Is Halozyme Therapeutics (HALO) a Smart Long-Term Buy?

Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The portfolio fell -4.6% (gross), modestly below the Russell 2000 Value’s decline of -2.4% and the Russell 2500 Value’s decline of -1.5% for the first quarter of 2022. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Bernzott Capital US Small Cap Value Fund mentioned Halozyme Therapeutics, Inc. (NASDAQ:HALO) and explained its insights for the company. Founded in 1998, Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a San Diego, California-based biotechnology company with a $5.1 billion market capitalization. Halozyme Therapeutics, Inc. (NASDAQ:HALO)  delivered a -6.52% return since the beginning of the year, while its 12-month returns are down by -11.93%. The stock closed at $37.35 per share on May 09, 2022.

Here is what Bernzott Capital US Small Cap Value Fund has to say about Halozyme Therapeutics, Inc. (NASDAQ:HALO) in its Q1 2022 investor letter:

“Halozyme Therapeutics (NASDAQ:HALO): The company’s ENHANZE drug delivery technology is licensed to several leading biopharmas for use with commercial drugs and those in clinical development. The technology, used for subcutaneous administration, enables competitive differentiation and improved patient satisfaction. One use case is a formulation of a cancer drug administered subcutaneously which is much faster than infusion therapy and preferred by many patients. The company is highly profitable, boasting operating margins above 50%, and generates strong cash flow supporting an aggressive share buyback program. Growth in royalties from its partnered drugs, new licensing wins and actions to affirm the duration of its franchise should help drive the stock higher over time.”

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Our calculations show that (Halozyme Therapeutics, Inc. (NASDAQ:HALO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Halozyme Therapeutics, Inc. (NASDAQ:HALO) was in 25 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 23 funds in the previous quarter. Halozyme Therapeutics, Inc. (NASDAQ:HALO) delivered a 8.89% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Halozyme Therapeutics, Inc. (NASDAQ:HALO) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.