Below we take a look at why Billionaire Cliff Asness Was Relentlessly Buying Meta Platforms (META) and These 4 Stocks in Q1. For our methodology and a more comprehensive list of the billionaire money manager’s biggest buys of Q1, check out Billionaire Cliff Asness Was Relentlessly Buying Meta Platforms (META) and These 9 Stocks in Q1.
5. Gilead Sciences, Inc. (NASDAQ:GILD)
Value of AQR Capital Management‘s 13F Position: $161 million
Number of Hedge Fund Shareholders: 68
Cliff Asness’ AQR Capital Management bought 1.48 million shares of Gilead Sciences, Inc. (NASDAQ:GILD) during the first quarter to more than double the size of its stake in the company to giving it 2.71 million shares. Hedge fund ownership of Gilead hit a seven-year low in the middle of 2021.
Hedge funds may be concerned by the lack of diversification in Gilead Sciences, Inc. (NASDAQ:GILD)’s portfolio. Aside from the Covid treatment remdesivir (Veklury), the vast majority of Gilead’s sales revolve around HIV drugs and those drugs face a host of challenges, including rising competition and the loss of exclusivity. With Veklury’s impact likely to be short-term, and Gilead only growing its top line by 3% year-over-year in the first quarter despite the ongoing boost from that drug, which accounted for 23.5% of sales, it doesn’t bode well for the company in a post-pandemic world.
The ClearBridge Investments Sustainability Leaders Strategy briefly discussed Gilead Sciences, Inc. (NASDAQ:GILD)’s blockbuster antiviral medication remdesivir in its Q4 2021 investor letter:
“Other pharma companies are providing solutions as well. Biopharmaceutical company Gilead Sciences’ remdesivir, sold under the brand name Veklury, is a broad-spectrum antiviral medication administered by intravenous infusion; it can shorten the time to recovery in hospitalized patients and reduce the risk of hospitalization and death in non-hospitalized patients.”
