fourth quarter and through the narrow leadership market of 2023. We also attribute these improved results to solid stock picking, being opportunistic in adding to or initiating new positions in growth companies at or near the bottom of their earnings cycle, and maintaining a commitment to diversification across our three buckets of growth: select, stable and cyclical.”
Click to continue reading and see the 5Most Famous Hedge Fund Managers and Their Top Stock Picks.
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- 16 Richest Hedge Fund Managers in the World
Nov 26, 2023
In this article, we discuss the 16 richest hedge fund managers in the world and their top stock picks. If you want to see more hedge fund managers, check out 5 Richest Hedge Fund Managers in the World.
The global hedge fund industry experienced a tumultuous year, navigating through market fluctuations driven by the conflicts in Eastern Europe and Gaza, surging inflation, and the implementation of interest rate hikes. In such an environment, hedge fund managers still managed to amass billions of dollars in personal earnings. While the market downturn led many long-short and long-only managers to incur losses, with some performing worse than the S&P 500 index's decline, it proved to be a prosperous year for multistrategy, macro, trend-following, and fixed-income managers. Collectively, the 20 wealthiest hedge fund billionaires on Forbes' 2023 World's Billionaires list now hold a combined net worth of $245 billion, marking a $4 billion increase from the previous year. However, the individual returns of these managers have exhibited significant variations.
During the second quarter of 2023, global hedge funds collectively amassed a fund totaling $3.6 billion, resulting in a positive net inflow of $12.64 billion in the first half of the year, according to data from HFR. As of June 2023, the total assets managed by hedge funds reached $3.95 trillion, marking a 1.8% increase from March 2023. This growth was largely driven by the second-quarter performance of hedge funds, which experienced an average increase of 2.15%, contributing to a 3.4% rise in the first half of the year. Overall, hedge funds across the industry are making big moves.
Ken Griffin's hedge fund enterprise Citadel Investment Group, for instance, achieved an estimated $16 billion in net gains for investors last year—marking the highest amount ever tracked by LCH Investments in its annual ranking of the world's leading hedge fund managers. This brought Citadel's net gains since its inception to an unprecedented $65 billion. Citadel's specialized funds focusing on fixed income and equities also recorded impressive gains of 32.6% and 21.4%, respectively. The hedge fund, relocated by Griffin from Chicago to Miami in 2022, generated net trading revenue of $28.7 billion in 2022, including fees, equivalent to the capital markets revenue of banking giant JPMorgan. With a cumulative net return of 118% since 2020, Citadel significantly outperformed the S&P 500, which gained 25% over the same period.
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As such, investors commonly adopt the strategy of mirroring the stock choices of renowned hedge funds, often finding common holdings such as Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and Bank of America Corporation (NYSE:BAC). Richest Hedge Fund Managers in the World
Our Methodology
For our list of the 16 richest hedge fund managers in the world, we made use of Forbes' The Richest Hedge Fund Managers 2023 list as the basis for our rankings. These money managers, ranked according to their net worth, lead some of the premier hedge funds across the globe. We also highlighted their top stock picks based on 13F portfolios as of the end of the third quarter of 2023.
16. Bruce Kovner
Net Worth: $6.6 billion
Bruce Kovner, an accomplished American hedge fund manager, stands as one of the most successful traders in recent decades. As the founder of Caxton Associates, he has amassed billionaire status and is the proprietor of the Kovner Foundation, one of the largest private foundations in the United States. Kovner's exceptional trading skills have earned him recognition, and he is featured in Jack Schwager's book "Market Wizards" as one of the greatest traders of all time. Bruce Kovner's net worth is estimated to be approximately $6.6 billion, according to Forbes. Apart from his charitable activities managed by the Kovner Foundation, the chairman of CAM Capital focuses on investments in private assets. At the end of September 2023, Teck Resources Ltd (USA) (NYSE:TCK) was the largest holding in Caxton Associates' portfolio, with 1.03 million shares worth $44.69 million.
Like Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and Bank of America Corporation (NYSE:BAC), Teck Resources Ltd (USA) (NYSE:TCK) is one of the top stock picks of the richest hedge fund managers.
