Steve Cohen’s Point72 Asset Management disclosed today a new position in Applied Genetic Technologies Corp (NASDAQ:AGTC). The funds affiliated with Mr. Cohen (Point72 Asset Management, Point72 Capital Advisors and EverPoint Asset Management) own, in aggregate, more than 957,834 shares of Common Stock, of which Mr. Cohen can be deemed –indirect- beneficial ownership. This stake represents 5.8% of the company’s outstanding stock.
Point72 Asset Management is a Connecticut-based group of hedge funds founded and managed by Steven A. Cohen. As the successor to Mr. Cohen’s legendary SAC Capital Advisors, the firm manages his personal assets, and those of certain eligible employees, and focuses primarily on discretionary long/short equity investing. Despite being headquartered in Stamford, Connecticut, it maintains offices in New York, Boston, Hong Kong, Tokyo and Singapore.
Applied Genetic Technologies Corp (NASDAQ:AGTC) is a $304 million market cap clinical-stage biotechnology company working on the development of gene therapy products designed to transform the lives of patients with severe inherited orphan diseases in ophthalmology. It went public in late-March, and closed its initial public offering of 2 million shares of its common stock at a price to the public of $15.00 per share, before underwriting discounts, on July 30.
When investing in Applied Genetic Technologies Corp (NASDAQ:AGTC) Mr. Cohen is probably betting on growth: analysts expect the stock to rise about 70% over the next year, while Stifel initiated coverage last week, with a “buy” rating.
In addition to Point 72, other major institutional investors are also bullish about Applied Genetic Technologies Corp (NASDAQ:AGTC). This is the case of Jacob Gottlieb’s Visium Asset Management, which disclosed ownership of 392,625 shares by the end of the second quarter of 2014. Another prominent fund that acquired the company’s stock after the IPO is Israel Englander’s Millennium Management, which last declared holding 32,468 of Common Stock.
As outlined in a previous article, trailing Mr. Cohen’s picks can prove to be quite profitable. His previous hedge fund, SAC Capital Advisors, returned around 30% over the last 20 years. Moreover, his success in the healthcare sector has been plenty. Back in November of 2013, Mr. disclosed a large increase in its stake in Intercept Pharmaceuticals Inc (NASDAQ:ICPT), to 5.3% of the company’s total outstanding stock. A couple of months later, Intercept Pharmaceutical’s stock inched about 600% in just one day, registering the highest intraday growth in the NASDAQ history. Needless to say, Mr. Cohen’s picking eye is pretty sharp.
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned
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