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Steven Cohen Charges Into Chiasma

Guru invests in clinical-stage biopharmaceutical company

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Sydnee Gatewood
Jul 31, 2019
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Further expanding his holdings in the health care space, billionaire investor

Steven Cohen (Trades, Portfolio), who leads Point72 Asset Management, disclosed a 5.24% stake in biotech company Chiasma Inc. (CHMA, Financial) on Tuesday.

The guru’s Stamford, Connecticut-based hedge fund uses long, short, macro and systematic strategies to generate risk-adjusted returns.

According to GuruFocus Real-Time Picks, a Premium feature, Cohen invested in 1.6 million shares of the Waltham, Massachusetts-based company on July 29, dedicating 0.04% of the equity portfolio to the position. The stock traded for an average price of $5.56.

He previously sold out of a smaller holding in the first quarter.


The clinical-stage biopharmaceutical company, which focuses on creating oral forms of existing treatments for rare chronic diseases that are currently only available as injections, has a $179.54 million market cap; its shares were trading around $5.70 on Wednesday with a price-book ratio of 5.31.

GuruFocus estimates the stock has gained 78% year to date.


On May 9, Chiasma reported first-quarter financial results, posting a net loss of $8.8 million, or 36 cents per share. In the prior-year quarter, it recorded a $7 million net loss, or 29 cents per share. It will report second-quarter earnings on Aug. 8.

In June, the company announced it was being added to the Russell 3000 Index, which went into effect after the closing bell on June 28. Based on the FTSE Russell’s membership criteria, the stock will be part of the index for one year.

On July 25, the biopharmaceutical company announced an underwritten public offering of common stock. The following day, it priced the $55 million offering, which consisted of 10 million shares, at $5.50 per share. Underwriters were given a 30-day option to purchase up to an additional 1.5 million shares. The offering closed on July 30.

Cohen is now the company’s largest guru shareholder. As of the end of the first quarter,

Jim Simons ' (Trades, Portfolio) Renaissance Technologies also had a position in the stock.

Portfolio composition

Cohen’s $22.03 billion equity portfolio, which comprised 989 stocks as of the end of the first quarter, is heavily invested in the consumer cyclical sector, followed by smaller holdings in the technology, health care and energy sectors.


Other biotech companies he had positions in as of the end of the first quarter included Neurocrine Biosciences Inc. (

NBIX, Financial), Dicerna Pharmaceuticals Inc. (DRNA, Financial), Coherus BioSciences Inc. (CHRS, Financial), Epizyme Inc. (EPZM, Financial), TG Therapeutics Inc. (TGTX, Financial), Esperion Therapeutics Inc. (ESPR, Financial), Fate Therapeutics Inc. (FATE, Financial), Zogenix Inc. (ZGNX, Financial) and Arvinas Inc. (ARVN, Financial).

Disclosure: No positions.

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