Point72 Asset Management founder Steven Cohen (Trades, Portfolio) established a holding in Karyopharm Therapeutics Inc. (KPTI, Financial) on Nov. 3, further expanding his large positioning in the health care space.
Managing a portfolio of 809 stocks, Cohen uses a bottom-up approach to identify discretionary long-short equities. The health care and consumer cyclical sectors compose the largest percentage of his portfolio.
Having previously exited a position in Karyopharm in the fourth quarter of 2014, Cohen purchased a 3.5 million-share stake for an average price of $11.23 per share. The trade had an impact of 0.22% on the portfolio.
The Massachusetts-based, clinical-stage pharmaceutical company has a market cap of $538.79 million; its shares were trading around $11.43 on Tuesday with a price-book (P/B) ratio of 3.24 and a price-sales (P/S) ratio of 2,857.50.
According to the Peter Lynch chart below, the stock is trading below its fair value.
The company focuses on developing drugs that treat cancer and other major diseases. In its third-quarter earnings report, which was released Nov. 2, Karyopharm recorded a net loss of $30.6 million, or 65 cents per share, missing estimates of a loss of 64 cents.
GuruFocus ranked Karyopharm’s financial strength 10 of 10 and its profitability and growth 2 of 10.
With his purchase, Cohen became the company’s largest guru shareholder with 7.36% of outstanding shares. Paul Tudor Jones (Trades, Portfolio) also owns the stock.
According to GuruFocus data, the stock has gained 22% year to date.
According to GuruFocus real-time picks, other health care stocks Cohen has invested in recently include Adamas Pharmaceuticals Inc. (ADMS, Financial), OncoSec Medical Inc. (ONCS, Financial), Global Blood Therapeutics Inc. (GBT, Financial), Array Biopharma Inc. (ARRY, Financial), Pacira Pharmaceuticals Inc. (PCRX, Financial) and Achaogen Inc. (AKAO, Financial).
Disclosure: I do not own any stocks mentioned.