15. George Soros
Net Worth: $6.7 billion
George Soros stands as one of the most accomplished investors in history. Managing the Soros Fund Management, his portfolio is valued at approximately $7 billion as of Q3 2023. According to Forbes, Soros has an estimated net worth of $6.7 billion, having donated over $32 billion to philanthropic causes. He previously oversaw the Quantum Fund, achieving an impressive average annual return of 30% over a 30-year span from 1970 to 2000. Notably, Soros gained widespread recognition for earning a $1 billion profit in a single day in 1992 through the strategic short selling of the British pound, thus earning him the name, "the Man Who Broke the Bank of England". George Soros' top holding as of Q3 2023 is Horizon Therapeutics Public Limited Company (NASDAQ:HZNP), with the billionaire owning more than 3.28 million shares worth $380.5 million, representing 5.4% of the total 13F portfolio.
14. Christopher Hohn
Net Worth: $6.7 billion
Christopher Hohn, a British billionaire and hedge fund manager, is renowned for both his philanthropic endeavors and assertive activist campaigns. In 2003, Hohn founded The Children's Investment Fund Management (TCI). Notably, Hohn committed to donating 50 basis points of the management fee to The Children’s Investment Fund Foundation, a charitable fund he co-established with his ex-wife, Jamie Cooper-Hohn. TCI Fund Management achieved profits for 13 consecutive years until 2021. However, the fund experienced a setback in 2022, registering an 18% decline, attributed to substantial investments in Alphabet Inc. (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT). This downturn resulted from investor shifts away from growth stocks towards value and dividend-oriented plays. The majority of Hohn's net worth is derived from TCI Fund Management. Notably, TCI was the world's best performing hedge fund in 2019 and managed about $27.56 billion at the end of Q3 2023. The largest stock in TCI Fund Management’s Q3 2023 portfolio is General Electric Company (NYSE:GE). Regulatory filings show that Chris Hohn's hedge fund owned 7.9 million shares of General Electric Company (NYSE:GE) at the end of September 2023 worth $4.6 billion, representing 16.7% of the portfolio of the fund.
13. David Siegel & John Overdeck
Net Worth: $6.8 billion
John Overdeck and David Siegel co-founded Two Sigma Advisors in 2001, alongside Mark Pickard, who has since retired. Prior to this venture, John Overdeck held the position of managing director at D.E. Shaw & Co., while David Siegel served as Chief Information Officer at the same firm. Notably, Siegel gained algorithmic experience during his tenure at Paul Tudor's Tudor Investment Corp, bringing valuable expertise to Two Sigma. Over the years, Two Sigma Advisors has strategically brought on board leading mathematicians and engineers to contribute to the development and refinement of proprietary trading models. This strategic approach likely contributes to the consistent ranking of the hedge fund among the top ten over the years. As of the end of the first quarter, the hedge fund recorded a notable gain of 21.7%, significantly surpassing the 6% gain of the S&P 500 ETF (SPY). Two Sigma has established a track record of consistently outperforming the S&P 500, with its flagship fund, Two Sigma Compass Enhanced, delivering an average annual return of 16.9% since 2007, outpacing the 9.2% gain of the S&P 500. Two Sigma Advisors top holding as of Q3 2022 is Apple Inc. (NASDAQ:AAPL), with the hedge fund owning more than 59 million shares worth $8 billion, representing 6.13% of the total 13F portfolio.
12. Philippe Laffont
Net Worth: $6.9 billion
Philippe Laffont, a French-born investor, has consistently outperformed the NASDAQ Composite, surpassing its returns by more than five percentage points on average over the past two and a half decades. Managing a hedge fund with assets exceeding $70 billion, he has achieved an average annual gain of 11% since 1999. Laffont initiated his financial career by joining consulting firm McKinsey immediately after completing his post-graduate degree in Computer Science from the Massachusetts Institute of Technology. Additionally, he served as a telecommunications analyst for Julian Robertson. As of the third quarter of 2023, the equity portfolio of his fund, Coatue Management, with significant holdings in tech firms, was valued at over $19.7 billion. The largest stock in Coatue Management’s Q3 2023 portfolio is NVIDIA Corporation (NASDAQ:NVDA), with 4.5 million shares worth $1.9 billion, representing 10.02% of the total holdings.
