In this piece, we will take a look at the ten best stocks to buy under $20 according to Jeremy Green’s Redmile Group. If you want to skip the details about the hedge fund, then take a look at the 5 Best Stocks to Buy Under $20 According to Jeremy Green’s Redmile Group.
Jeremy Green is an investor who is in charge of the asset management firm Redmile Group. Redmile is a relatively young firm in the hedge fund world and it was founded by Mr. Green in March 2007.
When compared to some of its other peers which have a diverse investment portfolio consisting of holdings from a variety of different companies and sectors, Redmile focuses almost exclusively on a single sector. A cursory analysis of its portfolio reveals that the bulk of the holdings are in the healthcare sector, and within this, they focus mostly on the biotechnology sector which involves companies that use biological or organic elements to create therapies for several diseases. One of the most renowned applications of biotechnology is the messenger ribonucleic acid (mRNA) technology that has proven pivotal in developing vaccines for the deadly COVID-19 coronavirus pandemic.
Mr. Green has extensive experience in the financial world, which dates to before he set up Redmile in 2007. Prior to this, the hedge fund executive set up another healthcare investment firm Steeple Capital, which shut its doors down later after witnessing painful redemptions causing its assets to drop from $500 million to $100 million. Mr. Green helped create Steeple in partnership with his colleague John Regan of Andor Capital Management where he worked as an analyst before his time at Redmile Group. The executive has also worked at the illustrious Citigroup as a managing director and the head of the bank’s European Healthcare Research Team. He has also served on the board of a biotechnology firm and as the chairman of Prince’s Trust America.
His investment firm is quite active in the healthcare arena. For instance, it led a billion dollar valuation through a Series D round for the biotechnology startup Mammoth Biosciences in 2021. This company is at the cutting edge of gene editing technology referred to as CRISPR. CRISPR involves slicing up genetic markers and inserting specific DNA inside them in order to modify genes and solve a myriad of problems such as genetic defects and diseases.
A disease based and objective overview of Redmile’s portfolio reveals that most of the companies that it has invested in are involved in creating therapies for cancers. This is followed up by genetic diseases, which involve technologies such as CRISPR, and in third place are companies targeting solid tumor cancers. Most of these firms are based in the United States.
A more recent investment round led by Redmile Group helped raise funding for Saluda Medical. This company develops therapies for neurological diseases. According to Insider Monkey’s research, Redmile Group’s portfolio was worth $4.3 billion as the fourth quarter of last year came to an end. Some of the top holdings in the portfolio are Science 37 Holdings, Inc. (NASDAQ:SNCE), Amicus Therapeutics, Inc. (NASDAQ:FOLD), and Replimune Group, Inc. (NASDAQ:REPL).
Our Methodology
In order to pick out Mr. Green’s firm’s top stocks under $20, we sifted through its filings with the Securities and Exchange Commission (SEC) for the fourth quarter of last year. After the firms were identified, we then analyzed them through their earnings reports, analyst coverage, investor letters, relevant industry developments, and significant holdings generated via Insider Monkey’s survey of 924 hedge funds for Q4 2021.
Best Stocks to Buy Under $20 According to Jeremy Green’s Redmile Group
10. Invitae Corporation (NYSE:NVTA)
Redmile Group Stake Value: $58 million
Percentage of Redmile Group’s 13F Portfolio: 1.32%
Number of Hedge Fund Holders: 24
Price per Share as of April 28, 2022: $5.02
Invitae Corporation (NYSE:NVTA) is an American firm headquartered in San Francisco, California. The company uses genetic information to target a wide variety of diseases covering areas such as cancer, neurology, cardio, pediatrics, and rare diseases.
Redmile Group owned a $58 million stake in Invitae Corporation (NYSE:NVTA) during the fourth quarter of last year. This came in the form of 3.8 million shares and it represented 1.32% of the firm’s investment portfolio. Insider Monkey studied 924 hedge fund holdings for Q4 2021 to discover that 24 had also bought a stake in the company.
Invitae Corporation (NYSE:NVTA) posted $126 million in revenue and -$0.81 in non-GAAP EPS for its fourth fiscal quarter, in a mixed bag of results that saw it beat analyst revenue estimates but miss them for EPS. Raymond James lowered the company’s price target to $15 from $36 in February 2022, outlining that the “mixed” Q4 results were unsurprising.
Invitae Corporation (NYSE:NVTA)’s largest investor is Catherine D. Wood’s ARK Investment Management which owns 26 million shares worth $407 million.
Invitae Corporation (NYSE:NVTA) joins Amicus Therapeutics, Inc. (NASDAQ:FOLD), Science 37 Holdings, Inc. (NASDAQ:SNCE), and Replimune Group, Inc. (NASDAQ:REPL) in the list of Redmile Group’s top stocks to buy under $20.
9. ImmunoGen, Inc. (NASDAQ:IMGN)
Redmile Group Stake Value: $61 million
Percentage of Redmile Group’s 13F Portfolio: 1.39%
Number of Hedge Fund Holders: 31
Price per Share as of April 28, 2022: $4.8
ImmunoGen, Inc. (NASDAQ:IMGN) is a biotechnology company headquartered in Waltham, Massachusetts. It develops treatments to treat several kinds of cancers, such as ovarian cancer and leukemia. Additionally, it has partnerships with several large healthcare companies such as Roche and Bayer.
