In this piece, we will take a look at the 5 biotech stocks in billionaire Ray Dalio’s portfolio. If you want more details about Mr. Dalio, his fund and other stocks then take a look at 10 Biotech Stocks in Billionaire Ray Dalio’s Portfolio.
5. NovoCure Limited (NASDAQ:NVCR)
Bridgewater Associates’ Stake Value: $11.1 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.06%
Number of Hedge Fund Holders: 23
Closing price on December 10, 2021: $84.25
NovoCure Limited (NASDAQ:NVCR) is an American company that deals in providing treatments for several kinds of tumors. Its Optune lineup targets brain cancer, and it is also working on products to target others cancers such as those of the lungs, pancreas, and liver.
Mr. Dalio’s investment firm held 96,106 NovoCure Limited (NASDAQ:NVCR) shares during this year’s third quarter. These were worth $11.1 million and represented 0.06% of its portfolio. During Q3 2021, 23 of the 867 hedge funds polled by Insider Monkey owned the company’s shares.
NovoCure Limited (NASDAQ:NVCR) missed analyst estimates for revenue and GAAP EPS in its Q3, by posting $133 million in revenue and -$0.13 in GAAP EPS. Its price target was lowered to $180 from $195 by Piper Sandler in an October 2021 analyst note which outlined that the Q3 results were the third time the company had disappointed Wall Street and clinical slippages for a product were not positive either.
NovoCure Limited (NASDAQ:NVCR)’s largest shareholder is Anand Desai’s Darsana Capital Partners. It owns 700,000 shares worth $81 million.
4. Merck & Co., Inc. (NYSE:MRK)
Bridgewater Associates’ Stake Value: $10.4 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.05%
Number of Hedge Fund Holders: 77
Closing price on December 10, 2021: $72.62
Merck & Co., Inc. (NYSE:MRK) is a healthcare company whose products cover several human diseases and target areas such as cancer, heart, neurophysiology, and viruses. It is also developing a pill for the ongoing coronavirus pandemic.
Bridgewater Associates owned 139,003 Merck & Co., Inc. (NYSE:MRK) shares worth $10.4 million and 0.05% of its portfolio during Q3 2021. An Insider Monkey survey of 867 hedge funds for the same time period showed that 77 owned the company’s shares.
In its Q3, Merck & Co., Inc. (NYSE:MRK) earned $13 billion in revenue and $1.75 in non-GAAP EPS, beating analyst estimates for both. Guggenheim removed its $98 price target for the company in December 2021, citing skepticism for its HIV vaccine and high estimates for the COVID-19 cure.
Merck & Co., Inc. (NYSE:MRK)’s largest investor is Ken Fisher’s Fisher Asset Management who owns 10 million shares worth $798 million.
Artisan Partners mentioned Merck & Co., Inc. (NYSE:MRK) in its Q1 2021 investor letter, outlining that:
“In Q1, we initiated a position in Merck, a provider of health care solutions including prescription medicines, vaccines, biologic therapies, animal health and consumer care products. We purchased Merck when the stock came under pressure in part on concerns that the newly minted Biden administration could implement regulatory changes and lower drug costs in the pharmaceutical industry. Recent, but anticipated changes to Merck’s management team have also weighed on shares, as have concerns over the company’s heavy reliance on immunotherapy treatment Keytruda. Notably, Merck is not getting much credit from investors for the 60+ programs it has in clinical development, despite having several solid and large new product opportunities. Additionally, the company’s strong balance sheet and robust free cash flow provide it multiple options for future partnerships and acquisitions. While Merck is undergoing a period of transition, we think the company’s fundamentals are strong and believe changes to management should be a catalyst for improvement.”
3. Zai Lab Limited (NASDAQ:ZLAB)
Bridgewater Associates’ Stake Value: $16.7 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.09%
Number of Hedge Fund Holders: 36
Closing price on December 10, 2021: $65.51
Zai Lab Limited (NASDAQ:ZLAB) is a Chinese biotechnology firm that develops treatments for cancers, immune system disorders, and infectious diseases.
Bridgewater Associates owned 158,488 Zai Lab Limited (NASDAQ:ZLAB) shares during Q3 2021. These were worth $16.7 million and represented 0.09% of its portfolio. Of the 867 hedge funds part of Insider Monkey’s research, 36 owned the company’s shares by Q3 2021 end.
