Is Halozyme Therapeutics (HALO) A Worthy Long-Term Investment?

Artisan Partners, a high value-added investment management firm, published its ‘Artisan Small Cap Fund’ fourth quarter 2021 investor letter – a copy of which can be downloaded here. A return of -6.99% was recorded by its Investor Class: ARTSX, -6.93% by its Advisor Class: APDSX, and -6.93% by its Institutional Class: APHSX for the fourth quarter of 2021, all below the Russell 2000® Growth Index that delivered a 0.01% return and the Russell 2000® Index that was up by 2.14% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Artisan Small Cap Fund, in its Q4 2021 investor letter, mentioned Halozyme Therapeutics, Inc. (NASDAQ: HALO) and discussed its stance on the firm. Halozyme Therapeutics, Inc. is a San Diego, California-based biotechnology company with a $4.7 billion market capitalization. HALO delivered a -16.09% return since the beginning of the year, while its 12-month returns are down by -34.42%. The stock closed at $33.74 per share on February 23, 2022.

Here is what Artisan Small Cap Fund has to say about Halozyme Therapeutics, Inc. in its Q4 2021 investor letter:

“We have been patient on highconviction names and used share price weakness to add to companies struggling from the negative impact on elective procedures. Halozyme, our second-largest holding,
has a robust pipeline of 16 collaboration products leveraging its ENHANZE® platform. Positive clinical data this year would offer a clearer view into meaningfully higher royalty revenue in the coming years. In addition, shares of Halozyme could benefit from data on Argenx’s (another top 10 holding) subcutaneous format of efgartigimod—uses ENHANZE® via collaborative partnership—which could enable approval in 2023. Amid the health care bloodbath, we were also able to seed several interesting GardenSM positions with secular growth opportunities, internal change catalysts and reasonable valuations (Azenta Life Sciences, Avid Bioservices and iRhythm) which we believe should also benefit from normalization. We discuss several of these in more detail later in this letter.”

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Our calculations show that Halozyme Therapeutics, Inc. (NASDAQ: HALO) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. 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 -4.34% return in the past 3 months.

In March 2021, we also shared another hedge fund’s views on HALO in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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