Hedge Funds Love These Biotech Stocks

#3 Illumina, Inc. (NASDAQ:ILMN)

– Hedge Funds with Long Positions (as of September 30): 62

– Aggregate Value of Hedge Funds’ Holdings (as of September 30): $2.25 billion

Genetics analysis company Illumina, Inc. (NASDAQ:ILMN) is a unique stock in this list, considering the fact that the number of hedge funds long the company declined by only two, but the aggregate value of investors’ holdings in it dropped a whopping 42.7% during the third quarter. On December 14, Illumina, Inc. (NASDAQ:ILMN) announced that it has entered into an agreement with Beijing-based Novogene  to jointly develop advanced clinical applications in the fields of reproductive health and oncology. Analysts believe this deal will give a major boost to the company in solidifying its presence on the Chinese market. Stephen Mandel‘s Lone Pine Capital remained the company’s largest shareholder at the end of September even after decreasing its stake by 37% to 3.6 million shares during the quarter.

#2 Amgen, Inc. (NASDAQ:AMGN)

– Hedge Funds with Long Positions (as of September 30): 73

– Aggregate Value of Hedge Funds’ Holdings (as of September 30): $4.46 billion

Shares of Amgen, Inc. (NASDAQ:AMGN) have remained in a tight range this year, but its popularity among hedge funds is on a rise. While Amgen, Inc. (NASDAQ:AMGN)’s stock dropped 9% during the third quarter, the number of funds increased by five and the aggregate value of investors’ holdings in the company increased by $226 million. The company recently increased its quarterly dividend by 27% to $1 per share and also announced that it intends to purchase shares worth $2-$3 billion in 2016. Billionaire Israel Englander‘s Millennium Management increased its stake in Amgen, Inc. (NASDAQ:AMGN) during the third quarter to over 1.5 million shares.

#1 Gilead Sciences, Inc. (NASDAQ:GILD)

– Hedge Funds with Long Positions (as of September 30): 90

– Aggregate Value of Hedge Funds’ Holdings (as of September 30): $4.76 billion

Finally, biopharmaceutical behemoth Gilead Sciences, Inc. (NASDAQ:GILD) is not only the top stock in this list, but also counts as one of the most popular stocks among the funds we track. Though the number of funds bullish on Gilead Sciences, Inc. (NASDAQ:GILD) increased by six, the aggregate value of investors’ holding declined by 3.4% during the third quarter. Recently the company got embroiled in a controversy after the US Senate finance committee released a report in which it highlighted that Gilead Sciences has used unfair pricing practices for its Hepatitis-C drugs ‘Harvoni’ and ‘Sovaldi’. After boosting its stake by 586% during the second quarter, Billionaire David E. Shaw‘s firm, D.E. Shaw, again increased its stake in Gilead Sciences by 41% to 6.15 million shares during the third quarter.

Disclosure: None