In this article, we will be taking a look at the 10 healthcare stocks to buy according to billionaire Noam Gottesman’s GLG Partners. If you want to skip our detailed analysis about the fund and its owner, go directly to the 5 Healthcare Stocks to Buy According to Billionaire Noam Gottesman’s GLG Partners.
Noam Gottesman is one of the biggest hedge fund investors in the United States, who has a net worth of $2.5 billion. He is the co founder of GLG Partners, which is an investment management firm founded by Mr. Gottesman, Pierre Lagrange and Jonathan Green.
Mr. Gottesman’s investment firm, GLG Partners, has invested in some of the biggest firms out there, with high profile names such as Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), Johnson & Johnson (NYSE:JNJ) and Merck & Co. Inc. (NYSE:MRK) forming the biggest portions of its healthcare investment portfolio.
Noam Gottesman of GLG Partners
Our Methodology
In order to decipher the inner workings of Mr. Gottesman’s mind, we scanned the 13-F filings of his investment firm GLG Partners. This enabled us to sift out some of his largest stakes and it also allowed us to garner a better sense of the firm’s overall trading strategies.
Why should we pay attention to Noam Gottesman’s stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Healthcare Stocks to Buy According to Billionaire Noam Gottesman’s GLG Partners
10. Boston Scientific Corporation (NYSE:BSX)
Noam Gottesman’s Stake Value: $60 million
Percentage of Noam Gottesman’s 13F Portfolio: 0.21%
Number of Hedge Fund Holders: 51
Boston Scientific Corporation (NYSE:BSX) is headquartered in the United States and it manufactures and sells devices for the medical industry. Some of the sectors that it targets cover heart health and urology. The company also sells products for the neuromodulation segment and other products include catheters and atherectomy systems.
By the end of the second quarter of this year, Noam Gottesman’s GLG Partners held 1.4 million shares of Boston Scientific Corporation (NYSE:BSX) with the stake equaling $60 million and representing 0.89% of the investment firm’s portfolio.
Artisan Partners in its second-quarter investor letter highlighted that:
“Among our top contributors (includes) Boston Scientific. Shares of Boston Scientific were volatile throughout most of 2020 as the pandemic drove significant drops in elective medical procedures, though our longer-term constructive view and belief elective medical procedures would bounce back post pandemic prompted us to add to our position. We have been rewarded with shares rebounding this year alongside a recovery in elective medical procedures. Longer-term, we believe the company’s investments in higher growth categories will drive revenue growth to the higher end of its peer group with rising margins.”
9. Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)
Noam Gottesman’s Stake Value: $60 million
Percentage of Noam Gottesman’s 13F Portfolio: 0.21%
Number of Hedge Fund Holders: 48
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) is a biotechnology company based in the United States that covers several medical segments. These segments include treatments for cancer, heart diseases, eye infections and others. It sells its products primarily in the form of injections.
By the second quarter, GLG Partners held 108,953 Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) shares equaling $60 million and representing 0.21% of the fund’s portfolio. At the same time, 48 of the 873 hedge funds polled by Insider Monkey held a stake in the company.
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)’s biggest stakeholder is Natixis Global Asset Management’s Harris Associates, who owns 1.4 million of the company’s shares that are worth $807 million.
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) is one of GLG Partner’s favorite stocks, joining the ranks of big names such as Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), Johnson & Johnson (NYSE:JNJ) and Merck & Co. Inc. (NYSE:MRK).
In its Q2 2021 investor letter, Oakmark Funds, an investment management firm, mentioned the company and stated:
“We restored Regeneron Pharmaceuticals from a rather trivial to a more normal position size. You may recall Regeneron performed well for the Fund during the Covid-19 crisis, so we significantly reduced our position as its price-value gap narrowed. During the past several quarters, however, the market has experienced the now infamous “reopening trade,” in which companies that performed well during the pandemic trailed as the economy reopened. Regeneron suffered a similar fate and its shares have lagged the S&P 500 by roughly 4000 basis points, despite the company’s strong fundamentals and robust pipeline of new products. The underperformance widened Regeneron’s price-value gap, so we restored it to a more normal position size.”
