Billionaires James Flynn, David Abrams, Among the Elite Investors Buying These 4 Stocks Last Week

Individual investors might find hedge fund investing quite expensive, considering the 2-and-2o fee structure most hedge funds employ. However, mimicking what successful hedge fund managers do comes at no cost at all. For that particular reason, the Insider Monkey team explores dozens of filings submitted with the SEC on a daily basis and identifies those filings that might offer beneficial insight for investors. With that in mind, let’s proceed with a discussion of four recent filings submitted by Jeremy Green, James E. Flynn and two other hedge fund managers monitored by Insider Monkey.

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According to a Form 4 filing, Jeremy Green’s Redmile Group LLC bought 300,000 shares of Array Biopharma Inc. (NASDAQ:ARRY) last Wednesday at prices that ranged from $3.10 to $3.28 per share, boosting its overall holding to 19.15 million shares. The freshly-upped stake accounts for 13.43% of the company’s outstanding common stock. Redmile Group had already purchased an additional 1.0 million shares of Array Biopharma since the beginning of 2016 before the purchase in question. Array Biopharma focuses on the development of targeted small molecule drugs for the treatment of patients diagnosed with cancer. The company is currently conducting three pivotal trials of binimetinib and/or encorafenib: COLUMBUS (encorafenib in combination with binimetinib in BRAF-mutant melanoma patients), NEMO (binimetinib in NRAS-mutant melanoma patients), and MILO (binimetinib in low-grade serous ovarian cancer patients). Array Biopharma Inc. (NASDAQ:ARRY)’s NEMO and COLUMBUS Phase 3 studies finalized patient enrollment in April 2015, and the company anticipates a projected regulatory filing of binimetinib in NRAS melanoma during the first half of 2016 along with a projected filing of binimetinib in combination with encorafenib in BRAF melanoma in 2016.

Having said that, 2016 is an event-heavy year for Array Biopharma, so investors should keep a close eye on the company’s developments. Meanwhile, the stock has lost nearly 24% since the beginning of 2016 and is down by 54% over the past year, so investors might find great entry points at the moment. 22 hedge funds tracked by Insider Monkey had stakes in the company at the end of the third quarter, accumulating approximately 41% of its shares. Samuel Isaly’s Orbimed Advisors is also bullish on Array Biopharma Inc. (NASDAQ:ARRY), holding 10.06 million shares as of September 30.

In a freshly-amended 13G filing, James E. Flynn’s Deerfield Management reported owning 6.67 million shares of XenoPort Inc. (NASDAQ:XNPT), which constitute 10.55% of the company’s outstanding shares. The healthcare-focused investment firm reported an ownership stake of 3.45 million shares through its 13F filing for the July-to-September period. The biopharmaceutical company is primarily focused on the commercialization of HORIZANT, which is approved by the FDA for two indications: the treatment of primary restless legs syndrome, and the management of postherpetic neuralgia. XenoPort Inc. (NASDAQ:XNPT) has also been working with the National Institute on Alcohol Abuse and Alcoholism, known as NIAAA, to develop HORIZANT as a treatment for patients with alcohol use disorder, or AUD. NIAAA is currently undertaking the AUD clinical trial of HORIZANT, and XenoPort believes that positive results from this trial will most likely enable the company to file a supplemental New Drug Application for HORIZANT as a treatment for AUD. In the meantime, XenoPort reported net product sales of $25.82 million for the nine months that ended September 30, up from $13.53 million reported for the same period of the prior year. The shares of XenoPort are 10% in the red thus far in 2016, and are down by 43% over the past one-year period. A total of 14 smart money investors in our system were long the stock on September 30, stockpiling slightly more than 38% of its shares. Baker Bros. Advisors, managed by Julian Baker and Felix Baker, owns 6.51 million shares of XenoPort Inc. (NASDAQ:XNPT) as of the end of the third quarter.

The next page of this article discuss two other filings submitted by widely-known hedge fund firms tracked by Insider Monkey.

In a separate 13G filing, David Abrams’ Abrams Capital Management LP disclosed owning 8.74 million shares of Manitowoc Company Inc. (NYSE:MTW), which make up 6.40% of the company’s shares. This denotes an increase of 3.73 million shares to the stake revealed through the fund’s 13F for the third quarter. Manitowoc is a multi-industry capital goods manufacturer that operates in two markets: Cranes and related products, and Foodservice equipment. The performance of both segments was weaker during the first nine months of 2015 compared to the same period of the prior year. Crane segment net sales for the nine months that ended September 30 totaled $1.32 billion, down by 19.5% year-over-year. The decrease was mainly attributable to softness in the rough terrain and boom truck product lines, which were affected by the struggling oil and gas markets. At the same time, Manitowoc Company Inc. (NYSE:MTW)’s net sales generated from the Foodservice segment during the first nine months of 2015 reached $1.18 billion, compared to $1.21 billion reported for the same period of 2014. The reduced capital expenditures from large restaurant chains in the first quarter of 2015 put some weight on the overall financial performance of the segment. The shares of Manitowoc have dropped by 15% over the past year, but they are still trading at a rather expensive forward price-to-earnings ratio of 17.52 (the forward P/E for the S&P 500 benchmark equals 15.38). 21 hedge funds tracked by Insider Monkey had the stock in their portfolios at the end of September, and they owned nearly 46% of the company’s shares in aggregate. Carl Icahn of Icahn Capital LP holds a 10.58 million-share position in Manitowoc Company Inc. (NYSE:MTW) as of September 30.

Last but not least, Alex Sacerdote’s Whale Rock Capital Management LLC reported owning 6.47 million shares of Oclaro Inc. (NASDAQ:OCLR) via a Schedule 13G filing. This represents a 2.64 million-share hike to the position that was revealed through the fund’s 13F filing for the September quarter. The newly-disclosed stake accounts for 5.84% of the company’s common stock. The provider of optical components, modules and subsystems has seen its shares advance by a hearty 122% over the past year, while the price targets assigned by several financial hubs point to yet more upside. Although the company’s revenue for the three months that ended September 26 dropped by 2% year-over-year to $87.55 million, its net loss tightened to $3.51 million, down from a $20.35 million loss reported for the same period of the previous year. Oclaro Inc. (NASDAQ:OCLR)’s new product samples for metro, data center and long haul 100 and 200 GHz communication applications are anticipated to receive great demand from potential customers, so the company’s stock might indeed have more room to run despite the recent excellent performance. The number of hedge funds from our database with stakes in the company increased to 15 from 13 during the third quarter. Don Morgan’s Brigade Capital owns exactly 3.0 million shares of Oclaro Inc. (NASDAQ:OCLR) as of the end of September.

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