In this article, we discuss the top 10 stock picks of Eli Casdin’s Casdin Capital. If you want to skip our detailed analysis of Casdin’s investment philosophy and performance, go directly to Top 5 Stock Picks of Eli Casdin’s Casdin Capital.
Unprecedented inflation, increasing interest rates, and a worldwide recession pose risks to the 10-year upward trend in the S&P 500 index in the United States (SPX). With a 16% decline this year, the S&P 500 stock index is on track to have its most challenging year since 2008. As a result, the performance of hedge funds is anticipated to be at its lowest point in ten years, indicating that stock-picking tactics may be losing favor. In the year ending July 31, the global cumulative returns of stock-buying and stock-selling funds fell 12.24%. Year-to-date results for 2022 have declined by 11.42%.
Eli Casdin’s Casdin Capital portfolio value also decreased from $2.23 billion in Q1 to $1.18 billion in Q2 2022. It is a hedge fund located in New York and was established in 2011. As of October 2020, the hedge fund was managing about $2.2 billion in assets. The fund made five new purchases in the second quarter, made additional purchases in 2 stocks, sold out of 12 equities, and reduced holdings in 19 stocks.
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Casdin Capital invests in early-stage to late-stage private enterprises and operates a long-short equity fund. In the second quarter of 2022, the hedge fund made investments primarily in the medical (76.46%) sector. It is in a good position to profit from a disruptive, undervalued technology transition that is now taking place in the life sciences and healthcare sector. Investment possibilities are available throughout the healthcare spectrum and in industries including manufacturing, agriculture, and conventional information technology. Due to its extensive engagement and experience, Casdin Capital is one of the few knowledgeable investors in the field. Some of the notable holdings in the healthcare sector include Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), McKesson Corporation (NYSE:MCK), and Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY).
Our Methodology
We have selected the top 10 stocks from Eli Casdin’s second quarter 13F holdings. We have assessed the hedge fund sentiment from Insider Monkey’s database of 895 elite hedge funds tracked as of the end of the second quarter of 2022.
Top Stock Picks of Eli Casdin’s Casdin Capital
10. Verve Therapeutics, Inc. (NASDAQ:VERV)
Casdin Capital’s Stake Value: $47,951,000
Percentage of Casdin Capital’s 13F Portfolio: 4.05%
Number of Hedge Fund Holders: 19
Verve Therapeutics, Inc. (NASDAQ:VERV) is a genetic pharmaceuticals firm working on a novel approach for the treatment of cardiovascular disease. Eli Casdin’s Casdin Capital owned 3.14 million shares of Verve Therapeutics, Inc. (NASDAQ:VERV) in Q2 2022, worth around $47.95 million. The company has featured on Casdin’s portfolio since the second quarter of 2021.
Given his cautious outlook on VERVE-101, Credit Suisse analyst Richard Law initiated coverage of Verve Therapeutics, Inc. (NASDAQ:VERV) on October 6, assigning the stock a ‘Neutral’ rating and a $48 price target. Verve Therapeutics, Inc. (NASDAQ:VERV) developed the novel experimental gene editing medication VERVE-101 as a single-course treatment to permanently silence the PCSK9 gene in the liver and reduce disease-causing low-density lipoprotein cholesterol (LDL-C).
19 out of the 895 hedge funds tracked by Insider Monkey held stakes in Verve Therapeutics, Inc. (NASDAQ:VERV) in the second quarter of 2022, worth $200.48 million, compared to the same number of funds in the preceding quarter, holding stakes in Verve Therapeutics, Inc. (NASDAQ:VERV) valued at $272.48 million.
Just like Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), McKesson Corporation (NYSE:MCK), and Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), Verve Therapeutics, Inc. (NASDAQ:VERV) is a notable stock to consider.
9. Sarepta Therapeutics, Inc. (NASDAQ:SRPT)
Casdin Capital’s Stake Value: $48,724,000
Percentage of Casdin Capital’s 13F Portfolio: 4.11%
Number of Hedge Fund Holders: 41
Sarepta Therapeutics, Inc. (NASDAQ:SRPT) is a commercial stage bio-pharmaceutical company that specialises in the research and development of RNA-targeted medicines, gene therapies, and other genetic therapeutic modalities for the treatment of uncommon ailments.
As of September 8, Morgan Stanley analyst Matthew Harrison maintained an ‘Equal Weight’ rating on Sarepta Therapeutics, Inc. (NASDAQ:SRPT) shares due to his worries over the Phase 3 EMBARK trial and his conservative estimate of the study’s 60% probability of success. However, he raised his price objective on Sarepta Therapeutics, Inc. (NASDAQ:SRPT) from $100 to $135 since he realised that the share price does not yet fully represent the option value associated with an early filing.
According to regulatory filings for the second quarter, Eli Casdin’s Casdin Capital owned 650,000 shares of Sarepta Therapeutics, Inc. (NASDAQ:SRPT) worth $48.72 million, which represented 4.11% of the fund’s overall portfolio. The hedge fund reduced its stake in the firm by 19% in the second quarter of 2022.
