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The Baker Brothers Are Having One Amazing Year

Posted on October 28th, 2019

One has to think that Baker Brothers Advisors have put together one heck of a year. Two of their top three holdings are up by 80% or more in 2019, helping to make their top three holdings worth a combined $7.9 billion. It represents nearly 45.8% of the firm’s total assets under management, according to data compiled by WhaleWisdom.

Shares of Seattle Genetics Inc. (SGEN) have soared by more than 81% in 2019, while Acadia Pharmaceuticals, Inc. (ACAD) has seen its stock rise by more than 150%. With the two stocks soaring, so too has the Baker’s profits.

(WhaleWisdom)

Seattle Genetics

At the end of the fourth quarter of 2018, the Bakers held 51.0 million shares of Seattle Genetics, with a market value of about $2.9 billion. The stock has soared since the end of September, following the reporting of positive data on two of its cancer drugs in development. Currently, the stock trades for around $102.70, which is up from $56.65 at the end of 2018. Despite selling about 990,000 shares in the second quarter of 2019, the Bakers still own about 50 million shares worth an approximate $5.1 billion, a profit of nearly $2.2 billion.

Acadia Pharmaceuticals

Acadia Pharmaceuticals’ stock has jumped even more. The Bakers held 39.7 million shares of Acadia at the end of 2018, a position with a market value of about $642 million. Shares of the bio-pharmaceutical company have risen from roughly $16.15 to $41.55 on October 25. The stock took a massive leap higher in early September, after the company announced positive results for its drug in development for dementia-related psychosis. Not only that, but the Bakers bought more shares of the stock in a secondary offering following those positive results, increasing their stake in the company to 41.1 million shares, while the market value has soared to around $1.63 billion. Of course, not all of the $1 billion gain is profit, because the Bakers bought more stock, but this is still a massive gain.

Overall, it is hard to deny that the investment advisor is having a stellar year. Not only that, but the firm’s second-largest holding, Incyte Corp. (INCY), is having a decent year too, up by more than 22%. Meanwhile, Alexion Pharmaceuticals Inc. (ALXN) is up about 8% and BeiGene Ltd. (BGEN) is down about 1% to round out their top 5 holdings.

Not a bad year for the investment firm. Not a bad year at all.

This entry was posted on Monday, October 28th, 2019 at 8:55 am and is filed under 13F, Hedge Fund News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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