Samuel Isaly’s OrbiMed Advisors is a healthcare fund with $15 billion worth of assets under management. The investment advisory firm has experience of over two decades of investing in biopharmaceuticals, healthcare services, medical devices, and firms specializing in medical diagnostics. According to its website, the healthcare fund has been active in private healthcare investing since 1993 and its latest SEC 13F filing acknowledges a public equity portfolio with holdings tallying $11.96 billion. The healthcare fund has 95% of its equity investments in the healthcare industry, with its top ten stock holdings accounting for 36.54% of its overall portfolio. While looking at the equity portfolio of OrbiMed Advisors, we identified Community Health Systems (NYSE:CYH), Glaukos Corp (NYSE:GKOS), and Adaptimmune Therapeutics PLC – ADR (NASDAQ:ADAP) as the top new stock positions of the fund during the second quarter.
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Community Health Systems (NYSE:CYH) is the top new stock position of OrbiMed Advisors, with the fund holding 1.53 million shares valued at $96.34 million. Community Health Systems is a hospital company with a chain of acute care hospitals throughout the country. The firm operates under two different segments: hospital operations and home care services. Community Health Systems (NYSE:CYH) is planning to spin-off Quorum Health Resources, which provides management and consulting services to hospitals. The spin-off is likely to be completed in the first quarter of 2016. Wayne T. Smith, CEO and chairman of Community Health Systems (NYSE:CYH), said, “This significant transaction will realign our portfolio into two strong and focused companies that can respond to market demands with greater agility and that are better positioned to take advantage of growth opportunities, while creating additional value for our stockholders.” The company was able to outperform Wall Street’s earnings estimates for the second quarter of 2015 with its EPS of $1.14 beating the expectations of $0.91. Its revenue was a little shy of the markets’ estimate however, with reported revenues of $4.90 billion. Larry Robbins’ of Glenview Capital is the largest shareholder of Community Health Systems (NYSE:CYH) in our database, owning 12.09 million shares valued at $761.55 million at the end of the second quarter.