In its Q3 2023 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“At the portfolio level, the positive fundamental trends we noticed in the second quarter continued into the third quarter as well – many of our companies are reporting stability or slight improvement in business trends. Weighted average 2023 revenue growth expectations for the portfolio were up 3.8% during the third quarter or up 0.8% if we exclude NVIDIA. We wrote at length about NVIDIA earlier this year, but it is worth mentioning that the company has continued to exceed its own projections and the Street’s most optimistic expectations. After raising its revenue and EPS guidance for 2023 by 40% and 69%, respectively, following its last quarter, NVIDIA increased it further by 26% and 35%, respectively, after reporting the most recent one. Consensus expectations now call for revenues to grow 94% this year, while earnings per share are expected to increase by 192%. You may have seen these kinds of growth rates before, but we doubt you saw them from a company generating $50 billion in revenues. The skeptics who continue to question and doubt the accelerating demand for Generative artificial intelligence forgot to tell NVIDIA about it. But we digress…back to the portfolio…profit expectations have risen even faster than revenues and were up 11% during the third quarter (or up 7.8% ex-NVIDIA) with margin expectations up 149bps (107bps ex-NVIDIA). So, broadly speaking, our companies are seeing improvement in overall business trends, which flow through to their bottom lines, driving higher margins. We are also starting to see the benefits of leaner cost structures and more disciplined capital allocation compared to two or three years ago when capital was both cheaper and more readily available.”
11. Paul Tudor Jones
Net Worth: $7.5 billion
Paul Tudor Jones stands as one of the wealthiest hedge fund investors globally. Establishing his hedge fund, Tudor Investment Corporation, in 1980, the fund has expanded significantly over the years. As of the end of the third quarter of this year, Tudor Investment's portfolio reached a value of $9.9 billion, reflecting substantial growth of $1.6 billion compared to the previous quarter. One of his notable and well-known moves occurred in 1987 when he bet against both American and Japanese stock markets, thus earning a staggering 125% in gains after fees. The largest position of Tudor Investment Corporation as of the end of September 2023 was Activision Blizzard, Inc. (NASDAQ:ATVI), with 3.03 million shares worth $284.2 million.
Here is what Aristotle Value Equity has to say about Activision Blizzard, Inc. (NASDAQ:ATVI) in its Q2 2023 investor letter:
“Headquartered in Santa Monica, California, Activision Blizzard is one of the largest video game companies in the world. The company develops and sells games that are played by nearly 400 million monthly active users across 190 countries. Activision Blizzard is a product of the 2008 merger of Activision, the console game maker, and Blizzard Entertainment, the PC game maker. In 2015, Activision Blizzard also acquired King Digital Entertainment, the developer of mobile games. The combined entities own some of the most well‐known franchises globally, including World of Warcraft, Call of Duty and Candy Crush. Together these three franchises account for roughly 80% of Activision Blizzard’s sales.
The company has successfully navigated multiple console cycles and, in recent years, has shifted its revenue mix away from physical sales toward more recurring sources. In 2013, roughly 70% of sales came from physical games, while today ~75% of sales come from subscriptions, in‐game content and advertising across mobile devices, consoles and PCs.
In early 2022, Microsoft—a current Value Equity holding—announced its intention to acquire Activision Blizzard. Our subsequent discussions with Sony, also a current holding, furthered our understanding that access to Activision Blizzard’s gaming franchises is critical for PlayStation, Xbox and the broader videogame industry. We do not attempt to predict regulatory approval of the transaction and instead view the company as an optimal investment regardless of whether the acquisition takes place…” (Click here to see the full text)
10. David Shaw
Net Worth: $7.9 billion
A Stanford University alumnus, David E. Shaw is among the hedge fund managers who have mastered the intricacies of quant investing, consistently delivering substantial returns. Once a computer science professor at Columbia University, Shaw established his quantitative hedge fund, D.E. Shaw, in 1988. Renowned for its utilization of sophisticated mathematical modeling and algorithms, the fund currently oversees assets exceeding $95.78 billion. In 2002, Shaw transitioned away from day-to-day operations, entrusting an executive committee with the firm's oversight. Under the D.E. Shaw hedge fund, Shaw's two major funds, Composite and Oculus, have consistently achieved an annualized net return of 12% through their quantitative investment strategy. Oculus stands out as one of the top-performing funds, maintaining a track record of never recording a negative annual return. The hedge fund, with an overall return exceeding 10%, has surpassed industry standards, underscoring the effectiveness of its quantitative investment approach. Microsoft Corporation (NASDAQ:MSFT) is the biggest position in Shaw’s portfolio, with 7.77 million shares worth $2.45 billion.