At the end of the second quarter of 2022, 41 hedge funds in the database of Insider Monkey held stakes worth $1.38 billion in Sarepta Therapeutics, Inc. (NASDAQ:SRPT), down from 42 the preceding quarter worth $1.33 billion.
8. Fate Therapeutics, Inc. (NASDAQ:FATE)
Casdin Capital’s Stake Value: $52,038,000
Percentage of Casdin Capital’s 13F Portfolio: 4.39%
Number of Hedge Fund Holders: 23
Fate Therapeutics, Inc. (NASDAQ:FATE) is an American clinical-stage bio-pharmaceutical firm. It is working on programmed cellular immuno-therapies for cancer and immunological diseases. In the second quarter, Casdin Capital sold 1.30 million shares of Fate Therapeutics, Inc. (NASDAQ:FATE), reducing its stake by about 39%. At of the end of the quarter, the hedge fund still held more than 2.10 million shares of Fate, worth about $52.04 million. The company stands eighth on the list of top 10 stock picks of Eli Casdin’s Casdin Capital.
Canaccord analyst Bill Maughan initiated coverage of Fate Therapeutics, Inc. (NASDAQ:FATE) on October 10, assigning the stock a ‘Buy’ rating and a $42 price target. With many years of clinical development expertise and nine clinical initiatives, Fate is one of the most advanced natural killer (NK) cell firms in clinical research, according to Maughan.
Out of the hedge funds tracked by Insider Monkey, 23 hedge funds were long Fate Therapeutics, Inc. (NASDAQ:FATE) during the second quarter with aggregate stakes worth $774.28 million. This is compared to 31 hedge funds in the prior quarter which held $1.26 billion worth of positions in Fate Therapeutics, Inc. (NASDAQ:FATE).
7. SomaLogic, Inc. (NASDAQ:SLGC)
Casdin Capital’s Stake Value: $55,999,000
Percentage of Casdin Capital’s 13F Portfolio: 4.73%
Number of Hedge Fund Holders: 30
SomaLogic, Inc. (NASDAQ:SLGC), based in Boulder, Colorado, is a protein biomarker research and clinical diagnostics firm. Casdin Capital, the leading shareholder in SomaLogic, Inc. (NASDAQ:SLGC) during Q2 2022, held 12.39 million shares of the firm valued at roughly $56 million and representing 4.73% of the fund’s total holdings. With a market capitalization of $570.539 million, SomaLogic, Inc. (NASDAQ:SLGC) has generated returns of 6.55% to its shareholders over the past one month as of October 26.
On August 16, Cowen analyst Dan Brennan maintained an ‘Outperform’ rating while reducing his price objective on SomaLogic, Inc. (NASDAQ:SLGC) from $11 to $9. The analyst asserted that investors were preparing for a bad conclusion even though there has never been a decline in large pharma demand.
The number of hedge funds tracked by Insider Monkey having stakes in SomaLogic, Inc. (NASDAQ:SLGC) fell to 30 in Q2 2022 from 37 in the previous quarter. The hedge funds held stakes in the firm worth $167.51 million in Q2, down from $434.57 million in Q1.
6. Blueprint Medicines Corporation (NASDAQ:BPMC)
Casdin Capital’s Stake Value: $58,087,000
Percentage of Casdin Capital’s 13F Portfolio: 4.91%
Number of Hedge Fund Holders: 26
Blueprint Medicines Corporation (NASDAQ:BPMC) is a multinational precision therapy firm that develops treatments for cancer and blood diseases. Cadian Capital is the top shareholder of Blueprint Medicines Corporation (NASDAQ:BPMC), with a stake consisting of more than 2.02 million shares worth approximately $102.06 million.
Berenberg analyst Zhiqiang Shu initiated coverage of Blueprint Medicines Corporation (NASDAQ:BPMC) on September 14, assigning the stock a ‘Buy’ rating and a $90 price target. Shu claimed that Blueprint has a history of using its unique discovery engine to produce novel drugs.
Eli Casdin’s Casdin Capital, according to 13F filings for the second quarter, owned 1.15 million shares of Blueprint Medicines Corporation (NASDAQ:BPMC) worth $58.09 million. The hedge fund’s stake in Blueprint Medicines Corporation (NASDAQ:BPMC) decreased by 26% in the second quarter, and represented 4.91% of its overall holdings.
Out of all the hedge funds tracked by Insider Monkey, 26 were long Blueprint Medicines Corporation (NASDAQ:BPMC) in the second quarter of 2022, with aggregate stakes worth $458.34 million, as compared to 29 hedge funds with stakes worth $650.58 million in the earlier quarter.
In addition to Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), McKesson Corporation (NYSE:MCK), and Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), Blueprint Medicines Corporation (NASDAQ:BPMC) is one of the stocks on the radar of elite investors.
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Disclosure: None. Top 10 Stock Picks of Eli Casdin’s Casdin Capital is originally published on Insider Monkey.