Edward Owens has worked in investment management for more than 30 years. He has managed the Vanguard Health Care Fund (Trades, Portfolio) since its inception in May 1984. The hedge fund has a portfolio composed of 82 stocks with a total value of $46,362 million and the following are the most weighted trades based on the impact on the portfolio during the third quarter.
The hedge fund increased its stake in Biogen Inc. (BIIB) by 105.96% with an impact of 1.19% on the portfolio.
The company is a biotechnology company. It discovers, develops, manufactures and markets therapies for the treatment of autoimmune disorders, neurodegenerative diseases and hemophilia. It also collaborates on the development and commercialization of RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia and other conditions.
Biogen reported the third quarter with an 11% increase for revenues compared to the third quarter of 2014 and an increase of 18% over the third quarter of 2014 for non-GAAP diluted earnings per share (EPS). Non-GAAP net income attributable to Biogen grew by16% over the third quarter of 2014.
The stock is trading with a P/E ratio of 19.00 and has been as high as $480.18 and as low as $254.00 in the past year. It is currently 39.50% below its 52-week high and 14.37% above its 52-week low. According to the DCF calculator, at the current price of $290.51 the company currently looks undervalued by 33%.
PRIMECAP Management (Trades, Portfolio) is the company's leading shareholder among the gurus with a stake 7.40% of outstanding shares, followed by the investor Frank Sands (Trades, Portfolio) with 2.12%. Vanguard Health Care fund is the third shareholder with a stake of 1.65% of outstanding shares –Â that is 2.31% of its total assets.
It increased its stake in Mylan NV (MYL) by 46.38% and with an impact of 0.64% on the portfolio.
The company together with its subsidiaries, is a pharmaceutical company, which develops, licenses, manufactures, markets and distributes generic, branded generic and specialty pharmaceuticals.
The outstanding third-quarter results underscore the diversity of Mylan's platform and organic growth capabilities, which helped them to successfully identify and integrate strategic acquisitions and drive sustainable long-term growth and shareholder value creation. Adjusted total revenues grew by 36% versus the prior year period, and generics segment adjusted third-party net sales were up by 48% on a constant currency basis.
The stock is trading with a P/E ratio of 20.20 and has been as high as $76.68 and as low as $37.59 in the past year. It is currently 42.50% below its 52-week high and 17.29% above its 52-week low. According to the DCF calculator, at the current price of $44.09 the company currently looks overpriced by 37%.
After this trade, the hedge fund is now the leading shareholder among the gurus with a stake of 4.73% of outstanding shares, followed by investors John Paulson with 4.46%, Larry Robbins (Trades, Portfolio) with 0.37% and Eric Mindich (Trades, Portfolio) with 0.30%.
The investor reduced its stake in Pfizer Inc. (PFE) by 35.29% and with an impact of 0.46% on the portfolio.
It is a research-based, biopharmaceutical company. The company applies science and its resources to bring therapies to people who extend and improve their lives through the discovery, development and manufacture of healthcare products.
For the third quarter, the business continued to demonstrate strength across key product lines and geographies which has resulted in another quarter of strong financial performance in which revenues grew by 6% operationally and revenues for Pfizer grew by 4% operationally.
The stock is trading with a P/E ratio of 23.90 and has been as high as $36.90 and as low as $28.47 in the past year. It is currently 7.24% below its 52-week high and 18.79% above its 52-week low. According to the DCF calculator, at the current price of $33.82 the company currently looks overpriced by 191%.
James Barrow (Trades, Portfolio) is the company's leading shareholder among the gurus with 0.90% of outstanding shares, followed by the firm Dodge & Cox with 0.73% and the investors Ken Fisher (Trades, Portfolio) with 0.52% and Brian Rogers (Trades, Portfolio) with 0.20%.
The fund increased its stake in Merck & Co. Inc. (MRK) by 8.73% and with an impact of 0.43% on the portfolio.
Merck is a health care company that delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health and consumer care products, which it markets directly and through its joint ventures. The company's operations are mainly managed on a products basis and are comprised of four operating segments, which are the Pharmaceutical, Animal Health, Consumer Care and Alliances segments, and one reportable segment, which is the Pharmaceutical segment.
During the last quarter non-GAAP EPS grew by 7% while world sales decreased by 5%. These solid results this quarter demonstrate that its focused strategy, which aims to drive future growth, as well as value for patients, society and shareholders, is working.
The stock is trading with a P/E ratio of 16.00 and has been as high as $63.62 and as low as $45.69 in the past year. It is currently 14.08% below its 52-week high and 19.63% above its 52-week low. According to the DCF calculator, at the current price of $54.66 the company currently looks overpriced by 9%.
Vanguard Health Care Fund (Trades, Portfolio) is the company's leading shareholder among the gurus with a stake of 1.77% of outstanding shares. In second position is investor James Barrow (Trades, Portfolio) with a stake of 0.91%, and the firm Dodge & Cox, which holds 0.88% of outstanding shares in the company, is third.
The fifth-largest trade based on the impact on the hedge fund of the portfolio is about HCA Holdings Inc. (HCA) since the hedge fund increased its stake by 33.17% and with an impact of 0.42% on the portfolio.
It is a health care services company in the United States. It operates 166 hospitals, comprised of 162 general, acute care hospitals; three psychiatric hospitals, and one rehabilitation hospital.
The stock is trading with a P/E ratio of 14.40 and has been as high as $95.49 and as low as $43.91 in the past year. It is currently 27.96% below its 52-week high and 56.66% above its 52-week low. According to the DCF calculator, at the current price of $68.79 the company currently looks undervalued by 2%.
The company reported an increase of 6.9% for revenues and 3.6% increase for same facility equivalent. For the rest of the year HCA estimates that approximately 6% to 7% of Adjusted EBITDA would be attributable to the Patient Protection and Affordable Care Act (Health Reform Law).
The fund holds 2.45% of outstanding shares of HCA, being the main shareholder among the gurus. The second one is Larry Robbins (Trades, Portfolio) with a stake fo 1.25% of outstanding shares, followed by Steve Mandel (Trades, Portfolio) with 1.21%, John Paulson (Trades, Portfolio) with 1.13% and David Tepper (Trades, Portfolio) with 1.01%
The last relevant trade is about the stake in Baxter International Inc. (BAX) that has been increased by 269.91% and with an impact of 0.37% on the portfolio.
It is a healthcare company engaged in the development, manufacture and sale of products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma and other chronic and acute medical conditions.
Baxter reported strong results for the third quarter of 2015 in which its worldwide sales grew 2% in the quarter and exceeded the company’s guidance of comparable year-over-year sales, but for the fourth quarter, the company expects sales to decline 1%, excluding the impact of foreign exchange.
The stock is trading with a P/E ratio of 9.40 and has been as high as $43.44 and as low as $32.18 in the past year. It is currently 13.93% below its 52-week high and 16.19% above its 52-week low. According to the DCF calculator, at the current price of $37.49 the company currently looks undervalued by 40%.
Daniel Loeb (Trades, Portfolio) in the last quarter has become the company's main shareholder among the gurus with a stake of 9.87% of outstanding shares. Vanguard Health Care Fund holds a stake of 1.32% and then the investors Richard Pzena (Trades, Portfolio) with 0.92% and Tweedy Browne (Trades, Portfolio) who holds 0.47% of outstanding shares of Baxter.
