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Eversept Partners’ Return, AUM, and Holdings

Nina Zdinjak

Eversept Partners is a New York-based hedge fund that focuses on investing in companies from the healthcare sector. It was founded by its current portfolio manager Mr. Kamran Moghtaderi, who previously worked as an Analyst and Portfolio Manager at Apis Capital Advisors, LLC. Mr. Moghtaderi’s investment experience is much more extensive than this, as prior to joining Apis Capital Advisors ,LLC he was a Global Research Analyst at J&W Seligman & Company where he managed life sciences sectors (from pharmaceuticals to devices and healthcare services), and prior to J&W Seligman & Company he worked at Gambro Group.  Mr. Moghtaderi holds a Masters in Business Administration from Harvard University, and a Bachelor of Science in Biology from the University of Los Angeles.

The fund is an advisor of Eversept Global Health Care Fund, L.P, a long/short global healthcare equity fund, which was launched by Mr. Moghtaderi in 2011. The fund’s investment philosophy turned out to be very efficient, as it had some very good years in terms of returns. Eversept Global Healthcare Fund, L.P. delivered a return of fantastic 38.31% in 2013, 43.43% in 2014, 11.30% in 2015, 43.39% in 2016, 2.24% in 2017, and 9.11% in 2018 (since January until October 29). Its total return amounted to 233.49%, compound annual return was of 17.42%, and its worst drawdown was 12.14. As reported in the fund’s Form ADV from July 26, 2018, it has around 370,79 million in regulatory assets under management.

Eversept Partners’ Return, AUM, and Holdings

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At the end of the third quarter, Eversept Partners’ portfolio was valued around $207.75 million, after the fund has added 20 new positions and dumped around 22 companies. The biggest position the fund held on September 30 was in Zogenix, Inc. (NASDAQ:ZGNX), and it included 419,279 shares, with a value of $20.8 million. The fund doesn’t look for the companies that are being widely popular, hence it hasn’t invested in any of the 30 most popular stocks among hedge funds in Q3 of 2018. More details about the fund’s third quarter portfolio changes you can find on the next page.

The second largest holding the fund disclosed at the end of the third quarter was in R1 RCM Inc (NASDAQ:RCM), and after the fund has lowered its stake by 7% it counted 1.69 million shares valued $17.12 million. This is a healthcare revenue cycle management company that provides services to hospitals and various other healthcare institutions. Over the past 12 months, the company’s stock gained 81.8%, and at the moment of writing, it is trading at $8.09.

Among the biggest new additions to Eversept Partners’ portfolio were Merck & Co., Inc. (NYSE:MRK), Danaher Corporation (NYSE:DHR), and Xenon Pharmaceuticals Inc (NASDAQ:XENE). In Merck & Co, it has initiated a position that was valued $10.56 million, counting 147,800 shares, while in Danaher Corporation it has built a stake worth $3.87 million, which included 35,604 outstanding shares. It Xenon Pharmaceuticals it has established a valuable position of $2.77 million, by obtaining 209,739 shares. While Merck & Co are both pharmaceutical companies, Danaher Corporation is a more diversified company that produces a variety of professional medical, commercial and industrial products. Year to date, Danaher’s stock gained 7.97%, and it is currently trading at $99.81.

Among the biggest sold out positions in the third quarter were those in BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) and Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY). In BioMarin Pharmaceutical, Everspet Partner sold out a stake that was valued at the end of the second quarter at $7.94 million, on the account of 84,257 shares. And, in Alnylam Pharmaceuticals the fund dropped its position which was worth around $6.25 million and counted 63,493 shares.

Disclosure: None

This article was originally published at Insider Monkey.