In its Q3 2023 investor letter, Jackson Peak Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“The Microsoft Corporation (NASDAQ:MSFT)/Activision Blizzard, Inc. (NASDAQ:ATVI) merger arbitrage came to a successful conclusion with the court denying the FTC’s preliminary injunction request. The deal subsequently received approval from the UK CMA and closed in October. The ATVI position was an example of “staying around the hoop” of a significant arb opportunity. At first, the position led to a small loss in Q2 when the UK CMA initially blocked the deal in April, but we stayed close to the case, analyzed the FTC trial and scaled up the ATVI position as it became apparent FTC had a weak case, meaning the probability of the deal going through was mispriced by the market since the companies would likely find a solution to work with the UK CMA (only global regulator who had an issue) if the FTC lost.”
9. Chase Coleman
Net Worth: $8.5 billion
Charles Payson "Chase" Coleman III is an American billionaire hedge fund manager and the creator of Tiger Global Management. He acts as the portfolio manager for both the public equity and private equity sectors. The public equity segment, involving long and long/short investment strategies, was initiated in March 2001 and follows a fundamentally focused, long-term investment strategy targeting high-quality companies positioned for robust secular growth. The private equity arm, established in 2003, has participated in numerous companies spanning over 30 countries, engaging in all funding stages from Series A to pre-IPO. The venture business, currently deploying its twelfth fund, strives to collaborate with dynamic entrepreneurs leading market-leading growth companies. According to Forbes, Coleman's net worth stands at approximately $8.5 billion as of July 2023, ranking him as the 258th wealthiest individual globally. His fund's biggest position at the end of Q3 was Meta Platforms, Inc. (NASDAQ:META) with a stake value of slightly over $2.67 billion.
8. Israel Englander
Net Worth: $11.5 billion
Israel (Izzy) Englander serves as the founder, CEO, and proprietor of Millennium Management, a multi-strategy hedge fund. By mid-2011, Israel Englander had expanded the firm to approximately $13 billion in assets under management, showcasing remarkable growth. Millennium achieved a 13% return in 2010 and posted around a 6% gain for 2011, surpassing many peers. Presently, Englander's hedge fund enterprise oversees $58 billion. In 2022, its primary multi-strategy fund delivered a 12.4% return, generating $8 billion in net gains for investors. Microsoft Corporation (NASDAQ:MSFT) and NVIDIA Corporation (NASDAQ:NVDA) ranks among the biggest positions in Englander’s portfolio.
7. Michael Platt
Net Worth: $16 billion
Michael Platt is the co-founder and CEO of BlueCrest Capital Management, established in 2000 following his nearly decade-long tenure at JPMorgan. BlueCrest reached its pinnacle in 2013, ranking among the world's largest hedge funds with over $35 billion in assets under management. In response to challenges in equities and lackluster results prompting investor withdrawals, Platt transformed the firm into a family office in 2015. This strategic shift turned out to be a game-changing decision for BlueCrest Capital Management. Since becoming a family office, the fund has delivered remarkable net returns, achieving 50% in 2016 and 54% in 2017. It has continued to thrive, consistently generating returns of at least 25% annually, including an impressive 95% net return in 2020 and 153% in 2022. At the end of September of this year, Platt's largest stock holding, with 2.26 million shares worth $65.99 million was Criteo S.A. (NASDAQ:CRTO).
