Woodford Investment Management Has A Lot Riding On These 5 Stocks

Woodford Investment Management recently filed its Form 13F with the U.S. Securities and Exchange Commission (SEC) for the reporting period of September 30. The UK-based fund disclosed only six positions in U.S equities in its latest filing. However, the fund’s equity portfolio was valued at around $1.7 billion on that date, so it clearly has a lot riding on those positions. Woodford focuses on consumer and healthcare stocks, and given the commitment to its top picks, we are going to take a look at them in this article and see what they might have to offer retail investors.

5# Northwest Biotherapeutics Inc (NASDAQ:NWBO)

Shares held (as of September 30): 20,461,392

Total Value (as of September 30): $127.88 million

Percent of Portfolio (as of September 30): 7.38%

Woodford was bullish on Northwest Biotherapeutics Inc (NASDAQ:NWBO) during the third quarter. The investor revealed holding 20.46 million shares of the company, valued at $127.9 million, which represents a quarter-over-quarter increase of 22%. Shares of Northwest Biotherapeutics’, which is developing DCVax personalized immune therapies for solid tumor cancers, have dropped by over 55% during the last three months. Last month, Northwest Biotherapeutics and Woodford Investment Management announced an agreement, under which Woodford will purchase $30 million of the company’s common stock at $5.50 per share, for a total of 5.45 million shares. As a result, Woodford’s total holdings will increase to 25.92 million shares, or about 28.1% of the company’s common stock, so Woodford clearly remains a believer of the company despite the market’s misgivings. Another investor from our database that holds a stake in Northwest Biotherapeutics Inc (NASDAQ:NWBO) is Hal Mintz’s healthcare fund Sabby Capital, which owns 328,400 shares of the company as of June 30.

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4# Prothena Corporation PLC (NASDAQ:PRTA)

Shares held (as of September 30): 6,202,525

Total Value (as of September 30): $281.22 million

Percent of Portfolio (as of September 30): 16.24%

In Prothena Corporation PLC (NASDAQ:PRTA), Woodford disclosed ownership of 6.20 million shares valued at $281.2 million. The stake represents a quarter-over-quarter increase of 12%. Prothena Corporation is a late-stage clinical biotechnology company focused on the discovery, development and commercialization of novel protein immunotherapies. Prothena swung to a loss of $56.5 million for the first nine months of this year, versus income of $6.0 million for the same period last year. The company posted revenue of $1.3 million through the first three quarters of 2015, down massively from the $48.8 million it earned in the same period in 2014. Prothena’s year-to-date performance is remarkable nonetheless, increasing by 165.17%. Jacob Gottlieb’s Visium Asset Management also likes Prothena Corporation PLC (NASDAQ:PRTA), owning 996,887 shares of it on June 30.

On the next page, we will study the fund’s top three picks, which includes two healthcare stocks and a tobacco company.

3# AbbVie Inc (NYSE:ABBV)

Shares held (as of September 30): 5,277,800

Total Value (as of September 30): $287.17 million

Percent of Portfolio (as of September 30): 16.58%

AbbVie Inc (NYSE:ABBV) is a new position for Woodford, which reported holding 5.28 million shares, valued at over $287 million. Having a market cap of over $102 billion, AbbVie Inc is a global, research-based biopharmaceutical company. Shares of AbbVie have dropped by nearly 12% during the last three months, despite the company posting a 26.2% year-over-year increase in third quarter revenue to $5.9 billion. Another large shareholder of AbbVie Inc (NYSE:ABBV) from our database is Larry Robbins’ Glenview Capital, which holds 17.86 million shares as of June 30.

2# Alkermes Plc (NASDAQ:ALKS)

Shares held (as of September 30): 5,206,633

Total Value (as of September 30): $305.47 million

Percent of Portfolio (as of September 30): 17.64%

Alkermes Plc (NASDAQ:ALKS) is a $10.8-billion biopharmaceutical company, in which Woodford upped its stake by 7% to 5.21 million shares during the third quarter. Alkermes Plc’s financial position is not overly strong, with its net loss for the third quarter widening to $81.0 million, versus $40.0 million in the same quarter of last year. Its quarterly revenues were $152.7 million, down from $160.0 million in the same quarter of 2014. Alkermes Plc (NASDAQ:ALKS) is also a favorite stock of Ken Fisher’s Fisher Asset Management, which holds 119,920 shares as of September 30.

1# Reynolds American Inc. (NYSE:RAI)

Shares held (as of September 30): 16,407,290

Total Value (as of September 30): $726.35 million

Percent of Portfolio (as of September 30): 41.94%

After stakes in four healthcare stocks, Woodford’s top U.S equity holding is in tobacco producer Reynolds American. Woodford increased its position in Reynolds American Inc. (NYSE:RAI) during the third quarter by 12%. The North Carolina-based company is the parent company of R.J. Reynolds Tobacco, American Snuff, Santa Fe Natural Tobacco, Niconovum USA, Niconovum AB, and R.J. Reynolds Vapor. The company reported impressive financial results for the third quarter, with income growing to $781 million from $505 million in the third quarter of 2014. Revenue increased to $3.2 billion, versus $2.2 billion in the same period a year ago. Shares of Reynolds American Inc. have gained over 12% during the last three months. Another investor betting big on Reynolds American Inc. (NYSE:RAI) is Mason Capital Management, led by Kenneth Mario Garschina, with ownership of 5.67 million shares on June 30.

Disclosure: None