Bain Capital‘s Brookside Capital has trimmed its exposure to PTC Therapeutics, Inc. (NASDAQ:PTCT), as a new filing with the Securities and Exchange Commission showed. The investor sold 340,804 shares of the company, reducing its position to some 2.42 million shares, equal to 7.30% of PTC Therapeutics’ common stock. In a separate filing, Paul Orlin and Alex Porter‘s Amici Capital revealed adding Era Group Inc (NYSE:ERA) to its equity portfolio, reporting ownership of 1.19 million shares, equal to 5.43% of the common stock.
Amici Capital is a hedge fund that seeks to obtain value from fundamental analysis of equities. The fund manages an equity portfolio worth over $3.1 billion. As it has been common among many investors over the last several quarters, Amici Capital its hedging its investments through holding a significant amount of its portfolio in SPDR S&P 500 ETF, which represents the largest holding, amassing almost 7% of the portfolio. However, some of the fund’s long equity positions have performed nicely so far. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), which amasses 4.2% of the equity portfolio, returned over 100% over the last two years, followed by Assured Guaranty Ltd. (NYSE:AGO), which returned more than 60% during the same period.
Era Group Inc (NYSE:ERA) is a small cap helicopter operations company, whose stock lost over 30% during the last 52 weeks. And this was despite the company reporting solid financial results. For the second quarter of 2014, the company’s revenue grew to $87 million from $74 million a year ago, while net income appreciated to $0.26 per share from $0.25 per share. Analysts are also bullish on the stock, expecting it to outperform the industry, while the average target price for Era Group Inc (NYSE:ERA) stands at around $29.
Chuck Royce’s Royce & Associates and Richard Mashaal’s Rima Senvest Management are two other shareholders of Era Group Inc (NYSE:ERA), which held around 964,300 and 821,000 shares at the end of the second quarter. Moreover, last month, Christopher Bradshaw, the acting CEO of the company, acquired 1,300 shares at $22.95 per unit, while Charles Fabrikant, a director of Era Group, sold 20,000 shares at around $24.50 per share.
It’s interesting to point out that Brookside Capital reduced its stake in PTC Therapeutics, Inc. (NASDAQ:PTCT) only several days after the fund disclosed raising its position by acquiring 528,700 shares. Meanwhile between the transactions, the stock remained almost flat, losing around 0.3%. According to the previous filing, Brookside acquired shares under an underwritten public offering, paying $36.25 per unit. Brookside has been a shareholder of PTC Therapeutics, Inc. (NASDAQ:PTCT) for over a year, during which the stock gained around 80%, while the fund raised its stake from 2.33 million shares held initially.
PTC Therapeutics, Inc. (NASDAQ:PTCT) remains to be a stock on which analysts and investors are bullish. During the second quarter of 2014, Israel Englander‘s Millennium Management initiated a position in the company during the April-June period and owns around 446,900 shares. Moreover, analysts have a consensus rating ‘Buy’ for the stock, while the average target price is over $52, which represents a significant premium over the current price.
As we know, following the activity of investors that they disclose through filings with the SEC is a useful exercise that can provide retail investors with many insights. Moreover, empirical data suggests that tracking this activity can help smaller investors to beat the market, since large funds have resources to do their research on the stocks they want to invest in.
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