As of December 10, 2021, Zai Lab Limited (NASDAQ:ZLAB) shares were trading at $65.51.
Zai Lab Limited (NASDAQ:ZLAB) brought in $43 million in revenue and -$1.01 in GAAP EPS for its Q3, beating analyst estimates for EPS only. Citi raised its price target to $231 from $217 in December 2021, highlighting that the company’s ovarian cancer treatments are impressive during trials.
Andreas Halvorsen’s Viking Global is Zai Lab Limited (NASDAQ:ZLAB)’s largest investor. It owns 2.9 million shares worth $309 million.
Zai Lab Limited (NASDAQ:ZLAB) was mentioned by Baron Funds in its Q3 2021 investor letter which outlined that:
“Zai Lab Limited is a leading biotechnology company helping to modernize the Chinese health care industry. Zai’s initial focus centered around in-licensing western medicines for commercialization in China; this has expanded into internal pipeline efforts. Shares fell alongside the broader Chinese equity markets given concerns around regulations the government has enacted in education, technology, and real estate. While we are paying attention to these developments, so far, we think health care will not be subject to any draconian rulings.”
2. AstraZeneca PLC (NASDAQ:AZN)
Bridgewater Associates’ Stake Value: $6.2 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 41
Closing price on December 10, 2021: $54.02
AstraZeneca PLC (NASDAQ:AZN) is a medicine manufacturer for ailments of the heart, cancer, lungs, digestive system, and other areas. It also develops and sells a vaccine for the COVID-19 coronavirus virus.
For its Q3, AstraZeneca PLC (NASDAQ:AZN) brought in $9.8 billion revenue and a GAAP EPS of $1.08, as it pleased Wall Street by exceeding analyst estimates for both. In a November 2021 analyst note, Bryan Garnier set the company’s price target to GBp 10,500.
Mr. Dalio’s Bridgewater Associates owned 104,233 AstraZeneca PLC (NASDAQ:AZN) shares as of Q3 2021. This let him have a stake of $6.2 million, which made up 0.03% of the firm’s portfolio. During the same time period, 41 of 876 hedge funds polled by Insider Monkey owned AstraZeneca PLC (NASDAQ:AZN)’s shares.
AstraZeneca PLC (NASDAQ:AZN)’s closing share price was $54.02 on December 10, 2021.
Ken Fisher’s Fisher Asset Management is AstraZeneca PLC (NASDAQ:AZN)’s largest shareholder through a $1.1 billion stake via owning 19 million shares.
1. Pfizer Inc. (NYSE:PFE)
Bridgewater Associates’ Stake Value: $7.1 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 74
Closing price on December 10, 2021: $52.78
Pfizer Inc. (NYSE:PFE) is an American biotechnology and biopharmaceutical firm that is known for its host of medicines, making it a global brand. The company develops and sells medicines for several diseases of the heart, the immune system, pain, and the coronavirus.
Pfizer Inc. (NYSE:PFE) posted $24 billion in revenue and $1.34 in EPS in its third fiscal quarter, beating analyst estimates for both. As of Q3 2021, 74 of the 867 hedge funds part of Insider Monkey’s research held stakes in the company.
JPMorgan increased Pfizer Inc. (NYSE:PFE)’s price target to $53 from $42 in November 2021, outlining that the company’s traditional business lines should face limited growth, but that investors should be on the watch for new coronavirus variants to help growth. Pfizer’s COVID-19 vaccine is one of the two messenger ribonucleic acid (mRNA) vaccines out there, with the technology yielding superior virus protection when compared against its non-mRNA counterparts.
Pfizer Inc. (NYSE:PFE)’s shares closed at $52.78 on December 10, 2021. During the third quarter, Mr. Dalio’s investment firm held 165,303 shares of the company, which were worth $7 million and represented 0.03% of its portfolio.
Ric Dillon’s Diamond Hill Capital is Pfizer Inc. (NYSE:PFE)’s largest shareholder. It owns 10.6 million shares worth $457 million.
In its Q1 2021 investor letter, Clearbridge Investments mentioned Pfizer Inc. (NYSE:PFE). It outlined that:
“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.”
You can also take a peek at the 10 Best NFT Stocks to Buy Now and 15 Best Jim Cramer Stocks to Buy Now.
