Broadfin Capital, led by Kevin Kotler, has initiated a new position in QLT Inc. (USA) (NASDAQ:QLTI). In a new filing with the U.S. Securities and Exchange Commission, the fund has disclosed ownership of 4.45 million shares of QLT Inc. (USA) (NASDAQ:QLTI). The passive stake represents 8.7% of the company’s outstanding common stock. QLT Inc. (USA) (NASDAQ:QLTI) is a $219.40 million market cap biotechnology company engaged in the development and commercialization of ocular products.
New York City-based Broadfin Capital is a global equity healthcare fund that was founded in 2005. The fund uses a fundamental, value-oriented investment strategy, and likes to invest in all the major subsectors of the healthcare industry. In its latest 13F with the SEC, Broadfin Capital revealed a public equity portfolio mainly consisting of healthcare stocks (over 85% of its value was in these stocks). The value of the funds’ public portfolio totaled $1.28 billion. As of March 31, Broadfin Capital’s top holdings, in terms of value, were Horizon Pharma PLC (NASDAQ:HZNP), Flamel Technologies S.A. (ADR) (NASDAQ:FLML), and Retrophin Inc (NASDAQ:RTRX), which we’ll also look at later.
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Canada-based QLT Inc. (USA) (NASDAQ:QLTI) is a maker of ocular products. The company, headquartered in Vancouver, British Columbia, develops a synthetic retinoid program for the treatment of certain inherited retinal diseases. In the second week of June, QLT Inc. (USA) (NASDAQ:QLTI) announced that it signed multiple agreements which would allow the company to return capital to its shareholders. QLT Inc. (USA) (NASDAQ:QLTI) inked a deal to acquire InSite Vision Inc. in an all-share transaction for $0.178 per share. This transaction, according to the company, will create a pure-play, late-stage ophthalmic pharmaceutical company to advance QLT’s existing Phase III-ready Retinoid Program. In addition, QLT agreed to a $45 million equity investment in Aralez Pharmaceuticals plc. Under the agreement, QLT will receive ordinary shares in Aralez representing about a 9% ownership stake. Further, QLT Inc. announced that it plans to issue redeemable convertible notes, returning an additional $25 million to its shareholders. The notes are expected to be issued by way of a reduction of the paid-up capital on the company’s common shares, and will provide QLT’s shareholders with an additional option of near-term liquidity or the potential for future capital investment in the company, according to a statement. Shares of QLT’s stock have declined 17.86% during the past year. Mark Lampert’s Biotechnology Value Fund is one of the largest shareholders of QLT Inc. (USA) (NASDAQ:QLTI), with ownership of 4.15 million shares.
Now, let’s take a look at Broadfin Capital’s top holdings as of March 31. On the top position is Horizon Pharma PLC (NASDAQ:HZNP), a $5.16 billion market cap specialty biopharmaceutical company. During the first quarter, Broadfin Capital decreased its stake in the company by 21% to 7.05 million shares, valued at $183.2 million. Horizon Pharma PLC (NASDAQ:HZNP) posted impressive financial results for the first quarter of 2015, with its total sales increasing by 118% to $113.1 million, compared to the same quarter last year. The company was able to narrow its net loss to $19.6 million, a significant reduction from the loss of $206.3 million it suffered in the first quarter last year. Horizon Pharma PLC (NASDAQ:HZNP)’s stock performance has been strong alongside that improved performance, growing by 157.87% year-to-date (YTD). Other investors that see value in the company include James E. Flynn’s Deerfield Management, and Arthur B Cohen and Joseph Healey’s Healthcor Management LP, with ownership of 12.79 million shares and 4.0 million shares, respectively.
Next on our list is Flamel Technologies S.A. (ADR) (NASDAQ:FLML), in which Broadfin Capital cut its stake by 9% to 4.72 million shares, valued at $84.87 million. France-based Flamel Technologies S.A. (ADR) (NASDAQ:FLML) is an $872.28 million market cap pharmaceutical company. Flamel Technologies S.A. (ADR) (NASDAQ:FLML) improved its financial situation in the first quarter, as its total revenues increased to $32.7 million, a $28.1 million increase compared to the same period last year. The company reported net income from continuing operations of $11.6 million, versus a loss of $26.9 million in the same quarter a year ago. Shares of Flamel Technologies S.A. (ADR) (NASDAQ:FLML) have been performing well, moving up by 20.9% year-to-date. Among other investors we track is Israel Englander’s Millennium Management, which held 1.83 million shares of the company as of March 31.
Lastly is Retrophin Inc (NASDAQ:RTRX), in which Broadfin Capital upped its stake by 12% to 2.96 million shares, worth about $71.0 million. The $1.14 billion market cap biopharmaceutical company is engaged in the development of therapies for debilitating and often life-threatening diseases. Recently, Retrophin Inc (NASDAQ:RTRX) announced that it received ‘Fast Track’ designation for its novel investigational phosphopantothenate replacement therapy (RE-024) for the treatment of pantothenate kinase-associated neurodegeneration (PKAN). Currently, there is no available treatment for PKAN, a rare and lethal autosomal recessive neurodegenerative disorder. The company is now conducting its Phase 1 clinical trial of RE-024. Retrophin Inc (NASDAQ:RTRX)’s stock performance is incredible, with its value increasing by 172.69% during the past year. Mitchell Blutt’s Consonance Capital Management was bullish on Retrophin Inc (NASDAQ:RTRX) during the last quarter, upping its position by 22% to 3.11 million shares.
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