Viking Global leader Andreas Halvorsen (Trades, Portfolio) disclosed a stake in Rallybio Corp. (RLYB, Financial) earlier this week, seeing a value opportunity in a newly public company.
In addition to considering cyclical and secular industry trends, the guru's Connecticut-based hedge fund selects stocks based on its understanding of the business' fundamentals and management team. Halvorsen was a former protégé of Tiger Management's Julian Robertson (Trades, Portfolio).
According to GuruFocus Real-Time Picks, a Premium feature, Halvorsen invested in 4.2 million shares of the New Haven, Connecticut-based biotech company on July 29, dedicating 0.18% of the equity portfolio to the stake. The stock traded for an average price of $14.10 per share on the day of the transaction.
The company, which focuses on developing therapies for rare diseases like maternal fetal blood disorders, complement dysregulation and metabolic disorders, has a $584.06 million market cap; its shares were trading around $18.45 on Tuesday.
Since its initial public offering on July 29, the stock has climbed over 30%.
Among the drugs currently in the company’s pipeline are two therapies to treat fetal and neonatal alloimmune thrombocytopenia, which is a rare disease that causes uncontrolled bleeding in fetuses and newborns. The disorder occurs during pregnancy and is caused by incompatibility between the expectant mother and her baby in a specific human platelet antigen.
Three other drugs are also in various stages of development to treat paroxysmal nocturnal hemoglobinuria, generalized myasthenia gravis, ophthalmic disorders and hypophosphatasia.
Rallybio priced its 6.2 million-share offering at $13 each on July 28. As is customary, underwriters were offered a 30-day option to purchase up to an additional 930,000 shares.
The IPO, which generated approximately $92.7 million in gross proceeds, closed on Aug. 2.
Halvorsen is currently the only guru invested in the stock with a 13.44% stake.
Portfolio composition
Halvorsen’s $33.58 billion equity portfolio, which was composed of 94 stocks as of the end of the first quarter, is largely invested in the health care and technology sectors.
Other biotech companies Viking Global had positions in as of March 31 included BridgeBio Pharma Inc. (BBIO, Financial), Adaptive Biotechnologies Corp. (ADPT, Financial), AbCellera Biologics Inc. (ABCL, Financial), 4D Molecular Therapeutics Inc. (FDMT, Financial), Edgewise Therapeutics Inc. (EWTX, Financial), Inhibrx Inc. (INBX, Financial), Zentalis Pharmaceuticals Inc. (ZNTL, Financial), Zai Lab Ltd. (ZLAB, Financial) and Royalty Pharma PLC (RPRX, Financial).
- Julian Robertson Undervalued Stocks
- Julian Robertson Top Growth Companies
- Julian Robertson High Yield stocks, and
- Stocks that Julian Robertson keeps buying
- Andreas Halvorsen Undervalued Stocks
- Andreas Halvorsen Top Growth Companies
- Andreas Halvorsen High Yield stocks, and
- Stocks that Andreas Halvorsen keeps buying