6. Carl Icahn
Net Worth: $17.5 billion
Carl Icahn, an American hedge fund manager, was referred to as a corporate raider in the 1980s, but in subsequent years, he was more frequently characterized as an activist investor. The activist investor has been a prominent figure in shaping corporate America for decades, and the shares of his main investment entity, Icahn Capital LP, experienced a modest increase in 2021. Notably, he garnered a profit of approximately $250 million by acquiring Twitter, Inc. (NYSE:TWTR) stock following Elon Musk's announcement of a merger agreement to acquire the company. Icahn expressed his willingness to consider initiating a proxy fight if the proposed deal did not materialize. In March, he initiated a proxy battle with Illumina, Inc. (NASDAQ:ILMN), nominating three directors for the board and advocating for the DNA sequencing company to divest its $7.1 billion acquisition of healthcare firm Grail in 2021. At the end of the third quarter of 2023, Icahn's stock portfolio was worth $41.3 million. The Icahn Enterprises L.P. (NASDAQ:IEP) is the biggest position in billionaire’s portfolio, with 350.8 million shares valued at $6.93 billion.
Click to continue reading and see the 5 Richest Hedge Fund Managers in the World.
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- Billionaire John Paulson’s Messy Divorce and Top Stock Picks
Nov 13, 2023
In this article, we discuss billionaire John Paulson's Messy divorce and top stock picks. If you want to see more stocks in this selection, check out Billionaire John Paulson's Messy Divorce and Top 5 Stock Picks.
Born to immigrant parents, John Alfred Paulson is one of Wall Street's most revered hedge fund managers and one of the most followed voices. He rose to fame at the height of the 2008 financial crisis, making $4 billion by shorting the housing market. Paulson & Co, a hedge fund he founded in 1994, generated about $15 billion for investors even as turmoil rocked the markets.
The hedge fund manager became widely recognized for identifying overvalued assets and taking positions that would benefit from a decline in value. As part of the strategy, the legendary investor has always emphasized conducting in-depth research to identify promising investment opportunities. The strategy entails going through financial statements and analyzing fundamentals and macro trends. Consequently, investors have always sought billionaire John Paulson's top stock picks.
Paulson's impressive returns at the height of the financial crisis did not come as a surprise, having accrued significant experience and understanding after years on Wall Street. The Finance degree holder from the New York University College of Business and Public Administration acquired an MBA from the Harvard Business School in 1980, which paved the way for him to take up a job at Boston Consulting Group Odyssey Partners and Bear Sterns.
His star in the investment world would align after founding Paulson Co in 1994 with $2 million and one employee. As the financial crisis ended in 2011, the hedge fund had about $38 billion in assets under management, affirming Paulson's success as a hedge fund manager. Nevertheless, by 2018, the hedge fund's holdings had declined significantly to just $9 billion in assets.
The massive sell-off came as the overall hedge fund industry came under immense pressure and lost ground amid severe losses. Paulson Co's reputation had also been tarnished over the decade amid poor returns on hedging returns that could not keep up with the unhedged returns of the market indices. After an illustrious career, Paulson announced at the end of 2020 that this hedge fund would no longer accept outside money. The hedge fund was converted into a family office.
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Amid the success in the equity markets, Paulson fell into the category of hedge fund managers embroiled in a fierce divorce standoff. In 2022, the legendary investor made his intention to marry his 34-year-old girlfriend clear after moving her into his Fifth Avenue apartment.
The billionaire investor told friends he wanted to have a baby with the nutrition influencer Alina de Almeida, who was almost half his age. The rumors came to light amid an ugly divorce from Jenny Paulson, having been married for 20 years and sharing two daughters.
The soon-to-be ex-wife rejected a multibillion-dollar settlement from the hedge fund magnate, deciding to take the divorce to court. Nevertheless, Paulson is not the first and won't be the last hedge fund manager embroiled in a fierce divorce settlement.
Billionaire hedge fund manager Israel Englander, who co-founded Millennium Management, was forced to settle for over $1 billion as his wife of more than 40 years left him for a woman. The wife filed for divorce, alleging that the billionaire investor worth over $10 billion had become enraged after she fell in love with a Swiss gallerist.
