This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hedge Funds Catch Hep C Fever

BOSTON ( TheStreet) -- Some of Wall Street's biggest investors, including hedge fund honcho Steven Cohen, are jockeying for profits in the raging hepatitis C drug-stock rally.

Cohen of SAC Capital purchased just over 3.9 million shares of Gilead Sciences (GILD - Get Report) in the fourth quarter, according to a 13F filing for the period ended Dec. 31, 2011. Gilead, of course, is now leading the race to develop a new all-oral therapy for hepatitis C after acquiring Pharmasset for $11 billion.

Cohen's Gilead grab is his second-largest existing position increase after Apple (AAPL) in the fourth quarter.

Gilead shares are up 40% since announcing the Pharmasset deal in November, and here's why: Capital Research Global Investors, one of the world's largest investment fund managers, bought 14.6 million additional shares of Gilead during the fourth quarter, according to its 13F filing.

Other mutual fund giants like Wellington Management picked up another 12 million new shares while T. Rowe Price bought another 4 million shares.

Hedge fund other than SAC Capital were also active Gilead buyers in the fourth quarter. Visium Asset Management acquired just over 4 million shares to begin what is essentially a new position for the firm. Baker Brothers also jumped on the Gilead bandwagon with a new 2.9 million-share position in the fourth quarter. Adage Capital added 1.1 million new Gilead shares, regulatory filings show.

The hepatitis C drug stock prompting the most speculative chatter these days is Idenix Pharmaceuticals (IDIX). Investors have bid the stock's value up over 50% since the beginning of the year in anticipation of a lucrative takeout along the lines of Pharmasset and Inhibitex, which was gobbled up by Bristol-Myers Squibb (BMY) for $2.5 billion last month.

Boston hedge fund Brookside Capital Management continues to add to its big Idenix position, acquiring another 1.5 million shares in the fourth quarter, the 13F filing shows. Brookside owned almost 11 million shares of Idenix at the end of 2011. Other notable Idenix pick-ups in the fourth quarter include Baupost Group (added 3.1 million shares), Capital World Investors (added 1.7 million shares) and DE Shaw & Co. (added 1.6 million shares), regulatory filings show.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ACHN $7.35 3.70%
GILD $102.76 1.30%
IDIX $24.50 0.20%
TSLA $244.13 2.30%
YHOO $31.63 0.10%

Markets

Chart of I:DJI
DOW 16,225.24 +166.89 1.04%
S&P 500 1,936.96 +23.11 1.21%
NASDAQ 4,711.1260 +75.0210 1.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs