Much has written about the Baker Brothers taking a large stake in XOMA during Q3/Q4 2012. As many of you know, the stake has increased to roughly 30-40% of the company's stock. While the Bakers Brothers are less than perfect, their recent track record has been extremely impressive. With this large stake, a member of their team (Kelvin Neu) has been added to the Board of Directors. This is significant as the Baker Brothers have a high-level of expertise in assisting small biotech companies as they move closer to commercialization (see the recent examples of Seattle Genetics and Pharmacyclics as an example).
In addition, Fidelity continues to build a large stake in XOMA - and now owns ~10% of the outstanding shares. Based on the ownership across multiple mutual funds at Fidelity - it appears that the investment company is making a "bet" across multiple funds in their shop. I view this as a major level of support since multiple fund managers recognize the unbelievable value that exists with gevocizumab especially at a market cap that is roughly $250M. Big year ahead for this company.