Top 5 1st Quarter Trades of Sectoral Asset Management Inc

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May 11, 2022
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Sectoral Asset Management Inc recently filed their 13F report for the first quarter of 2022, which ended on 2022-03-31.

The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.

Sectoral Asset Management Inc. is an investment management firm based out of Montreal, Quebec. The company was originally established in 2000 by cofounders Jérôme Georges Pfund and Michael Lars Sjöström, both of whom are still with the company today acting as its CEO and CIO, respsectively. Sectoral Asset Management has grown from its inception to now have additional locations in Geneva, Switzerland and Hong Kong and operates with 22 employees of which half are investment professionals. The company focuses on “managing global health care portfolios” and has an objective of achieving “superior returns for our investors by concentrating on primary research.” Sectoral Asset Management conducts its research both internally and externally to make its investment decisions, utilizing a fundamental methodology with a bottom up investment approach. The company focuses its investments in small cap companies in public equity markets on a global scale, benchmarking its performances against a variety of NBI, MSCI, S&P 500, and Pharma indexes. In terms of sectors, Sectoral Asset Management invests almost exclusively in the health care sector and also allocates a minority of its managed assets in the materials sector and other sector. The company holds its allocations an average of 10.6 quarters and, in the most recent quarter, had a turnover rate of approximately 25.3%. Sectoral Asset Management oversees approximately $3 billion in total assets under management spread across 14 total accounts, all of which are discretionary. The company’s total assets under management has been somewhat volatile in recent years, having been once as high as $4.4 billion back in 2011 although it has not yet dipped below its recent low point of $2.9 billion back in 2010. The company mainly caters to corporations, which alone makes up half of its clientele, and investment advisors. Sectoral Asset Management offers a variety of Sectoral Generics, Sectoral Emerging Markets Healthcare, and SSgA Sectoral Healthcare Equity funds.

As of the latest 13F report, the guru’s equity portfolio contained 106 stocks valued at a total of $563,000,000. The top holdings were UNH(2.96%), HQY(2.87%), and NARI(2.59%).

According to GuruFocus data, these were Sectoral Asset Management Inc’s top five trades of the quarter.

Arena Pharmaceuticals Inc


The guru sold out of their 230,043-share investment in NAS:ARNA. Previously, the stock had a 3.22% weight in the equity portfolio. Shares traded for an average price of $93.48 during the quarter.

On 05/11/2022, Arena Pharmaceuticals Inc traded for a price of $99.99 per share and a market cap of $6,165,322,000. The stock has returned 29.74% over the past year.

There is insufficient data to calculate the stock’s financial strength and profitability ratings.

In terms of valuation, Arena Pharmaceuticals Inc has a price-book ratio of 9.14, a EV-to-Ebitda ratio of -9.08 and a price-sales ratio of 99990.00.

HealthEquity Inc


The guru established a new position worth 240,000 shares in NAS:HQY, giving the stock a 2.87% weight in the equity portfolio. Shares traded for an average price of $53.91 during the quarter.

On 05/11/2022, HealthEquity Inc traded for a price of $55.99 per share and a market cap of $4,693,179,000. The stock has returned -23.79% over the past year.

GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10.

In terms of valuation, HealthEquity Inc has a price-book ratio of 2.63, a EV-to-Ebitda ratio of 52.64 and a price-sales ratio of 6.36.

The price-to-GF Value ratio is 0.80, earning the stock a GF Value rank of 9.

Biohaven Pharmaceutical Holding Co Ltd


The guru established a new position worth 105,850 shares in NYSE:BHVN, giving the stock a 2.23% weight in the equity portfolio. Shares traded for an average price of $124.91 during the quarter.

On 05/11/2022, Biohaven Pharmaceutical Holding Co Ltd traded for a price of $140 per share and a market cap of $9,942,800,000. The stock has returned 16.38% over the past year.

GuruFocus gives the company a financial strength rating of 2 out of 10 and a profitability rating of 1 out of 10.

In terms of valuation, Biohaven Pharmaceutical Holding Co Ltd has a EV-to-Ebitda ratio of -8.86 and a price-sales ratio of 11.61.

Alignment Healthcare Inc


The guru sold out of their 729,452-share investment in NAS:ALHC. Previously, the stock had a 1.54% weight in the equity portfolio. Shares traded for an average price of $8.97 during the quarter.

On 05/11/2022, Alignment Healthcare Inc traded for a price of $8.45 per share and a market cap of $1,582,318,000. The stock has returned -58.89% over the past year.

GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 2 out of 10.

In terms of valuation, Alignment Healthcare Inc has a price-book ratio of 6.27, a EV-to-Ebitda ratio of -10.59 and a price-sales ratio of 1.40.

Tandem Diabetes Care Inc


During the quarter, Sectoral Asset Management Inc bought 63,813 shares of NAS:TNDM for a total holding of 79,588. The trade had a 1.31% impact on the equity portfolio. During the quarter, the stock traded for an average price of $116.62.

On 05/11/2022, Tandem Diabetes Care Inc traded for a price of $67.78 per share and a market cap of $4,335,395,000. The stock has returned -17.44% over the past year.

GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 3 out of 10.

In terms of valuation, Tandem Diabetes Care Inc has a price-earnings ratio of 866.48, a price-book ratio of 10.15, a EV-to-Ebitda ratio of 183.95 and a price-sales ratio of 6.10.

The price-to-GF Value ratio is 0.46, earning the stock a GF Value rank of 4.


Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.

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