David Einhorn's performance in the market was never affected as he separated from his wife of 24 years, Cheryl Strauss, in 2017. The Greenlight Capital hedge fund founder has become a successful long/short equity hedge fund manager.
Ken Griffin, the brains behind Citadel Investment Group, another high-profile hedge fund, found himself in a fierce standoff with his ex-wife Anne Dias Griffin after filing for divorce. The ex-wife demanded $1 million in monthly expenses, including $160,000 for hotels and $2,000 for stationery, as part of a divorce settlement in 2015. The divorce battle came after Griffin had built a $24 billion hedge fund empire.
Studies have shown that divorce issues can significantly affect fund managers' performance. Likewise, divorce issues have always been a red flag for savvy investors investing in hedge funds. Hedge fund manager Paul Tudor is one of the high-profile portfolio managers to reiterate that he always withdraws money from a fund when a manager's marriage break up. Billionaire John Paulson's Messy Divorce and Top Stock Picks
"You can automatically subtract 10% to 20% from any manager when he is going through a divorce," Tudor said at a conference in 2013.
It has also emerged that marriages tend to be more detrimental to older managers who frequently use a trading strategy. Performance among those above the median age of 49 tends to fall 14.3% when hit with marriage issues. On the other hand, young managers are barely affected.
Nevertheless, the likes of Ken Griffin, David Einhorn, and John Paulson have not been affected by marital strife. The duo has continued to perform, depicted by the solid returns of their hedge funds. Bill Ackman, John Burbank, and David Tepper are other high-profile hedge fund managers embroiled in divorce issues and have continued to deliver stellar returns for investors.
Our Methodology
Paulson has joined an exclusive club of hedge fund managers, including Carl Icahn, George Soros, and Stanley Druckenmiller, who have quit managing money for external customers. By releasing himself from the demands of sending quarterly client letters and explaining complex positions to clients, Paulson is now solely focused on managing his money and growing his wealth.
While the billionaire investor has also been embroiled in a fierce divorce settlement, he has not shown any signs of going slow on investing. The legendary investor is active and has diversified his holdings into various sectors, from healthcare to basic metals and financial services. Likewise, he is always looked upon as investors seek insight into market movements and emerging opportunities.
Similarly, we have picked billionaire John Paulson's top stock picks as of the end of the second quarter of 2023. The stocks represent more than 80% of Paulson & Co's portfolio. We have ranked the stocks in ascending order of the hedge fund’s stakes in them. We also got the scoop on what 910 hedge funds in our database had to say about each stock by the end of Q2 2023.
Billionaire John Paulson's Messy Divorce and Top Stock Picks
10. SSR Mining Inc. (NASDAQ:SSRM)
Paulson & Co Q2 2023 Investment: $28.36 Million
Percentage of Paulson &Co as of Q2 2023: 2.76%
Number of HedgeFund Holders: 18
SSR Mining Inc. (NASDAQ:SSRM) sums up billionaire John Paulson's top stock pick and one of his hedge fund's most significant holdings in the mining sector. The company acquires, develops, and operates precious metal resource properties in Turkey and America. The company has made a name for itself in exploring gold, silver, copper, lead, and zinc deposits.
Over the last ten years, SSR Mining Inc. (NASDAQ:SSRM) has returned 154% to investors, affirming why it is one of billionaire John Paulson's top stock picks. Since the legendary investor acquired stakes in the company in 2019, they have registered a 108% gain. While the stock is down from its all-time highs, Paulson & Co. has still generated significant returns,
For instance, SSR Mining Inc. (NASDAQ:SSRM) has returned $74 million to shareholders through dividends and a share buyback program. Likewise, it is on track to return over $100 million for a third consecutive year. Of the 910 hedge funds in Insider Monkey’s database, 18 reported having stakes in SSR Mining Inc. (NASDAQ:SSRM).
9. Agnico Eagle Mines Limited (NYSE:AEM)
Paulson & Co Q2 2023 Investment: $39.16 Million
Percentage of Paulson &Co as of Q2 2023: 3.82%
Number of HedgeFund Holders: 42
Agnico Eagle Mines Limited (NYSE:AEM) is another company that seeks to strengthen Paulson & Co.'s prospects in the mining sector. The gold mining company explores, develops, and produces precious metals in low-risk jurisdictions. It boasts flagship projects in Canada, Australia, Finland, Mexico, and the US.
