Rock Springs Capital Management’s Top 5 Largest Stock Picks
Rock Springs Capital Management is a Baltimore-based hedge fund founded in February 2013 by Kris Jenner. Prior to that, Jenner had spent 14 years working at T. Rowe Price Group, managing its $5.8 billion Health Sciences Fund. Rock Springs is a long/short equity fund specializing in the health care sector. It is currently run by Jenner, Gordon Bussard and Graham Mcphail.
In the latest round of 13F filings, Rock Springs has released its first 13F form. The equity portfolio of the fund, with a total value of nearly $280 million, revealed an interesting mix of healthcare stocks, which represent almost 70% of the portfolio.
Top dog is Gilead Sciences, Inc. (NASDAQ:GILD), in which Rock Springs reported ownership of 285,000 shares valued at $21.4 million. The stock is currently trading at $84 per share, with a trailing Price to Earnings (P/E) ratio of 46.01. It has a beta of 0.63 and does not pay a dividend. For the three months ended December 31, 2013, Gilead Sciences reported revenues of $3.12 billion and earnings of $0.47 per share.
The second spot is taken by Biogen Idec Inc (NASDAQ:BIIB). The fund has acquired some 370,000 shares, reportedly worth $20.5 million. With a current price of $351.23, the shares are traded at a P/E ratio of 44.96 and have a beta of 0.99. For the fourth quarter of 2013, Biogen Idec posted revenues of $1.9 billion and Earnings Per Share (EPS) of $1.91.
Rock Springs is also bullish on AbbVie Inc (NYSE:ABBV), a drug manufacturer with worldwide presence. The fund currently holds 225,000 shares valued at approximately $11.9 million. The company has a market cap of $81 billion and shares are currently priced at $51 a piece. The stock is traded at a trailing P/E ratio of 19.86 and pays an annual dividend of $1.6, which represents a 3.1% yield. During Q4 of 2013, the company registered revenues of $5.1 billion and earnings of $0.73 per diluted share.
Next up is Celgene Corporation (NASDAQ:CELG). Jenner, Bussard and Mcphail have bought 62,000 shares worth approximately $10.5 million. This biotechnology company has a market cap of $67.4 billion and shares are traded at $164.17 per unit. With a trailing P/E ratio of 48.67, the stock does not pay a dividend and has a beta of 0.96. For the fourth quarter of 2013, Celgene posted revenues of $1.75 billion and earnings per share of $0.71.
Last but not least is McKesson Corporation (NYSE:MCK), a wholesaler of pharmaceuticals and medical supplies, operating mainly in United States. Rock Springs has reported ownership of 63,000 shares worth approximately $10.2 million. McKesson shares are traded at $177.41 and have a trailing P/E ratio of $33.13. The stock has a beta of 0.66 and pays an annual dividend of $0.88, which represents a yield of 0.5%. For the three months ending December 31, 2013, the company announced revenues of $34 billion and earnings of $0.83 per diluted share.