Laughing Water Capital, an investment management company, released its first-quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, investment in the fund returned 8.4% after all fees and expenses compared to 10.6% and 5.2% returns for the SP500TR and R2000 during the quarter, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Laughing Water Capital featured stocks like Halozyme Therapeutics, Inc. (NASDAQ:HALO) in the first quarter 2024 investor letter. Based in San Diego, California, Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a biopharma technology company. On May 2, 2024, Halozyme Therapeutics, Inc. (NASDAQ:HALO) stock closed at $39.82 per share. One-month return of Halozyme Therapeutics, Inc. (NASDAQ:HALO) was -3.04%, and its shares gained 28.45% of their value over the last 52 weeks. Halozyme Therapeutics, Inc. (NASDAQ:HALO) has a market capitalization of $5.059 billion.
Laughing Water Capital stated the following regarding Halozyme Therapeutics, Inc. (NASDAQ:HALO) in its first quarter 2024 investor letter:
“Starting with the recent positive industry developments, in early February it was announced that Novo Holdings would be purchasing Catalent Inc. (CTLT), a publicly traded CDMO, for $16.5B. Novo Holdings would then sell three fill-finish sites to Novo Nordisk for $11 billion. The fill-finish assets are the real prize here, as Novo Nordisk is the manufacturer of blockbuster weight loss drugs Ozempic and Wegovy, and there simply is not enough global fill-finish capacity to meet the demand for these drugs.
This transaction also has the potential to be hugely positive for Avid Bioservices, but in a different way. Avid’s largest customer is Halozyme Therapeutics, Inc. (NASDAQ:HALO), who has traditionally split their business between Avid and Catalent. While this business is not likely to be forced to leave the Novo-Catalent facilities as is the case with the fill-finish business, Novo Holdings and Novo Nordisk are both involved with products that are seen as competition for HALO’s products, and industry whispers are that HALO is not pleased with the idea of outsourcing the production of their drug substance to their competition. As such, HALO may seek to take their business away from Novo-Catalent. HALO is thus presented with a choice. They can either a) choose a new CDMO and go through an FDA review to move their production or b) they can move more production to Avid Bioservices, which would not require FDA approval. There are of course sole source risks to be considered, but it seems likely that Avid could pick up meaningful incremental business.”
A scientist in the lab, researching the development of biopharmaceutical monoclonal antibody drugs.
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Halozyme Therapeutics, Inc. (NASDAQ:HALO) was held by 28 hedge fund portfolios, compared to 23 in the previous quarter, according to our database.
We previously discussed Halozyme Therapeutics, Inc. (NASDAQ:HALO) in another article, where we shared Artisan Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