8. Pfizer Inc. (NYSE:PFE)
Noam Gottesman’s Stake Value: $95.7 million
Percentage of Noam Gottesman’s 13F Portfolio: 0.33%
Number of Hedge Fund Holders: 67
Pfizer Inc. (NYSE:PFE) is a multinational biopharmaceutical company, that operates internationally and develops its own products after research and development. The company is based in the United States and deals with both governments and other distributors.
By the end of the second quarter, Noam Gottesman’s GLG Partners held 2.4 million shares of Pfizer Inc. (NYSE:PFE) in a stake that is worth $95.7 million and represents 0.33% of its portfolio. During the same time period, 68 of the 873 hedge funds polled by Insider Monkey held a stake in the company.
In its first quarter letter, ClearBridge Investments, an investment firm mentioned Pfizer and stated:
“Our underweights in health care and staples contributed to relative performance during the period. As we continue to focus the portfolio on high-conviction ideas, we sold Pfizer in late 2020, in the health care sector.”
7. Thermo Fisher Scientific Inc. (NYSE:TMO)
Noam Gottesman’s Stake Value: $102 million
Percentage of Noam Gottesman’s 13F Portfolio: 0.36%
Number of Hedge Fund Holders: 87
Thermo Fisher Scientific Inc. (NYSE:TMO) is an American company that is responsible for supplying products at the backend of the medical industry, since it primarily deals with laboratories and hospitals. It targets the medical research and drug production, laboratory instruments, diagnostic kits and other solutions.
By the end of the second quarter, GLG Partners held 202,707 Thermo Fisher Scientific Inc. (NYSE:TMO) shares that were worth $102 million and represented 0.36% of the company’s stock. Out of the 873 hedge funds polled by Insider Monkey, 87 held a stake in the company.
In a second quarter 2021 letter, ClearBridge Investments had the following to say:
“Two additional names in the health care sector in the quarter, partially funded with a sale, made strong contributions and helped push our relative exposure to the sector from underweight to overweight. We added Thermo Fisher Scientific to increase our exposure to health care tools, which has been an attractive and core segment within health care. Thermo Fisher’s instruments are used to monitor and protect air, water, and food quality, and the company has strong long-term fundamentals, a top-tier management team and a diversified business.”
6. Cigna Corporation (NYSE:CI)
Noam Gottesman’s Stake Value: $111 million
Percentage of Noam Gottesman’s 13F Portfolio: 0.39%
Number of Hedge Fund Holders: 63
Cigna Corporation (NYSE:CI) is a multinational health services provider headquartered in the United States. It primarily deals with the healthcare services segments and provides its customers with coverage plans that cover several medical areas. Cigna Corporation (NYSE:CI) ‘s customers include governments, companies, health care providers and individual plans.
By the end of the second quarter of this year, Noam Gottesman’s investment firm held 468,868 shares of Cigna Corporation (NYSE:CI) that were worth $111 million and represented 0.39% of the fund’s portfolio. At the same time, 63 of the 873 hedge funds polled by Insider Monkey held a stake in the company.
In a fourth quarter 2020 investor letter, Artisan Partners Limited Partnership mentioned the company and stated that:
“New purchases include Cigna. Cigna is a leading managed care company which operates through the following major segments: health services, integrated medical, international markets and group disability. It’s one of the few managed care organizations in the United States with the scale and size to compete effectively. Cigna has recently focused on deleveraging its balance sheet and further diversifying its business, after completing the Express Scripts acquisition in late 2018. Additionally, the company has partnered with Amazon, which will offer two new pharmacy options—including a self-pay offering. Cigna will administer the self-pay option through its health services division Evernorth. The partnership should be one of many strong earnings drivers for Cigna, which we believe is currently trading at an attractive valuation.”
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Disclosure: None. 10 Healthcare Stocks to Buy According to Billionaire Noam Gottesman’s GLG Partners is originally published on Insider Monkey.
