In this article, we will discuss the top 5 stock picks of Samuel Isaly’s OrbiMed Advisors. If you want to read our detailed analysis of Isaly’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stock Picks of Samuel Isaly’s OrbiMed Advisors.
5. Bristol-Myers Squibb Company (NYSE:BMY)
OrbiMed Advisors Stake Value: $267,176,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 2.93%
Number of Hedge Fund Holders: 74
Bristol-Myers Squibb Company (NYSE:BMY) is a pharmaceutical company that specializes in chemically manufactured drugs and biologics. Bristol-Myers Squibb Company (NYSE:BMY) issued a quarterly dividend of $0.54 per share in December, up 10.2% from the previous payout of $0.49.
As of the end of the third quarter, legendary investor and billionaire Warren Buffett’s Berkshire Hathaway is the largest shareholder in Bristol-Myers Squibb Company (NYSE:BMY) out of the 867 hedge funds tracked by Insider Monkey. Buffett’s fund holds 22.05 million shares worth $1.30 billion in the corporation.
In December, Goldman Sachs analyst Chris Shibutani initiated coverage of Bristol-Myers Squibb Company (NYSE:BMY), rating the stock as “Buy” and setting a price target of $72. The number of hedge funds tracked by Insider Monkey having stakes in Bristol-Myers Squibb Company (NYSE:BMY) grew to 74 in Q3, up from 73 in the preceding quarter.
In its fourth-quarter 2020 investor letter, Wedgewood Partners highlighted a few stocks, and Bristol Myers Squibb Co (NYSE:BMY) is one of them. Here is what the fund said:
“Bristol-Myers Squibb recently reported accelerating sales as much of the medical services industry returned to work. The Company continues to expect double-digit earnings growth over the next few years, driven by existing drugs, in addition to a broad pipeline of new drugs and indications. While the market remains fixated on a couple of patent expirations that could occur over the next several years, we think this is well-known at this point, yet the market still undervalues a couple of key acquisitions the Company has made in the past few years, particularly Celgene, which was acquired for a song.”
4. Merck & Co., Inc. (NYSE:MRK)
OrbiMed Advisors Stake Value: $280,341,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 3.08%
Number of Hedge Fund Holders: 77
Merck & Co., Inc. (NYSE:MRK) is a multinational pharmaceutical corporation that develops, manufactures, and distributes medications for humans and animals. In December, Goldman Sachs analyst Chris Shibutani initiated coverage of Merck & Co., Inc. (NYSE:MRK), rating the stock as “Buy” and initiating a price target of $93.
The hedge fund of Samuel Isaly entered the third quarter of 2021 with 3.73 million shares of Merck & Co., Inc. (NYSE:MRK), worth around $280.34 million. The company has featured on Isaly’s portfolio since the fourth quarter of 2010.
Of the 77 hedge funds that were bullish on Merck & Co., Inc. (NYSE:MRK) according to the third quarter database of Insider Monkey, Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, holding 10.63 million shares worth $798.67 million.
In its third-quarter 2021 investor letter, Miller Howard Investments mentioned Merck & Co., Inc. (NYSE:MRK). Here is what the fund said:
“While optimistic about a recovery, we continue to balance our cyclical holdings with dividend-payers in stable, less economically-sensitive industries. We hold three pharmaceutical companies, (which includes) Merck (MRK). All three have strong cash flows and balance sheets, making their high dividends reasonably safe. The investment controversy surrounding these pharma companies is whether they can develop or acquire new products to replace their current blockbuster drugs. The low valuations on these stocks reflects what we believe to be undue pessimism by investors on the prospects for new drugs.”
3. Horizon Therapeutics Public Limited Company (NASDAQ:HZNP)
OrbiMed Advisors Stake Value: $285,938,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 3.14%
Number of Hedge Fund Holders: 60
Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) is a biopharmaceutical business specializing in rare and rheumatic illness research, development, and commercialization. In December, Wells Fargo analyst Derek Archila initiated coverage of Horizon Therapeutics Public Limited Company (NASDAQ:HZNP), rating the stock as “Overweight” and keeping a price target of $137.
According to the 13F filings for the third quarter of 2021, OrbiMed Advisors holds 2.61 million shares of Horizon Therapeutics Public Limited Company (NASDAQ:HZNP), amounting to more than $285.94 million, representing 3.14% of the fund’s portfolio value. The hedge fund reduced its stake in the company by 11% in the third quarter of 2021.
Overall, hedge funds are loading up on Horizon Therapeutics Public Limited Company (NASDAQ:HZNP), as 60 out of the 867 funds tracked by Insider Monkey held stakes in the biopharmaceutical company in the third quarter, compared to 56 funds a quarter earlier.
Carillon Tower Advisers, an investment management firm, in its first-quarter 2021 investor letter, mentioned Horizon Therapeutics Public Limited Company (NASDAQ:HZNP). Here is what the fund said:
“Horizon Therapeutics is a biopharmaceutical company whose primary focus is research, development, and marketing of late-stage pharmaceutical products. After experiencing some unfortunate manufacturing hiccups in the later stages of 2020 for its key product Tepezza, which is used in the treatment of thyroid eye disease, the company recently received positive news that should relieve their supply issues going forward. With manufacturing of Tepezza back online after being forced to halt due to Operation Warp Speed’s COVID-19 vaccine production orders, Horizon expects patient treatments to resume in mid-April.”
2. Prelude Therapeutics Incorporated (NASDAQ:PRLD)
OrbiMed Advisors Stake Value: $313,740,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 3.44%
Number of Hedge Fund Holders: 7
Prelude Therapeutics Incorporated (NASDAQ:PRLD) is a biopharmaceutical business in the United States. Baker Bros. Advisors, with approximately 10.12 million shares worth $316.37 million, is the largest shareholder of Prelude Therapeutics Incorporated (NASDAQ:PRLD) as of Q3 2021.
Prelude Therapeutics Incorporated (NASDAQ:PRLD)’s price objective was trimmed to $20 from $33 in November by Barclays analyst Peter Lawson, who maintained an “Overweight” rating on the stock. In anticipation of more information on the company’s management changes, the analyst decreased the price target.
At the end of the third quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $851.40 million in Prelude Therapeutics Incorporated (NASDAQ:PRLD), up from 6 funds in the preceding quarter, holding stakes in the company worth $866.87 million.
1. SpringWorks Therapeutics, Inc. (NASDAQ:SWTX)
OrbiMed Advisors Stake Value: $382,436,000
Percentage of OrbiMed Advisors’ 13F Portfolio: 4.2%
Number of Hedge Fund Holders: 21
SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) is a clinical-stage biopharmaceutical company focused on acquiring, developing, and commercializing pharmaceuticals using a precision medicine strategy. OrbiMed Advisors holds 6.03 million shares in SpringWorks Therapeutics, Inc. (NASDAQ:SWTX), worth over $382.44 million, representing 4.2% of its Q3 portfolio. The hedge fund decreased its stake in the company by 1% in the third quarter of 2021.
SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) and AbbVie Inc. (NYSE:ABBV) signed a clinical trial partnership agreement in December to investigate Nirogacestat in patients with relapsed or refractory multiple myeloma.
In the third quarter, fund managers added to their SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) holdings. 21 hedge funds in our database held stakes in SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) at the end of the third quarter, compared to 18 funds in the second quarter.
You can also take a peek at 10 Top Stock Picks of Mario Gabelli and 10 Top Stock Picks of Ray Dalio.
