Top 5 Stock Picks of Farallon Capital

In this article, we discuss the top 5 stock picks of Farallon Capital. If you want to read our detailed analysis of these stocks, go directly to Farallon Capital: A Global and Diversified Hedge Fund and its Top Stock Picks.

5. SDCL EDGE Acquisition Corporation (NYSE:SEDA)

Farallon Capital Equity Stake: $18.08 Million
Number of Hedge Fund Holders: N/A

SDCL EDGE Acquisition Corporation (NYSE:SEDA) founded in 2021 and headquartered in New York City, aims to merge with or acquire businesses in the built environment and transport sectors. It primarily focuses on designing, constructing, and operating physical infrastructure.

The hedge fund owned 1.73 million shares of SDCL EDGE Acquisition Corporation (NYSE:SEDA). The hedge fund’s stake in SEDA was worth $18.08 million. This investment made up 0.1% of the hedge fund’s portfolio.

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4. Savara, Inc. (NASDAQ:SVRA)

Farallon Capital Equity Stake: $34.85 Million
Number of Hedge Fund Holders: 10

Headquartered in Austin, Texas, Savara, Inc. (NASDAQ:SVRA) develops inhaled therapies for rare respiratory diseases. Its lead product candidate is molgramostim, an inhaled granulocyte-macrophage colony-stimulating factor for treating autoimmune pulmonary alveolar proteinosis.

Savara, Inc. (NASDAQ:SVRA) is already up by more than 100% for the year, affirming its status as one of Farallon’s top stock picks in the healthcare sector. The hedge fund owns stakes worth $34.85 million, accounting for 0.19% of the portfolio.

During the second quarter, ten hedge funds had positions in Savara, Inc. (NASDAQ:SVRA), according to Insider Monkey’s database. 

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3. Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA) 

Farallon Capital Equity Stake: $40.13 Million
Number of Hedge Fund Holders: 14

Another top stock that Farallon Capital invests in is Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA). This company is focused on finding and creating small molecule drugs that can treat viral infections and liver diseases. Enanta Pharmaceuticals, Inc. Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA) researches and develops disease targets that include respiratory syncytial virus, SARS-CoV-2, human metapneumovirus, and hepatitis B virus.

Farallon Capital has been buying and selling shares in Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA) since 2017. As of the end of the second quarter, it held stakes worth $40 million, accounting for 0.22% of the portfolio.

As of Q2 2022, 14 of the 910 hedge funds tracked by Insider Monkey owned shares of Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA), valued at 119.41 million, Thomas Steyer’s Farallon Capital was its second-largest shareholder after Armistice Capital, with ownership of 1.88 million shares.

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2. Protagonist Therapeutics, Inc. (NASDAQ:PTGX)

Farallon Capital Equity Stake: $124.61 Million
Number of Hedge Fund Holders: 34 

Protagonist Therapeutics, Inc. (NASDAQ:PTGX) is a clinical-stage biopharmaceutical company that develops novel peptide-based drugs for haematology and blood disorders and inflammatory and immunomodulatory diseases.

Farallon Capital participated in Protagonist Therapeutics, Inc. (NASDAQ:PTGX)’s $100 million financing in 2021. Protagonist is up by about 27%, affirming its status as one of Farallon Capital’s top stock picks in the healthcare sector. The hedge fund owns $124.61 million worth of stakes in Protagonist Therapeutics, Inc. (NASDAQ:PTGX), having bought stakes in the company in 2017 for the first time.

Protagonist Therapeutics, Inc. (NASDAQ:PTGX) saw a significant increase in hedge fund interest in the second quarter, according to Insider Monkey’s database. The number of bullish hedge funds rose from 23 in the previous quarter to 34 in the second quarter.

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1. Aramark (NYSE:ARMK)

Farallon Capital Equity Stake: $468.68 Million
Number of Hedge Fund Holders: 25

Aramark (NYSE:ARMK) is another Farallon Capital top stock pick in the industrials sector, specializing in providing food, facilities and uniform services to education, healthcare, business, and sports clients. Aramark (NYSE:ARMK) offers food-related managed services, including dining, catering, food service management and convenience-oriented retail services.

Aramark (NYSE:ARMK) became an investment target for Farallon Capital in 2020, when the COVID-19 pandemic was at its peak. The hedge fund had a position of 10.89 million shares in Aramark (NYSE:ARMK), which was valued at $468.68 million. However, the hedge fund’s investment in ARMK had decreased by 4% in value since the previous quarter, representing 2.61% of its portfolio allocation.

Aramark (NYSE:ARMK) attracted 25 hedge funds out of the 910 that Insider Monkey tracks in the June quarter of 2023. 

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