In this article, we discuss the top 10 long-term stock picks of billionaire Joseph Edelman.
Joseph Edelman is a renowned figure in the investment world, recognized for his expertise in biotechnology and healthcare investing. As the founder, CEO, and portfolio manager of Perceptive Advisors, Edelman has built a reputation as one of the most successful and insightful investors in the biotech sector. His deep understanding of the scientific, clinical, and financial aspects of the industry has enabled him to identify promising companies and generate significant returns for his investors.
Joseph Edelman earned his Bachelor of Arts in Psychology from the University of California, San Diego, and later pursued an MBA from NYU Stern School of Business. He began his career as a biotechnology analyst at Prudential Securities and subsequently worked as a portfolio manager at Paramount Capital Asset Management. These early roles provided Edelman with a foundation in analyzing biotech companies, understanding their value drivers, and assessing the risks associated with drug development and regulatory approval processes.
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In 1999, Edelman founded Perceptive Advisors, a New York-based investment firm focused on the life sciences sector. The firm initially launched with a single hedge fund, the Perceptive Life Sciences Fund, and has since expanded to manage billions of dollars in assets. Perceptive Advisors specializes in identifying high-growth potential in emerging biotech, pharmaceutical, and healthcare companies, with an emphasis on innovation in areas such as gene therapy, oncology, and rare diseases. Under Edelman’s leadership, Perceptive Advisors has achieved remarkable success.
The firm manages over $4.7 billion in the 13F portfolio as of the end of the third quarter of 2024. The Perceptive Life Sciences Fund has delivered annualized returns exceeding 15% over the past two decades, far outpacing broader market indices. Edelman has been an early backer of biotech companies that went on to achieve significant breakthroughs, including Moderna and CRISPR Therapeutics. While Edelman’s track record is stellar, the biotech sector’s inherent risks mean that not all investments succeed. Regulatory setbacks, clinical trial failures, and market sentiment can lead to significant volatility.
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For this article, we selected stocks by combing through the 13F portfolio of Perceptive Advisors at the end of the third quarter of 2024. Only the companies that have been in the 13F portfolio of the fund consistently for the past three years were selected. These stocks are also popular among other hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Billionaire Joseph Edelman’s Top 10 Long-Term Stock Picks
10. Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX)
Number of Hedge Fund Holders: 37
Perceptive Advisors’ Stake: $5.1 million
Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) is a pharmaceutical company that develops much-needed therapies for people with rare endocrine diseases. The following factors make the firm an appealing investment choice. Firstly, significant financial growth was seen as per the reports of the third quarter of 2024, illustrating $862.7 million in cash, cash equivalents, and investment securities as compared to $558.6 million in the previous year. Secondly, another project that makes this company worth investing in is the launch of an oral treatment for Acromegaly. The company has announced the approval of its New Drug Application (NDA) for the treatment and long-term maintenance therapy of acromegaly in adults.
