Conan Laughlin’s North Tide Capital Loves These Stocks
Boston-based North Tide Capital was founded by Conan Laughlin in 2011. The fund focuses on the healthcare industry and has an estimated about $850 million in assets. Prior to North Tide Capital, Conan served as a portfolio manager at Israel Englander‘s Millennium Management LLC from 2005-2011. He graduated from the College of William and Mary in 1995.
In its latest 13F, North Tide Capital revealed a total of 28 positions as held at the end of the fourth quarter of 2013. The value of the fund’s equity portfolio amounted to around $1.1 billion, up from $953.3 million disclosed in the third quarter. From North Tide Capital’s 13F, we have picked the top five largest holdings in term of value.
On the top position is Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), in which North Tide Capital boosted its stake to 2.75 million shares from 2.33 million. The value of holding was $110.2 million. Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) develops, produces and markets generic drugs in all treatment categories. Jeffrey Altman’s Owl Creek Asset Management, in its most recent 13F, disclosed initiating a new position in Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), acquiring 1.18 million shares of the company.
The fund trimmed its position in WellPoint Inc (NYSE:WLP) to 900,000 shares from 1.05 million held previously. The company is one of the leading health benefits companies in the United States, and had a market cap of $27.6 billion. Jean-Marie Eveillard’s First Eagle Investment Management is one of the largest shareholders of the company, owning 5.28 million shares.
WellPoint Inc (NYSE:WLP) reported fourth-quarter 2013 net income of $148.2 million, or $0.49 per share, compared to $464.2 million, or $1.51 per share in the same period in 2012. Full-year 2013 net income totaled about $2.5 billion, or $8.20 per share, compared to $2.7 billion, or $8.18 per share, in 2012.
For full-year 2014, the company expects net income to be greater than $8.20 per share, driven by growth of 1.0 to 1.3 million net new medical members and mid-single digit percent increases in both operating revenue and operating gain, according to a statement.
North Tide Capital liked Select Medical Holdings Corporation (NYSE:SEM) as the fund raised its stake in the company to 7.0 million shares, worth $81.3 million, from 4.0 million shares held previously. Select Medical Holdings Corporation (NYSE:SEM) operates specialty hospitals in the United States, and as of December 31, 2013, it operated 108 long-term acute care hospitals and 15 acute medical rehabilitation hospitals in 28 states. Another investor Chuck Royce’s Royce & Associates disclosed owning 1.40 million shares of the company at the end of 2013.
In January 2014, Select Medical Holdings Corporation (NYSE:SEM) announced its business outlook for calendar year 2014. The company said it expects consolidated net operating revenues for the full year 2014 to be in the range of $3.05 billion to $3.15 billion. It expects net income before interest, income taxes, depreciation and amortization, stock compensation expense, other income/(expense), and equity in earnings/(losses), or adjusted EBITDA for the full year 2014 to be in the range of $365 million to $385 million. The company forecasts fully diluted income per common share for the full year 2014 to be between $0.84 and $0.93.
In Actavis plc (NYSE:ACT), North Tide Capital disclosed ownership of 450,000 shares, with a reported value of $75.6 million. The stake represents an increase from 100,000 shares the fund held previously. Actavis plc (NYSE:ACT) is a global, integrated specialty pharmaceutical company focused on developing, manufacturing and distributing generic, brand and biosimilar products. The company’s net revenue increased 59% to $2.8 billion for the fourth quarter ended December 31, 2013, compared to $1.8 billion in the fourth quarter 2012. For the full-year 2013, net revenue increased 47% to $8.7 billion, compared to net revenue of $5.9 billion for full year 2012, according to a statement.
North Tide Capital was bullish on Healthways Inc. (NASDAQ:HWAY), raising its position to 3.85 million shares from 2.80 million shares. The value of holding was $59.1 million. Healthways Inc. (NASDAQ:HWAY) is the largest independent global provider of well-being improvement solutions, and has a market cap of $565.1 million.
In addition, North Tide Capital sold out its stakes in Weight Watchers International Inc. (NYSE:WTW) and Volcano Corporation (NASDAQ:VOLC), previously owning 350,000 shares and 800,000 shares, respectively.