For its fiscal fourth quarter, ImmunoGen, Inc. (NASDAQ:IMGN) reported $28 million in revenue and -$0.17 in GAAP EPS, pleasing Wall Street by beating analyst estimates for both metrics. RBC Capital reduced its price target to $6 from $9 in March 2022, reducing the success probability of a drug.
Mr. Greene’s investment firm owned 8.2 million ImmunoGen, Inc. (NASDAQ:IMGN) shares during Q4 2021 for a $61 million stake which amounted to 1.39% of its investment portfolio. During the same time period, 31 of the 924 hedge funds surveyed by Insider Monkey had also invested in the company.
Peter Kolchinsky’s RA Capital Management is ImmunoGen, Inc. (NASDAQ:IMGN) ‘s largest investor. It owns 20 million shares that are worth $150 million.
8. Absci Corporation (NASDAQ:ABSI)
Redmile Group Stake Value: $65.8 million
Percentage of Redmile Group’s 13F Portfolio: 1.49%
Number of Hedge Fund Holders: 9
Price per Share as of April 28, 2022: $6.5
Absci Corporation (NASDAQ:ABSI) is another biotechnology firm. It is headquartered in Vancouver, Washington, United States. The company focuses on providing drug candidates based on biological elements. Its process involves combining drug discovery and cell development processes.
Redmile Group’s fourth quarter of 2021 investment in Absci Corporation (NASDAQ:ABSI) was equal to $65.8 million. It came in the form of 8 million shares and represented 1.49% of the firm’s investment portfolio. Insider Monkey took a look at 924 hedge fund portfolios for Q4 2021, to find out that 9 had also invested in the company.
Absci Corporation (NASDAQ:ABSI) reported a $101 million net loss and $4.8 million in revenue for its latest fiscal year, with the revenue demonstrating no growth. Berenberg set a $28 price target for the company in February 2022, outlining that its platform is strongly positioned to disrupt the sector.
Absci Corporation (NASDAQ:ABSI)’s largest investor after Redmile Group is Eli Casdin’s Casdin Capital which owns 7.7 million shares worth $63 million.
7. Nurix Therapeutics, Inc. (NASDAQ:NRIX)
Redmile Group Stake Value: $85.6 million
Percentage of Redmile Group’s 13F Portfolio: 1.94%
Number of Hedge Fund Holders: 25
Price per Share as of April 28, 2022: $11.72
Nurix Therapeutics, Inc. (NASDAQ:NRIX) is a biotechnology company focusing its efforts on developing treatments such as those using small cell molecules to target immune system diseases and cancers. These target B-cell malignancies, are involved in T-cell therapy, and focus on several gynecological cancers.
As its fiscal first quarter came to an end, Nurix Therapeutics, Inc. (NASDAQ:NRIX) had reported $9.6 million in revenue and -$0.95 in GAAP EPS, beating analyst revenue estimates but missing them for EPS. Wells Fargo set a $28 price target for the company in February 2022, as it shared that the company has strong treatments in its pipeline.
Redmile Group’s Nurix Therapeutics, Inc. (NASDAQ:NRIX) stake during 2021’s final quarter was worth $85 million. It came through the firm owning 2.9 million shares of the company and represented 1.94% of its portfolio. Insider Monkey’s Q4 2021 study of 924 hedge funds revealed that 25 had owned the company’s shares.
After Redmile Group, Nurix Therapeutics, Inc. (NASDAQ:NRIX)’s largest investor is Julian Baker and Felix Baker’s Baker Bros. Advisors which owns 2.4 million shares worth $71 million
6. Atara Biotherapeutics, Inc. (NASDAQ:ATRA)
Redmile Group Stake Value: $101 million
Percentage of Redmile Group’s 13F Portfolio: 2.3%
Number of Hedge Fund Holders: 22
Price per Share as of April 28, 2022: $6.61
Atara Biotherapeutics, Inc. (NASDAQ:ATRA) is an American biotechnology firm headquartered in South San Francisco, California. It focuses on T-cell therapies to target diseases and disorders such as blood tumors, cancers, and lymphoproliferative disease.
For its fiscal Q4, Atara Biotherapeutics, Inc. (NASDAQ:ATRA) raked in $7.5 million in revenue and -$0.96 in GAAP EPS, in a poor set of results that missed analyst estimates for both. The revenue miss was shocking, as it saw the company fall short of analyst estimates by $27 million. JPMorgan lowered its price target to $22 from $27 in March 2022, stating that its new therapy for sclerosis can address the needs of a wide variety of patients.
Mr. Green’s investment firm held a $101 million stake in Atara Biotherapeutics, Inc. (NASDAQ:ATRA) as the fourth quarter of last year came to an end. This was in the form of 6.4 million shares and it made up 2.3% of the company’s investment portfolio. During the same period, Insider Monkey studied the holdings of 924 hedge funds to find out that 22 had also invested in the company.
Atara Biotherapeutics, Inc. (NASDAQ:ATRA)’s largest investor is Seth Klarman’s Baupost Group. It owns 8.4 million shares worth $133 million.
Science 37 Holdings, Inc. (NASDAQ:SNCE), Amicus Therapeutics, Inc. (NASDAQ:FOLD), and Replimune Group, Inc. (NASDAQ:REPL) are met by Atara Biotherapeutics, Inc. (NASDAQ:ATRA) as one of Mr. Green’s favorite stocks.
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Disclosure: None. 10 Best Stocks to Buy Under $20 According to Jeremy Green’s Redmile Group is originally published on Insider Monkey.