It has emerged as billionaire John Paulson's top stock pick even as it increases clout in the gold mining industry through aggressive acquisitions and booking huge profits. While Agnico Eagle Mines Limited (NYSE:AEM) used to operate a single mine in 2008, it has more than 12 operational projects, including the acquisition of Canadian Malartic from Yamana Gold.
Agnico Eagle Mines Limited (NYSE:AEM) is on course to increase its annual production from 3.1 million ounces of gold in 2022 to 3.44 million ounces at the year's end. The mining stock is one of the oldest in Paulson & Co.'s portfolio, with the first investment made in 2011.
According to Insider Monkey’s database of 910 hedge funds, Agnico Eagle Mines Limited (NYSE:AEM) had 42 hedge funds backing it by the end of the June quarter. The lion’s share of Agnico Eagle Mines Limited (NYSE:AEM) was held by First Eagle Investment Management, which had a $313 million stake in the company.
8. Thryv Holdings, Inc. (NASDAQ:THRY)
Paulson & Co Q2 2023 Investment: $49.20 Million
Percentage of Paulson &Co as of Q2 2023: 4.8%
Number of HedgeFund Holders: 18
Thryv Holdings, Inc. (NASDAQ:THRY) is a communication services company that offers digital marketing solutions and cloud-based tools to small and medium-sized businesses. The company provides print and digital solutions, including print Yellow Pages search engine market and other digital media solutions.
Thryv Holdings, Inc. (NASDAQ:THRY) emerged as billionaire John Paulson's top stock pick at the height of the pandemic as digital marketing was in high demand. At one point, the stock rallied by more than 300%, generating significant returns for the legendary investor. While the stock has pulled significantly from its 52-week high, the hedge fund still generates substantial returns. The stock currently accounts for 4.8% of Paulson & Co.'s portfolio.
A total of 18 hedge funds tracked by Insider Monkey had reported owning stakes in Thryv Holdings, Inc. (NASDAQ:THRY) as of the end of the second quarter of 2023.
7. Horizon Therapeutics Public Limited Company (NASDAQ:HZNP)
Paulson & Co Q2 2023 Investment: $51.43 Million
Percentage of Paulson &Co as of Q2 2023: 5.02%
Number of HedgeFund Holders: 85
Headquartered in Dublin, Ireland, Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) is a biotechnology company that discovers, develops, and commercializes medicines for addressing critical needs impacted by autoimmune and severe inflammatory diseases. It is one of billionaire John Paulson's top stock picks in the healthcare sector as it boasts a portfolio of 12 medicines touching on rare diseases, gout, ophthalmology, and inflammation.
Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) has become one of Paulson's best investments since first acquiring stakes in 2019. The share price has exploded from $25 a share to a high of $116. The stock has nearly doubled in value over the past year as it closes in on a $27.8B deal to merge with Amgen.
After the takeover, Paulson & Co. owns stakes worth $51 million, accounting for 5.02% of its portfolio. During Q2 2023, 85 hedge funds out of the 910 that are part of Insider Monkey’s database were Horizon Therapeutics Public Limited Company (NASDAQ:HZNP)’s investors. Matthew Halbower’s Pentwater Capital Management is the largest investor among these since it owns a $1.31 billion stake.
6. AngloGold Ashanti Limited (NYSE:AU)
Paulson & Co Q2 2023 Investment: $80.85 Million
Percentage of Paulson &Co as of Q2 2023: 7.89%
Number of HedgeFund Holders: 16
AngloGold Ashanti Limited (NYSE:AU) is a basic materials company that operates as a gold mining company in America, Africa, and Australia. The company's flagship project is Geita project at the Geita project in the Lake Victoria goldfields of Mwanza, Tanzania. It also operates mines in Ghana, Brazil, the US, and Australia.
AngloGold Ashanti Limited (NYSE:AU) has emerged as billionaire John Paulson's top stock pick since 2010. Over the past, the hedge fund has bought and sold shares as one of the ways of gaining exposure and locking in profit. As of the end of the second quarter, the stock accounted for 7.89% of the hedge funds portfolio.
