Sabby Management is a New Jersey-based activist hedge fund launched by Hal Mintz in June 2011. The investment firm primarily employs an opportunistic and event-driven strategy by focusing on fundamental and quantitative analysis. Sabby Management mainly invests in the healthcare sector, including the biotechnology and pharmaceutical segments, which altogether represent roughly 73% of the fund’s entire public equity portfolio. Hal Mintz’s Sabby Management manages a few funds, including the Sabby Healthcare Volatility Master Fund and the Sabby Volatility Warrant Master Fund. The firm’s 32 long positions on March 31 in stocks with a $1 billion market capitalization returned 8.7% in the second quarter of this year, pushing its year-to-date returns to 56.5% thanks to its exceptional returns in the first quarter. These calculated stock pick returns are only estimates of the fund’s actual performance, and do not include options, bonds, or short positions, so they could differ greatly from a fund’s actual returns. As stated by its most recent 13F filing, Sabby Management oversees a public equity portfolio worth $2.40 billion. In this article we will be discussing some of the fund’s most notable holdings, which include the following companies: Zogenix Inc. (NASDAQ:ZGNX), Mobileye N.V. (NYSE:MBLY), and InterOil Corporation (NYSE:IOC).
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Sabby Management’s most recent 13F filing reveals that the fund took a long position in Zogenix Inc. (NASDAQ:ZGNX), acquiring a stake of 8.42 million shares, which were worth $11.53 million on March 31. The shares of Zogenix have grown nearly 85% since the beginning of the current year, and over 22% in the second quarter, owing to the company’s impending Phase III clinical study of fenfluramine, which is set to start later this year in Dravet syndrome patients. Following its meeting with Food and Drug Administration regulators, Zogenix intends to file an Investigational New Drug (IND) Process for two Phase III studies of low-dose fenfluramine to assess its ability to limit seizures in Dravet syndrome patients. The enthusiasm of investors around the company’s recent success has sent the stock to new highs this year, but some analysts believe that Zogenix’s stock has even more upside potential (see more details). Within our database, Kevin Kotler’s Broadfin Capital, which is another healthcare-focused hedge fund, represents the largest investor in Zogenix Inc. (NASDAQ:ZGNX), holding 10.74 million shares.
Sabby Management purchased a 226,080-share stake in Mobileye N.V. (NYSE:MBLY), which was valued at $9.50 million on March 31. The shares of Mobileye, a technology company that develops and markets vision-based advanced driver assistance systems, providing warnings for collision prevention and mitigation, have increased by almost 49% year-to-date to slightly over $60 a share, and by more than 31% in the second quarter. However, the stock might keep rising according to Deutsche Bank analyst, Rod Lache, who raised the price target for Mobileye to $72 from $55 recently, and asserted his confidence in the company’s future outlook. To be more detailed, Rod Lache claimed that the company will most likely achieve higher penetration for its Forward Crash Avoidance and Mitigation Systems than previously estimated. In addition to that, the company’s management anticipates that Mobileye’s market share will not decline to 50% over the next five years. James Dinan’s York Capital Management is among the most notable investors in Mobileye N.V. (NYSE:MBLY), owning a stake of 1.63 million shares.
Another interesting move completed by Sabby Management was the sell-off of part of its stake in InterOil Corporation (NYSE:IOC). Precisely, Hal Mintz’s hedge fund reported selling 67,398 shares in the energy company, reducing its stake to 202,932 shares valued at $9.36 million. InterOil Corporation has been struggling lately, the same as most other energy companies, with its stock price declining by 10.33% since the beginning of the current year. However it did have a big second quarter for Mintz, returning over 30%. The company announced its financial results for the first quarter of 2015 on May 12, reporting a net loss of $21.87 million, compared to a net profit of $318.63 million reported in the same quarter a year ago. However, considering the fact that Steven Cohen’s Point72 Asset Management has recently reported a 6.3% ownership stake in InterOil Corporation (NYSE:IOC) of 3.10 million shares (see more details), it might be the case that the energy company will get back on track soon enough.
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