Tekla Capital Management LLC recently filed their 13F report for the second quarter of 2022, which ended on 2022-06-30.
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.
Tekla Capital Management LLC is an investment management firm based out of Boston, Massachusetts. The company was originally established in 1986 and is currently headed by Dr. Daniel R. Omstead who acts as the CEO, CFO, and president of the company. Tekla Capital Management conducts its research internally and invests in the public equity market on a global scale, allocating its assets in the “growth equities, both public and private, debt and pooled investment vehicles, in the healthcare and life sciences industries.” The company, which was previously known as Hambrecht & Quist Capital Management, LLC, now operates with 13 employees of which 9 are investment professionals. Tekla Capital Management invests almost exclusively in the health care sector, which alone makes up well over three quarters of its total asset allocations, and also invests in the materials, information technology, and other sectors, in order of decreasing allocation. The company holds its allocations an average of 6.12 quarters and keeps its top 10 holdings an average of 11 quarters. In the most recent quarter, Tekla Capital Management had a turnover rate of approximately 43.3%. The company currently oversees over $3.3 billion in total assets under management spread across 4 total accounts, all of which are discretionary. Both of Tekla Capital Management’s total number of accounts and total assets under management have increased in recent years, with its total number of accounts doubling since just two years ago and its total managed assets experiencing significantly growth, increasing from just over $500 million back in 2010 to well over six times that amount today. Tekla Capital Management currently caters exclusively to investment companies and takes advisory fees in the form of a percentage of assets. The company is currently the investment advisory for four equity funds, all of which are closed ended funds: Tekla Helathcare Investors, Tekla Life Science Investors, Tekla Healthcare Opportunities Fund and Tekla World Healthcare Fund.
As of the latest 13F report, the guru’s equity portfolio contained 177 stocks valued at a total of $2.55Bil. The top holdings were UNH(6.45%), AMGN(5.24%), and GILD(4.01%).
According to GuruFocus data, these were Tekla Capital Management LLC’s top five trades of the quarter.
Seagen Inc
Tekla Capital Management LLC reduced their investment in NAS:SGEN by 135,378 shares. The trade had a 0.68% impact on the equity portfolio. During the quarter, the stock traded for an average price of $144.11.
On 07/29/2022, Seagen Inc traded for a price of $179.98 per share and a market cap of $33.01Bil. The stock has returned 22.48% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 3 out of 10.
In terms of valuation, Seagen Inc has a price-book ratio of 11.00, a EV-to-Ebitda ratio of -50.57 and a price-sales ratio of 19.63.
The price-to-GF Value ratio is 1.15, earning the stock a GF Value rank of 3.
Vertex Pharmaceuticals Inc
During the quarter, Tekla Capital Management LLC bought 52,347 shares of NAS:VRTX for a total holding of 361,231. The trade had a 0.58% impact on the equity portfolio. During the quarter, the stock traded for an average price of $267.55.
On 07/29/2022, Vertex Pharmaceuticals Inc traded for a price of $280.41 per share and a market cap of $71.75Bil. The stock has returned 39.94% over the past year.
GuruFocus gives the company a financial strength rating of 9 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Vertex Pharmaceuticals Inc has a price-earnings ratio of 29.51, a price-book ratio of 6.56, a price-earnings-to-growth (PEG) ratio of 0.23, a EV-to-Ebitda ratio of 21.56 and a price-sales ratio of 9.13.
The price-to-GF Value ratio is 0.85, earning the stock a GF Value rank of 7.
McKesson Corp
Tekla Capital Management LLC reduced their investment in NYSE:MCK by 45,300 shares. The trade had a 0.49% impact on the equity portfolio. During the quarter, the stock traded for an average price of $319.73.
On 07/29/2022, McKesson Corp traded for a price of $341.58 per share and a market cap of $49.15Bil. The stock has returned 67.36% over the past year.
GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, McKesson Corp has a price-earnings ratio of 47.48, a EV-to-Ebitda ratio of 18.51 and a price-sales ratio of 0.20.
The price-to-GF Value ratio is 1.51, earning the stock a GF Value rank of 1.
Medtronic PLC
Tekla Capital Management LLC reduced their investment in NYSE:MDT by 108,968 shares. The trade had a 0.43% impact on the equity portfolio. During the quarter, the stock traded for an average price of $101.48.
On 07/29/2022, Medtronic PLC traded for a price of $92.52 per share and a market cap of $122.37Bil. The stock has returned -27.23% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Medtronic PLC has a price-earnings ratio of 24.69, a price-book ratio of 2.34, a EV-to-Ebitda ratio of 15.45 and a price-sales ratio of 3.92.
The price-to-GF Value ratio is 0.80, earning the stock a GF Value rank of 9.
Intuitive Surgical Inc
During the quarter, Tekla Capital Management LLC bought 48,570 shares of NAS:ISRG for a total holding of 106,176. The trade had a 0.38% impact on the equity portfolio. During the quarter, the stock traded for an average price of $235.67.
On 07/29/2022, Intuitive Surgical Inc traded for a price of $230.17 per share and a market cap of $81.25Bil. The stock has returned -29.65% over the past year.
GuruFocus gives the company a financial strength rating of 10 out of 10 and a profitability rating of 10 out of 10.
In terms of valuation, Intuitive Surgical Inc has a price-earnings ratio of 57.89, a price-book ratio of 6.77, a price-earnings-to-growth (PEG) ratio of 4.95, a EV-to-Ebitda ratio of 36.89 and a price-sales ratio of 13.97.
The price-to-GF Value ratio is 0.75, earning the stock a GF Value rank of 8.
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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