Insider Monkey sifted through 910 hedge funds and found out that 16 of them had stakes in AngloGold Ashanti Limited (NYSE:AU) by the end of the June quarter. Howard Marks’ Oaktree Capital Management was the top gun among the investors, which paid $99.7 million for a piece of the pie.
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Disclosure: None. Billionaire John Paulson's Messy Divorce and Top Stock Picks is originally published on Insider Monkey.
- Carlson Capital L P Boosts Stake in Glatfelter Corp
Oct 27, 2023
Carlson Capital L P, a Dallas-based hedge fund sponsor, has recently increased its stake in Glatfelter Corp (NYSE:GLT), a leading manufacturer and seller of paper and fiber products. This article aims to provide a comprehensive overview of the transaction, the profiles of both Carlson Capital L P and Glatfelter Corp, and an analysis of the stock's performance. The target audience for this article is value investors who are members of GuruFocus.
Details of the Transaction
Warning! GuruFocus has detected 7 Warning Signs with GLT.
On October 26, 2023, Carlson Capital L P added 150,000 shares of Glatfelter Corp to its portfolio at a trade price of $1.56 per share. This transaction increased the firm's total holdings in Glatfelter Corp to 7,176,000 shares, representing 0.96% of its portfolio and 15.93% of Glatfelter Corp's total shares. The trade had a 0.02% impact on Carlson Capital L P's portfolio. The significance of this transaction lies in the firm's increased confidence in Glatfelter Corp's potential for growth and profitability.
Profile of Carlson Capital L P
Carlson Capital L P is a hedge fund sponsor founded in 1993 by Clint Carlson, who continues to play an active role in the company as its Chief Investment Officer. The firm believes in achieving risk-adjusted returns through thoughtful, targeted hedging strategies and diversification across multiple strategies and decision makers. It currently manages approximately $23 billion in total assets spread across 29 accounts. The firm's top holdings include Horizon Therapeutics PLC(NASDAQ:HZNP), National Instruments Corp(NASDAQ:NATI), Aerojet Rocketdyne Holdings Inc(AJRD), Black Knight Inc(BKI), and SWK Holdings Corp(NASDAQ:SWKH). The firm's primary sectors of investment are financial services and industrials. Carlson Capital L P Boosts Stake in Glatfelter Corp
Overview of Glatfelter Corp
Glatfelter Corp, with a market capitalization of $72.073 million, is a leading manufacturer and seller of paper and fiber products. The company operates through two segments: Composite Fibers and Airlaid Materials. The majority of the company's manufacturing facilities are located in North America and Europe, and it has sales and distribution offices in Russia, Italy, China, and the United States. The company's current stock price is $1.6, and its GF Value is 21.55, indicating a possible value trap. The company's GF Score is 67/100, suggesting a poor future performance potential.
Story continues Carlson Capital L P Boosts Stake in Glatfelter Corp
Analysis of Glatfelter Corp's Stock
Glatfelter Corp's stock has a balance sheet rank of 4/10, a profitability rank of 6/10, a growth rank of 5/10, a GF Value rank of 2/10, and a momentum rank of 5/10. The company's financial health is indicated by its F score of 2, Z score of 1.49, and cash to debt ratio of 0.06. These figures suggest that the company has some financial challenges to overcome.
Industry Context
Glatfelter Corp operates in the forest products industry, which is currently facing various trends and challenges. The company's ROE is -41.49, and its ROA is -8.18, indicating a negative return on both equity and assets. The company's gross margin growth is -8.90, and its operating margin growth is -12.80, suggesting a decline in profitability. However, the company's revenue growth over the past three years is 16.50, indicating some potential for growth.
Conclusion
In conclusion, Carlson Capital L P's recent acquisition of additional shares in Glatfelter Corp reflects the firm's confidence in the company's potential for growth and profitability, despite some financial challenges. This transaction is likely to have a significant impact on both the stock and the guru's portfolio. As of October 27, 2023, all data and rankings are accurate and are based on the provided relative data.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
