This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Best Hedge Fund You've Never Heard Of and Its Top 5 Stock Picks

Stocks in this article: QCOM CELG NBIX SRPT ACRX

NEW YORK (TheStreet) -- When it comes to world's great investors, everyone has heard of Carl Icahn, George Soros and even David Einhorn. But do you know who is the best performing investor in the world today?

It's not Warren Buffett. It's not Bill Ackman. It's not Carl Icahn. It's not David Tepper.

It's Joseph Edelman, head of the biotech hedge fund Perceptive Advisors.

Read More: 7 Stocks Warren Buffett Is Selling in 2014

Perceptive Advisors has returned an incredible 42% annualized since 1999. That means $10,000 invested in this hedge fund at its inception would now be worth $1.3 million dollars. By comparison, for the same period, $10,000 invested in the S&P 500 would be worth just $16,270 today.

Moreover, when the stock market was down big in 2002 and 2011, Perceptive made money. How did the fund do it? By specializing in the event-driven world of biotech.

Perceptive's Edelman is one of the most seasoned biotech investors on the planet. He employs analysts, rich with life science background's, educated at some of the world's best schools. They spend millions of dollars on research, and they implement that research by taking big positions in small cap biotech stocks. And these investments tend to have the potential to produce multiples of what they pay for them.

Biotech stocks move on change, such as new clinical trial data, FDA approval's, etc. And Perceptive is essentially a biotech "think tank" - experts in anticipating that change, analyzing prospective drugs and their path to market.

Last year Perceptive returned 65%, doubling the S&P 500's return. They owned four stocks in their portfolio that went up more than 500%. That's right, a 5x return on four stocks, in one year.

Read More: Your September Biotech Back-to-School Calendar

We at BillionairesPortfolio.com believe that after the selloff in biotech stocks earlier this year, there is no better time to piggyback on one of Perceptive's favorite biotech stocks.

Here are Perceptive Advisor's top 5 stock holdings, according to the fund's Aug. 14 13F filing:

  • Questor Pharmaceuticals (QCOR)
  • Celgene Corp. (CELG)
  • Neurocrine Biosciences (NBIX)
  • Sarepta Therapeutics (SRPT)
  • AxelRx Pharmaceuticals (ACRX)

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.


TheStreet Ratings team rates CELGENE CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CELGENE CORP (CELG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, robust revenue growth, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

You can view the full analysis from the report here: CELG Ratings Report

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs