In this piece, we will take a look at the five biotechnology stocks to buy according to Ken Fisher’s Fisher Asset Management. If you want to learn more about the billionaire hedge fund executive, then take a look at 10 Biotech Stocks to Buy Today According to Ken Fisher.
5. Pfizer Inc. (NYSE:PFE)
Fisher Asset Management’s Stake Value: $148 million
Percentage of Fisher Asset Management’s 13F Portfolio: 0.08%
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is an American healthcare company that develops several kinds of pharmaceutical products which also include those developed through biotechnology. The firm’s vaccine for the COVID-19 coronavirus is one such example, as it uses novel modified ribonucleic acid (mRNA) technology to stimulate antibody production against the virus.
Fisher Asset Management held 2.5 million Pfizer Inc. (NYSE:PFE) shares by the end of last year’s fourth quarter, enabling it to hold a $148 million stake that represented 0.08% of its investment portfolio. Insider Monkey’s survey of 924 hedge funds for the same time period revealed that 83 had also invested in the company.
Pfizer Inc. (NYSE:PFE) reported $23 billion in revenue and $1.08 in non-GAAP EPS for its fourth fiscal quarter, missing analyst revenue estimates but beating them for EPS. Morgan Stanley set a $55 price target for the company in May 2022, as it initiated coverage for the healthcare sector.
Pfizer Inc. (NYSE:PFE)’s largest shareholder is Philippe Laffont’s Coatue Management which owns 10 million shares worth $608 million.
ClearBridge Investments mentioned the company in its fourth quarter 2021 investor letter. Here is what the fund said:
“While the level of general turnover abated as we progressed through 2021, it remained high in one area: post-COVID-19 recovery plays. The concept behind this investment thesis was, and still is, straightforward: with the advent of effective vaccines, the path from pandemic to endemic is just a matter of time. As this transition occurs, the estimated excess savings of over $2 trillion built up on U.S. consumer balance sheets will unlock dramatic pent-up demand for experiences, especially global travel. This investment case seemed especially compelling when the Pfizer vaccine positively surprised markets in November 2020. As a result, we made post-COVID-19 stocks (which were trading well below our estimate of recovery value) a sizable theme within the portfolio. We understood this to be a more aggressive tilt in positioning because it required a major improvement in demand to catalyze fundamentals and drive price toward higher business values. While we accepted that recovery would not be smooth and that it would take time to deploy vaccines both domestically and globally, we decided that recovery was the logical path of least resistance and we were being well compensated for these risks.
What we did not account for, however, was vaccine hesitancy and the risk of further infection waves. As a result, the first variant wave, Delta, was a negative surprise to both the market and our team. When the risk surfaced, we immediately updated our probability-driven models and debated how we should react. The resulting conclusion was that the recovery would be delayed and that we should reduce our exposure quickly, subsequently targeting the most aggressive recovery stocks such as cruise lines. We again acted swiftly and decisively to the positive surprise that Pfizer had delivered a high-efficacy antiviral COVID-19 pill. This pill should greatly reduce COVID-19 severity risks globally, increasing the probability of a global travel recovery in 2022. While this is still true, the emergence of the highly mutated Omicron variant set off another infection wave which spurred us to again act quickly and further reduce our risk exposure. This back-and-forth may sound exhausting, but it highlights our compulsion to act if we determine a surprise has a large enough impact on the probabilities that power our valuation-driven investment cases.
4. Roche Holding AG (OTCMKTS:RHHBY)
Fisher Asset Management’s Stake Value: $242 million
Percentage of Fisher Asset Management’s 13F Portfolio: 0.13%
Number of Hedge Fund Holders: 3
Roche Holding AG (OTCMKTS:RHHBY) is a Swiss company that develops and sells prescription pharmaceuticals and diagnostics. It describes itself as the world’s largest biotechnology company, through having developed treatments for a variety of diseases such as those covering cancer, the eyes, immune system, and the nervous system.
For its latest fiscal year, Roche Holding AG (OTCMKTS:RHHBY) posted CHF62 billion in revenue and CHF19.81 in non-GAAP EPS, beating analyst revenue estimates and missing those for non-GAAP EPS. Stifel set a CHF410 price target for the company in February 2022, stating that the company’s COVID-19 diagnostics kit was a testament to its transformative capabilities.
Mr. Fisher’s investment firm owned 4.6 million Roche Holding AG (OTCMKTS:RHHBY) shares worth $242 million as December 2021 came to an end. Insider Monkey studied the holdings of 924 hedge funds for Q4 2021 and discovered that 3 had owned the company’s shares.
Harding Loevner mentioned the company in its Q4 2021 investor letter, stating that:
“Health Care boosted relative performance as our holdings benefitted from the pandemic both coming and going. Roche and Lonza saw heightened interest in treatment, testing, and vaccination activities to battle the waves of newer COVID-19 variants.
3. GlaxoSmithKline plc (NYSE:GSK)
Fisher Asset Management’s Stake Value: $803 million
Percentage of Fisher Asset Management’s 13F Portfolio: 0.44%
Number of Hedge Fund Holders: 36
GlaxoSmithKline plc (NYSE:GSK) is a pharmaceutical product, vaccine, and other healthcare products developer and manufacturer that is based out of Brentford, United Kingdom. It is also more than three centuries old since it was set up in 1715. The company has biotechnology manufacturing plants and has acquired several biotech firms as well.
Fisher Investments held an $803 million stake in GlaxoSmithKline plc (NYSE:GSK) during Q4 2021, by owning 18 million shares making it the company’s largest investor according to Insider Monkey’s research. Insider Monkey’s fourth quarter 2021 survey of 924 hedge funds revealed that 36 had invested in the firm.
GlaxoSmithKline plc (NYSE:GSK) posted £9.5 billion in revenue and a GAAP EPS of £0.15 by the end of its fiscal fourth quarter. At the same time, the company outlined that it expects its sales to grow between 5% and 7% during the calendar year 2022.
GlaxoSmithKline plc (NYSE:GSK)’s second largest investor is Jim Simons’ Renaissance Technologies which owns 10 million shares worth $450 million.
2. Novartis AG (NYSE:NVS)
Fisher Asset Management’s Stake Value: $908 million
Percentage of Fisher Asset Management’s 13F Portfolio: 0.5%
Number of Hedge Fund Holders: 25
Novartis AG (NYSE:NVS) is a healthcare company that sells pharmaceutical products and materials used in medicine production. Its contract manufacturing services allow biotechnology firms to manufacture their products according to the precise demands of the industry.
Novartis AG (NYSE:NVS) reported $13.3 billion in revenue and $1.40 in non-GAAP EPS by the end of its fiscal Q4. This saw the company miss analyst estimates for both metrics. Stifel set a CHF87 price target for the company in February 2022, sharing that the company’s stock has needlessly underperformed the broader market.
Fisher Asset Management owned 10 million Novartis AG (NYSE:NVS) shares by the end of the fourth quarter of 2021, letting it hold a $908 million stake and making it the company’s largest investor according to Insider Monkey’s research. Apart from Mr. Fisher, 25 out of the 924 hedge funds polled by us had invested in the firm.
1. AstraZeneca PLC (NASDAQ:AZN)
Fisher Asset Management’s Stake Value: $908 million
Percentage of Fisher Asset Management’s 13F Portfolio: 0.5%
Number of Hedge Fund Holders: 42
AstraZeneca PLC (NASDAQ:AZN) is a biotechnology company that is involved in manufacturing pharmaceutical products. Its products target several diseases such as those of the lungs and kidneys, alongside psychiatric ailments.
By the end of the fourth quarter of last year, Fisher Investments held a $1.1 billion stake in AstraZeneca PLC (NASDAQ:AZN) by owning 20 million shares. This made the investment firm the company’s largest investor. During the same time period, 42 out of the 924 hedge funds part of Insider Monkey’s survey had also invested in AstraZeneca PLC (NASDAQ:AZN).
For its fiscal fourth quarter, AstraZeneca PLC (NASDAQ:AZN) raked in $12 billion in revenue and $1.67 in non-GAAP EPS, beating analyst estimates for both. Stifel set a GBp 12,300 price target for the company in February 2022, sharing its belief that the firm’s growth rate is the strongest in the sector.
Disclosure: None. You can also take a look at 12 Best Large-cap Biotech Stocks To Buy Now and Billionaire Ken Fisher’s Top 10 High Dividend Stock Picks.
