Mallinckrodt PLC (MNK) & Depomed Inc (DEPO) Helped Consonance Capital to Massive Q3 Returns

Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is next, as Consonance owned 4.93 million shares of the stock valued at $64.45 million June 30. Ironwood had a strong quarter, gaining over 15% but also given up all of those gains during the fourth quarter. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) suffered an unfortunate tragedy in October when its Head of Clinical Research was killed in a collision with an 18-wheel tractor-trailer while riding a bike.

At the end of the second quarter, a total of 18 of the hedge funds tracked by Insider Monkey held long positions in Ironwood, down by one from the first quarter of 2016. OrbiMed Advisors, managed by Samuel Isaly, holds the most valuable position in Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) with a $130.1 million position in the stock. Bridger Management, led by Roberto Mignone, holds a $77.4 million position in the stock as of June 30.

As mentioned on the first page, Consonance was also long Depomed Inc (NASDAQ:DEPO), which fell by nearly 3% itself yesterday despite being at the center of takeover rumors, not only from Mallinckrodt, but also from Japanese pharma giant Daiichi Sankyo. Depomed shares gained 27% during the third quarter. Consonance Capital held a $44.64 million position in the stock at the end of June, down by 17% quarter-over-quarter. It was one of 23 hedge funds in our system long the stock.

Starboard Value LP, managed by Jeffrey Smith, holds the number one position in Depomed Inc (NASDAQ:DEPO), valued at $118 million, comprising 4.2% of its 13F portfolio. The second-largest stake is held by RIMA Senvest Management, led by Richard Mashaal, holding an $82.2 million position; the fund has 6.7% of its 13F portfolio invested in the stock.

Lastly is United Therapeutics Corporation (NASDAQ:UTHR), which was held by a total of 30 of the hedge funds tracked by Insider Monkey on June 30. Consonance Capital’s position valued at $44.35 million was a new one, and it appears to have timed its entry into the stock well, during a second quarter downturn. Shares have since rebounded by nearly 8%, including better than 10% gains during the third quarter. United Therapeutics Corporation (NASDAQ:UTHR) had its price target raised by two analysts following its latest earnings call, including by Leerink, which hiked its target price on the stock to $127 from $121.

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Matt Sirovich and Jeremy Mindich’s Scopia Capital has the most valuable position in United Therapeutics Corporation (NASDAQ:UTHR), worth close to $455.6 million, amounting to 9.4% of its total 13F portfolio. On Scopia Capital’s heels is Palo Alto Investors, led by William Leland Edwards, holding a $182 million position; the fund has 13.8% of its 13F portfolio invested in the stock. Remaining peers with similar optimism contain Cliff Asness’ AQR Capital Management and Jim Simons’ Renaissance Technologies.

Disclosure: None