This Day On The Street
Continue to site
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

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

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.

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.

We at 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

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $111.79 0.17%
FB $94.12 -0.15%
GOOG $652.30 0.87%
TSLA $219.25 1.70%
YHOO $32.34 -1.58%


Chart of I:DJI
DOW 17,081.89 -49.97 -0.29%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,796.6090 -42.0340 -0.87%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs