In this article, we discuss 5 stock picks of Jim Simons’ Euclidean Capital. If you want to read our detailed analysis of Simons’ history, investment philosophy, and hedge fund performance, go directly to the 10 Stock Picks of Jim Simons’ Euclidean Capital.
5. Foghorn Therapeutics Inc. (NASDAQ:FHTX)
Jim Simons’ Euclidean Capital’s Stake Value: $17,569,000
Percentage of Jim Simons’ Euclidean Capital’s 13F Portfolio: 8.53%
Number of Hedge Funds: 7
Foghorn Therapeutics Inc. (NASDAQ:FHTX) is a clinical-stage biotech company developing therapeutics targeted at dependencies based on genes within the chromatin regulatory system. The Cambridge, Massachusetts-based corporation founded in 2016 has its proprietary Gene Traffic Control system that helps identify and validate different therapeutics inside the chromatin regulatory system.
FHD-286 is the lead candidate for Foghorn Therapeutics Inc. (NASDAQ:FHTX) at the Phase 1 trial. The drug has been developed to treat acute myeloid leukemia (AML) and myelodysplastic syndromes (MDS). Furthermore, Foghorn Therapeutics Inc. (NASDAQ:FHTX) has joined hands with Loxo Oncology to co-develop and co-commercialize the BRM oncology program. Loxo Oncology is the research and development (R&D) wing of Eli Lilly and Company (NYSE:LLY). The partnership will bolster the oncology pipeline of Eli Lilly and provide Foghorn Therapeutics Inc. (NASDAQ:FHTX) assistance from a Big Pharma player.
In November 2021, Andrew Fein at H.C. Wainwright issued Foghorn Therapeutics Inc. (NASDAQ:FHTX) stock a Buy rating with a price target of $25. The analyst shared the potential for a new segment of cancer drugs that can be developed by targeting breakdowns in the chromatic regulatory network. He further added that the company has a “robust pipeline of earlier-stage assets.”
4. Tenaya Therapeutics, Inc. (NASDAQ:TNYA)
Jim Simons’ Euclidean Capital’s Stake Value: $18,909,000
Percentage of Jim Simons’ Euclidean Capital’s 13F Portfolio: 9.19%
Number of Hedge Funds: 11
Tenaya Therapeutics, Inc. (NASDAQ:TNYA) develops therapeutics for heart failure through cellular regeneration, gene therapy, and precision medicine. The San Francisco, California-based company is in the pre-clinical trial stage of developing multiple therapies for the treatment of heart diseases. Tenaya Therapeutics, Inc. (NASDAQ:TNYA) went public on July 30 and became a part of Jim Simons’ portfolio in Q3 2021.
Yasmeen Rahimi at Piper Sandler reiterated an Overweight rating on Tenaya Therapeutics, Inc. (NASDAQ:TNYA) stock with a $40 target price in a research note issued on January 11, following the company’s business update presentation. The analyst thinks that the new updates related to TN-201 have been missed by Wall Street and the drug is on its way to file an investigational new drug (IND) filing in the first six months of 2022 with the Food and Drug Administration (FDA) in the US. The IND filing aims to obtain permission from the filing to use an experimental drug on humans.
Tenaya Therapeutics, Inc. (NASDAQ:TNYA) is targeting to file multiple INDs with the FDA and pivot from a pre-clinical stage biotech company towards a clinical-stage biotech player. This will create new avenues for Tenaya Therapeutics, Inc. (NASDAQ:TNYA) in terms of partnership and collaboration for its new drugs.
3. RAPT Therapeutics, Inc. (NASDAQ:RAPT)
Jim Simons’ Euclidean Capital’s Stake Value: $19,722,000
Percentage of Jim Simons’ Euclidean Capital’s 13F Portfolio: 9.58%
Number of Hedge Funds: 19
RAPT Therapeutics, Inc. (NASDAQ:RAPT) is developing and commercializing therapeutics to fulfill the unmet needs in oncology and inflammatory diseases. The company utilizes its proprietary drug discovery and development mechanism to modulate the immune responses underlying these diseases.
In a report issued to investors on December 9, Anupam Rama at JPMorgan initiated coverage on RAPT Therapeutics, Inc. (NASDAQ:RAPT) with an Overweight rating and a price target of $61. The target price can yield investors a potential upside of over 169%. The analyst thinks that the stock is undervalued and does not even fully incorporate the impact of RPT193 in atopic dermatitis. This means that the value of experimental cancer therapy FLX475 is “essentially a free option” to the investors of RAPT Therapeutics, Inc. (NASDAQ:RAPT). The analyst is expecting the San Francisco, California-based entity to continue its focus on RPT193 in the treatment of atopic dermatitis and get more validation regarding its biologic activity and efficacy through oral dosing convenience in the “large and growing market.”
RAPT Therapeutics, Inc. (NASDAQ:RAPT) has been part of Jim Simons’ portfolio since Q4 2020. The stock is down over 38% (YTD) as of January 28 and provides an attractive entry point for potential investors.
2. Alector, Inc. (NASDAQ:ALEC)
Jim Simons’ Euclidean Capital’s Stake Value: $22,384,000
Percentage of Jim Simons’ Euclidean Capital’s 13F Portfolio: 10.88%
Number of Hedge Funds: 20
Alector, Inc. (NASDAQ:ALEC) is a South Francisco, California-based corporation working towards stopping neurodegeneration by combining the power of human genetics, immunology, and neurosciences and leading the immuno-neurology segment. The company is developing treatments for neurodegenerative ailments like Alzheimer’s, amyotrophic lateral sclerosis, frontotemporal dementia, and Parkinson’s. Alector, Inc. (NASDAQ:ALEC) gained prominence in the biotech space after it arrived at a major drug development deal with GlaxoSmithKline plc (NYSE:GSK) in July 2021.
On September 27, Myles Minter at William Blair initiated coverage on Alector, Inc. (NASDAQ:ALEC) with an Outperform rating and gave the stock a target price of $33, reflecting a potential upside of over 107% as of January 28. The analyst sees Alector, Inc. (NASDAQ:ALEC) becoming a leader in the field of neurology as it is working on developing neuro-immunology by bringing in genetic insights found in chronic neurodegenerative disorders.
Alector, Inc. (NASDAQ:ALEC) became a part of Euclidean Capital’s portfolio in Q4 2020, and since then, there has been no increase or decrease in the holdings.
1. PMV Pharmaceuticals, Inc. (NASDAQ:PMVP)
Jim Simons’ Euclidean Capital’s Stake Value: $82,540,000
Percentage of Jim Simons’ Euclidean Capital’s 13F Portfolio: 40.12%
Number of Hedge Funds: 21
PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) is a precision oncology company involved in the expansion and innovation of small molecule, tumor-agnostic therapies aimed at p53 mutations. p53 is a well-known tumor suppressor protein and can take out cancer cells. Dr. Arnold Levine, the co-founder of PMV Pharmaceuticals, Inc. (NASDAQ:PMVP), established the field of p53 mutation in 1979. As a result, the Cranbury, New Jersey-based corporation has over four decades of research experience related to the workings of the p53 tumor suppressor.
In a research report issued to investors in September 2021, Paul Choi at Goldman Sachs upgraded PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) from a Neutral to a Buy rating and increased the price target from $35 to $43. The target price provides an upside potential of over 147% from the current stock price as of January 28. Choi sees an attractive risk and reward profile from the Phase 1 results of p53 Y220C solid tumor mutation expected in mid-2022.
PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) went public in September 2020 at an IPO price of $18, and currently, the stock is trading below the IPO price, which gives investors an attractive opportunity to go long on the stock.
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